Macroeconomic data in France under President Hollande's leadership has been poor, but the French benchmark CAC index has performed strongly and is even on a par with the German DAX, suggesting that local politics are not of great concern to the market.
Despite widespread doubts over Hollande's ability to keep his deficit cutting promises after his first year as President, the CAC is up 20 percent.
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"The CAC is up 20 percent in a year, which shows French local concern is not the main concern for the market. The market is looking to the U.S. and to emerging markets, because we all know that is where growth is going to come from, rather than local politics." Francois Mallet, managing director of Kepler Capital Markets told CNBC on Monday.
Mallet advised investors to focus on international companies rather than those that will be hit by the domestic situation.
"Investors should focus on companies that export a lot, knowing the French situation is unlikely to improve over the next two years," he said.
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Founding partner of Alpha Value, Pierre-Yves Gauthier said the CAC has been just as strong as the DAX excluding dividends, despite France's economic concerns.
"We know the CAC, like the DAX is exposed to the world, so to some extent that justifies why there is not so much of a gap," he said.
"It is clear at the beginning of this year and last year, the two indices have worked together. This comparison is excluding dividends in the DAX, which stand to prop up the performance of the DAX," he added.
