I have been in Spain since early September, which is why you have not seen me in these pages for a while. Before we tackle today’s topic, we have some “maintenance research”. We still like Biotech and Healthcare for investors as we have discussed in prior articles. We are still thinking a yearend rally is possible and may have started.
This week we will discuss some of the European country ETFs. Our favorite has been EWL, as it has outperformed all of the countries in Europe on a long-term basis. For several years, we have utilized a framework of “have” vs. “have not” countries as longer-term charts of EWL and EWG have substantially outperformed Southern European countries like EWI and EWP.
What could cause this to change? It might be the energy situation in Europe. The “have nots” do not use as much energy for heating in the winter and may start to outperform short-term. Look at EWI and EWP and note that if EWI can move above 25, and EWP above 23, these could do well into the end of 2022.
