Strong exports have been key in Germany’s latest economic growth, sending focused stocks and exchange traded funds (ETFs) upward. A stronger euro is a worry that exports from the euro zone will be less desirable and competitive in overseas markets. As a result, German investors confidence has plunged to its lowest level in 14 years, as the U.S. subprime mortgage crisis fuels expectations of a "significant economic downturn".

The Associated Press reports that the continuously extending subprime crisis has financial market experts readjusting economic expectations. The ZEW’s index, a measure of investors economic expectations for the next six months, fell to -32.5 points in November, from -18.5 points the previous month. iShares MSCI Germany Index (EWG), currently up 31.7% year-to-date, may reflect any expectations about the German economic environment.

Ewgchart

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.