Switching attention to Europe
WE HAVE PREVIOUSLY punted the DB US exchange-traded fund (DBXUS*) as a pick, it has done well and we continue to hold it.
However, our attention has turned to the EU and sure, the markets have done well, in many cases better than the US markets, as they move off a much lower base. But what we are seeing is a definite recovery in Europe, albeit a slow recovery, and the re-election of Angela Merkel tells us that the union will continue along the same policy path. That is the policy path that has served it well thus far and which will continue to pull Europe out of its troubles.
This ETF is euro-based and offers a currency hedge; it also tracks the EURO STOXX 50 Index, which includes the top 50 eurozone blue-chip stocks, so one is not tied to any one country but rather the region as a whole. Although German and French companies make up some 68% of the fund, these are global operations.