Maybe Octoberfest glee has spread to Germany’s exchange traded fund. Currently, iShares MSCI Germany Index (EWG) is up 28.6% year-to-date.
More than likely though, something else is behind EWG’s strong performance. One of the factors could be that Asia, and the growing economies within the region, has become the most important export market for the German economy, reports Henrik Bohme for Deutsche Welle. This is excellent news, as Germany is an export-oriented country. However, as the euro continues to hit new highs, and exchange rates move farther apart, the exports could suffer.
Germany’s economy is also known for its iron, steel, coal, cement, chemicals, vehicles and electronics industries. Corporate restructuring and growing capital markets could help Germany meet globalization and European economic integration demands, according to the CIA World Factbook.
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.