Italian stock market: buying on weaknesses


If indeed those we are witnessing are the first signs of a big bubble on the stock markets, the Italian Stock Exchange will certainly have a place in the front row.

It is not so much the trivial reasoning that the Ftse Mib is one of the few indexes still very far (less than half) from the historical highs to give us this conviction.

It is the feeling that the Italian Stock Exchange has often been underestimated more due to prejudices than to the intrinsic value of Italian companies compared to those of European competitors.

To earn money on the stock market, however, it will be necessary to keep your eyes open because that of the big bubble is a hypothesis based but still a hypothesis.

The variables and obstacles to overcome before euphoria spread are still different.

From a significant reduction of the customs issue at BREXIT still on the high seas, even those who want to see the prices of shares on the downside find nourishment.

All the more so in a macroeconomic context which, especially in the EU area, is anything but brilliant.

Italy economic news

The Italian Stock Exchange today has correctly appended to the positive trend of the other European lists.

The state of health of the Italian economy still remains precarious.

But this does not mean that our bag will have to pay a bill more expensive than the others.

And if the stock markets, already supported by liquidity, will also meet the consensus of popular savings, the Ftse Mib will also play its part.

Today's macroeconomic data lend themselves to a double interpretation.

Sales actually came out under analyst consensus.

But if we look at last month's data, the reading key changes or even turns upside down.

We find a + 0.9% from + 0.8% on an annual basis and sales on a monthly basis go from -0.5% to + 0.7%!

Not bad, there's nothing to say.

Italian Stock Exchange: shares to be put in the portfolio

So admitting that the day-by-day signals confirm the realization of the end-of-year rally, what to buy or keep in the portfolio?
Maybe taking advantage of the days of weak stock prices?

If you want to speculate on the potentially more reactive securities, banking and consumer goods (including luxury) certainly deserve the front row.

Followed by technology and telecommunications.

Prudential segments such as utilities and pharmaceuticals could be less brilliant in the case of a positive approach, but certainly less risky if something went wrong.

In the background we will leave industrial and related sectors as many of these titles have already run quite a lot in 2019.

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