A Greenspan clone in Europe?

December 2005

Jean-Claude Trichet, President of the European Central Bank, raised interest rates in the ECB 25 basis points. Successfully, because he managed to raise rates, traditionally seen as a recessionary move, while promising no more increases, which was seen as a expansionary move. Net result? The European stock market rose. Greenspan himself could not have handled it better.

What It Means: 

The European economy is growing, despite the shackles of stagnant, high unemployment rates, and high taxation to continue the social programs that most Europeans have grown used to. The economy is growing enough to cause Trichet to be concerned about inflation.

Action Steps: 

If you have European mutual funds in your portfolio, smile. If you haven't....look into it today