The Ibex 35 starts the downtrend falling below 9,000 points

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The selective index of Spanish equities, the Ibex 35, has closed after many months below the important level of 9,000 points. As a result of several events that have come together and therefore have had a lethal effect on the interests of small and medium investors. Among the most prominent, the US president's statements against China and the collapse of the British pound due to the fear that a hard Brexit will awaken among investors. And that has produced that many values of the Spanish Stock Exchange have succumbed to some supports of some importance.

This is the million dollar question among small and medium investors. Too bad for your personal interests because things can basically get worse right now. Even though of course it will be necessary to analyze what has been the volume of recruitment durante estos días para estimar si este movimiento en los mercados financieros es confiable o no. O al contrario, es una falsa alarma que tanto se ha repetido en los últimos años. Sea cual sea el caso, la precaución debe ser el primer estándar de acción hasta el final del año. Debido a que muchos euros pueden irse por el camino.

In another vein, it should also be noted that it was a situation that a large part of the main financial analysts were waiting for. Because in effect, this is something that I saw coming through the technical analysis of the main stock indices of the old continent. Where there is no doubt that the weakness had been installed in their positions and in the conformation of the prices of their securities on the stock market. To the point that it is an aspect that must be valued from now on to make the decision whether it is better to take positions in these financial assets. Or on the contrary, it is preferable to opt for total liquidity in stock market operations.

(*35*)Bargain price values

One of the direct consequences of the closure of the Ibex 35 after many months below the important level of 9,000 points is the more competitive price shown by a large part of the values of Spanish equities. To the point that you may wonder if it is time to finally have access to the financial markets. Because in some cases current bargain prices y sea cual sea el caso muy por debajo de sus precios target. En este preocupante entorno general, no cabe duda de que algunas valoraciones en compañías cotizadas pueden parecer baratas, pero lo cierto es que pueden caer todavía más en los mercados financieros.

Banco Santander, for example, is below 4 euros per share, Arcelor around 13 euros and, therefore, a good part of the values that make up the selective index of Spanish equities, the Ibex 35. But eye, because this one does. It does not mean that they are cheap, but on the contrary, they are valuations adjusted to reality. It is discounted that you are going to have access in a new recessionary period and, of course, this factor can cause a lot of damage to financial assets from now on. To the point that there are stocks that have lowered their prices by half, as for example in the cases of BBVA, Enagás and other national actions.

(*35*)What can be done?

In this general environment, the most advisable thing today is to maintain liquidity so that after a few months you can take advantage of the business opportunities that will arise in the stock market. Because they will undoubtedly appear, even in the most adverse scenarios for the national stock market and outside our borders. This is a reality that you must count on above other types of technical considerations. Whatever the case, it is not the time to carry out operations in the medium and long term. If not, on the contrary, they should be addressed to very short periods of stay. Where minimally certain returns occur, there will be no other solution than to undo positions.

On the other hand, it cannot be forgotten that we are facing a very negative period for all international actions. In this regard, there is no doubt that the stock markets have been on the rise for many years, almost since the economic recession ended in 2012. And in some cases, such as the united states stock exchange, with returns close to 100%. Therefore, it is logical that this change in trend occurs because nothing goes up or down permanently, much less in the financial equity markets. Now seems like the time for things to change, even when it seems bad.

(*35*)Alternatives to investing

It will not be easy to find options to make your capital profitable. It is not surprising that bank time deposits are at record lows and even more so now that they are posting negative returns. You can do very little with these types of financial instruments. Beyond having the money saved in the face of an adverse scenario for equities. While on the other hand, the formats linked to the stock market have the same disadvantages as the sale of shares. In particular, the most aggressive products such as credit sales, warrants or derivatives. Unless you opt for a downward value even when it involves many risks in your hiring.

The only option you have today is the one represented by the alternative markets. As in the specific case of gold, which is having a truly flawless evolution since it is a financial asset that is serving as a refuge among investors and where profitable savings can be made with magnificent profitability. As with some raw materials of prime importance: cocoa, soybeans, wheat, etc. Even though in this case it is more difficult to make purchases in the financial markets. Among other reasons because you must go abroad to sign these contracts. While on the other hand, the formats linked to the stock market have the same disadvantages as the sale of shares.

As for the currency market, the general increase in risk tolerance supported the dollar last week. Data from strong US economic growth, higher bond yields, and a European Central Bank (ECB) virtually committed to rate cuts in September supported the dollar, which ended the week above all major currencies in September. all the world. The only positive sign for the euro was that it managed to close above 1.11 despite negative economic surprises and pessimism from the ECB, according to Ebury's weekly analysis.

(*35*)International investors

International investors' confidence in Spanish equities last year set a new record. According to the annual report on the ownership of the listed shares, prepared by the Spanish Stock Market and Market Research Service (BME), non-residents own 48.1% of the Spanish stock market. They are two percentage points more than last year and represent a new all-time high. Where it is shown that the Direct investment in household equity markets fell to 17.2%, while that of non-financial companies increased.

On the other hand, it should be noted that listed companies enjoy a more extensive, diversified and transparent presence of foreign investors in their capital than unlisted companies. Foreign investors have slightly more than 20% of the shares of unlisted companies, compared to almost half the value of the Spanish companies on the Stock Exchange that they control. These are very relevant data that confirm that the participation of non-resident investors in Spanish stocks it rises two percentage points in one year and marks a historical record.