In the face of what may happen in 2018, many financial analysts believe that this exercise will result in a negative sign in the main indices stock exchanges of the world. This scenario will not be very strange before a streak of exercises in the earnings they have been present in the financial markets. Practically since the economic crisis ended and that has caused a good part of investors to increase their personal assets. However, this situation may not be repeated this year. And therefore it will be necessary to be forewarned to correct this problem. So that in this way, the capital gains can be installed in the income statement at the end of the year.
It is an undeniable fact that financial products have been adapting to the new conditions of financial markets. And in this sense, a falling stock market could not be an exception. Quite the contrary, a series of investment formats have been developed in the last ones that allow users to make profitable their savings even in the most adverse scenarios. That is, with a downtrend in equities. Where you can obtain greater capital gains than you can imagine from the beginning.
These are more sophisticated products but they are available to all small and medium investors. They aim open up to buying and selling operations of shares on the stock market. But not exclusively since they have also been opened to other financial assets of special relevance. From the most elemental precious metals to even some of the most relevant raw materials on the markets. As you can see below, you will not have problems operating in scenarios initially adverse to your interests. Do you want to know some of these special products?
Financial products: credit sales
One of the models that best reflects this trend is credit sales. Its mechanics are based on the fact that the payment of the operation is carried out in a longer term provided that the product has been formalized. To hire it, only the determination that a value is going to go down In the next weeks. And bet hard on this scenario. If this condition is met, there is no doubt that you will earn a lot of money. More than through other financial products. But if not, the risk is very high because you will have many possibilities of leaving many euros on the way.
Credit sales, on the other hand, is a more sophisticated format that requires a deep knowledge of this financial product. Where risk is always present in your operations. Either way, it is an investment modality that is becoming popular among more experienced investors. As a consequence of them, you will not have any kind of problems to hire it from any financial institution. To the point that many of them offer you offers and promotions so that you can save money in each of the open operations.
Another option: exchange-traded funds
A very effective alternative that you currently have is materialized through ETFs or exchange-traded funds. It is a mix between mutual funds and buying and selling shares on the stock market. The advantage in this case is that it is not limited only to the bag. But you can profit from operations to the downside in other financial assets. As for example in fixed income, raw materials or precious metals, among some of the most relevant assets. Also, consider commissions that are less demanding and that will help you achieve your goals.
Exchange traded funds is a product that is especially suitable for intermediate terms of permanence. With the mandatory requirement of having very insurance that the depreciation of financial assets selected. But be very careful, because any error in the calculations can complicate the operation to levels that will put you in a serious financial trouble. For this reason, you will have no choice but to choose the right time to subscribe. Not in a bag where you can go in and out as many times as you want. Not surprisingly, this is another of the characteristics that defines exchange-traded funds. In contrast to other simpler products to formalize at any time and situation.
Inverse investment funds
It is the product that best reflects this trend. Because it implies that bearish positions can be taken on the main international equity indices. From the Ibex 35 to the Eurostoxx 50. Where, as its downward trend is more pronounced, the money you have invested in the positions of the contracted fund will increase. It is also more profitable because it entails a series of commissions that are quite acceptable by the holders of this financial product.
It is true that the offer at the moment is not very extensive, although you can satisfy your demand without any problem. From your bank you will always have an investment model of these characteristics. Although there is no doubt that you should be very clear that the stock market is going to go down during the next sessions. Because if it is not this way, you can lose a lot in each of the open operations. Not surprisingly, investment funds are one of the financial products with the highest risk. It requires that you be very clear about what can happen in the future.
Warrants: more sophisticated product
It is without a doubt one of the financial products that requires a greater financial culture on your part. You can bet on the losing positions of the selected securities. With an extensive list of listed companies, where the representatives of the selective index of national equities stand out for their special relevance. But again, risk is the main problem for formalizing warrants from now on. You have many products with these requirements. Both in its put format and in the call. In any case, it is one of the essential models to capture the upward trend in the financial equity markets. Above any other that you can find in the current bank offer.
If warrants are distinguished for something, it is because it is a very aggressive product that you can make profitable in a very short time. Through a leverage system that significantly differentiates them from another. On the other hand, they have one of the most competitive commissions on the market. Above the buying and selling of shares on the stock market. It should not be missing in your investment portfolio if you really want to take advantage of the downward movements that occur in equities. With a high revaluation power. Although if the necessary conditions are not met, you can lose many euros along the way. You must be very careful with these kinds of operations.
Derivative funds
They are popularly known as ETFS and are characterized as being open to other financial assets outside the stock market. As for example, raw materials or precious metals, as some of the options with the greatest predilection on the part of small and medium investors. It is a financial product that is a mix between mutual funds and the purchase and sale of shares in equities. With a period of permanence that conforms to the medium term. It is applied to equities, sectors and indices. Both in national markets and outside our borders. In any case, it is another of the essential financial products for any downtrend worth its salt.
Derivatives product on the stock market
We are facing the most complicated product of all due to its special nature and mechanics to operate with them successfully. On the other hand, you cannot forget that their hiring requires extensive experience in their operations. Because you can run the serious risk of getting confused in the strategies you use to make the investment assets profitable. It is an investment model that is very sophisticated and requires a certain amount of learning so that you are in the best of conditions to make the savings profitable in a fast and above all satisfactory way for your interests as a small and medium investor.
It collects the bearish processes with great reliability since it represents these movements with great intensity. In this sense, it is one of the preferred by the most aggressive investors who want to obtain ample benefits in operations in the equity markets. Although due to its special characteristics, it must be applied in low-value operations. Precisely because of the risk of all his movements. Where you can earn a lot of money, but for the same reason lose a good part of your financial contributions.
As you have seen, the fact that the bag goes down should not be at odds with a good performance. For that you have these products that can help you in more than one moment. At times when the evolution of equities is not as desired by small and medium investors.