Since bottoming at the end of October, the MSCI Emerging Market Index (MXEA) and MSCI Asia Ex-Japan ...
A PIIG Flies High Again
09/04/2013 6:00 am EST
Global investing expert Nicholas Vardy talks about the top-performing market, so far in 2013, which comes as a surprise to many investors.
SPEAKER: Hello. My guest today is Nicholas Vardy. Hi Nick, and thank you so much for coming and joining us.
NICK VARDY: Thanks for having me.
SPEAKER: You know, I read this week that it's been all across the news that Europe is finally recovering from the recession, and what are your thoughts on that? Do you have any particular areas in there that you think are stronger than others?
NICK VARDY: You know, one of the biggest surprises to my audiences here at the Money Show is when I ask them what the top performing market in the world is in 2013, and the answer is actually Ireland.
SPEAKER: That's amazing.
NICK VARDY: Which is up about 26%, the Irish exchange ETF, ticker symbol EIRL, is the big performing single market in the world. Of course Ireland is part of the infamous PIIGS, that's the acronym for Portugal, Ireland, Italy, Greece, and Spain, in other words the peripheral European economies were the cause of the European crisis. Ireland was the sole country that has really adopted a policy of austerity that's really come through. Investors have rewarded for it. S&P has recently upgraded Ireland. Its stock market has taken off. It's really bitten the bullet and it's being rewarded by financial investors for having done that. If the other PIIGS can do the same thing that Ireland has done, you'll see some big gains in these peripheral markets as well.
SPEAKER: Sure, and would then the ETF, is it a wide range of different industries?
NICK VARDY: It's a wide range of different industries. Ireland attracts a lot of foreign investment so there's a lot of companies with foreign investor participation. If you really want to amp up your bet on Ireland you can buy Bank of Ireland, ticker symbol IRE which is actually up about 70% since January 1 this year.
NICK VARDY: And that's actually something that I hold personally and it's worked out very well.
SPEAKER: So you consider it a fairly safe investment for a foreign investment?
NICK VARDY: Yeah, I think it's a fairly safe investment. I think it hasn't reached the point of mania, and it really is a turn-around play. It's a turn-around play not in the company, but it's a turn-around play in terms of a country, and again if other European countries do what Ireland has done, are willing to do that, I think there are some good opportunities in the coming years ahead.
SPEAKER: Super, thank you.
NICK VARDY: Thank you.
SPEAKER: And thanks for being with us on the MoneyShow.com video network.
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