Falling Profit Outlook Is No Deterrent to Italy Stock Bulls
- Earnings forecasts slide the most among key European markets
- Still, investors pour money into ETF tracking Italian stocks
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When it comes to Italy, investors are so confident in the economy that even a rising tide of earnings downgrades can’t stem the flow of cash into local equities.
While analysts have lowered their profit forecasts for Italian companies by the most among main European markets, the benchmark FTSE MIB Index is still up 18 percent this year. Traders betting on the nation’s recovery are sending money to the the biggest exchange-traded fund tracking its shares for a sixth straight month.