In recent months, whenever it seemed like the euro crisis was escalating, the big banks would sell off hard on worries over their financial exposure to the region.
Bloomberg’s Sara Eisen brought this up in a recent interview with Gina Martin Adams, Wells Fargo’s top equity strategist
However, Adams pointed out that there is another sector that is actually more exposed to Europe’s economy.
“In terms of absolute exposure, the materials sector is most exposed to Europe,” said Adams. “So if there is a true deceleration of economic growth there or a more severe recession, materials and energy will be hit fairly hard in real economic terms.”
On the stock markets, Adams warned that the S&P 500 would likely test 1,350 and then 1,300 before rising again.
Here’s her whole interview courtesy of Bloomberg: