Summer is not a good time to invest. The contracting volume substantially lower compared to other periods of the year. To the point of running a greater risk that listed securities will depreciate more intensely. As has happened in the preceding exercises. This is an unnecessary risk that can be avoided if small and medium investors opt for other, safer investment strategies. So that in this way they can protect their savings against any instability that may emerge in the equity markets in these summer months.
Despite the fact that the Spanish stock market traded in equities a total of 49.039,8 million euros in April, 41,4% more than the previous month, despite having fewer business sessions in the market. It was the best month since last October. In year-on-year terms, there was a 25,4% drop. Where, the number of negotiations was 2,9 million, that is, 7% less than in March and 0,8% less than in the same month of the previous year. But these are figures that do not se will repeat in the summer months.
Within this general context, we are going to propose a series of investment alternatives so that you can make your savings profitable with greater guarantees of success. Without giving up any financial asset, although acting with greater prudence than up to now. So that, when you return from the holidays, you will find a balance in your checking account more healthy. And that is, after all, what it is all about in these special months of the year. Where, predictably, volatility will increase in equity markets, both national and outside our borders.
Alternatives: US bonds
It is one of the most prudent ways to focus investments during the summer months due to the confidence that this financial product generates. To the extent that it becomes a safe haven value in the event that instabilities emerge in the equity markets during this period of the year. The profitability that United States bonds can generate moves in a range that goes 1,50% to 3%. Where, without a doubt, a good part of the investors' savings will be directed in this summer period of the year.
The easiest way to contract United States bonds is through the fixed income investment funds that are based on this financial asset. With the advantage that it can also be combined with other financial assets of particular relevance in the investment sector. Its risks are lower and in any case they are more controlled from the beginning of the operation. It can be a really very interesting option for the defense of your interests. Especially if the evolution of the equity markets is not as desired for stock market users,
Three-month deposits
Fixed-term bank deposits is another of the alternatives that you have at this precise moment. With a term of stay It would last what the summer months are. That is to say, three months so that you can spend the holidays with complete peace of mind and avoid displeasure at this time of year when you have to rest on the beach after a few tiring months of work. It is true that this financial product does not offer much profitability since it is around 0,80%, but at least you will have a guaranteed fixed payment that you will receive upon maturity.
While on the other hand, you can not forget either that this investment strategy can help you to leave investments in the stock market during the summer. And you can resume the same after the holidays. Perhaps with prices in the shares of the securities that can be much more competitive than at the moment. On the other hand, it is an investment model that it will not generate commissions and other expenses in its management and maintenance. Beyond other technical considerations. It is the best way to spend a few quiet days in your place or vacation destination.
Open a high-paying account
Before the summer season starts, it can be the ideal pretext to formalize a so-called high-paying account. Where they can offer you a average and annual profitability of up to 2,20%. That is, more than in the more conventional fixed income products. Where you can even direct all your household bills (electricity, water, gas, etc.), as well as access credit and debit cards completely free of charge. From where you can manage all your expenses or withdraw cash from technological devices.
This type of account is being imposed in the current offer that banking entities have developed and that are aimed at attracting customers from the competition. With offers and promotions increasingly suggestive and aggressive that can benefit you through a payment on account that perhaps you did not expect to count at this time of year. While on the other hand, we cannot forget that this is a fixed and guaranteed remuneration. Whatever happens in the different financial markets, both from fixed income and equities.
Defensive securities on the stock market
If in any case, you have decided that you are going to continue with your investments in the stock market during the summer months, you do not have to risk your money on these special days of the year. In the sense that you can go for defensive or more conservative values from now on. They are the best performers in the most adverse times for equity markets and in some cases they can even obtain very appreciable returns. As for example, in the electricity sector values that also have dividends with a profitability of more than 6%.
It is certain that this is a more aggressive alternative than the rest, but with greater control over positions on the stock market due to the special characteristics of these securities. Where you have many options to choose from within the national variable income. Stock values that can do very well during these months, although there is always a latent risk about their evolution in the stock market. Because at the end of the day it is about equity markets with what that implies when managing capital. Where is the savings of small and medium investors who want to preserve their personal assets these days.
Corporate bonds
Another very original way to approach investments is materialized through this financial product. Generally, the bonds will earn a coupon of 3,50% nominal annual, payable quarterly, on the nominal value at all times. The amortization will take place by reduction of the nominal and on a quarterly basis until 2038. This is perhaps their problem, that they have very long maturities and that therefore they are aimed at a very well defined investment profile. Where it is necessary to try that they have a rating with a stable trend to provide greater security to the investment.
The current offer on bonds is very relevant and you will only have to find a solvent company that is in charge of marketing these financial products. So that this way, you are in a position to improve your income statement in the long term. Through a financial channel that has always been available to small and medium investors. Where the idea of preserving capital prevails over other more aggressive considerations within the financial markets. With a remuneration that of course can be very interesting compared to other financial products of similar characteristics.
Endesa promissory notes
A very innovative alternative at the moment is represented by this product derived from fixed income. Because in effect, Endesa has requested the admission to trading of its new program of promissory notes of 3.000 million euros of outstanding balance in the fixed income market of BME. Under this new program Endesa will be able to issue indistinctly promissory notes with unit nominals of 100.000 euros or 500.000 dollars and with maturities between 3 and 364 days. To the point of becoming one of the options available to you if you are not willing to assume excessive risks in the investments carried out.
In this sense, the CEO of Endesa, José Bogas, stressed that "the new Endesa program confirms its status as a benchmark issuer and demonstrates the confidence of the markets in the Spanish supervision and listing bodies". It should be remembered that Endesa has a short-term rating A-2, stable outlook, by Standard & Poor's; from P-2, stable, by Moody's; and of F-2, stable, by Fitch. In 2018, Endesa obtained consolidated revenues of € 20.195 million and an EBITDA of € 3.627 million. With a remuneration that of course can be very interesting compared to other financial products of similar characteristics.