New optimism takes hold in Europe, lead by Macron

 

The President of France, Emmanuel Macron's speech on trade in Paris in 2017 showcased his country's leadership on the very issues the U.S. is now hiding from.  From increasing free trade, enhancing sovereignty and security, to promoting innovation, it's Europe's every intention to replace the U.S. as the leader of the free world.

The U.S.'s new aggressive protectionism, lamenting $500 billion in tariffs and removing itself from the Asia/Pacific free trade pact, TPP, cements its new role as the backseat driver in the new conversation. Meanwhile, the European Commission finalized its free trade agreement with Japan, estimating 500,000 new jobs per member and billions of dollars adding to their respective economies.

France is removing burdensome red-tape for new businesses and offers a 30% tax credit on research & development(^4). Macron stated in his speech, "We are no longer living in times in which our economies can develop as if they were closed, as if talented people no longer moved around and as if entrepreneurs were tied to a post."(^1) France invested €47.2 billion (2.23% of GDP) into R&D in 2013(^3) and it's expected to increase.

Macron's vision for Europe seeks to develop the best in their people as he knows that this creates innovation. He wants every EU citizen to speak at least two EU languages. He also proposes that every EU citizen lives in another country for six months. This sets in motion the continued solidarity of the EU. In turn, they can lead in the way the U.S. was known for the last hundred years.

As an investor, it becomes increasingly obvious that the U.S.'s days are numbered, given the opportunities around the world which hold much higher prospects. The effect may not be immediate, but, by adding to your developed foreign equity investments, specifically the European block, would allow you to capitalize on the growth France is about to embark on, with Macron at the helm.

At Eureka Wealth Management, I position my clients' portfolio to take advantage of future developments over the long-run as well as opportunities that arise in the short-term. I also take into consideration investment time horizon, tolerance for risk, and tax situation. Call me for a free, initial consultation at (760) 537-0791 or online at eurekawealthmanagement.com.



(^1) http://international.blogs.ouest-france.fr/archive/2017/09/29/macron-sorbonne-verbatim-europe-18583.html
(^3) https://publication.enseignementsup-recherche.gouv.fr/eesr/8EN/EESR8EN_R_26-research_and_development_efforts_in_france.php
(^4) https://www.tresor.economie.gouv.fr/Ressources/File/409099

 

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Eureka Wealth Management is a registered investment adviser in the State of California. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment advisory services. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.