Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Italy ETF Slaughtered: Time To Sell?

Thu, Nov 10, 7:14 AM ET, by Michael Johnston

It’s no secret that the euro-zone has been the center of market turmoil for the past few weeks as well as a lingering issue for the past year. The thorn in investors’ side comes from a slew of fiscal issues that have already led to one unsuccessful bailout, prompting another austerity package that has yet to be put in place. At the head of it all has been Greece, who has been the guinea pig of the failing euro zone. There were once talks of nixing them from the currency bloc altogether, or that more powerful nations would flee back to their original currencies. But now that Greece is staying on the euro and is headed for a major shift in their governing members, the limelight has been turned to Italy [see also Euro Free Europe Portfolio Now Available].

The Italian Job

Italy has always been a problem nation in this recent crisis, along with Portugal and Spain, but the past few days have put up a number of red flags for the Italian economy. Yesterday saw the news that the nation’s Premier, Silvio Berlusconi, will be stepping down once the austerity measures are passed, prompting a short buying trend in foreign markets; many felt that Berlusconi was one of the reasons that Italy was faced with a political deadlock. Though markets rallied on the news, it was short-lived, as Italian ten-year yields soared above 7%, a dangerously unsustainable figure. “Greece, Ireland and Portugal were forced to take bailouts when their ten-year borrowing rates rose and remained above 7 percent” writes Pan Pylas.

Most European indexes were slaughtered yesterday, with the FTSE 100 dipping nearly 2.5%. This was coupled with a dismal day for nearly all asset classes in the U.S. has a number of investors fearful. Italy, the world’s 8th largest economy, is faced with a debt pile amounting to $2.6 trillion, far more than the rest of the continent is able to handle. It has become abundantly clear that there is no quick fix for Europe’s issues, but according to British Deputy Prime Minister Nick Clegg, ”the choice is stark: Reform or wither. Reform now or regret it forever” [see also Three Long/Short Ideas For Euro Zone Debt Drama].

Amid all of the volatility in markets, investors have a wealth of opportunities, short or long, to add to their portfolios. But no matter what asset class or region you wish to establish a position in, one thing is certain, investors need to adapt for the possibility of a worsened euro crisis and one fund in particular makes for an interesting play.

MSCI Italy Index Fund (EWI)

This ETF is designed to measure the Italian equity market and features a large cap structure. The fund, unfortunately, has nearly one third of its assets in financials, which will certainly have major affect on its performance. In early trading yesterday, EWI dipped as much as 9.2%, as investors were easily spooked from this volatile fund. The ETF, though currently paying out a yield of 2.2%, has lost over 15% in 2011 [see also ETF Insider: It's All Greek To Me].

With the Italian crisis quickly ramping up, a short position in EWI could yield massive returns in the short and even the medium term. But there is also an opportunity for investors to buy in at a low. Over the next few days and weeks, this ETF will likely see its price slaughtered as the country scrambles to stabilize their future, but once the dust settles, EWI may be sitting at an enticingly low position. No matter how you feel about the Italian economy and its future, this product presents one of the best ways for you to make a direct investment in a risky, but potentially rewarding, country [see EWI's detailed returns here].

Disclosure: No positions at time of writing.


SDI Glossary: "Debt" Definition
SDI Glossary: "price" Definition
SDI Glossary: "Short" Definition
This Article's Word Cloud:   Euro   Europe   Greece   Italian   Italy   Portugal   Reform   This   above   also   asset   been   country   crisis   days   economy   euro   from   fund   future   have   investors   issues   major   market   markets   matter   nation   nearly   news   number   once   past   position   prompting   returns   short   slaughtered   that   their   there   this   weeks   were   will   with   year   yesterday   yield   zone

| More

Simon Property Group Moves Up In Analyst Rankings, Passing Precision Castparts
Thu, Jul 24, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

DGL Crosses Below Key Moving Average Level
Thu, Jul 24, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the PowerShares DB Gold Fund ETF (DGL) crossed below ...

