My Outlook for 2008

2008 will be a very volatile year for financial markets. Indeed in only one month most indexes decreased by at least 15%.
Moreover, the 4,9 billions lost from the rogue trader, Jerome Kerviel didn’t really calmed down the markets.
Even thought markets looks dangerous it doesn’t mean that you have to be behind the market, indeed a lot of opportunities can be made thanks to this variation.
I have picked 4 quotes that are my Top Picks for 2008.
After a deep analyze, I noticed that those quotes were undervalued. The reason of this undervaluation is due to January’s panic. But companies are actually in good health, which will involve a sharp increase of their prices:

• Nutreco Holding: Small Cap – Very good figures – Starting 2008 with solid bases.

• Rodriguez group: Small cap - With a Beta of 1,4, which means 40% more volatile than the market, it will allow you to instigate your portfolio.

• Essilor International : Big Cap – A low Beta in order to secure your portfolio.

To conclude I only picked 3 quotes but in order to have a good portfolio, you must have an average of 20 different companies from at least 5 or 6 different sectors.
Consequently I will along the year give you my Top Picks in order to clear up your mind on the best investments.
Regarding the beginning of the year, Investors did over reacted so don’t worry the most important is to be able to keep good securities and throw away those which are useless.