Jan 08, 2015

Oil and the Euro

There are two major forces in play right now: lower oil prices and a continued weakened Euro. Both of these forces can be viewed as positives for certain countries, and certain sectors and companies.

There are two major forces in play right now: lower oil prices and a continued weakened Euro. Both of these forces can be viewed as positives for certain countries, and certain sectors and companies. Take Italy for an example. A lower Euro is a benefit to those businesses who are major global exporters. Couple this with lower energy prices, and it is estimated that we could see Italy’s GDP surprise to the upside over analysts’ predictions by over 100% in 2015, translating into higher earnings per share for select businesses.

In our upcoming Quarterly Outlook, we will examine this further and share examples from within our portfolios on who will continue to benefit from lower oil and a weakened Euro currency.