Weekly Update 📈
Dear Copiers and Followers,
I want to start with the highlight from this week’s Jackson Hole meeting 🎙️, where the result of the two-day meeting was Fed Chairman J. Powell’s speech on Friday morning. The pivot is now crystal clear: rates are coming down 📉
The shift from concerns about inflation to concerns about the labor market, where lower rates can help prevent unemployment from rising too much 📊, is here. Furthermore, central banks around the world are now more coordinated and aligned on the path to lower rates 🌍
Traditionally, stocks often perform well during periods when rates are reduced 🏦. As our Copy Portfolio has many value and cyclical stocks, I believe it will perform well in this new Central Bank shift 💼
And now, a short comment on earnings from relevant companies in our Copy Portfolio, all in local currency unless otherwise stated:
$DE (Deere & Co)
Earnings were $2.38 billion 💵. Both the market and I were surprised by how good the results were 😲. Revenue has declined significantly in agriculture 🚜, so the fact that Deere is agile enough to make that kind of profit in this environment is really impressive 👏. I’m happy about our substantial exposure to Deere 😊
$EOAN.DE (E.ON SE)
Earnings were $1.8 billion for H1, not just Q2. For the full year 2024, the company expects to earn $2.8–3.0 billion 💰. As the market cap is under $32 billion, I think this is a cheap stock in a megatrend business 🌱. For that reason, I am keeping the current position and will increase it if the stock declines 📉
$ORSTED.CO (Orsted A/S)
Earnings came in negative at $546 million, due to additional write-downs as a result of delays in a project that was not completed within the planned timeline ⏳. It’s a disappointment for both me and the market 😔, as one might have expected that all write-downs had already been taken. Even though I’m disappointed, I believe in the long-term trend and that Ørsted has a role to play 🌊. That’s why I’m keeping the stock 🛑
$PNDORA.CO (Pandora A/S)
Earnings were $1.34 billion, which is 12.63% better than the same period last year 💎. As the stock has risen significantly 📈 and the earnings not as much, the stock is beginning to look more expensive than before 💸. For this reason, I might trim this position later this year or in 2025 ✂️
$JYSK.CO (Jyske Bank A/S)
Earnings were $2.6 billion for H1, not just Q2 🏦. I was a little disappointed that they did not raise their full-year guidance 😕, but with the road to lower rates ahead, this will likely lead to lower income for their core business 💼. For now, I’m satisfied with our position in Jyske Bank 😊
I didn’t buy or sell any stocks this week 🤝
That’s all from me this time. Have a great Sunday! 🎉
Best regards, Simon
Disclaimer: None of this constitutes investment advice but solely reflects my personal opinion 💬
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