To continue on the topic of Europe and the euro from today's class...
This article supports what my group said in class this morning, "Evidence is piling up that European financial markets think the euro zone's debt crisis is fading—the euro rose to near a 10-month high Thursday—but feeble economic activity suggests the crisis is only in remission." Additionally, the article supports our data findings that Germany is expected to have growth while the overall euro-zone economy remains behind. Countries such as Spain, Italy, and Portugal are "steadily curbing their reliance on foreign borrowing to support their economies." From this, what can be said about their national savings identities and which part of the identity is affected?
Investors are slowly returning to the eurozone. Personally, I would not invest here, as there does not seem to be nearly enough "good" going on for me to safely invest. However, without such investments or hiring in the economy, an economic recovery is out of reach. What are your thoughts on these countries in Europe and is there anything more you noticed about any of the country's national savings identities that wasn't already mentioned in class? What from this article proves to you that the eurozone is worthy to invest in? If you were an investor, would you?
Even though the Euro-zone looks like a risky investment now, I believe if you put your money into the "safer" countries such as Germany, Italy, England, and Spain I believe you would get a good return on the investment. The fact of the matter is you can't have a large group of allied nations failing forever. At some point the people will demand the government to get the issues straightened out. I can only hope things get straightened out sooner than later.
ReplyDeleteIts a dodgy situation but I won't rule out the possibility of investment in Europe. I won't put my entire life savings in the European market, but investing in the telecom companies and food companies is risk worthy. The telecom companies in Europe have enough assets and are geographically diverse enough to have a long term growth.These telecom companies face the same challenges as the US companies, so why won't I put some money in these companies? Maybe I am less risk-averse than other people but I won't say I will not put a single penny in the European economy.
ReplyDeleteI think it's valuable to continue investing in Europe. It needs to be done in a smart manner, in countries that are more safe-havens like Carter suggested. While most of our manufacturing is in Asia, Europe is still very valuable to the United States and a healthy European economy helps the United States.
ReplyDelete