“ The German strategy of limited stimulus and reduced government spending has resulted in a brisk economic recovery. Inflation is practically nonexistent in the country, and they also enjoy a healthy domestic stock market.  Although German taxpayers may be faced with added costs in light of Greece’s debt fallout, the country’s conservative fiscal policy and strong monetary policy make investing in Germany a better near-term prospect for investors,”  Martin Hutchinson Reports From Nuwire Investor.

Hutchinson goes on to say, “If you’re a U.S. investor, you can’t be happy about the prospects for your portfolio. After all, you’re mostly trapped in an economy with a gigantic and dangerous financial-services sector, a central bank that can’t stop itself from printing money and a government that overspends wildly. But there is an answer: You should consider allocating some of that “at-risk” capital to a country that has none of those problems – Germany.  Germany has a banking system, of course, but that banking system is not the overgrown financial-services monster that we have here in the United States (or, for that matter, in Great Britain). It’s impossible to get a subprime mortgage in Germany: Even now – and even after mortgage levels have crept up in recent years – the average down payment for the purchase of a new home in this key Eurozone nation is 50%. As a result, the homeownership rate in Germany is only 43%, the lowest rate in the European Union.”

“That’s actually healthy; far less of Germany’s capital is tied up in unproductive housing and the savings rate is correspondingly higher. (Let’s face it, most Americans don’t accumulate 50% of the cost of a house in savings over their lifetimes – unless forced to do so in a company pension scheme). What’s more, this more-modest home-ownership rate lessens the impact of speculative bubbles, since the wealth of most folks isn’t tied up in rapidly escalating house prices. So while the German banking system had its own real estate problems in the late 1990s, the only parts of it that got in trouble in 2008 were those banks that had rashly ventured overseas and got caught up in the U.S. disaster,”  Hutchinson Reports.

“With competitive manufacturing, a business-friendly government and plenty of domestic capital, Germany is about as healthy an economy as there is in the world today and is thoroughly underrated by U.S. and British analysts. Its stock market is trading at a fairly demanding 19.7 times earnings, according to The Financial Times database. But that’s lower than the U.S. market multiple of 20.0 times earnings. And Germany has better near-term prospects. You should think about owning some of Germany’s promise, even if it’s only through theiShares MSCI Germany Index Fund ETF (NYSE: EWG),” Hutchinson Reports .

See more to the story: HERE

Here are some details on the  iShares MSCI Germany Index Fund ETF (EWG) below:

The investment (EWG) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the German market, as measured by the MSCI Germany index. The fund normally invests at least 95% of assets in the securities of the underlying index and in ADRs based on the securities in the underlying index. It uses a representative sampling strategy to try to track the index. The index consists of stocks traded primarily on the Frankfurt Stock Exchange. It is nondiversified.

TOP 10 HOLDINGS ( 65.09% OF TOTAL ASSETS)

Company Symbol % Assets ALLIANZ N (ALV.BE) 6.86 Basf SE N/A 6.87 BAYER N (BAYN.BE) 7.94 Daimler AG Common Stock (DAI) 5.73 Deutsche Bank AG Common Stock (DB) 4.53 DEUTSCHE TELEKOM N (DTE.BE) 4.76 E.ON N (EOAN.BE) 9.83 RWE AG (RWE) 4.68 SAP AG ADS (SAP) 4.68 SIEMENS AG-REG (SIE) 9.21

 

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NYSE:EWG