I sold some of the share I had of Dividendo Arancio and Convertibile Arancio (ING Direct’s “consumer” mutual funds). I’m not so sure it’s been a good idea (it feels a little as “selling at minimum”), but since I still had a capital gain, it looked to me wise to bring some money home.
I remain quite optimistic for the future: surely by now stock market are suffering, but I think this can be healthy, allowing a future re-start with financial market less flooded with incomprehensible financial securities. In fact, the biggest problem of subprime mortgages crisis is that risky securities ended up in low risk portfolios, by a long path of derivatives. By the way: the subprime mortgages does not concern only low income family, but also companies that turned to “easy lending”, based on not always clear collateralized obligation.
Dividendo Arancio and Convertibile Arancio should not suffer from direct effects of “exotic securities”, based even indirectly on subprime mortgages, since they cannot invest in these kind of instrument. But inevitably, they suffer world market course.
Surely Mattone Arancio (ING Direct mutual fund dedicated to european real estate sector companies) suffer more the situation, being much more directly concerned on mortgage topic. Mattone Arancio is in difficulties since some time ago, winding up earning from september of last year, and doing some damage to who bought shares in the last few months.
But, as they say, every cloud has a silver lining, so we should look at this also from who by now is not investing in the stock market. Maybe in the next weeks we will have a good moment to invest in some mutual fund, if there will be some positive signals.
Italian translation of this post: Dividendo Arancio e Convertibile Arancio, nel mondo dei mutui subprime
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