On the other hand, investors should not gloss over the fact that analysts are far from enthusiastic in their assessments of banks in the PIIGS and have recently pared earnings estimates for those institutions.
There is good news. Italian companies could be bid higher due to lower emerging markets exposure than other European markets. Plus, Italian equities are less expensive than German equivalents, though that is by virtue of the “resiliency premium” investors place on German stocks. [A Different Way to Profit With Germany ETFs]
Yields on 10-year Italian sovereign debt has fallen more than 115 basis points since June, according to Bloomberg data.
More good news, as Trade With Pete notes, EWI showing stout relative strength against the ultra-popular Vanguard FTSE Europe ETF (NYSEArca: VGK).
