Connect with us

archive

ETF Talk: Betting on the Iron Chancellor

With the European Union considering a third bailout of Greece and most of its member nations struggling with sluggish growth and crushing debt, one country has done significantly better than its neighbors. Germany has grown its economy under Chancellor Angela Merkel, while many other European economies have faltered. Known by her supporters as the “Iron Chancellor,” Merkel gives investors hope for political stability in that country. One way to invest in Germany is through the iShares MSCI Germany Index (EWG), an exchange-traded fund (ETF) that holds a wide cross-section of German companies.

Major holdings in EWG include insurers, software companies and carmakers, such as Volkswagen (VOW3.DE). Not only are those sectors doing reasonably well, but the fund could be helped by the upcoming national German election. With Merkel’s Christian Democrats now leading in the polls only a month before the election, investors should be able to avoid Germany’s economic recovery from careening off course due to the uncertainty that a new leader might bring. During the past year, the German DAX Composite Index has rallied 19% — a favorable sign for the country’s economy and the politicians currently in power.

To read the rest of this article, click here.

Advertisement
Advertisement

TRENDING NOW:

THE TRUTH ABOUT GLOBAL WARMING: REAL THREAT OR HYSTERIA?

archive

Dystopia Alert: A Decimating National Debt

archive

Guest Columnist: Why We Must Have a Border Wall

archive

Rising Social Agenda Brings Luster to Qualified Dividends

archive

archive

ETF Talk: Betting on the Iron Chancellor

With the European Union considering a third bailout of Greece and most of its member nations struggling with sluggish growth and crushing debt, one country has done significantly better than its neighbors. Germany has grown its economy under Chancellor Angela Merkel, while many other European economies have faltered. Known by her supporters as the ??Iron Chancellor,? Merkel gives investors hope for political stability in that country. One way to invest in Germany is through the iShares MSCI Germany Index (EWG), an exchange-traded fund (ETF) that holds a wide cross-section of German companies.

Major holdings in EWG include insurers, software companies and carmakers, such as Volkswagen (VOW3.DE). Not only are those sectors doing reasonably well, but the fund could be helped by the upcoming national German election. With Merkel??s Christian Democrats now leading in the polls only a month before the election, investors should be able to avoid Germany??s economic recovery from careening off course due to the uncertainty that a new leader might bring. During the past year, the German DAX Composite Index has rallied 19% — a favorable sign for the country??s economy and the politicians currently in power.

To read the rest of this article, click here.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

TRENDING NOW:

Connect