PSI20 Performance and Outlook

The PSI20 has appreciated by 11% this year while gold has appreciated by 9%. The difference is so small that nothing has been lost in not investing in the PSI.

Looking at the components of the PSI, it looks that a portfolio made up of these would only have appreciated 4%. I'm not sure why there's a discrepancy between the index and the components, but the difference is probably due to weighting. However, it's clear that my portfolio made up of PSI's components would have underperformed gold.

With the economy looking increasingly grim, there's no need to rush into the PSI. Adding to this sentiment is the fact that every component has a sell rating by the Trading Economics web site.

Here's an overview of what the components are, and how they performed this past year:

• EDP Renovaveis | EDPR - Spain-based company active in the renewable energy sector.
  Market cap = €18.73B (€21.03B)
• EDP | EDP - Portugal-based utility company.
  Market cap = €18.85 (€17.99B)
• Jeronimo Martins | JMT - Portugal-based company engaged in the food retail sector.
  Market cap = €14.52 (€13.45B)
• Galp | GALP - Portugal-based holding company engaged in the oil and gas industry.
  Market cap = €10.22 (€9.34B)
• Navigator | PTI - Portugal-based company primarily engaged in the paper manufacturing operations.
  Market cap = €2.55 (€2.76B)
• BCP | BCP - Portugal-based privately owned bank.
  Market cap = €4.12 (€2.24B)
• NOS | NOS - Portugal-based company engaged in the broadcasting and telecommunication industry.
  Market cap = €1.65 (€1.96B)
• Sonae | SON - Portugal-based holding company primarily engaged in the retail trade of food.
  Market cap = €1.75 (€1.84B)
• REN | RENE - Portugal-based holding company involved in the energy sector.
  Market cap = €1.55 (€1.7B)
• Corticeira Amorim | COR - Portugal-based holding company engaged in the cork industry.
  Market cap = €1.21 (€1.18B)
• Semapa | SEM - Portugal-based holding company engaged in three business segments: Paper and Pulp; Cement and Derivatives, and Environment.
  Market cap = €1.07 (€1.13B)
• Altri | ALTR - Portugal-based holding company primarily involved in the production of bleached paper pulp from eucalyptus.
  Market cap = €0.96 (€1.11B)
• CTT | CTT - Portugal-based company principally engaged in the provision of courier services.
  Market cap = €0.49 (€0.47B)
• Mota Engil | EGL - Portugal-based company primarily engaged in the construction industry.
  Market cap = €1.18 (€0.33B)
• Ibersol | IBS - Portugal-based company primarily engaged in the operation of restaurants.
  Market cap = €0.28 (€0.24B)
• F Ramada Investimentos | RAM - Portugal-based holding company primarily engaged in the production and sale of steel products and storage systems.
  Market cap = €0.17 (€0.17B)
• Novabase | NBA - Portugal-based company active in the provision of information technology (IT) solutions.
  Market cap = €0.14 (€0.12B)
• Pharol | PHR - formerly Portugal Telecom, SGPS, S.A., is an open company.
  Market cap = €0.03 (€0.05B)

Sovereign

By Heritage Auctions for image, Mary Gillick for coin - Newman Numismatic Portal, Public Domain, Link