After having returned from a few relaxing days of vacation it is time to resume the routine of every day. And how could it be less, one of these tasks necessarily involves developing an investment strategy that allows you monetize savings from now on. In the first place, to face this last quarter that remains until the end of the year and on the other hand, to design how relations with the world of money will be during the next financial year. It is these days where you have to choose where to keep your money.
Of course, returning from vacation will not be very easy for you to put some investment ideas into practice. Not in vain, the political instability it will be one of the main common denominators that will define financial markets in the old continent. In addition, it cannot be forgotten that the rise in interest rates in the euro zone is already very close and of course that this factor will condition the evolution of the stock market in the coming months.
Another aspect that you should take into account from this moment on is that the returns provided by the stock markets in previous years. Where should prevail safety above other technical considerations and even from a fundamental point of view. Because in effect, now when you return from vacation, you will have to focus your investments from other, very different approaches. Something that you will have to ask yourself from these precise moments.
Back from vacation: where to invest?
Your first approach now will be to select which are the financial assets where to deposit your capital. These assets may be different from those chosen so far at this time. You will even have no choice but to change the investment portfolio to improve the returns that you can obtain with new strategies. Not surprisingly, it cannot be ruled out that we are very close to a trend change in equity markets, to go from bullish to bearish. As it is being glimpsed in recent weeks where the main international indices are showing a certain fatigue in their positions.
From this scenario, it will not be a bad idea for you to protect a part of your capital in a fixed deposit. Taking advantage of the rise in interest rates that this banking product is having at the moment. Where it is already much more feasible to exceed levels of 1% and with better expectations as a result of the rate hike that may occur in Europe as of next year. For the first time in many years, term deposits are once again appealing to small and medium savers. Something that had not happened for many, excessive years.
Stock market: opting for defensive stocks
Within equities, the best alternative will be constituted by defensive securities on the stock market. This strategy will allow you greater protection in the most adverse scenarios for the financial markets. In this sense, the choice may come from sectors as important as the electrical or power. Because in effect, they will do better in the less positive scenarios for international stock markets. Although, of course, they will not be the ones that offer the best profitability in the expansive periods of the financial markets. In addition, many of these listed companies have attractive dividend yields. In many cases, low margins above 5%.
On the other hand, defensive securities in the stock market is a more suitable way to direct investments to the medium and long term. Never in the shorts since they are values that are characterized fundamentally because they are very stable in their price. Above those generated in other sectors of great relevance and that have a great supply and demand in the change of their titles during almost all trading sessions. It is very good that your investment portfolio is with this kind of securities when you return from your vacation to give you greater security in your positions on the stock market. Be it national or outside our borders.
Combine financial assets
There is no doubt that this investment strategy should be a priority from September. Among other reasons, because et will help diversify money that you are going to invest from now on. One of the financial products where this trend best materializes is through investment funds. Because you can even combine fixed income with variable income from different angles or premiums in terms of the financial asset you want the mixed investment fund to be based on. In addition, you can not forget that it is a clearly upward financial product. That is, with a great predilection on the part of small and medium investors.
In another step within the investment positions, it is very important that these investment funds are protected in the currency. Not surprisingly, it will be one of the most relevant keys to improve the profitability levels of these financial products. Either basing your positions on the euro or the US dollar, depending on how they are trading at all times. Many of the management companies are opting for these models in investment as a formula to make the savings profitable with greater guarantees of success than up to now.
Take advantage of the oil rebound
As an alternative option at this time you should not forget about black gold. To the point that it can be one of the most profitable investments for the next few years. Where official forecasts suggest that the price of oil may approaching levels of $ 90 a barrel. Thus, this financial asset would have a potential for revaluation of more than 10%. Higher than that offered by other proposals you have in the investment world. From this approach, there are many more euros that you can earn, although assuming more risks than in other investment alternatives.
To invest in black gold, one of the most direct options you have is to buy shares of oil securities that are listed on the most important stock market indices in the world. As regards Spanish equities, it is only limited to the positions it occupies Repsol and that it has been one of the most profitable stocks in the second half of last year. Anyway, you have many opportunities in the stock markets of the United States, England and even in little Holland. You can also go to this financial asset from investment funds that are based on companies of these characteristics.
Emerging stock markets: more appreciation
Another of the most suggestive proposals ahead of you is the one that comes from emerging financial markets. But not just anyone, since the risks presented by these markets are more than remarkable. Where you can leave many euros on the way, as has happened in previous years. That is why the choice of these stock markets must be determined under great security so that you do not have any other surprises from now on. From this perspective, it is the bags of China and to a lesser extent Russia those that present the best business opportunities at the moment.
These financial markets are the ones that obtain the best profitability and in any case above the traditional exchanges or those best known by retail investors. Not surprisingly, they offer a upside potential very interesting, although if their evolution is favorable there is no doubt that they can break all growth expectations. With margins that can be very attractive and that are not available to all markets and financial products. To the point of becoming one of the alternatives to the investment that you have.
Precautions in taking positions
However, and being a riskier investment, you should not invest a very important part of your available capital. If not the opposite, whatever a minimal part it will be much more than enough to meet your investment expectations. In this way, you will be giving greater protection to your financial contributions in case those positions do not evolve in the way that you want. Not surprisingly, excessive volatility is one of the most common denominators in these very special financial markets, with fluctuations in the same trading session of up to 5% and even more intense.
On the other hand, they are markets that are closely linked to certain financial assets, such as oil. And that depending on whether it is bullish, there will not be excessive problems to reach higher levels in the conformation of its prices. From this point of view, their prices are more unstable and it will be much more difficult to detect where the trend changes occur, in one direction or another. Beyond other kinds of technical considerations.