Europe may be known for slow growth in 2006, but in the next year the region could outpace the U.S. and be an investment opportunity for exchange traded funds(ETFs).  Prospects look good with cheap labor and fast-growing markets in its favor. As BusinessWeek points out, there was a frenzy over utilities and infrastructure companies in European stocks. The new terrain seems to uncles telecommunications, media and technology. Investors seem to be interested in sectors that have not already hit their growth potential.

Even with a favorable outlook for 2007, 2006 hasn’t been too bad for the European ETFs.  streetTRACKS Dow Jones Euro STOXX 50 (FEZ) is up 27% year-to-date, iShares MSCI EMU Index (EZU) up 34%, and iShares S&P Europe 350 (IEV) up 31%.

For full disclosure, some of Tom Lydon’s clients own EZU shares.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.