Vanguard FTSE Europe ETF: Time To Start Looking Beyond The Gloom

Chetan Woodun profile picture
Chetan Woodun
5.91K Followers

Summary

  • The market seems to have priced in a lot of the negativity around geopolitical risks following the Ukrainian conflict, high commodity prices, a falling euro, and recession fears.
  • However, to be more precise, Europe consists of many countries which have been impacted differently by the above woes.
  • It is the same for the holdings with VGK's providing exposure to other sectors in addition to industrials, which should suffer the most.
  • Moreover, Europe remains a developed common market, with economic resiliency inbuilt at the country level including its corporations.
  • Bearing the hallmarks of a "predictable recession" rather than a normal one that cannot be foreseen, the corporate environment is not necessarily so gloomy when one takes the time to investigate deeper.
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There has been a tendency to lump the whole European continent together and predict the worst-case scenarios in the aftermath of the Ukrainian war, rising fuel costs, and falling euro following the ECB review of monetary policy. With so much negativity priced in, the

This article was written by

Chetan Woodun profile picture
5.91K Followers
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I have also been a mediocre entrepreneur in real estate, and a farmer, and like to dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I regularly contribute peer reviews and opinions for enterprise tech and help needy families by providing sponsored work.As for Research, I started with Tech stocks before going Multi-Tech with Fintechs, Biotechs, and Cryptotechs.I have been investing for the last 25 years, initially in mutual funds where the "learned economists" would always advise you to "think long term". Got a lot of experience in the 2008/2009 downturn when I lost a lot. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best financial advisors.We live only once but can have many "investment lives" especially when investing in individual stocks.

Disclosure: I/we have a beneficial long position in the shares of NVS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.
I am long Lyxor CAC 40 (DR) UCITS ETF, Xtrackers XDAX INCOME ETF, and Lyxor Core UK EQ ALL CAP DR ETF.

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