German’s DAX has been beaten down and exists in the “squeezed middle of Europe” according to the head of equity strategy at HSBC, Peter Sullivan, who argues that investors are overlooking German equities in favor of the extremes of either the safe-haven U.K. stock market, or the risky periphery.
“I think Germany is being left aside and the valuations are starting to look interesting to me,” Sullivan told CNBC.
“The money you could spend to buy Apple and Microsoft, you could buy the entire DAX index and still have $67 billion spending money for your holidays. Risks are there – but they are now reflected in the valuations. We think the DAX index itself looks interesting,” he said.