Is it time for investors to return to fixed income? If we look at the reports of some management companies it seems that this trend of is giving among small and medium savers. With a transfer from their equity portfolios. In this movement they are looking for a little more security to their financial contributions. Although at the cost of give up the best trade margins that the different equity products can offer. Not surprisingly, we are in a period that is raising many doubts among users. With the latent fear that they may lose part of their assets as a result of a change in the trend in the stock market.
From this general scenario, it is worth highlighting the latest report published by Natixis Global Asset Management. In which it is shown that Spanish investors they don't trust the stock market rises, nor of the economic data that are being generated from the financial markets. To the point that portfolios are becoming more conservative after the last few months. With greater caution regarding their valuations on equities, especially the US, and the dollar. And a progressive return to fixed income products.
At a time of year where equities traditionally behave more favorably for your interests. Where the effect of the so-called christmas rally It is welcomed by small and medium investors. With revaluations of listed companies above even 10%. Normally in this part of the year the buying positions are clearly imposed on the sellers in a very clear way. This is one of the reasons why the appearance of this report by an important financial agent is striking.
Within the fixed, convertible bonds
But what type of fixed income do savers choose? Well, the study clearly highlights that investors are raising the weight of convertible bonds as a substitute for equities. What do they achieve with these kinds of strategies? Well, very simple as they are in better conditions of participate in the stock market rises, but at the same time they can better control the risk of falls. It is a preventive method against what may happen in the equity markets from now on. Where convertible bonds are formed as one of the most effective alternatives for investment.
Despite everything, the report also shows that lmanagers seem to be more cautious, although they do not want to miss the good moment of the stock market. With which they choose to renew and update their investment portfolios. Giving greater relevance to what is fixed income, although with the knowledge that their interests will be much lower than before. At this point, the operations that you are going to carry out from now on can be focused on other products of these characteristics. Do you want to know what are some of the most suggestive proposals at the moment?
High quality national bonds
One of the alternatives that this important financial market has in store for you is through bonds that are backed by the safest economies in the world. In this sense, one of the best choices would be represented by the bonds of Germany and the United States. As it has been seen these days, they are set up as safe havens in the face of the most adverse moments for equities. Not surprisingly, the monetary flow runs towards these remarkable financial assets in search of greater security. Where the buying positions are imposed with great relevance on the sellers. With a potential for revaluation more than important and that it is necessary to mention.
These types of bonds preserve your capital from erratic movements of the stock market. Where you have more to gain than lose. Well, it is one of the benchmarks to which the capital of many investors is being directed. In particular, those with a more conservative or defensive profile and who want to get away from the risks that are present at the moment in international equities. In any case, the report developed by Natixis Global Asset Management points out that there has been a significant increase in investment in emerging market debt and also in global fixed income strategies. With the appearance of a greater demand for products that meet these special characteristics.
Another option: corporate bonds
Of course, another of the investment strategies necessarily goes through these financial products. Because corporate bonds can be more profitable if the situation of the companies is especially satisfactory. To the point that it can improve the usual performance of fixed income products. Although of course they carry more risks in their hiring. You will have to assess the advantages and disadvantages of its formalization to know if it really suits you or not to include them in your investment portfolio from now on. Because it can generate a average annual interest around 6%.
Corporate bonds, on the other hand, are a way to approach equity returns, but from more conservative positions. Even if not without risk since through these investment models you can also lose money. Like what happens when buying and selling shares on the stock market. Especially if the situation of the companies is not the best of those desired for your business interests. Either way, it is enabled as another alternative to being in fixed income. Through some of the most unknown products by small and medium investors.
Better euro than other currencies
Another feature that this report for investment shows is that there are other more sensitive areas that are more open to positions than others. From these positions, it becomes clear that portfolios with dominance of the euro zone they beat, on average, the world portfolios. Well, this is a trend that can be explained by the revaluation of the euro against other major currencies. Among which is included the US dollar. However, when dealing with currencies you can run into greater volatility in their prices. So that you can get a lot of profitability in operations for the shortest term. Even from more aggressive approaches carried out in the same trading session.
Equity-linked deposits
In any case, there is always the resource of the impositions that are linked to the variable income. In this way, you you guarantee a fixed and guaranteed interest rate every year. Very meager but that will help you maintain the liquidity of your checking account. But in addition, you can improve these margins if a series of conditions are met in the quotes of the selected securities. Up to 5% and above your initial estimates. However, it is a condition that is not fulfilled in all situations. Quite the opposite, because it can take a lot to reach these goals.
These types of deposits are a solution for people who do not want to be directly exposed to the risks generated by equity operations. They have an expiration date that you must meet in all cases. Because if not, you would have no choice but to assume very expansive commissions. As much as they can get closer to 2% and that it will reduce the competitiveness of the interests generated from this financial product. With longer periods of stay than those enabled for the more conventional impositions. They move between 24 and 48 months in which you must have the savings immobilized.
Diversifying investments
On the other hand, you cannot forget that you can always combine fixed income with variable income. So that in this way, you can keep the best and the worst of both investment models. One of the financial products that best represent this trend are Investment funds. Through the mixed formats that make up your portfolio with these financial assets. One of the goals of this strategy is to preserve savings over other considerations. So that above all you are in the best of conditions to protect your interests as a small and medium investor. Not surprisingly, it is one of the goals in its preparation by the management companies.
From this general approach, diversifying savings will provide you with many advantages in the strategies that you are going to use from now on. Because it is an approach that will help you sleep more peacefully than before. You can not forget that the setbacks will not be as pronounced as if you were directly exposed to equities. A very important factor in the most difficult times for the financial markets. Since you can even generate quite acceptable returns according to the circumstances that prevail in the current economic order.