Video Update: European Elections
Over the weekend, we saw France select a new president - Nicolas Sarkozy, the incumbent conservative, lost to Francois Hollande, the socialist candidate. Hollande is pushing for less austerity and more pro-growth policies (a tactic which Germany disapproves of). This is why we saw a sell-off in French markets this week, and we’ll probably continue to see some downturn there as France transistions their government.
Elections also were held in Greece last weekend, in which many fringe political parties gained traction and no clear majority was found. This means that under Greek law, they will have to hold another election. Greece continues to have a lot of unrest and uncertainty about their economic situation, so that’s a section of the world that we still need to pay attention to.
Also, on top of this news from Europe, we believe that global growth is slowing. Europe is in a recession, China is slowing down and oil prices are falling, showing us that the global economy looks to be contracting. Slowdowns and sell-offs will likely create buying opportunities for savvy investors, but as always, be careful in the markets and stay informed about what’s happening domestically and globally.