“The key question mark regarding the outlook for the second half of 2016 and for 2017 is, we believe, the extent to which real fixed investment will take over consumption as a major growth driver, in a situation where global demand could remain depressed for a longer period than currently foreseen,” Menut said.
Consequently, a scenario of slowing global demand will weigh on export-heavy industries in the Eurozone and regional-related ETFs. For instance, HEDJ tracks companies that derive at least 50% of their revenue from countries outside of Europe.
WisdomTree Europe Hedged Equity Fund
For more information on the Eurozone, visit our Europe category.
Full disclosure: Tom Lydon’s clients own shares of HEZU
Max Chen contributed to this article.