Germany’s Economy Is in a Bad Slump. Why These 6 Stocks Could Rebound.

Germany’s economy, historically the powerhouse of Europe, is going through a rough patch. Its reliance on Russian energy and trade with China will have to be scaled back and new sources of growth found. Investment will be needed and it will take time. As a result, the country’s stock market has markedly trailed the U.S.’s, climbing 8.7% against the S&P 500‘s 14%.

Germany’s gross domestic product declined in the third quarter, bringing down the rest of the euro zone with it. The Organisation for Economic Growth and Development expects Germany to be the second worst performer in its group of 30 advanced economies this year, ahead only of Argentina. It will be among the worst next year, too.

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German companies will probably struggle through the tough economic period ahead. But it would seem like a bad bet to count Germany out for the long term. Given the country’s propensity to bounce back in the past, there are at least six contrarian investments that could be winners. But first, it is important to understand the problems the country faces.

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