This year has not started in a positive way for their interests either, but everything seems to continue in the same line, with falls in the prices of the main raw materials that are traded in financial markets. It should not surprise us, faced with this scenario, the uncertainty that the hundreds of savers who have vacant positions in some of them may harbor. They probably want to market their investments, but the low prices they are trading at thwart their desire to close the deal.
After the difficult journey in the markets during the last months, things can change, if not radically, if at least little by little. This is the idea that some prestigious financial analysts are spreading, who are showing that the prices of these assets will probably reach a ceiling during this year, to gradually recover their old positions. Even though in any case, large or spectacular revaluations in their prices are not expected.
One of the reasons for the fall in the value of their prices must be found in what is happening in China. Because in effect, the slowdown in its economy means that the consumption, and even imports, of the main raw materials would fall significantly. And this effect is what has been transferred to the markets, with sharp falls in the price of their prices. Even with an unusual virulence during the last exercises.
Within this international scenario presented by the commodity markets, more and more small and medium investors want to take positions to try to make their operations profitable, including through a minimum yield, and as an option to traditional equities. . From this general perspective, maybe the best thing to do is wait a few months, until definitively checking how these assets evolve in the markets. The second half of the year is the period in which it will be more prudent to start investments.
How to trade these assets?
The most problematic task for savers, as it may be in your own case, will be to check which products are the most suitable for each occasion. Due to the special characteristics of this investment, not everything will be valid to take positions in the current circumstances, being very limited to certain designs, some of them really very sophisticated, and also aggressive in terms of their strategic approaches.
There is no doubt that the possibilities for doing business will be greater, but with special care in its application, because you will also have to bear the risk of leaving many euros on the way, more than you imagine. Only if you are used to trading these products, you should open the positions.. If this is not your case, it will be better to abandon the attempt and try to channel it towards other alternatives for more conventional investment, which will largely come from the stock market.
The simplest and at the same time direct way to invest your savings in listed raw materials will come from the securities integrated in the stock exchanges, and that are closely linked to them. In the Spanish Stock Market there are not many, true, but with a very important specific weight in its main index.
Raw materials on the Spanish stock market
Two are the banners of this investment so peculiar in our country: Arcelor Mittal and Acerinox. Its business lines are focused on the commercialization of the main metals for industrial use.. Their prices over the last year have fallen dramatically, with depreciations of up to more than 50%. It is enough to remember that the first of the steel companies has gone in a few months from quoting 10 euros to only 4 at the moment. While Acerinox had a very equivalent evolution, from 15 to 9 euros.
That is why, if the prices of raw materials in general recover from now on, the upside potential of these stocks is impressive, with very high price targets, above other sectors. But of course, this scenario must be given here so that they can take flight from now on. Not surprisingly, many investors are already very attentive to the downward spiral to stop, to take positions in the stock markets through the shares of these companies.
Sea cual sea el caso, si esta es su elección para enfocar la inversión, puede acudir a otros mercados financieros donde la oferta de valores de estas características sea más extensa. Los encontrará preferiblemente en las bolsas de valores de América del Norte y Europa. Con una selecta selección de compañías que cumplen estos requerimientos. A pesar de todo, deberás de pagar comisiones más expansivas que si las hicieras en el mercado nacional, prácticamente duplicando sus tarifas. Aún cuando siempre existirá la posibilidad de recibir una oferta promocional de los bancos.
Other investment alternatives
Whatever the case, there are other financial instruments that have more opportunities for you to develop your operations with these financial assets. One of the most suitable are investment funds based on commodities., and that managers have promoted so that you have more tools to operate with these approaches. At the same time, and as a way to protect against adverse scenarios, they will be combined with other more conventional financial assets. Fixed and variable income, but in addition to other alternative modalities.
They are indicated, not to carry out speculative tasks for very short periods, but for longer stays, generally between 2 and 6 years. They are the most suitable so that the feasible recovery of the main raw materials can be better collected, and not temporarily. Even protecting you in the most optimal way from the high fluctuations that originate in their prices. And that will disconcert on more than one occasion.
Another of the products enabled to develop these movements is through ETFs, where you can find one of the broadest offers in the financial market. Through some designs, which are a mix between buying shares on the stock market and investment funds. And that they are more suitable for a small investor like you, who does not want to hire such aggressive models in the face of the instability of the financial markets.
And finally, you have the so-called derivative products. Very dangerous and with a very high risk if you opt for them. It should not be surprising that they require high learning on your part, with experience accumulated over years. And that can undoubtedly lead to great losses if you do not know how to use them correctly. It is no coincidence that they are not recommended for all saving profiles, only for the most aggressive ones.
All these products that we have exposed to you can be required by you at any time, if you finally determine that it is one of the most interesting alternatives to channel your savings during the coming months. To take advantage of the recovery of their prices. And that according to several analysts could be close, even if not without large oscillations and volatility. It should not be surprising that they are not easy to treat, and even less so with the most complicated products.
Top ten tips on this investment
- Commodity appreciation potential is huge, and above the expectations of other more conventional financial assets, even with the opportunity to double profitability.
- It is a class of investment that involves many risks and for which, It should not be carried out under strong money movements. Just allocating a small part will be more than enough.
- Only the most experienced investors with all types of markets should go long. in some of the aforementioned financial instruments.
- Don't focus on a single raw material, but it is much more recommended that you try to diversify your investment with other investment alternatives, even combining it with other fixed and variable income products.
- Try to catch any signals where the current bearish movement stopsBy the time it appears, you are now trying to capitalize on the change in trend with very fast movements that anticipate the new trend.
- If you do not understand these products clearly, better not put them into practice, since at the end of the day it will be your money that you will be playing.
- They are cyclical strategies, that evolve better with the expansive scenarios of the economy, and that in opposite situations tend to generate very violent downward movements.
- You should be very aware of the Chinese economy, if you don't want to get a negative surprise. Any deviation in its growth could cause the prices of the main raw materials to fall, and what is worse, in just a few trading sessions.
- You will have in front of you a whole series of investment proposals, since their presence in the equity markets is very powerful, with assets of different nature.
- Before taking positions in this investment class, you will be more than prudent follow their evolution in the marketsand try to get used to their movements, however erratic they may be.