The evolution of financial markets during the first half of this year cannot be considered, far from it, as satisfactory for the investment interests of small and medium savers. There are many uncertainties in the marketsToo many for savings to be quiet, at least in equities. Causing, in any case, the uncertainty of these, who are not very clear where to direct their savings bag, at least in the short term.
Nor are the alternatives available to them at the moment excessive, surely as you will be checking in your personal situation. And where fixed income returns are not as expected, even with serious risk for the defense of the patrimony. That is when the time comes to consider where to save the assets, and obtain a tip of profitability on the investments. In this article, you will have the most appropriate proposals to achieve this goal, but in any case it will not be an easy task.
Combining profitability with savings protection will be a more difficult objective than in other exercises if possible. It will require more dedication, and find business opportunities that are presented at all times. On the other hand, it will also require a greater effort on your part to detect the best financial products of the moment. There are many who are qualified, but few who should be the object of your attention to try to make the savings profitable in a satisfactory way. If the expert analysts agree on something, it is that from now on there will have to be a lot more selective.
Looking for the return on investment
Among the proposals that are more suitable for this period of uncertainty such as the current one, those whose purpose is to seek a quick return on the amounts invested stand out above all. They are those that can develop positively in all possible scenarios, Without restrictions. Not only in expansive periods, but also in recessions, in any type of market, including equity markets. It is seen as one of the most interesting and profitable ideas to use right now.
But, the most difficult moment arrives and that is none other than to identify which products have these well-defined characteristics. Among them, the most suitable to use this investment strategy is undoubtedly the absolute return funds. They have in favor that they present a very wide offer and you can choose between many models, with different contributions, and depending on the profile you have as an average investor: conservative, intermediate or aggressive.
This proposal is characterized because it seeks to achieve profits in all scenarios of the international economy, even when equity markets plummet. Serving in many cases as a safe haven for the most defensive investors in the market. Surely you cannot expect very clear returns from them, but at least they will give you the opportunity to protect your savings against the most aggressive products.
If you choose this alternative for investment, you will be able to seek an average annual return of between 3% and 6%, and above that offered by the main savings products (deposits, promissory notes, bonds, etc.). In any case, performance will not be guaranteed by no means, and it will also depend on the model chosen by savers. Being one of the products that best benefits can be obtained in current market conditions.
Virtually all management companies have a product of these characteristics, and the differences between them are based on the financial assets that are present in their investment portfolios. You can even look for the safest ones, although surely the benefits will be minor and certainly limited. In any case, they should not be lacking in your investment now for these reasons. To the point that it can become an irreplaceable proposal in the current circumstances of the financial markets.
Banking products with liquidity
Savings products are not currently going through one of their best moments in terms of the performance they generate, far from it. With the aggravation that you can have your savings immobilized for a long time, and as a consequence of the high retention periods of these products. You will have to wait for its expiration to recover the contributions made. Faced with this scenario, a very practical and effective idea is to opt for banking products that provide greater security, and especially liquidity to your savings funds.
In this sense, a proposal to materialize this strategy are the current accounts that offer the highest profitability. And that can be selected by different modalities. The first of them would be those of high profitability, with returns close to 1,50%, and without having any requirement to obtain this service. There are not many those marketed by banks, but at least you will have more than one proposal in the current offer to achieve your objectives, without risking the least.
Another option comes from accounts that, without offering an interesting cash remuneration, at least serve to contain part of the household expenses. On one side, returning a minimum amount of the main bills (electricity, water, gas, etc.). You will only have to domicile these bills as a requirement to access these products, and you will automatically have these discounts in your account, which will even serve to contain the increases in the price of these energies.
And on the other, obtaining a series of discounts on purchases that you can make, mainly in tourist services, consumption, food, etc. And that will help you better plan the budget you have for each month. In addition, these accounts have been developed free of any commission, and other expenses in their management or maintenance. Being one of the most profitable products to face in the coming months, mainly due to the elimination of these expenses in your account.
Detect business opportunities
Financial markets always generate other alternatives with which you can make profitable savings over other products. You just have to find them, and try to take advantage of their movements. Currently one of these proposals resides in the evolution of oil. You are developing a strong uptrend that can drive up to levels of $ 60 a barrel. As the main oil market analysts warn. And it may be time to take positions from now on.
If you want to collect these movements, you can lean towards one of the oil companies that are listed in equities. Even, as in the case of Repsol, with a dividend yield close to 8%, and which can protect your savings in the most adverse scenarios for the stock markets. But for greater security, investment funds based on this financial asset are preferable. So what can be complemented with others from fixed income. In this way, your exposure to the markets will be less aggressive.
By last, you have traded funds. It is a combination of buying and selling shares in the markets with mutual funds. They are a more flexible product, and that has the great advantage that it presents more competitive commissions than in other financial products. And in any case, it can become a solution for your investment problems at this time.
Other business opportunities can occur in other financial assets that have been hit hard in recent months. As can be the raw materials, above all. And there will always be the resource of hiring gold, the refuge value par excellence. It has been developing a flawless uptrend since the beginning of the year. And where many investors have returned due to the lack of opportunities in other financial markets, including equities.
The yellow metal is also responding to the expectations of large investors. Not surprisingly, those who have opened positions in this precious metal will have seen how their savings have appreciated enormously, and above the 35% barrier. With different strategies to apply these purchases: shares, investment and listed funds, gold bars, etc. Always depending on the profile you present to adapt to this special investment.
And finally, there is another resource in sectors that can perform better before more negative scenarios in the economy. And that it would be the most defensive: energy, electricity and food. They also have the great incentive generated by the most generous dividends in the equity market, with a percentage very close to 5%. And that are very much to the liking of the most conservative savers for moments of difficulty in the bags.
Some tips to face the investment
To help you carry out this task, you will not hurt at all if you import a series of simple recommendations that will be very useful in the current circumstances of the financial markets. And that would be based on the following lines of action.
- Don't be in a rush to invest, since it will be the market itself that will give you the keys to enter.
- Look for the assets or sectors that they are better behaving During the last months.
- Limit your operations, and do not invest all the money you have available to carry out the operations.
- Try to search alternative models that are giving a better response than conventional investments.
- Do not focus all your savings on the same product, but it will be much better than diversify into several, and even in different financial assets.
- Don't think that stock prices are cheap, because they can still fall more, and as a consequence, acquire them at more suggestive prices.
- And finally, show some caution every time you are going to take positions in some kind of investment, as a strategy to protect your life savings.