Importantly, Germany ETFs are not lacking for near-term catalysts.
“While we do not know what the immediate aftermath would involve, it is prudent to remember that the European Central Bank (ECB) could reduce the deposit rate even further than the current -0.20% at any time. You can debate the reasoning, timing or the probability all you want but the fact remains this ‘tail’ exists and somewhere that ‘risk’ premium needs to be discounted,” said Rareview Macro founder Neil Azous in a note out Wednesday.
DBGR and DXGE were two of just 12 ETFs that hit all-time highs Wednesday.
Deutsche X-trackers MSCI Germany Hedged Equity ETF
Tom Lydon’s clients own shares of HEDJ.