Expectation of Price Weakness In The Euro
The recommended portfolio has a moderately bullish strategy even though S & P cut the rating of Greece’s sovereign debt to “junk bond” and cut that of Portugal.
While there is likely to see further setbacks in stock prices due to the negative news coming from Europe, experts still do not see a bearish strategy in action.
This week, the investment will be made in Exchange Traded Funds – ETFs for sectors such as the U.S. automotive and entertainment, among others.
This recommendation is based on the recovery actions filed after the fall of announcements of investigations by the SEC to Goldman Sachs.
They will also provide buying positions in the following ETFs: “Power Shares Dynamic Leisure & Entertainment” to purchase securities in the U.S. entertainment industry, “Spptr S & P Retail ETF” buying companies in the sector of retail trade USA and “Energy SPDR FD” which is composed mainly energy companies producing oil and natural gas. We also recommend a long position in the action “TRW Automotive Hldgs Corp” whose principal activity is to provide components to the automotive industry.
To complete the purchase recommended stock fund, “I shares S & P Latin America 40″, which seeks to replicate the price of the 40 most representative Latin American stocks.
Given the current uncertainty in Europe’s economic team recommended Juan Carlos Ortiz fund short selling “Vanguard European ETF.” And also selling the Euro purchase USD.
As a mechanism to cover past investments and volatility by providing news and economic data will be released this week suggested the purchase of the ETF TMF, which assumes an upward position in the treasures of Singapore, and also the purchase of the ETF “iPath S & P 500 VIX SH-TM FT”, an indicator that measures the volatility of the equity market.