Long Portugal Portfolio
Since I started the blog there are two topics that have been quite clear. First, long the US economy, basically buy growth as the economy is most likely growing. Second Europe might also start to look interesting, not all of it, but there are some countries that do look good. One of the countries I’ve talked is Portugal.
Portugal recuperation came late, very late. It’s a country that has suffered the consequences of the crisis until last year. When it has finally managed to get its economy going and therefore its stock market out of its negative trend.
This presented a very interesting opportunity as Portugal would become one of the few developed markets that had not yet had a “recuperation rally”. So there would be a good macro environment in the country, the continent, and the world. But at the same time, it’s stock market would still have lots of space for stocks to make gains.
In addition, Portuguese consumer confidence seemed to be increasing rapidly, what would theoretically allow for consumption companies to do very well. Given that retail companies might be threatened by the “Amazon effect” and that banks still had some ongoing problems, I decided to focus on discretionary consumption but put special attention to avoid retail companies that might be hurt by Amazon.
During the early summer I closed most of the positions due to corrections in the European stock markets, I thought it would be better to lock in some profits but I’ve been reopening some of them again. I share my portfolio just below.
Please remember this is just a simulated portfolio and it is not any kind of advice, I’m just a student that uses this blog to share its thoughts with the hope of engaging in some sort of debate, nothing else. Information might not be accurate and I definitely do not take any responsibility for anything that I share in here.
Nuño Pérez del Barrio