Editor’s note: This article was first published in July 2010, and is a market outlook for the second half of 2010, with stock picks, a forecast of a roughly 10% IBEX 35 recovery by year-end and the euro-dollar outlook. It should not be read as current advice, and Telecinco later became Mediaset España.
In the business and economy section (“Empresa y Economía”) of the Spanish newspaper ABC, today’s edition carries expert advice on investing in this second half of 2010. The experts advise steering clear of banks and are betting instead on:
Telecoms, industrials and commodities. The experts favor companies such as Telefónica, Acerinox, Ferrovial, Repsol, Telecinco, OHL, Arcelor and Técnicas Reunidas.
They expect the Ibex 35 to recover by around 10% between now and the end of the year, so they recommend getting into the stock market now.
Personally, I disagree about how profitable some of these companies will be, although I do agree with the part about investing in Spanish government debt.
It’s a matter of buying shares selectively in high-quality eurozone companies with growth prospects.
I think investing in insurance companies and steelmakers is a very good option right now. They could surprise us quite a bit between now and the end of the year, and so could Spanish companies that are already carving out a niche in construction in places such as Romania, Brazil and Africa.
As for the euro-dollar exchange rate, the experts expect the euro to fall again after its rise of the last few days, which doesn’t mean it can’t end the second half on a good note.
Once again, we can listen to the experts’ advice, but remember that they may or may not be right.
Further reading
- 7 types of investors and levels of investing
- A good time to invest in Inditex
- What a good investor looks at before investing
Featured image: Luis García, CC BY-SA 3.0, via Wikimedia Commons.
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