Can Austria’s ETF Stay Ahead of Dire Forecasts?
Aug. 10, 2009 7:49 AM ETiShares MSCI Austria Capped ETF (EWO)
Tom Lydon
78.47K Followers
Not all countries are going to roar back to recovery. Austria’s economy, along with its related ETF, may languish for a while until demand for Austrian exports once again resumes.
What’s got Austria in such a funk?
- Austria’s Central Bank estimates the country’s GDP will drop 3.8% in the second quarter and 4.1% in the third quarter, compared to the same periods last year, report Sylvia Westall and Mark Heinrich for Forbes.
- The Central Bank expected an overall 4.2% GDP contraction this year followed by another 0.4% in 2010 because of poor exports and investments. Germany, which usually takes in around a third of Austria’s exports, has not been faring too well.
- The Austrian Higher Study and Economic Research Institute recently noted that the unemployment rate in Austria could reach a record 8.8% in 2010 as the country’s economy remains relatively weak, China View states. Unemployment is currently around 7.7%, up from 5.8% in 2008.
- The institute goes so far as to claim Austria is in such a rut that it will take until 2013 for a recovery. The director of the institute thinks the economy will hover around a 0.5% to 1% gain in 2010. The institute forecasts a low inflation rate of 1.4% by 2013.
- iShares MSCI Austria Investable Mkt Idx (EWO): up 43.5% year-to-date
Max Chen contributed to this article.
This article was written by
78.47K Followers
Tom Lydon is editor and publisher of ETF Trends, a website with daily news and commentary about the fast-changing trends in the exchange traded fund (ETF) industry. Mr. Lydon is also CEO of Global Trends Investments, an investment advisory firm specializing in the creation of customized portfolios for high-net worth individuals. He has been involved in money management for more than 25 years. Mr. Lydon serves on the Board of Directors for U.S. Global Investors, Inc. and Guggenheim Investments. In early 2010, Mr. Lydon helped create the CNBC Model ETF Portfolios. Mr. Lydon is the author of The ETF Trend Following Playbook, as well as iMoney: Profitable Exchange-Traded Fund Strategies for Every Investor. He is Co-Founder of Virtual Summits, educational virtual events for financial advisors.
Visit his site: ETF Trends (http://www.etftrends.com/)
ETF Virtual
The ETF Virtual Summit is the largest exchange traded fund (ETF) investment conference in the world. ETF Trends and RIA Database host this complimentary, interactive conference that exists completely online. The virtual showroom features keynote speakers, panel webinars, an exhibitor hall, a networking lounge and hot topic forums. Designed exclusively for Financial Advisors, this conference allows you to interact with experts in the ETF industry in a unique, virtual environment, avoiding the hassles and costs of traveling. Details on the conference, including agenda, past attendee statistics and sponsor information can be found at www.ETFVirtual.com.
Alts Virtual
The Alts Virtual Summit is the leading Alternative Investment conference for financial advisors. ETF Trends and RIA Database host this complimentary, interactive conference that exists completely online. The virtual showroom features keynote speakers, panel webinars, an exhibitor hall, a networking lounge and hot topic forums. Designed exclusively for Financial Advisors, this conference allows you to interact with experts in the Alternative Investment industry in a unique, virtual environment, avoiding the hassles and costs of traveling. Details on the conference, including agenda, past attendee statistics and sponsor information can be found at www.AltsVirtual.com.