Nordea has been dropping lately mainly because of the speculation on Swedish housing bubble and uncertainties in the long term business model. Latter one is kind of the reason I’m buying right now. I expect to see a banking merger motivated partly because of these concerns and I expect Nordea to be on the right side of the table in such event. I suspect that this has has been Sampo’s goal all along. It might take couple of years to happen and major correction before that is a significant risk but one I’m willing to take. That’s why I today bought additional 100 shares for 9,98 EUR per share.
Telia dropped today probably just because it’s Telia. Sure there are uncertainties in operator business models as well but I anticipate bright enough future for companies such as Telia. Strategic state ownership and associated regulation should work in their favour even though growth prospects are a bit limited. I consider Telia to be the bond substitute in my portfolio and therefore bought additional 250 shares for 3,764 EUR per share.
All this puts the portfolio debt level slightly above the target level. Depending on the market situation I might once again focus on reducing the debt but should there be attractive enough valuations, I’ll increase it accordingly.