On the Wall Street Journal, Brett Arends recently advised investors to buy Italian shares, since in his opinion they are underpriced.
According to Arends, the ongoing Italian political crisis should not frighten investors, simply because Italy has been politically in crisis for decades without relevant consequences, while her economy is going to rebound after this summer.
Of course, Mr Arends is right, the Italian political history has been a mess at least since the end of World War I, but probably much before. And she’s still here.
In Italy, however, many would doubt that the economy is going to get any better after this summer. All the indexes and data are desperately negative. The Italian industry lost one fifth of its turnover since 2008, the equivalent of 50 billion euros. Industrial orders went down 3,3 percent in the last year. The internal market is in full agony, with only exports saving the day.