Cyclical stocks to invest in the stock market

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With all certainty that on more than one occasion you have heard something about cyclical stocks but do not know what they are and what is more important, how they work in financial markets. Well, you should know that their behavior on the stock market is very uneven. Mostly because vary with great intensity from one phase to another. You can earn a lot of money in operations, but for the same reasons you can leave a lot of euros on the road. This is something that should not go unnoticed from now on if you are looking to make the savings profitable.

Tu primera strategy con este grupo de compañías debe basarse en diseñar una correcta Line of action para rentabilizar los ahorros en estos momentos precisos. Bueno, desde este escenario general, no tendrás más remedio que realizar compras muy agresivas en cualquier momento. Debido a que en ese momento, los valores disponen un potencial de revalorización superior al de otros valores del índice selectivo de renta variable española. Sea cual sea el caso, es una alternativa de compra clara para rentabilizar el ahorro a medio y largo plazo.

On the contrary, in recessive scenarios the opposite occurs. In other words, it is time to leave positions very quickly. Among other reasons for the great ease of depreciation of their prices. But what is much worse, under an intensity that stands out above other considerations. You shouldn't be looking at these kinds of stocks if you want a hassle-free and quiet investment. Its volatility in these scenarios is truly extreme. A good example of this situation is what happened several years ago to Arcelor Mitall and that led to their prices plummeting to levels around 8 euros per share.

Proposals to take positions

Within what are cyclical values, IAG It is a value to have in the portfolio due to its cyclical exposure. In this regard, it cannot be forgotten that companies exposed to the global cycle must be taken into account at this time. Because they are considered one of the most attractive values to open positions in this very special environment. Another idea is represented by Acerinox, which still has a long way to go. It has already gone through the worst scenario and now it only remains to go up in price. As long as the current economic situation is respected.

Another of the cyclical sectors par excellence is represented by Luxury articles. It is one of the ones that can climb the most from now on. In spite of everything, you have an important obstacle that occurs from the fact that there are hardly any values of these characteristics in Spanish equities. To the point that you will have no other solution than to leave our borders if you want to satisfy this demand. Especially in the French stock market where most of these stock market proposals are integrated. Whatever the case, they are not very liquid values so you will have some problems adjusting your buying and selling operations.

Is it a good purchase option?

Either way, cyclical stocks are not a good option for investing for the long term. One of the reasons to understand this situation is because your quote is full of large loads Y downs. Even with high volatility in the benefit of dividends since their percentages are distinguished by their various ups and downs. More than in other securities that are not characterized by being cyclical. It will depend on the profile you present as a small and medium investor. Because depending on this variable, you can choose this alternative in equities from now on.

On the other hand, it will be very necessary that you know the sector to which the company belongs from the fundamental point of view. Even though, in addition, the technical analysis that it presents at all times and that will help you not to make big mistakes in the movements that you are going to make. It should not be surprising that these securities have a higher risk than other companies. Because they go up and down with some ease and at any time you can get hooked as a result of their strong fluctuations in the conformation of their prices.

Sales of these shares

One point to bear in mind throughout this exercise is that a large part of those responsible for asset allocation have an impact on the fact that given the geopolitical uncertainties that may develop in this period, it may give some of the values of the cyclical cycle. . sectors a little more relevant air. Whatever the case, you will have no choice but be very selective in the decision. Among other reasons because it seems that its bullish stage is running out. Or at least with less intensity than in the periods between 2013 and 2017. Therefore, they will be operations that will have more risk than before.

From the general stage, you must be much more defensive with these types of values than before. This is one of the reasons why the terms of permanence of these investments must go aimed at the short term. Never further so that you will not find more than one surprise from now on. Caution should be one of the pillars on which the strategies you are going to use to make savings profitable are definitely established. Surely more than in other periods of the past. It should come as no surprise that you are gambling a lot of money with your personal decisions.

Characteristics of cyclical stocks

These types of special proposals maintain lines of action common to all of them. Therefore, it is very convenient that you know them and do not make mistakes when forming your next investment portfolio. Do you want to know some of the most relevant? Well, pay a little attention in case you want this information to project your investment in the coming months.

• They are values that are directly linked to the evolution of the economy international. In one sense or another as can be foreseen from the beginning.
• His oscillations They are wider than in any other sector, with variations that can even exceed 5% in a single trading session. However, they are not quiet values for a defensive cut investor.
• The evolution of their prices is a lot easier to foresee in other equity alternatives. In this regard, they will not bring big surprises on their market value.
• They present a very estimable offer that allows you to have access to a wide group of sectors in the financial markets. Many more than you might initially think.
• To access and exit your positions, you may only need to dial the situation of the international economy. Beyond other technical and perhaps even fundamental approaches.
• They are companies that generally distribute dividends among its shareholders. Because they present regular benefits on a regular basis. With a fixed and guaranteed return higher than 3%.

Why is it a good option?

If in the end you opt for this alternative in equities, you will know that they have a very important revaluation potential. As long as they appear in the list in expansive periods. Por otra parte, son valores bien conocidos por los inversores y por tanto conocerás un poco mejor cómo son sus líneas de negocio. Al mismo tiempo, es más probable que desarrollen una estrategia menos complicada para determinar un precio target para los próximos meses. Rara vez se sentirá confundido si lo utiliza en el momento adecuado.

Either way, it comes across as one of the many options you have for investing your money. Under very well defined characteristics so that you can operate with these values from now on. It should not be surprising that a good part of investors are of the same opinion. Do you want to be one of them?