Uranium (URA) Shares Cross Below 200 DMA
Thu, Jul 24, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the Uranium ETF (URA) crossed below their 200 day ...

IYM, DOW, IP, MON: Large Inflows Detected at ETF
Thu, Jul 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYM, DOW, IP, MON Exchange traded funds (ETFs) trade just ...

QQQ, INTC, GOOGL, FB: Large Outflows Detected at ETF
Thu, Jul 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: QQQ, INTC, GOOGL, FB Exchange traded funds (ETFs) trade just ...

Strong Insider Buying Reported in TZE Holdings
Thu, Jul 24, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the iShares Target Date 2015 ETF (TZE) ...

14.3% of VIS Holdings Seeing Recent Insider Buys
Thu, Jul 24, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Vanguard Industrials ETF (VIS) shows an ...

HCP a Top 25 Dividend Giant With $3.03B Held By ETFs
Thu, Jul 24, 8:14 AM ET, by ETF Channel

HCP, Inc. (HCP) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

Why Cisco Systems is a Top Socially Responsible Dividend Stock (CSCO)
Thu, Jul 24, 8:14 AM ET, by ETF Channel

Cisco Systems, Inc. (CSCO) has been named a Top Socially Responsible Dividend Stock by Dividend ...

Shares of TECS Now Oversold
Wed, Jul 23, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Technology Bear 3x Shares ETF (TECS) entered ...

Edison International Takes Over #18 Spot From Delta Air Lines
Wed, Jul 23, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

PowerShares DWA Developed Markets Momentum Portfolio (PIZ) Shares Cross Above 200 DMA
Wed, Jul 23, 11:24 AM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares DWA Developed Markets Momentum Portfolio ETF (PIZ) ...

IWD, C, AIG, F: Large Outflows Detected at ETF
Wed, Jul 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IWD, C, AIG, F Exchange traded funds (ETFs) trade just ...

IEMG, BAP, MBT, SCCO: Large Inflows Detected at ETF
Wed, Jul 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IEMG, BAP, MBT, SCCO Exchange traded funds (ETFs) trade just ...

BSCF, BAC, AZN, D: ETF Inflow Alert
Wed, Jul 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: BSCF, BAC, AZN, D Exchange traded funds (ETFs) trade just ...

HDV, CVX, PM, KO: ETF Inflow Alert
Wed, Jul 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: HDV, CVX, PM, KO Exchange traded funds (ETFs) trade just ...

CDI a Top 25 Dividend Giant With 3.55% Yield (CDI)
Wed, Jul 23, 9:24 AM ET, by ETF Channel

CDI Corp. (CDI) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

Why NextEra Energy is a Top Socially Responsible Dividend Stock (NEE)
Wed, Jul 23, 9:24 AM ET, by ETF Channel

NextEra Energy Inc (NEE) has been named a Top Socially Responsible Dividend Stock by Dividend ...

Danaher Moves Up In Analyst Rankings, Passing Anadarko Petroleum
Tue, Jul 22, 1:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

RWM: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: RWM Exchange traded funds (ETFs) trade just like stocks, but ...

SPDR Dow Jones International Real Estate ETF Experiences Big Inflow
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: RWX, BAM.A.CA, REI.UN.CA, HR.UN.CA Exchange traded funds (ETFs) trade just ...

FXZ, TMST, RYAM, FCX: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: FXZ, TMST, RYAM, FCX Exchange traded funds (ETFs) trade just ...

VB, SLXP, FL, AJG: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VB, SLXP, FL, AJG Exchange traded funds (ETFs) trade just ...

SPXU: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: SPXU Exchange traded funds (ETFs) trade just like stocks, but ...

EFA, AI, CS, AIR: Large Inflows Detected at ETF
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: EFA, AI, CS, AIR Exchange traded funds (ETFs) trade just ...

18.0% of FDM Holdings Seeing Recent Insider Buys
Tue, Jul 22, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Dow Jones Select MicroCap ...

