iShares MSCI Spain Index (ETF) (EWP)

A convenient way to hold several desirable stocks. Top holdings Banco Santander (STD) and Telefonica (TEF) are world-class dividend-payers, both with strong exposure to the high growth of Mexico and Latin America. Ditto BBV, an emerging powerhouse that just picked up attractive assets in the U.S. at fire sale prices. Repsol (REP) is a very undervalued oil company that has been making spectacular finds. Iberdrola is the greenest utility on the planet: world leader (= most experience, knowledge) in wind power. Many other smaller holdings (banks, infrastructure) are nice kickers. NOT principally a bet on the Spanish economy. TEF has major exposure in E Europe, now China. One of my core holdings presently.

According to research firm Variant Perception, via John Mauldin, http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2009/08/31/spain-the-hole-in-europe-s-balance-sheet.aspx "Spain: The Hole In Europe's Balance Sheet":

"... Spain now has as many unsold homes as the US, even though the US is about six times bigger. Spain is roughly 10% of the EU GDP, yet it accounted for 30% of all new homes built since 2000 in the EU. Most of the new homes were financed with capital from abroad, so Spain's housing crisis is closely tied in with a financing crisis.
...
Spanish banks are hiding their losses and rolling over debt to zombie companies, much as Japan did in the last decade. ..."