Economic growth in Europe is slowing and that is responsible for the current price declines in our European ETFs. There is the obvious threat of trade wars but that is less significant than the general slowdown in economic growth. The threat of trade wars has a far more significant impact for our Emerging Market ETFs as many of these countries rely on trade. This threat is one of the main reasons for the slowdown in the Emerging Market ETFs, and should this threat prove more “smoke” than “fire” it seems reasonable to expect a recovery in those ETFs.