CAT a Top 25 Dividend Giant With $3.51B Held By ETFs
Tue, Jul 22, 8:14 AM ET, by ETF Channel

Caterpillar Inc. (CAT) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

PepsiCo Inc. a Top Socially Responsible Dividend Stock With 2.9% Yield (PEP)
Tue, Jul 22, 8:14 AM ET, by ETF Channel

PepsiCo Inc. (PEP) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

Notable Two Hundred Day Moving Average Cross - IEV
Mon, Jul 21, 5:24 PM ET, by ETF Channel

In trading on Monday, shares of the iShares Europe ETF (IEV) crossed below their 200 ...

Google Takes Over #14 Spot From Facebook
Mon, Jul 21, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

See How Pfizer Ranks Among Analysts' Top Dow 30 Picks
Mon, Jul 21, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Pfizer Inc (PFE) is ...

iShares MSCI Germany Small-Cap Getting Very Oversold
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI Germany Small-Cap ETF (EWGS) entered into ...

WisdomTree Barclays U.S. Aggregate Bond Negative Duration Fund (AGND) Enters Oversold Territory
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the WisdomTree Barclays U.S. Aggregate Bond Negative Duration Fund ...

Shares of HYLS Now Oversold
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the First Trust Tactical High Yield ETF (HYLS) entered ...

JDST Crowded With Sellers
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the Daily Junior Gold Miners Index Bear 3x Shares ...

RSP, VRTX, WMB, COV: Large Inflows Detected at ETF
Mon, Jul 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: RSP, VRTX, WMB, COV Exchange traded funds (ETFs) trade just ...

12.7% of VBR Holdings Seeing Recent Insider Buys
Mon, Jul 21, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Vanguard Small-Cap Value ETF (VBR) shows ...

Procter & Gamble a Top Socially Responsible Dividend Stock With 3.2% Yield (PG)
Mon, Jul 21, 9:24 AM ET, by ETF Channel

Procter & Gamble Co. (PG) has been named a Top Socially Responsible Dividend Stock by ...

Why Public Storage is a Top 25 Dividend Giant (PSA)
Mon, Jul 21, 9:24 AM ET, by ETF Channel

Public Storage (PSA) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

Shares of SSG Now Oversold
Fri, Jul 18, 4:57 PM ET, by ETF Channel

In trading on Friday, shares of the Proshares UltraShort Semiconductors ETF (SSG) entered into oversold ...

Guggenheim Enhanced Short Duration (GSY) Shares Cross Below 200 DMA
Fri, Jul 18, 4:57 PM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim Enhanced Short Duration ETF (GSY) crossed below ...

GERJ Makes Notable Cross Below Critical Moving Average
Fri, Jul 18, 4:57 PM ET, by ETF Channel

In trading on Friday, shares of the Germany Small-Cap ETF (GERJ) crossed below their 200 ...

UPRO, ADBE, AES, AET: Large Outflows Detected at ETF
Fri, Jul 18, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: UPRO, ADBE, AES, AET Exchange traded funds (ETFs) trade just ...

VPL, BHP, WBK, MTU: Large Inflows Detected at ETF
Fri, Jul 18, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: VPL, BHP, WBK, MTU Exchange traded funds (ETFs) trade just ...

FXE: ETF Outflow Alert
Fri, Jul 18, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: FXE Exchange traded funds (ETFs) trade just like stocks, but ...

Johnson & Johnson a Top Ranked SAFE Dividend Stock With 2.8% Yield (JNJ)
Fri, Jul 18, 9:20 AM ET, by ETF Channel

Johnson & Johnson (JNJ) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying ...

McDonald's a Top Socially Responsible Dividend Stock With 3.3% Yield (MCD)
Fri, Jul 18, 9:20 AM ET, by ETF Channel

McDonald's Corp (MCD) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

BSJG Crowded With Sellers
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the Guggenheim BulletShares 2016 High Yield Corporate Bond ETF ...

FYX Makes Notable Cross Below Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Small Cap Core AlphaDEX Fund ETF ...

GUR Makes Notable Cross Below Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P Emerging Europe ETF (GUR) crossed below ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Italy ETF Slaughtered: Time To Sell? | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.