Thus, there are three main civilisation circuits in Europe: the beer zone, the wine territory, and the vodka region. Each has its particular characteristics – and its particular stock market performance.
The beer zone includes Britain, the Netherlands, Belgium, Germany, Denmark, and the Czech Republic. With all the due respect, the Czech stock market is tiny and shallow; hence, I'll ignore it.
The wine territory covers France, Italy, Spain, and Portugal. Some Balkan countries come to mind, too, but their stock markets are largely unimportant.
The vodka region is the most diverse as it includes such hugely different countries such as Russia and Sweden, Ukraine and Norway, Poland and Finland. Interestingly, all these markets share one common trait: they consistently show relatively high volatility.
Shortly speaking, the beer zone has outperformed over the last five years ending May 2014. The wine territory countries have been severely affected by the financial crisis and have not recovered yet. (Note that I do not include Greece into the wine territory.) The vodka countries have performed in the most diverse ways ranging from an almost 60 percent fall (Ukraine) to a 100 percent plus appreciation (Sweden.)
However, do not hurry up buying beer countries stocks yet; the idea needs more elaboration. I will return to the topic soon.
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