6 keys that the stock market will depend on at the end of the year

keys

During the days the selective index of the Spanish stock market has depreciated with some intensity, unfortunately for the many and many investors who have deposited their savings. Looking at the last three months of the year, the outlook is certainly not very optimistic. Where one of its main objectives will be to endure the important level of 9.000 points. Because if this is not achieved, the downtrend is guaranteed for the next year. Until the point of this last quarter of the year it will be more important than in previous years.

In addition, the feeling of the investors is at one of the lowest points in recent years and his view is that equity markets will continue going down until the end of the year. Not surprisingly, the short positions are being imposed with crystal clear clarity on the buyers and with a lower volume of contracts. Because the news that is being generated in the financial markets is not to the liking of the different financial agents.

To help you channel your investments in these months that seem very complex to us to operate on the stock market, nothing better than to reveal what your weaknesses are. But above all to list which facts will be most important for the evolution of the national equity markets. Depending on them, you will have no choice but to use one or another strategy to make your capital profitable from now on. They not only come from the purely economic sphere, but also from a political perspective and even social.

End of the year: increase in interest

euro

Of course, the announced rise in interest rates in the euro zone does not favor a stabilization of Spanish equities. This is one of the main reasons why it has depreciated in recent months and especially since this past summer. There are very few stock values ​​that remain positive in this period and in any case through proposals that do not come from the Ibex 35, but from the secondary indices. Through companies whose operations are intended for the speculative investment above other technical considerations and maybe even from a fundamental point of view.

Some financial analysts believe that in a general context of rate hike, the selective index could be below 8.500 points. A scenario that would lead you to lose a lot of money if you were in buying positions. In any case, there is one thing for sure and that is that in these months that remain to the end of this year you will have the opportunity to shop at more competitive prices. And one of these factors comes from the withdrawal of stimuli by the monetary authorities of the old continent.

Growth slowdown

Another of the data that he is giving to investors is the reduction in the estimates of the growth of the economy. Not only on a national scale but also outside our borders. With the sole exception of United States and whose stock market continues in an upward trend, at record highs. Perhaps a solution to correct this problem in investment lies in changing the financial market and very specifically going to the other side of the Atlantic. It will be a very innovative way to protect your money in the last remaining months of the year.

On the other hand, there is also a serious risk that an economic crisis could be generated, although without a definition of its intensity. Something that in one way or another is being discounted from the stock price. Because as you well know, financial markets anticipate the economic reality of a country or a geographical area. And in this sense, the forecasts are being very negative. After the Ibex 35 was long with continuous rises. This is another factor that can weigh down the Spanish stock market in the last three of the year. At least you should contemplate this not so positive scenario with which investors with more experience in financial markets play.

Political instabilities

elections

The political situation in some countries of the European Union It is also a risk factor so that the stock markets do not rise in the remainder of the year. Not surprisingly, it is not ruled out that a serious crisis could be generated within the euro zone and that it would be very detrimental to interest on the stock market. It is something that is also trading these days and the influence of Italy is being very important for equities in our country. Delving deeper into the losses and being one of the stock exchanges of the old continent that is most affected by this condition.

On the other hand, you cannot forget that you are going to live electoral processes very relevant and that can determine the evolution of European equity markets. Above other considerations, including the business results of companies listed on the continuous market. In this regard, it is very important for you to know that elections will be held in the coming months that will be very relevant for the future of community institutions. And that without a doubt could be the trigger for further falls in the equity markets.

Very severe fixes

Of course, the fact that stocks have had an excess in the rises of recent years is no less important. Where there is no choice but debug selling pressure to adjust the law of supply and demand also in these financial assets. Not surprisingly, some stock markets have appreciated by more than 50% and these excesses have to be corrected in all economic and financial situations. Because there is a saying on the stock market that says that "nothing goes up forever" as has been shown in previous exercises.

The big question is how far these foreseeable corrections will go in the equity markets. Because there is no doubt that a good part of the monetary contributions made by all kinds of investors is in danger. To the point that you are currently seeing a deviation of money towards other financial assets. Not only from fixed income but also from alternative investments. Something that had not been seen for many years. As a sign that something can happen at the most unexpected moment, as happened with the economic crisis of 2007 and 2008. In which it is a warning to sailors to better manage their money from now on.

Excess in world debt

debt

Another factor that explains a worse performance of the stock market in these few months that remain of the year is represented by the fact that great debt they accumulateNot just publicly traded companies, but especially states. A good example of this worrying scenario is represented by Spain. With debt levels very close to 100% and with these it is very complex that the stock market can rise or at least stabilize in its price levels.

On the other hand, it cannot be forgotten at this very moment that the Spanish economy has a higher indebtedness in Spanish households. To the point that credit has picked up in some of the most common operations, such as consumer purchases, family needs or problems making ends meet. That is to say, a whole complex system that will not give wings to equities to improve the prices of the previous months and that can explain the scenario it presents at the moment, to the concern of many of the users in financial or investment products.

Possible economic crisis

As the last scenario to keep in mind in the last months of the year is the fact that it does not rule out any economic recession. This is announced by some of the most relevant economic agents, not only national but also internationally. Where there is much more you can lose in the stock market than win. Not in vain your great objective in investing from now on will be to preserve your savings above other considerations. As for example, the profitability that you can obtain through financial products and especially in derivatives of the stock market.

In any case, it is a scenario that is certainly within the foreseeable and that are doubtful would affect the equity markets. For this reason alone, you have to be more cautious than ever and give preference to products that generate a fixed and guaranteed return every year and no matter how small this return may be. Not surprisingly, you are exposing yourself to excessive risks in all investment senses. In this sense, you should not tempt your luck because its effects can be devastating in every way. As some of the most relevant economic agents are warning these days. Now it will be necessary to verify if they will be fulfilled.


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