July 13, 2007 at 11:29 am by Tom Lydon
Europe has been kicking our butts lately when it comes to exchange traded funds (ETFs) and their performances. But why?
One reason could be the new wave of political reform across several European countries, including Germany, Sweden, Belgium and France. The newly-elected, center-right leaning leaders tend to drive bull markets, says Carl Delfeld of ETF XRAY. And although our market has hit new highs, so have the European markets.
In addition, Europe’s overall economy has been stronger than ours. Since the end of 2006, Europe’s GDP has outpaced America’s. The euro is at new highs against the dollar (today it reached $1.38) and the yen. Unemployment is down to 7%, which is the lowest it has been since the euro was created in 1999, according to The Economist.
Every dog has its day; it’s only a matter of time before the United States is in the lead again.
- iShares MSCI Germany Index (EWG) - up 29% year-to-date
- iShares MSCI Sweden Index (EWD) - up 21% year-to-date
- iSHares MSCI France Index (EWQ) - up 17% year-to-date
- iShares MSCI Belgium Index (EWK) - up 11% year-to-date
For full disclosure, some of Tom Lydon’s clients own EWG.
Tags: Belgium, Europe, EWD, EWG, EWK, EWQ, France, Germany, Sweden
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July 13th, 2007 at 12:34 pm
I do not think it is a sure thing that the US will return to creating wealth at a rate greater then the rest of the world. To me, the markets of Latin America and Asia appear to be the place to invest for the foreseeable future. The isolationism America is experiencing is not going anywhere - quite the opposite.
July 13th, 2007 at 3:39 pm
Yes, we agree that Latin America and Asia are experiencing lots of growth.
July 14th, 2007 at 5:55 pm
To anyone who is reading this,
In regards to the U.S., I think its a great place in terms of living….There are quite a bit of positives like safe way of life, etc…Has everyone been familiar with 1971 regarding the U.S and the attachment or detachment of gold to U.S. dollar?…well, if not familiar, most certainly read about it..In terms of U.S growth from 70s-up through 80s, 90s, etc…once you read about 71 you may understand why persay U.S. dollar really shot up and moved up dramatically….I feel there are growing avenues all over the world…nobody is in 1st forever, this changes on and off…The great thing about ETF world is precisely that…there is a global world in front of you at your finger tips…providing you are aware of the global economies and when is time to buy x or sell y…As I have said, the ETF world is indeed a very special thing to have at your finger tips.
Wise Investing,
Adam Weinstein (ex-broker)