(New York)

Quickly, name a sector that Wall Street hates right now. Auto stocks should come to mind. The car industry is in a sales downturn and is in the midst of broader upheaval brought on by electric cars, new competitors, and changing ownership patterns. The Nasdaq Auto Index is down almost 20% in the last year. However, all the changes have created an opportunity to buy into the sector, but not in car companies themselves. Instead it is high tech car suppliers that look attractive as they have a unique niche to fill in the changing industry. Check out Aptiv, Visteon, and BorgWarner.

FINSUM: This seems like a smart way to play all the shifts happening in the automobile industry.

(Washington)

In what comes as a surprise, the new iteration of the DOL rule may in fact be multiple rules bundled into a package. A lawyer from well-respected industry law firm Drinker Biddle & Reath says they have credible rumors that there will be multiple new rules, and that they will be friendly for those in the industry. The firm says that the new rules will likely be based on the old 1975 five-part test, and that the Best Interest Contract Exemption will be replaced. The new DOL package is also supposed to harmonize well with the SEC’s new Best Interest rule, which was approved in June.

FINSUM: It is good news that this rule is supposed to be more friendly to those in the industry, but it is worrying that there may be multiple rules. The more components there are to the rule, the more likely it will be that it is unclear.

(New York)

It has been a rough road for equities this month. Benchmarks are down 5% and there has been frequent whip-sawing action based on data and news over the trade war. Despite the fears, JP Morgan is telling investors that it is time to buy. The bank’s equity strategists, led by Mislav Matejka think that stocks are going to turn the corner very soon. The bank thinks three elements may catalyze a move higher into the year end—restarted ECB easing, a bigger than expected Fed rate cut, and improving technical indicators on signs the market has bottomed out.

FINSUM: The Fed and the ECB could certainly help support stocks, but it hard to imagine benchmarks gaining much if we keep up the frenzy of trade war news.

(New York)

There are a lot of worries in the market that a recession may be headed the way of both the world generally, and the US more specifically. However, two analysts from well-respected Ned Davis Research have a different opinion. Of their 10 recession indicators which they watch, only one is signaling a recession. In particular, they dismiss five of the market’s biggest worries: the inversion, market breadth, deteriorating economic signals, earnings deceleration, and the trade war.

FINSUM: These guys seem overly optimistic. One of our big questions is whether some weakening signs in the economic actually point to a recession, or are they just part of a temporary ebb.

(Berlin)

American investors keep hearing the same warnings—Europe is slowing, and the malaise is coming for you! But in truth, how bad is the German, and EU economy really looking? The answer is that it is doing quite badly. The manufacturing sector has entered a recession in Germany (the bloc’s largest economy), and the central bank says the country is likely to enter a recession in the third quarter. A big test is going to come this week as numerous consumer data points will be released.

FINSUM: If the gloom has spread to consumers, a recession would appear to be inevitable. The market has sky-high expectations for ECB easing, so let’s hope they are met!