Not financial advice, full disclaimer available here.
The Norwegian Krone, fertilizer stocks, Colombia… These are investments which have not performed well over the past year. So good places to look for opportunities.
I own a few NOKs as a tracking position and that’s the only trade I have made since buying Petrobras. What have you bought recently and why?
Currency trading is a very different game than stock picking. Holding cash in another currency than your home one is not really trading though. I have done this with the Singapore Dollars while waiting for a better price on SGX and I am now doing the same thing with the Norwegian Krone and Equinor.
If I missed SGX, then I don’t think I missed the turn in the Dollar too. Similarly, if I miss Equinor, then I don’t think I miss the turn in the Noke. And the petrocurrency is historically cheap compared to the oil price:
Fertilizer companies are cyclical. The stocks look cheap based on 2022 earnings and fairly valued over a full cycle. If volatility was not so low, the Nutriens of the world would make a great summer trade. Stocks tend to go sideways during the summer months, which are typically less eventful. It’s often a good time to sell options and collect premiums.
Colombia popped up after running an ETF screen. This seems to be one of the most beaten down market globally. It’s tempting but it’s also redundant. From a portfolio perspective, why bother with Colombia when you can own Brazil? Such reasoning makes sense; yet, it creates opportunities. So I am torn.
Some of you are probably acquainted with Colombia, feel free to share your thoughts.
Spot on post. Why own EC when you can be concentrated in PBR is my thinking.
Colombian banks and brazil oil is fun, just have to stomach the volatility