Macron’s Macro-Economic Mistakes
In the past month, France has been shaken by riots surrounding President Emmanuel Macron’s imposition of a fuel tax. The protests are sending French stocks through a lot turbulence; from the commencement of the protests on Nov. 17th , to the time of this writing, the French CAC40 index has fallen 5.38%. Macron’s concession on a key issue helped the market pick up some of their losses, but it wasn’t long before they were down again. The international equity investment index we work on, VIEQX, was able to avoid some of the negative effects of France’s crisis by having a relatively small investment weighting in the French stock market.
Before Macron introduced the gas tax, his administration seemed reasonably promising, and the CAC40 went through some good months earlier in the year.

*Blue is the French CAC40, red is a cap-weighted index, and orange is the iShares Europe index. (Chart courtesy of TradingView.)
Then the French markets turned down, not just in absolute terms, but also relative to other comparable markets.
What went wrong?
Originally published on Townhall Finance.
Charles is a political risk analyst for Bowyer Research, has been published on Affluent Investor, RealClearMarkets, RealClearPolitics, Asia Times, and has been a guest on The Glen Meakem Radio Program.
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