International Investing - The Eurozone

The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surroundings – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside the United States that you might not usually hear about.

As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.

The European Union

Imagine if you had the opportunity to invest in an economy that is surpassed only by that of the United States, has a highly developed infrastructure and technology sector, access to deep and liquid capital markets, and a population greater than that of the United States?

Would you be interested?

The European Union, which is comprised of 28 countries, offers investors several benefits, which are even more pronounced in the subset of nations that use the Euro as the common currency. Some of these benefits are as follows:

1) Strong rule of law and intellectual property protection
2) Common marketplace and visa laws
3) World class companies
4) Low corruption and ready access to publicly available financial information

As with any other international investment, however, there are risks, and two (2) of these risks stand out as the most pronounced

1) Currency
2) Political – especially after last weekend’s elections, the increased political strife in the E.U. might translate into negative economic news farther down the line.

Happy Reading!

https://www.economy.com/dismal/outlook/country.aspx?geo=IEUZN

https://www.ecb.europa.eu/mopo/eaec/html/index.en.html

http://www.economist.com/blogs/graphicdetail/2014/05/european-economy-guide

http://www.cityam.com/article/1401323186/euro-firms-see-growth-returning

http://www.telegraph.co.uk/news/worldnews/europe/eu/10855876/European-elections-2014-EU-citizens-vote-against-immigrants-austerity-and-establishment.html