The election of Emmanuel Macron is this most recent French election has many American investors moving on from European ETFs. Not so fast, says Brian Bonar. Bonar believes that the Parliamentary elections later this June will provide further insight into the current trajectory of France as well as Europe at large. He is also eagerly anticipating the German elections and at this time, does not expect any surprises from that result.
Brian Bonar, the Chairman, and Chief Executive Officer at Trucept Inc. has been closely following the European markets for many years. He believes that France has rejected the divisive and economically ill-advised policies of Le Pen and are backing Marcon as they believe he will return a sense of unity to the nation.
The elections were interpreted by many as more of a rejection of the far-right policies held by Le Pen than as support for Macron. In fact, it will be very informative who Macron appoints as his prime minister and also to see how the populace votes in the very important parliamentary elections.
These political events will provide investment opportunities to those savvy enough to realize that the election of Macron is only the beginning of the governmental changes to occur this year. It is important to remember when observing political events outside of the United States that the Parliament representatives and their coalitions can be just as, or even more, important than the person holding the Presidential office.
The euro currently trails the dollar but that may change, or at least tighten if Macron’s economic policy changes come about as expected. This provides a growth opportunity for investors, and European ETFs are still on an upward trajectory according to Bonar.
ETFs provide a relatively low-risk investment option that can help one enter the foreign markets in a more manageable way. Mr. Bonar believes that these slower growth rates are still attractive as Europe has not yet completely bounced back from its lows due to the market woes of 2009.
If you have a healthy appetite for risk, or are younger and have a longer investment horizon, Bonar suggests jumping into investing with single socks, especially in the French market. The eight-year projection of growth in France and the greater European markets is leaning toward rates that will surpass the United States markets.
It is through keeping fully abreast of the day’s current international news from his base in San Diego, CA Brian Bonar is able to provide valuable insight into how today’s political and international news can affect investment opportunities in the United States. The depth and breadth of Bonar’s career have given him a vast experience that he is more than happy to share with others.