ETF Investing With France's Sarkozy

Nicolas Sarkozy’s victory in the recent French presidential elections promises to deliver a dose of Thatcherism to the sclerotic French economy. The shift to the right should also be confirmed in the forthcoming parliamentary elections given projections of victory for Sarkozy’s UMP Party.

After Sweden turned to the right in its 2006 elections, Swedish stocks outperformed the rest of Europe. One might now expect a similar scenario for France.

That makes the iShares MSCI France Index (EWQ) exchange traded fund [ETF] an interesting consideration. If one wants to hedge and just play relative performance to the rest of Europe, add a short position in a broad European ETF like the iShares MSCI EMU Index (EZU) fund.

EZU and EMU 1-yr. chart:

Comments

[Sonia Mirza:]

hmm interesting...

esp when coupled with the tone of the bnp paribas call and the stock's performance since.
I know, only 1 co, and theyve been working at it for a while, but still...interesting to see your angle now juxtaposed with performance

2007 May 23 08:21 PM

[marq:]

Germany announced a current budget surplus. That has to lead to further strength for Euro and possibiliy of lower rates, or the unthinkable--lower taxes. I went long with EWG.

2007 May 24 03:08 PM