Wednesday 28 April 2010

An Investment Opportunity?

For everyone blaming the markets: it seems we have a great investment opportunity here. How about investing their own personal wealth in Portuguese government bonds? This should pay out handsomely, given that the high spreads are not justified by the risk of default. Is anyone doing it? Some food for thought ;-)


  1. The problem with this is that many of us who blame the markets, do not have the money to invest. Probably those of us in that situation are also those who will be asked to make most of the sacrifices, while the high earning jobs, even with a small cut (if it exists), will still earn A LOT.

    Take 100 from a 1000 euros a month household, and that has quite an effect on the budget. Take 1000 from a 10'000 and they will still be able to buy a nice 3D 40'' television every month.

  2. Rui, curiously enough, I thought more less about the same thing, and asked around today what people would think about it - also as a signal of Portugal being different from Spain !

    Good to know I am not alone on that one, or better, I join you in this point!

  3. Same thing here Pedro, happy to know I have some company! And I'm guessing you didn't find too many people interested in this investment opportunity?

  4. For the people who believe that the crisis is a self-fulfilling prophecy, your argument does not make sense - they don't think that "portuguese finance is good in spite of bad projections"; they think that "portuguese finance is bad because bad projections". For a person who believes in that, there is not an "investement opportunity" - he agrees that the bankrupty is closey disagree in the cause.

  5. Do not know if I am duplicating my comment, but as I received no feedback...
    Being an economics illiterate, I would like to know better and in a simpler way the relation between high spreads and the risk of default, that makes this investment a good one.
    I would also like to know the best way to invest(I never done it before)? banks, brokers...?
    Third, this investment ultimately helps or hurts Portugal?