So is the 2014 trade to go long on the Spanish IBEX while shorting the French CAC? The problem here is this wouldn't properly give you the "sell France" trade. Instead, investors should differentiate between companies domiciled in France, versus companies exposed to the domestic French economy. Conglomerates like LVMH, Danone, and Total may be French companies, but they generate a large portion of their revenues outside France. On the other hand, companies like Vinci, Bouygues, EDF, Carrefour and Orange all have a much larger exposure to the core domestic French market.
Jullier sees the global economy picking up further in 2014, but he cautions that while global equity markets should do well this year, they won't manage to replicate the record gains seen last year. Jullier points out that despite earnings being flat, the French market was up 18 percent in 2013, and that this came from price/earnings expansion as valuations normalized from depressed levels after the great financial crisis. In 2014, gains will be primarily driven by an earnings increase, according to Jullier, and to a lesser extent by P/E expansion.
(Read more: Is France heading for a new recession?)
French national debt reaches 'danger zone'
Didier Migaud, the president of the French public audit office, last week said 2013 French national debt had reached a "danger zone" at an estimated 93.4 percent of gross domestic product (GDP), and that efforts undertaken so far are not sufficient to get out. At the end of 2012, France's national debt stood at 90.2 percent of GDP.
Commenting on the rise of public debt, Migaud went on to add that the disappointing and worrying assessment was not, in itself, surprising, and that you can't erase almost 40 years of accumulated deficits in three years and in a depressed economic situation.