Carmignac founder and fund manager Edouard Carmignac says that he would not have the courage to invest in France, as his concern over the economy grows.
He says: “I would not have the courage to invest in France. Business activity in France is going to plummet in the next few months. Steps will have to be taken.”
Carmignac adds: “The government cannot seem to put together reforms without the constituents voting against them. It is a sad state of affairs. Things are in stand-still. Unemployment is going to soar. Politicians are going to get scared.”
He predicts that France will have a new government by next Spring with different policies and a different focus.
Carmignac is optimistic about the Spanish recovery. He says: “Over the next year, businesses will stabilise in Spain once it has been assisted.”
He adds that the European Central Bank may not even need to step in to assist, but he says “the ECB is guaranteeing buying these bonds. So it makes sense to invest in Spanish and Italian debt.”