European stocks will certainly see some volatility and the eurozone economy will face pressure in the short term as the continent comes to grips with the terror attacks in Paris. Over the long run, however, European markets will improve as commerce resumes, Chris Gannatti, Associate Director of Research at WisdomTree Investments. ‘Historically markets and economies have displayed a certain resilience. They have always come back. They have always ultimately recovered and we think the Europeans will recover from this tragedy as well,’ said Gannatti. Gannatti suggests investors seeking long-term exposure to Europe try the recently launched WisdomTree Europe Local Recovery ETF (EZR). The EZR seeks to track investment results of European companies that are sensitive to economic growth prospects in the eurozone and that derive more than 50% of their revenue from Europe. The top holdings in the EZR include Total (TOT), BASF (BASFY), Allianz (AZSEY), BNP Paribas (BNPQY) and Axa (AXAHY). ‘If ultimately the quantitative easing policy is to work and Europe is to recover, what you want is a greater sensitivity at times to what’s going on inside Europe,’ said Gannatti.
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