This Nordic Stock is Best of Breed

To add a technical view to Harry’s astute points about the wealth and productivity of the Nordic countries, I’ve done a relative strength comparison of the region’s stocks via the Global X FTSE Nordic Region ETF (ARCX: GXF), and a broader swath of European stocks via the Vanguard FTSE Europe ETF (NYSE: VGK).

Here’s the plot of that Nordic versus Europe match-up:

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This technical comparison confirms Harry’s point about the Nordic countries out-performance relative to Europe as a whole.

Digging a bit deeper I found Novo-Nordisk to be the top holding of the Nordic Region ETF (GXF), making up for 11.5% of the fund’s net assets.

I haven’t written much about Novo-Nordisk here in Survive & Prosper, but it’s a familiar name to Cycle 9 Alert subscribers.I recommended a bullish position in the diabetes-specializing drug maker back in August.

We held a simple options position for just two months and netted more than 20% on the trade (not our best result, by far, but still a nice return).

While Cycle 9’ers took profits quickly – that’s how the service is designed – I like Novo-Nordisk as a long-term investment as well.

Here’s the same chart as above, only showing Novo-Nordisk’s performance relative to European stocks as a whole:

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As you can see, there’s a consistent uptrend indicating Novo-Nordisk’s out performance, with a mild pullback in recent months, making it a good time to buy in.

Consider adding Novo-Nordisk to your portfolio if you’re interested in living the good, Nordic life!

Or consider a more diversified approach in the Global X FTSE Nordic Region ETF (GFX). This fund pays a yield just over 2% and the one-time annual payout is likely coming soon.

According to the company’s website, the ex-date has been set as December 27, which is when we’ll find out the amount of the dividend. It’s also the date by which you must own the stock to be eligible to receive the dividend.

Either way, if you want some exposure to Europe these are two good options.

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Categories: Markets

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.