You are surely wondering how the recent allied attacks in such a sensitive area of the world are going to affect your portfolio. Middle East. And even if it could be repeated over the next few weeks. And of course the reprisals that one of the great potential of the world such as Russia could take. These are some of the factors that small and medium investors need to clarify in order to channel their investments with greater security in these special days in international geopolitics. Because they can affect the money sector in a much more decisive way than you might initially believe.
All this in a context of financial markets that is not positive for the short term. Where the selective index of Spanish equities, the Ibex 35 so far this year has been close to 3% to reach levels of 9.724 points. One of the most noteworthy data of this period is that only slightly more than ten values show revaluations in the first quarter of the year. So much so is this trend in equity markets that the volatility that marks the VIX index is at 19 points. While on the other, more and more analysts are beginning to see the end of the stock market cycle that began in July 2009.
To which is added on this occasion the uncertainties generated by this surprise military attack in Syria. The first relationships in the equity markets have not been particularly significant, far from it. But on the contrary, these warlike movements they have not impactedor in the financial markets. That is, you will not be able to make them profitable unless in some very specific stock market sectors and from price projections of course not very expansive. This is for the moment the first reaction that has occurred since the stock market to the war escalation in one of the most sensitive areas of the Middle East.
Syria: is it affecting oil?
One of the markets most sensitive to these military attacks is the one with reference to the black gold. But this time, the effect of previous offensives has not been produced. Because the price of oil in financial markets has risen, but not with the intensity required by financial agents. Of course, it is not influencing that there is a sudden change in the price of this important financial asset. As a consequence of this action, you will not be able to collect this trend to obtain a few benefits in relation to the profitability of stock market operations. Beyond a few short and punctual increases that are not altering the bottom of the prices of these very specific values of international equities.
From this stage, he cannot forget that the oil it is very sensitive to this kind of actions in the financial markets. In this sense, one of the great beneficiaries of this geostrategic situation are the oil companies. With an important valuation in the price of its shares, as a consequence of the uncertainty in the financial markets. In addition, they have an upward trend in the background that is very advantageous so that you can make profitable savings at least during this period in which doubts last about what will happen in Syria. With a dividend yield that is in most cases very close to the 5% levels.
Big hikes in arms companies
Undoubtedly, this class of companies are the great beneficiaries of this very special scenario. To the point that the biggest rises have been noted in equity markets around the world. Not surprisingly, its business lines have been supported by the events that have taken place in recent days in the Middle East. In this sense, you can open positions if you think that these events will continue to perpetuate. Since the revaluations they can be really very spectacular and of course superior than in other more conventional sectors.
However, one of the biggest problems you have with this particular investment strategy is that you will not be able to carry it out on national stock indices. If not, on the contrary, you will have to go to international markets if you want to satisfy this tuto desire. Especially, in the US indices which is where most of these companies are concentrated. With an offer that is very wide and can lead you to select the best of the proposals that have these special characteristics.
Another option, get away from the markets
In any case, if the profile you present as a small and medium investor is rather defensive, you can always resort to getting out of the financial markets. So that in this way you are in complete liquidity to protect your positions. In addition, it will become a very effective strategy so that later you can seize the real opportunities business that will surely be presented to you from now on. Not surprisingly, it will be a period of a few months where you should be away from the stock markets. Above all to prevent unforeseen scenarios.
On the other hand, if you stay in complete liquidity, it does not mean that you do not make the savings profitable. Of course not, since you can get a small return through a imposition within a few months. No risk in the operation and offered as a bridge until you return to the equity markets. Because in a short time you will recover your financial contributions plus their relevant interests. And with the advantage that you will not have to assume any kind of commissions or even other expenses in the management or maintenance of these banking products. This is something that you must take into account to leave the money parked in those scenarios as the derivative of what is happening in Syria.
The reactions have not been violent
Either way, the reaction these days from the financial markets it has not been violent in any way. But on the contrary, the stock markets are being governed by the same variables as until a few weeks ago. In other words, there is a correction in prices that may last for a few months. Without you having much to do with these war events that are taking place in one of the hottest areas in the world. At least until today and as long as there are no other ramifications in the military and war escalation. In this sense, what Russia, Iran or Turkey can do will be very important for your relations with the world of money.
It is also important that you know that it is very important that as long as things do not go further, the money can be quiet in the stock market. With the logical oscillations as a consequence of movements in the stock markets. Where there can be very important differences between the maximum and minimum prices of the selected securities or financial assets. This is at least the aspect that equities present in these precise moments and beyond other considerations of a technical or fundamental nature.
Strategies to apply now
From now on, you will have no choice but to carry out a series of more specific actions than before. Do you want to know which are some of the most relevant?
- Act with greater caution that before and in any case you do not invest all your available capital. With a part of it, it will be more than enough to satisfy the investment demand.
- La flexibility In investment it will be another of the most satisfactory keys and that can be materialized with a timely diversification in the operations carried out. Not only based on variable income, but also on fixed income.
- Do not direct your investments to very long periods of stay. But on the contrary, the short term is the best choice for a period as special as the one we are going through.
- Search alternative proposals in which you can make the savings profitable in the most satisfactory way possible. Even from the most unfavorable scenarios for the financial markets. To the point that you can lean towards models based on the instability or volatility of the financial markets.
- You can wait a few weeks until we see how the evolution is going to be in this geostrategic theater. At least you will have greater security in operations, as well as seeking the best interest of the contracted financial products.
Everything seems that the repercussion of the armed intervention in Syria will have a lower incidence in the bags. In this sense, it can even be the trigger for further increases in the equity financial markets. Although it should be at the right time and to try to make the movements that you are going to make profitable from now on. It should at least have one of your main goals.