Nobody Wants France. That's Where Things Get Interesting
France: The value trap?
France is becoming Europe's problem child. Sovereign spreads are approaching Euro-crisis extremes, fiscal paralysis shows no sign of easing, and French equities are trading at record discounts to the broader Eurozone. But beneath the gloom, some interesting divergences are emerging. Domestic stocks and banks may still have more pain ahead, while the CAC 40 is approaching major long-term technical support. Is France finally getting cheap enough, or is this a value trap in the making?