This summer may be the last with low interest rates in the euro zone, according to the European Central Bank (ECB). All eyes will be focused on the end of the year to find out the decision they are going to make regarding their monetary policy, although the signs indicate that the period with cheap money may have come to an end. And how could it be less, this decision should be transferred to the equity markets perhaps more quickly than financial analysts expect. With the appearance of new business opportunities that you should take advantage of from now on.
This incidence affects that this summer that we are going to begin is not another one. If not, on the contrary, it will be something different and in any case, you will have no choice but to be more prepared than ever to carry out your operations in the equity markets. After a first semester of the year that it has been better than expected and that will end with a slight positive sign after the latest quotes in national and international markets. To face the last half of the year with a greater dose of positivism.
Anyway, this summer you can adopt a series of investment strategies that can favor your personal interests during these special months. Because in fact, if this summer is going to be characterized for something, it is because it may be different from the previous ones. And therefore you have to vary your strategies to make the capital you have available for investments in this period of the year profitable. With a single objective and that is none other than to increase the profitability that you can generate in your securities portfolio from now on.
Strategies: lagged values
One tactic that you can use from now on is to opt for the stocks that lagged the most in the first half of the year. Not surprisingly, some of them have a upside potential higher and in any case very appealing to include them in your next investment portfolio. But taking a precaution and it is that its technical aspect is not very deteriorated as a result of a deep downward movement that prevents it from changing the trend this summer that we are going to start.
On the other hand, it is preferable that you open positions in listed companies that have not broken their technical support. Because if you do it in the opposite direction, there is no doubt that you risk having a new and dangerous downward travel in which you can lose many euros along the way. Beyond other technical considerations and maybe also from the point of view of its fundamentals. In any of the cases, they must be operations aimed at the shortest term. Just the months in which summer is made up.
Collect capital gains
Another of the strategies that you can use for this summer, if you are with gains in equities during the first six months of the year is get rid of positions. Either through partial or total sales so that you can enjoy the capital gains in these months of leisure and rest. In addition, it can be your unexpected prize to make that trip that you longed for so much and that until now you have not been able to make. In this sense, the equity markets can provide you with the liquidity you needed to carry out.
This investment system also allows you not to you can get in the red in your open positions in the second part of the year. While on the other hand, you will be more attentive than ever to the new business opportunities that the equity markets will provide you in these months. On the other hand, and as investors with more experience in the stock markets often say, it is always preferable "bird in hand than a hundred flying". Apply this useful advice in your investments for this year. At least you will avoid certain problems in trading on the stock market.
Summer dividend rain
On the other hand, you cannot forget under any aspect that this is a period of the year in which the distribution of dividends to shareholders is majority. The summer months are used by listed companies to offer this remuneration. With annual returns that range between 5% and 7% approximately and above the interest generated from the different banking products. As for example, fixed-term deposits, corporate bonds or high-income accounts that barely offer an interest higher than 1%.
This time of year can be used for you to opt for this class of companies that will give a more defensive touch to your investments and the possibility of build a fixed income portfolio inside the variable. Whatever happens in the equity markets in the coming months. In addition, it will become an original way to protect you against the instability that the financial markets present in these months. So that in this way, you can go calmly to spend the holidays with your loved ones and without major worries regarding your relations with the investment sector.
Fleeing the banking sector
There is no doubt that one of the most conflictive sectors during the summer months is the one represented by the banks. It is the most sensitive to the decisions that can be taken from the European Central Bank (ECB), and therefore can develop higher losses than in other stock market segments. The most advisable thing is that you refrain from opening positions in this sector during this period of the year. In order that you do not have any other negative surprises during your long-awaited vacation. Not surprisingly, some of its values are immersed in a clearly downward trend from all periods of permanence: short, medium and high.
In addition, it is not the most suitable sector to open positions before the volatility They are showing their actions in these and even during the last twelve months. In this sense, the depreciation that Banco Sabadell has had during the first half of the year cannot go unnoticed. Where it has led to its valuation already below the euro unit and it has caused small and medium investors to have lost a lot of money in these positions in the banking sector. A reason more than enough not to return to this stock market segment, at least for a few more months.
Leave the bag in the summer
During these leisurely months, a good idea is to get away from the equity markets. To go to simpler products and that can provide more peace of mind at this time of year. With a minimum return of around 1%, but in a totally guaranteed way and without you being able to obtain losses of any kind. With products as representative as fixed-term bank deposits and that at the moment you can contract them for a term of three years. The right period that this season of the year lasts and that serves as a bridging investment while you spend your vacation in another destination. Being on the other hand, a product free of commissions and other expenses in its management or maintenance.
This investment strategy is very valid that for you to be calm these days of rest And you don't have to worry about the prices on the equity markets. This is a temporary measure but it can be very effective in protecting your monetary positions from now on. Where you will not have to assume any kind of risks since it is a clearly specified savings model that is open to all the profiles that small and medium investors present. Above other technical considerations that will be the subject of another article.
Go to alternative markets
Finally, indicate that another of the supports you have to protect yourself against unwanted scenarios in the financial markets is based on alternative markets. As for example, that of precious metals which currently shows an excellent technical aspect. Although on the contrary, the risks are much higher than in the other investment proposals. Because its volatility is very high and can lead to a bad play in your positions in this special market.
On the other hand, there is no doubt that you must provide a great experience in this kind of operations since their markets differ from conventional ones. If you do not comply with this requirement, it will be better for you to refrain from performing any kind of operations. Not surprisingly, you will have a better chance of leaving many euros on the way. And this is something you should avoid especially in such dangerous months for all equity markets. As one of your main objectives in the strategies that you must take in this period of the year.