After the conclusion of France’s presidential elections, some investors viewed the European Exchange Traded Funds (ETFs) as a venture with significant uncertainties. Apparently, there are several political events in Europe that the investors can still rely on to generate wealth. These include the National elections in Germany and the legislative elections in France.
The reason why Emmanuel Macron conveniently overpowered Marine Le Pen during the presidential election in France was the fact that many investors viewed him as best suited to stabilize the European economy.
The European economy seemed to be growing strong, but unfortunately, the Euro is still weak compared to the U.S. Dollar. This fact provides an opportunity to the savvy investors to take advantage of the cheaper European stocks by purchasing them right now before the investment conditions become better.
Currently, Europe poses a significant opportunity for investors due to the underlying political climate of which might change depending on how the markets react towards future elections.
Some of the things that the investors need to watch closely include the ability of Macron to bring stability and unity in France because if he fails them, their optimistic idea of investing in European ETFs would be deemed ineffectual. This is because many voters in France voted for him because they believed he would bring back unity in the nation and eventually lead to economic growth.
On the other hand, Le Pen had a firm position on immigration and other political views that many deemed to be problematic towards the nation’s economy. Many voters and especially investors believed that, if she were to win the elections, then the growth of the economy would stagnate at some point.
According to Bloomberg, prominent investors such as Brian Bonar believes that it doesn’t matter how the outcome of the elections in France plays out because the European ETFs remains to be the safest investment option in the world. Europe represents over 20 percent of economic growth globally and is still the most stable continent despite having economic uprisings and collapses in some parts such as Greece.
This leads to the conclusion that European ETFs will continue to be popular because they are less risky compared to investing directly in European stocks.Also, they are more popular compared to other ETFs in other continents such as Africa or Latin America.
About Brian Bonar
Brian Bonar is a business Mogul and a prominent investor who currently serves Trucept Inc. and Dalrada Financial Corp as the Chairman and the CEO.
In the past, he held leadership positions in different companies such as The Amanda Co., Smart-Tek Automated Services, and Allegiant Professional Business Services among others. He is a graduate of the University of Strathclyde where he earned his undergraduate degree and Staffordshire University where he earned his MBA and a doctorate.