Less Than Good News from Germany
Source: http://feedproxy.google.com/~r/qvmgroup/yrMF/~3/b-1PiuggrU4/6593Posted on Sunday, October 25th, 2009 | In Europe, Investing Lessons, Market Commentary
The elections are over in Germany and the new finance minister is making sobering statements about recovery. Germany is a major part of the European economy. With Italy limping and Spain bleeding, Germany’s statement is hardly welcome.
New York Times (October 25, 2009)
“Germany’s new finance minister, the veteran conservative politician Wolfgang Schäuble, moved swiftly Sunday to assert his power and tell his compatriots and the world that the finances of the largest European economy were dire and would take years to mend. … It was “utopia” to believe that the budget could be balanced during this legislative period that lasts four years, he said. … The programs announced for the new government included a €24 billion, or $36 billion, cut in taxes, which Mr. Schäuble had opposed as unrealistic given the parlous condition of state finances and the continuing uncertainty over the stability of German banks.”
The IMF recently published their forecasts for 2009 and 2010 growth for key countries and regions. Germany (as well as Italy and Spain) are lower performers in that list. France and the U.K are expected to grow faster than the other listed European countries, but not as fast as Japan, the U.S. or Canada.
click image to enlarge
Related funds: Germany (EWG), Italy (EWI), Spain (EWP), United Kingdom (EWU), France (EWQ), Europe (VGK), United States (SPY), Canada (EWC) and Japan (EWJ).
Perhaps Europe’s stock markets have gone too far too fast, as the U.S. market seems to have done when looking at prices from a fundamental valuation perspective instead of a momentum perspective.
Disclosure: We own SPY, VGK and EWC in some managed accounts.
Richard Shaw
QVM Group LLC
Last 5 posts by Richard Shaw
- Are negative yield money funds next? - November 19th, 2009
- Old Normal Allocation Becomes New Normal? - November 17th, 2009
- Very Long-Term Asset Allocation Results - November 8th, 2009
- U.S. Healthcare Legislation Investment Impact - November 8th, 2009
- Quality Individual U.S. Companies - November 7th, 2009
 About Richard Shaw (http://www.QVMgroup.com)
Richard is a principal of QVM Group LLC, a fee-based investment advisor based in Connecticut with clients across the country. He provides investment coaching to "do-it-yourself" investors, and manages portfolios for those who prefer not to make their own decisions. His investment approach is based on value, asset allocation, benchmarking, expense control, risk management, customizing portfolios to each client's specific circumstances, and regular communication about strategy and performance. The QVM Group team also provides municipal refinance services, strategic business planning and financial analysis service for new ventures, private acquisition analysis, and custom investment research. Richard's extensive experience, includes serving on the Board of Directors of Aberdeen Asset Management PLC (London Stock Exchange: ADN), membership on the Board of Directors of Phoenix Investment Counsel (renamed Virtus Investment Advisors), a U.S. pension manager and investment advisor to the Phoenix Funds (renamed Virtus Funds), as well as serving as Managing Director of a series of offshore investment funds based in Luxembourg. He has led institutional asset management sales and had overall responsibility for management of a U.S. mutual funds broker-dealer. He was a charter investor and member of the Board of Directors of several internet companies, including Lending Tree prior to its IPO. He is a graduate of Dartmouth College. QVM Group LLC is a Registered Investment Advisor. Visit the QVM Group website http://www.qvmgroup.com/QVMinvest/ |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.