Etoile Brilliant

ETF Pick of the Week: Sweden

1. Ericsson is a stock that is traded by 90% of investing Swedes not on rationale but national pride. Beware the bubble.

2. Anders Borg is good but with two years to the election, it will be a miracle if Reinfeld's government can pull off what no other conservative government has ever managed to do - a second term.

3 Swedish banks are in as dire state as the rest of the world's. Not sub-prime but exposure to the Baltic economies.

4. Agree. Sweden's finances are in excellent shape compared with any other OECD economy (Norway and Finland excluded). I'm not sure how that benefits shareholders though.

5. SEK is a yo-yo currency. Whilst the Sweden's budget surplus is still intact, even the Riksbank realises how fragile the curency markets have been /will be. They are forever writing long term FX swaps with the ECB whenever opportunity arises as they realise that should the swap markets dry up again, Sweden and its major companies and bank's have big USD and EUR exposure.

I agree the Sweden ETF looks interesting but beware the risks having an independent SEK brings. This is not a currency of last resort like NOK.