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With the first half of the year coming to a close, this is a good time to consider what would happen if equity investing suffered a severe setback from now on. It is a scenario that is not far from reality in the opinion of some financial market analysts. Especially when a greater deceleration than expected in the economies of the old continent. And all of them after the first period of the year will be settled with a balance in the equity markets that should be classified as moderately positive.
Well, we are going to give you a series of tips in case the dreaded collapse of the equity markets occurs. So that in this way, you are in perfect disposition of protect your personal property or family. Because you cannot forget that if this happened from now on, there will be a lot of euros that could leave you on the road in stock trading. Therefore, you must be ready for this viable scenario that can arise at the least expected moment by small and medium investors. Beyond other technical considerations in stocks and perhaps also from the point of view of their fundamentals.
One of his main priorities from now on is to anticipate these very violent movements in the international stock markets. Even with the real possibility that also in this negative scenario you can monetize ahorros with great efficiency in operations. While on the other hand, you should not subsequently relax from the performance of financial markets during the first half of the year. It can be a mirage that leaves many savers hooked, mainly those with less experience in the hiring floors.
Investing: Going for Defensive Stocks
One of the most effective investment strategies to protect yourself from this type of scenario in the financial markets is the contracting of defensive character values or conservative. Where in the most adverse scenarios they can develop a better behavior than in the rest. This has happened during the last part of the year, with the representatives of the companies in the electricity sector. Although the selective index of national income recorded significant depreciations, the values of this business segment appreciated around double digits.
On the other hand, it cannot be forgotten that these types of companies are listed they distribute a very attractive dividend entre inversores y cuyos márgenes de intermediación oscilan entre el 5% y el 7%, siendo uno de los más altos en renta variable nacional. Por encima de los generados por otros productos bancarios, como cuentas de altos ingresos, depósitos a plazo o pagarés corporativos. En todo caso, constituye una poderosa strategy para crear o desarrollar una cartera de renta fija dentro de la variable. Crear una bolsa de ahorro estable a medio y largo plazo.
Go to alternative markets
There is no doubt that a magnificent solution to make profitable savings in periods of instability in the financial markets is based on the contracting of alternative products. That in all cases they can do better than the Stock Market, as has traditionally happened with some of the raw Materials more relevant as in the case of gold. Moreover, it cannot go unnoticed today that the yellow metal shows excellent technical looks as it moves through a well-established uptrend.
Another alternative financial asset can be oil if its prices remain below the current buying trend today. In this circumstance, there will be no choice but to go to the international markets where it is listed, fundamentally the United States. Even though for this it is necessary to bear some commissions that in any case are more expansive than the national ones. But it will be an operation that will really be worth it since the profitability that can be achieved is much more rewarding. Especially if their prices are above the $ 75 a barrel level.
Diversify investments
Another investment system that you can use to get out of this trance in the equity markets is by diversifying your investments through different financial assets. Instead of putting all your savings in the same basket, it is highly recommended that spread over various financial instruments: investment funds, sale of shares on the stock market and in any case also in fixed-term bank deposits. From this dynamic, you will be protecting your positions in the financial markets. And in the worst case, there is no doubt that you will limit the possible losses that you can generate from now on.
Al mismo tiempo, es una forma muy práctica de evitar situaciones muy complejas para tus intereses personales. Donde puede surgir la situación de que pierda mucho dinero en un solo valor o producto de stock. Vale mucho la pena repartir el capital disponible en varias canastas que ayuden a que el balance final de tus inversiones be verdaderamente positivo. ¿Cuál es al final del día uno de sus objetivos de mayor prioridad cuando face any type of investment. Combining, if feasible, equities with fixed income or even with alternative formats, as do investors with more experience in this type of situation.
Choose active administration
Active management in the world of money always offers excellent results in times of greater instability in financial markets. Among other reasons because it is known adapt to any type of scenario in the financial markets. Even in the most unfavorable for the interests of small and medium investors. Beyond other considerations of a technical nature and perhaps even from the point of view of its fundamental principles. Above the results that passive money management offers you.
While, on the other hand, active management is conducive to going renew financial assets depending on its evolution. It is a strategy that many savers often forget due to lack of advice and that can lead them to very complicated situations in these unfavorable scenarios. It is a strategy widely used in investment funds, both fixed and variable income. Where no financial asset is renounced, but the best are selected at all times.
Better liquid values
Otro sistema que nunca falla en estos casos es seleccionar un producto o valores que brinden una gran liquidez. Con el principal target de que puedas salir de tus posiciones en los peores momentos de los mercados financieros. Para que de esta manera, no puedas permanecer atrapado en posiciones bajistas que te pueden costar mucho salir de ellas. Además es importante destacar seleccionar este modelo de inversión que será extremadamente sencillo de aplicar y sin ningún gasto adicional. Por otra parte, te ayudará a poder better adjust sales prices in operations in equity markets.
To this end, there is no doubt that you must avoid small capital letters they always give you a lot of trouble getting in and out of their posts. To the point that they can make you lose money in an absolutely unnecessary way, as has happened on some occasions in your history as an investor. With some unwanted effects for your personal accounts.
Market operations
The fixed income market maintained a high level of activity. Where he total accumulated volume In the year it grew by 77.9%, after trading 28,750 million euros in the last month, 85.3% more than in February 2018. Additionally, issues admitted to trading increased by 7.8% since the beginning of the year and the balance vivo increased by 2.9%. Regarding the financial derivatives market, trading increased by 3.9% in the first two months of the year compared to the same period of 2018. This increase was focused on equity futures, which registered an advance of 314.6% . Although on the contrary, the trading of Ibex options rose 14.8% in the month.
On the other hand, it is important to note that the open position of all financial derivatives increased by 7% compared to the previous month. The main increases were registered in futures and options on the Ibex 35, with increases of 6.8% and 16.5%, respectively. While the futures and stock options also grew. In these cases, 3.1% and 6.6% in each of the investment formats. Highlighting the interest of small and medium investors in equity markets. At times like today where the profitability of fixed income is at historical lows. With effects on the price of the shares.