What I find funny about bull markets is they really do climb a wall of worry.
If you read anything about the euro, all you hear are the negative things: The socialist governments in Europe, how all of the countries can’t get along and the PIIGS (Portugal, Italy, Ireland, Greece, Spain).
There are also a lot of good things about the euro and European union. I have a British passport as my father was born in Leeds, England.
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I can tell you the common union and elimination of borders is great for travel and economic trade.
In addition, Germany, the driver of Europe, wasn’t really all that affected by the economic crisis and is seeing near-record exports.
The European Union also doesn’t run a current account deficit, whereas the U.S. deficit is about 4 percent of GDP.
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In addition, because Europe has such huge, ridiculous welfare states it is going to be much easier for them to cut spending and get their deficits down.
Finally, Europe doesn’t have to pay for foreign ventures and being the policeman of the world like the United States.
Therefore, don’t count out the euro. Despite of all the perceived problems, the euro has still climbed to $1.45.
And I think in the long run it will continue to climb against the U.S. dollar.
About the Author: David Skarica
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