Undoubtedly, the year 2017 will be decisively marked by the celebration of a series of general elections that will determine the evolution of the variable income during this difficult period. It will be very convenient for you to know where these elections are going to be held so that you can develop the best investment strategies through all kinds of scenarios. You will have no choice but to be aware of them.
If you want to make your savings profitable during this new year that is about to start, you will have to count on the political factor. Few times has this scenario occurred with such intensity. To the extent that this factor will be totally decisive for enter or exit the financial markets. Not only nationals, but practically all over the world, as you can see below.
The main appointments of the voters with the ballot boxes will take place on European soil. And in a certain way, the stability of the European Union (EU) and its common currency, the euro. The markets, of any financial asset, will be very pending in the coming months, of the outcome of these important elections. From this general scenario, there is no doubt that volatility will definitely settle in the financial panorama of the old continent. Do you want to know can affect you in your relationship with the world of money.
Elections in France in April
One of the most important points on the international calendar will be located in the French presidential elections at the beginning of spring. The evolution of the financial markets will depend on who the president is. Many things are at stake, even more than you can imagine right now.
Depending on the winner of these presidential elections, some popular consultation may be demanded so that this country can leave the community organs. And of course also from the euro zone. This possibility will condition the evolution of equities gala during the first months of the new year. In this sense, it must be remembered that the dates of the elections will take place between the penultimate week of April and the first week of major. To a double loop system.
If the triumph of the forces opposed to Europeanism is confirmed, the debacle in the stock markets could be historic. Not only in French markets, but in all of the old continent. So you could lose a lot, but a lot of money if you don't close operations before this date. There is one thing very clear, according to the surveys, and that is that the neighboring stock market is not going to live easy moments from now on. But on the contrary, it will be governed by very volatile movements that will make movements in the financial markets more complicated.
The elections in Germany will follow
A few months later, specifically during the month of September, this scenario will pass to the engine of the European economy, which is none other than the powerful Germany. Its political and social scene is very similar to the French one, although with some slight but important nuances. To begin with, do not forget the presence of anti-European forces that are acquiring a greater predilection among German voters.
The importance of these elections resides in the fact that it is the first economy of the old continent. One of the great engines of the community project. Any deviation in the results would be interpreted by the financial markets in a very negative way. With foreseeable falls in its financial markets. And that would have its expansion to other European places, among which the Spanish one would stand out. More vulnerable to this class of processes.
Furthermore, it would almost derail the process of European unity. It is for all this that the financial markets will be on alert during the next quarters of the year that is about to begin. All the soundings indicate that the anti-community and anti-euro movement would have a very important support from the German population. It will only remain to be defined if it will be enough to remove the current tenant of the German executive, Angela Merkel, from power.
All eyes of financial agents will be pending what happens to late September. Not in vain, it will be decisive for the evolution of equities. Not only in this powerful country, but in all European squares. You will have no choice but to be more than attentive to what may happen. You cannot forget that your money is at stake. And therefore, it is not highly recommended that you carry out trades on the stock market with much joy.
Holding of referendums
Not only these countries will be objects of this electoral process during the next twelve months. They are about countries such as the Netherlands or Austria. Also be subject to the verdict of the polls. This time with the mitigation that the victorious political parties could promote popular consultations on whether they should leave this economic zone or not. Something that has terrified the financial markets for several months. A major cataclysm in the European stock markets is not ruled out if this scenario occurs.
Only the fact that this possibility can happen can be the trigger that the volatility is definitely installed in all financial markets. Not only in the stock market, but in other financial assets: currencies, raw materials, precious metals, etc. Given this situation, it is not surprising that many investors take a year off from what may happen.
It can be a good opportunity to opt for alternative markets. A good decision if it is the right choice for small and medium investors. In any case, the evolution of financial markets is dominated by strong fluctuations in their prices. Where there will be an important difference between the highs and the lows in your negotiation. In this way, there is no doubt that you will not be bored during this new exercise. It will promise you great sensations, which you can take advantage of if you profit from the movements that can be generated.
Possible elections in Spain
Our country will be another candidate to increase this list of European countries. But in this vain, not under the approaches of the previous cases. Here the problems will be more of domestic politics. Without for the moment there is a debate on whether or not it is convenient to leave the European Union (EU). The doubts of the equity markets are more directed to the problems of governance. From this perspective, the national stock market can do better than the countries in our closest environment.
In the current offer presented by Spanish equities there are business opportunities that you should take advantage of them from now on. With proposals from almost all stock market sectors. Some of it with enormous appreciation potential for the next twelve months. As long as the political uncertainties ruin the expectations of growth in the price of its shares.
From this perspective of analysis of the national stock market, you will have no choice but to act with some caution. And only move when it is really necessary. You will not be able to forget that 2017 will be an exercise full of great obstacles that can harm you in many of the operations. Where the evolution of the euro with respect to the US dollar will give you the odd signal about where the stock market can go from now on.
Eight tips for investing
It will surely be an atypical year for so many, and very important, elections that are going to take place on European soil. Faced with the anticipation of this unique scenario, it will not hurt more than a few lines of action that will be very useful in the event of any emergency in the equity markets. Among which the following stand out.
- Caution should be the common denominator of your actions. Do not invest to invest, but only when it is really worth opening the operations.
- One of the keys to success in this period will be based on know how to wait. It will give you the keys so that you can make the most of the savings with greater efficiency and reliability. Don't forget it from now on.
- It will not be under any aspect that you look in the refuge values an alternative to investment. You will have more than one idea to translate this strategy: gold, German bonds, oil and other financial assets that perform better in the worst scenarios.
- Knowing how to wait to make your investments in equities will help you don't make big mistakes. And on more than one occasion so that losses do not settle for a long time in your portfolio.
- Try by all means to apply a order of limitation of losses to your purchases on the stock market. In this way, you will be able to eliminate the operations that you cannot assume due to the high level of depreciation of their prices.
- Do not invest your savings in dates close to the holding of these elections. It will be much better if you wait a few days to see its outcome and how the financial markets respond.
- Avoid the most conflicting values as much as possible. Especially the linked to the sectors most sensitive to this kind of news. You should make up your portfolio with stocks from more stable companies and with a good income statement each quarter. You will have several options to choose from, both in national markets and outside our borders.
- Do not prolong your operations in equities more than necessary. If you are with profits it may be the excuse to close the movements quickly.