European Central Bank President Mario Draghi suggested that the worst of the European sovereign debt crisis may now be over after decisive policy decisions last year. In particular, the Mr. Draghi cited the ECB's untapped bond purchase plan that helped calm the markets, as well as greater monetary, fiscal, financial and political agreement. The central bank believes that the eurozone will shrink 0.3% during 2013, but growth will be seen towards the end of the year.
Many investors have already taken this position, with some European ETFs trading sharply higher over the past six months:
- iShares MSCI Spain Index ETF (EWP) - +52.72%
- iShares MSCI Italy Index ETF (EWI) - +45.03%
- iShares MSCI Germany Index ETF (EWG) - +27.37%