US Consumer Price Index; France Snap Elections
We saw weakness from the market this week in anticipation for the release of US Consumer Price Index. The median estimate is 3.4% with 3.3 to 3.5% spread. CPI is one of the considerations used by FOMC in deciding the direction of interest rates. Eventually affecting our individual stocks based on macroeconomic fundamentals.
Last Monday, we experienced volatile Europe markets as French President Macron dissolve the parliamentary government and called a snap election. Unstable government is usually not good for stocks and as an effect we saw drop from most of our European holdings.
Impact to Portfolio
We managed to put in around 6% of our cash position to buy into our target stocks. We studied the financial statements of these companies and as long as there are no major policy change that will affect their businesses, it will still be a good hold. $FGR.PA (Eiffage SA)$DG.PA (Vinci S.A)
We also took a stock from Mexico $FMX (Fomento Economico Mexicano SAB-ADR) I saw opportunity from the recent drop after the elections. I will release a review of income statements and balance sheet soon.
We still have 20% cash level we can use should there be heightened volatility again as a result of US CPI numbers.
Happy Investing! and Happy Independence Day from my home country!... Show More
