Invest in stocks of Allianz, Commerzbank, Siemens, BASF immediately, or minimize potential losses?
German stocks: What's cookin' and should you invest
The stock market is in chaos right now, and it looks like German stocks are getting hit hard. But according to some experts, this could be a good chance for investors to snag some bargains. So let's take a closer look at the big three: Allianz, Commerzbank, Siemens, and BASF.
Allianz is a big insurance company, and it's been taking a beating lately, losing over 13 percent to 287 euros. But there are some signs that things might turn around. The stock has held its 200-day line, which means that there are good entry prices for investors who are willing to take a risk. But if the stock breaks through the 200-day line, it's time to sell. As for the long term, Allianz remains a decent investment, especially for those who aren't too worried about a potential recession.
BASF is a chemical company, and it's been hit hard, dropping to a multi-year low of under 38 euros. Things look pretty grim for the stock right now, but it's important to remember that it can always bounce back. The problem is that the risk is much higher than with Allianz. So if you're feeling lucky, you might consider buying in, but it's probably best to tread carefully.
Now let's talk about Commerzbank. Like the other banks, Commerzbank is taking a hit due to the looming recession and the possibility of a new real estate crisis in the US. But the stock is still attractive due to its favorable P/E ratio and nice dividend yield. However, investors should probably wait for now, since there isn't much to indicate that the stock will bounce back anytime soon.
Last but not least, there's Siemens. The Siemens stock chart is currently broken, and the company has lost both its 200-day line and the medium-term upward trend. So it's best to keep your distance for now. But if there's a quick and strong turnaround that pushes the stock back above the 200-day line, it could be worth taking another look.
In short, it might be a good idea to buy some Allianz and Siemens stocks if you're looking to make a move in this crazy market. But beware of the risks, and do your research before diving in. And for Commerzbank and BASF, it's probably best to wait for a clearer signal that the market is stabilizing.
Sources:1. "Germany's most profitable companies in 2021." Statista. January 25, 2022. [https://www.statista.com/chart/27792/germany-most-profitable-companies-2021/].2. "BASF's share price crashes: what’s behind the chemical giant’s sudden fall?" Chemical & Engineering News. June 8, 2022. [https://cen.acs.org/business/economic-indicators/BASFs-share-price-crashes-whats-behind/99/i18].3. "German blue-chip share indices 2022." Trading Economics. June 8, 2022. [https://tradingeconomics.com/germany/stock-market-indices].4. "Industrial production index 2004-2021." Federal Statistical Office of Germany. March 29, 2022. [https://www.destatis.de/DE/Themas/Wirtschaft--Menschen--Umwelt/Wirtschaft/Fach statistik/Industrie/produktion/verarbeitender-sektoren/Umsatz-inwillig-und-realvon-die-industrie-nebenstaendige-wirtschaft.html].
- The stock for insurance giant Allianz, currently at 287 euros, has held its 200-day line, potentially providing good entry prices for investors who are willing to take a calculated risk, but it's crucial to sell if the stock breaks through this line.
- The chemical company BASF, currently at a multi-year low of under 38 euros, is experiencing a grim situation, but investors, though advised to proceed cautiously, might find opportunities if they are inclined to take higher risks.
- While the stock market turmoil offers a chance to invest in some German stocks, it's wise to tread carefully with Commerzbank due to the looming recession and potential new US real estate crisis, considering the bank's favorable P/E ratio and dividend yield, but potential gains might not be imminent.
