{"id":43973,"date":"2013-11-09T14:22:55","date_gmt":"2013-11-09T19:22:55","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43973"},"modified":"2013-11-09T14:22:55","modified_gmt":"2013-11-09T19:22:55","slug":"ewp-buy-spanish-stocks-on-dips","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/09\/ewp-buy-spanish-stocks-on-dips\/","title":{"rendered":"EWP: Buy Spanish Stocks on Dips"},"content":{"rendered":"

By The Sizemore Letter<\/u><\/a><\/p>\n

Microsoft<\/b> ($<\/span>MSFT<\/a>) founder Bill Gates made news last month when it was announced that he had made a $155 million investment in Spanish construction company Fomento de Construcciones y Contratas SA<\/b> (Spain:FCC), taking a 6% stake.<\/p>\n

Now, $155 million is a relatively modest sum of money for Bill Gates.\u00a0 Forbes <\/i>calculates his net worth at $72 billion<\/a>.\u00a0 Still, a move like this gets your attention.\u00a0 If the world\u2019s wealthiest man (Gates recently re-took that title from Mexico\u2019s Carlos Slim) sees value in a beaten-down market, it\u2019s probably worth exploring.<\/p>\n

And Gates isn\u2019t alone.\u00a0 American private equity firm Apollo Global Management<\/b> ($<\/span>APO<\/a>) recently made a large purchase in the Spanish banking sector.<\/p>\n

I\u2019ve been bullish on Spain for a long time now (see \u201cWhen Spanish Stocks Rally, They Rally Hard<\/a>,\u201d which I published in February).\u00a0 I saw a market full of world-class companies with excellent exposure to emerging markets that happened to be deeply depressed due to Spain\u2019s deep recession.<\/p>\n

And my position here hasn\u2019t changed; even after the recent rally of nearly 40%, the iShares MSCI Spain ETF<\/b> ($<\/span>EWP<\/a>) sits at barely half its 2007 high.\u00a0 And Spain\u2019s market has one of the lowest earnings multiples, at 14, and highest dividend yields, at 3.9%, of any developed market.<\/p>\n

 <\/p>\n

\"EWP\"<\/a><\/p>\n

Spanish stocks have been drifting downward for the past three weeks.\u00a0 This is normal, healthy correction, and should be expected.\u00a0 But it\u2019s also a great opportunity to accumulate new shares of your favorite Spanish stocks.<\/p>\n

My recommendation?\u00a0 Buy the entire index.\u00a0 I recommend buying shares of EWP.\u00a0 Plan to hold for 6-12 months or for gains of 20-30%.\u00a0 Use a 15% trailing stop.<\/p>\n

Spanish stocks are cheap, and investors are only now starting to warm up to them again.\u00a0 I believe the bull market is just getting started.\u00a0 But we should remember, this is Europe, a continent in crisis, and risk management is important.<\/p>\n

And on a final note, we just got a major shot in the arm from ECB President \u201cSuper Mario\u201d Draghi.\u00a0 Draghi cut the benchmark rate to just 0.25% and made it clear that \u201cOur monetary-policy stance will remain accommodative for as long as necessary.\u201d\u00a0 Tapering may be the word de jour on this side of the Atlantic.\u00a0 But it looks like European stocks will get to enjoy monetary stimulus for the foreseeable future.<\/p>\n

This piece first appeared on TraderPlanet<\/a>.<\/p>\n

Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management. At time of writing he was long MSFT and EWP. \u00a0<\/em>Click here<\/a>\u00a0to receive his FREE 8-part investing series that will not only show you which sectors will soar, but also which stocks will deliver the highest returns. This series starts Nov. 5 and includes a FREE copy of his\u00a0<\/i>2014 Macro Trend Profit Report.<\/em><\/i><\/p>\n

Join the Sizemore Investment Letter – Premium Edition<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By The Sizemore Letter Microsoft ($MSFT) founder Bill Gates made news last month when it was announced that he had made a $155 million investment in Spanish construction company Fomento de Construcciones y Contratas SA (Spain:FCC), taking a 6% stake. Now, $155 million is a relatively modest sum of money for Bill Gates.\u00a0 Forbes calculates … <\/p>\n

Continue reading “EWP: Buy Spanish Stocks on Dips”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-43973","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=43973"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43973\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=43973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=43973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=43973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}