Automobiles and banks - two unloved sectors
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13 June 2018
Posted in
Special research
In recent weeks, two sectors in particular have made negative headlines: the automobiles industry and the banking sector. In both cases, these are coming from home-grown problems of individual companies as well as from a specific political component. Both together has strongly depressed investor sentiment in the sectors, resulting in an interesting constellation for contrary investors.
Since the “diesel” scandal for Volkswagen in the USA, the car industry has been in turmoil. The sluggish processing and ever new revelations burden the companies, as do political decisions such as the first driving bans in Germany and new product recalls at Daimler. For investors this is too much, and they lower their thumbs above the sector. The current mood is not as bad as it was at the height of the crisis last autumn. But with a z score of almost -2, a level has been reached that in the past promised opportunities for investors with contrary courage.
sentix Sector Relative Sentiment Automobiles and Relative Performance to STOXX 600
Another sector that has once again made the headlines in recent weeks is the banks in the euro zone. Company-specific reports, such as the ongoing crisis at Deutsche Bank, contributed to this, as did new concerns about the future of the euro zone. A look at the sentix policy barometer shows how strongly these have grown. Here we have taken up the stability of the euro zone as a new political factor, instead of the topic of "Greece". With a value of -0.68, the topic has become the second most important!
So it's no wonder that investors are also feeling very insecure and negatively affected here. Accordingly, we are also measuring strong pessimism here, which, however, has also reached a level where Contrarians are likely to look for op-portunities.
sentix Sector Relative Sentiment Banks and Relative Performance to STOXX 600
