Sunday, 27 September 2015

Sherley sells EWG 24.7: Far from it: one of the key Continental indices, the German Dax, is down 12pc in just three months.

That makes the iShares MSCI Germany ETF (NYSEARCA:EWG) an interesting play, as is Volkswagen. The appreciation of the US dollar versus the euro has recently hindered their performance relative to the db x-trackers ETF. Tax and labour market reforms need to develop further and the government must ensure continued fiscal discipline. Structural unemployment may be as high as 18% and younger people find it particularly challenging to find work. There is still quite a hill to climb for the country despite the impressive quarterly growth.


Jenna:
Over time, due to these hard choices but also helped by falling energy prices, reduced systemic risk from peripheral eurozone nations, and a cheap euro which boosted exports, Spain has managed to improve its economic outlook greatly.

Genie:
Despite street demonstrations that turned violent on several occasions, most notably during the largest rally in Madrid in March 2014, as well as the rise of an anti-austerity left-wing opposition group, the government persisted with the reforms.

Lissette:
At this point, the government, led by Prime Minister Mariano Rajoy, implemented tough reforms that were widely unpopular.

Antonio:
The yields on 10-year government bonds in July 2012 was 7.5%, more than 5% above German bunds.

Lacie:
Exchange-traded funds linked to the Spanish equity market are accordingly bouncing back after being depressed for some time.

Bridget:
The country posted its strongest quarterly growth for eight years in Q2 2015, revising GDP expansion for the year to 3.3%, one of the strongest rates in the eurozone.

Denna:
So investors could jump into this space and could ride out the strength with any of the above-mentioned ETFs.

Meghann:
It has a Zacks ETF Rank of 1 or 'Strong Buy' rating.

Nikita:
The fund charges 50 bps in annual fees from investors and has delivered impressive returns of over 15% so far this year.

Zulma:
Here, financials and health care take the top two spots in terms of sectors with over 24% share each while consumer staples and energy round off the top four with double-digit exposure each.

Germany Index MSCI Ishares (AMEX:EWG)
//stockhand.net/us/?q=amex%3Aewg&id=283681

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