Everything seems to indicate that this year is not going to be very favorable for the equity markets, especially in certain stock sectors that show a technical aspectonly very weakened. It will be the moment to analyze our investment portfolio and make changes in it with the sole objective of not being caught in downturns that can make small and medium investors lose a lot of money during the next twelve months. Where the common denominator of their actions will be caution over other technical considerations.
Financial reports also don't give off much optimism about what this tough trading year could be. In this sense, the International Monetary Fund (FMIE) has just published the latest “World Economic Outlook” (WEO report) report, which projects world growth for 2019 that will continue to be sustained and at the same rate of 3,7% as last year. In the specific case of Spain, the IMF lowers the growth forecasts for the Spanish economy by 2,2% in 2019. That is, five tenths less than those generated in 2018.
On the other hand, at the global level, the report highlights that growth exceeds that achieved in any of the years between 2012 and 2016, at a time when many economies have reached or are approaching the full employment and in which previous fears of deflation have dissipated. Thus, economic authorities still have an excellent opportunity to build resilience and implement reforms that strengthen growth.
Sectors: business opportunities
Reviews also vary by geographic scope, and include major Latin American economies (Argentina, Brazil, and Mexico), emerging European economies (Turkey), South Asia (India), East Asia (Indonesia and Malaysia), the Middle East (Iran). ) and Africa (South Africa). All these variables must be collected by the securities listed on the equity markets. But there is no doubt that there will be values that develop a better behavior than others and this is where you must direct your operations to make the money from your operations profitable. Because the risks this year will be significantly higher and of course they can create more than one problem for you from now on.
So that you can channel your investments this year correctly, we are going to point out which are the sectors of the stock market that can do it better. They will be a few and very punctual and where the greatest business opportunities will be concentrated in this new stock market period. Beyond the technical aspect that they may generate or have generated in recent months. Because what it is about at the end of the day is to opt for stock values that have a higher appreciation potential. In this sense, the proposals are not excessive and it will be necessary to be very detailed in the analysis.
Shelter and highly stable sectors
Segments of the stock market should be chosen that are not guided by volatility, much less by the indebtedness in their business accounts. From this analysis, the most stable and safe stocks are the ones that can do the best in this difficult year that awaits us from now on. One of them is represented by the electric companies that in addition to providing this important feature, they offer a very interesting dividend yield. With a fixed and guaranteed annual interest of around 5% and in any case above that offered by all fixed income products that barely exceed 1%.
Of course, the food sector should be another of the fixed in this peculiar pool to seek opportunities in the equity markets. Not surprisingly, they behave better than the rest in the periods of increased instability in the financial markets. However, one of the main problems in fulfilling this desire is that there are very few stock market proposals in Spanish equities. You will have no choice but to go to the international rising places if you want to have a greater variety of alternatives in this eminently conservative sector.
The sun and beach will continue to rise
La tourist activity in Spain it will grow in 2019 for the first time in ten years below the economy as a whole due to the lower dynamism of the main source markets and the recovery of competing destinations in the Mediterranean, according to the Alliance for Tourism Excellence, Exceltur. In any case, Exceltur has lowered the growth of tourist activity in Spain for 2019 to 2,6%, from 3,3% predicted in April, a figure that is one tenth below the performance of the analysts estimate for the Spanish economy (2,7%).
Either way, the tourism sector it may be one of the best performers in equity markets. Not surprisingly, it is an industry that is in a strong expansion and with better data than those reflected in other very relevant sectors in the stock market. From this sectorial reality, Sol Meliá, NH Hotels or Amadeus they constitute excellent alternatives to make personal wealth profitable during this period that has just begun. Not surprisingly, it cannot be forgotten that a financial asset based on sun and sand is very appetizing to be receptive to trading on the stock market.
Banking is underweight
In any case, there is no doubt that one of the big surprises this year may come from the banking groups. This is explained by the fact that a very strong punishment has revived during 2018 and it may be time to recover in the price of its shares by offering very relevant discounts on the target price of these financial companies. However, the risk is still higher than in other sectors because they maintain the same problem as before. With structural deficiencies that can cause them to fall into their positions.
On the other hand, a good part of these listed companies have left around 20% of their stock market valuation in the past year. A harsh and perhaps excessive punishment by investors that can lead to significant rebounds in its price from now on. They are securities that can be very interesting to hire if they are aimed at short-term operations. Co a potential for revaluation more than important due to the discounts that are quoted at the moment.
Another possible surprise: luxury
It also indicates that the listed companies that represent the luxury sector can also perform better in the stock markets. Traditionally it has always happened this way and especially when the first signs of weakness appear in the financial markets. In this sense, it cannot be forgotten that the luxury sector is anti-cyclical and can benefit from this trend in purchases. Beyond the technical analysis and maybe even the fundamental one.
If you want to direct your eyes to this special sector, you will have no choice but to direct your eyes to the squares of the old continent, which is where these proposals on the international stock market are mostly listed. In some of the cases they present a potential for revaluation more than suggestive as to invite you to start operations in this sector of equities. One of its most pronounced characteristics is that they are very volatile companies in relation to their quotation and they can make you earn a lot of money in a very short space of time. Although at the cost of assuming a series of risks that can weigh down your investment strategy.
Airlines
In this particular case there are two completely contradictory trends. On the one hand, they can do very well this year because of their clear link with tourist activity, where the flow of passengers shows upward coordinates and always very positive. So that in this way, they form a very important part of your new portfolio due to their undoubted interest in the eyes of investors.
But on the other hand, its main burden is that its shares can continue to rise in this new year the high prices that the market is reaching. oil. Above levels of $ 80 a barrel. This would translate into a weakening in the price of its shares. Not surprisingly, their relationship is very direct since as the price of crude oil is higher, the shares suffer their valuation in the financial markets. Beyond other considerations that would be explained in other articles.
In any case, it will be another of the sectors to consider during the next twelve months. At least to carry out very fast operations in which a strong capital gain can be generated. And in any case, as another of the great surprises that 2019 can bring. As you will see, business proposals will not be lacking during these days and now it only remains for these predictions to be fulfilled in the stock market that can be very useful for the next few months.