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Return To Socialism In Europe Drives Stocks Down
As France and Greece change governments the return to socialism in Europe drives stocks down. The election of governments opposed to necessary Euro Zone austerity measures casts doubt on the long term Euro Zone investment outlook. Over the last three years officials in the European Union have forged a consensus as to how to handle potential debt defaults by Greece, Portugal, Spain, Ireland, and Italy. The consensus included severe austerity measures and huge loans to prop up ailing governments and the banks who had loaned them money. Along the way there were riots in Greece as pensions and health benefits were cut. Spain finds itself with a twenty-five percent unemployment rate. The consensus of voters in Greece and France was that Socialist governments would be willing to stimulate their economies, bring back jobs, and generate the cash to pay off debt along the way. As a return to Socialism in Europe drives stocks down it as apparent that investors and traders are voting with their money and the uncertainly unsettles them.
While the return to Socialism in Europe drives stocks down Greek bank shares are taking a hit as well. Fundamental analysis is crucial to successful investment and the fundamentals are uncertain now in Europe as the return to Socialism drives stocks down. A resumption of the level of uncertainty that reigned in Europe over the last couple of years could well affect the global economy. Exports are already down in China as Europe’s economy weakens. Weakened European banks are doing less business in Asia and credit for global trade is harder to get in Asia. Although United States manufacturing is in its 35th month of expansion the growth of jobs in the USA is slowing to a point where it is barely keeping up with population growth and not replacing jobs lost in the Great Recession that started in 2008. As the return to Socialism in Europe drives stocks down, investors are looking for bright spots in the global economy and save havens in case of another economic downturn.
We wrote recently about the best places on earth to invest. Currently investors do not include the Euro Zone on that list. However, if one believes in the so called “blood in the streets” approach to investing, there are probably some great stocks in the Euro Zone that are unjustifiably down in price. Picking new winners always requires a bit of foresight and the ability to tune out the static of day to day worries and focus on the long term. As a return to Socialism in Europe drives stocks down the Euro is suffering as well. Remember that companies based in Europe that export across the globe will, in fact, benefit from a cheaper Euro. As China seeks to make the Yuan a reserve currency they will need to let it float and probably rise with the market.
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3. As France and Greece change governments
the return to socialism in Europe drives
stocks down.
www.ProfitableInvestingTips.com
4. The election of governments opposed to
necessary Euro Zone austerity measures
casts doubt on the long term Euro Zone
investment outlook.
www.ProfitableInvestingTips.com
5. Over the last three years officials in the
European Union have forged a consensus
as to how to handle potential debt defaults
by Greece, Portugal, Spain, Ireland, and
Italy.
www.ProfitableInvestingTips.com
6. The consensus included severe austerity
measures and huge loans to prop up ailing
governments and the banks who had
loaned them money.
www.ProfitableInvestingTips.com
7. Along the way there were riots in Greece as
pensions and health benefits were cut.
Spain finds itself with a twenty-five
percent unemployment rate.
www.ProfitableInvestingTips.com
8. The consensus of voters in Greece and
France was that Socialist governments
would be willing to stimulate their
economies, bring back jobs, and generate
the cash to pay off debt along the way.
www.ProfitableInvestingTips.com
9. As a return to Socialism in Europe drives
stocks down it as apparent that investors
and traders are voting with their money
and the uncertainly unsettles them.
www.ProfitableInvestingTips.com
10. While the return to Socialism in Europe
drives stocks down Greek bank shares are
taking a hit as well.
www.ProfitableInvestingTips.com
11. Fundamental analysis is crucial to
successful investment and the
fundamentals are uncertain now in Europe
as the return to Socialism drives stocks
down.
www.ProfitableInvestingTips.com
12. A resumption of the level of uncertainty
that reigned in Europe over the last couple
of years could well affect the global
economy.
www.ProfitableInvestingTips.com
13. Exports are already down in China as
Europe’s economy weakens. Weakened
European banks are doing less business in
Asia and credit for global trade is harder to
get in Asia.
www.ProfitableInvestingTips.com
14. Although United States manufacturing is in
its 35th month of expansion the growth of
jobs in the USA is slowing to a point where it
is barely keeping up with population growth
and not replacing jobs lost in the Great
Recession that started in 2008.
www.ProfitableInvestingTips.com
15. As the return to Socialism in Europe drives
stocks down, investors are looking for
bright spots in the global economy and
save havens in case of another economic
downturn.
www.ProfitableInvestingTips.com
16. We wrote recently about the best places
on earth to invest.
Currently investors do not include the
Euro Zone on that list.
www.ProfitableInvestingTips.com
17. However, if one believes in the so called
“blood in the streets” approach to
investing, there are probably some great
stocks in the Euro Zone that are
unjustifiably down in price.
www.ProfitableInvestingTips.com
18. Picking new winners always requires a bit
of foresight and the ability to tune out the
static of day to day worries and focus on
the long term.
www.ProfitableInvestingTips.com
19. As a return to Socialism in Europe drives
stocks down the Euro is suffering as well.
Remember that companies based in Europe
that export across the globe will, in fact,
benefit from a cheaper Euro.
www.ProfitableInvestingTips.com
20. As China seeks to make the Yuan a reserve
currency they will need to let it float and
probably rise with the market.
www.ProfitableInvestingTips.com
21. With a cheaper Euro and a more expensive
Yuan, European industry could profit from
increased sales to China and other Asian
nations.
www.ProfitableInvestingTips.com
22. As always we are not suggesting that one
invest in European stocks or avoid them.
The point is to think through investment
opportunities in search of profits.
www.ProfitableInvestingTips.com
23. For more insights and useful information
regarding investments and investing, visit
