What gifts can the Three Kings bring to investors?

The wishes that investors will ask the wise men

According to most of the analyzes of stock market specialists, 2016 is not going to be a year with a defined trend for investors, but on the contrary, will be immersed in a process of greater volatility than in previous years. It seems, based on these perspectives, that everything will no longer be the same, and that you will have to live under a very different scenario, and not so positive, which will make it more difficult for you to monetize your savings.

From this scenario proposed by the experts, nothing will be the same, and from now on it will be necessary not only to obtain a minimum return on accumulated savings, but especially have broader protection for them.. It is a difficult task before you, without being very clear about where the share prices are going to go in the coming months. The direction of the financial markets is far from clear, as reflected in the recent sharp declines in all the world's stock markets.

In a traditionally bullish month like December, above the rest, and it is still surprising that the shares of listed companies have depreciated to such an extent, and without the long-awaited Christmas rally having appeared. Upward movement that serves to benefit small and medium investors, and who enter the markets at this time to get capital gains on their savings.

But what he is focusing on now is whether next year profit margins will remain low, or on the contrary, the bullish process developed in previous years has passed away. For the coming months to be able to obtain benefits in the variable income, a very favorable scenario will have to be given, which is what investors will demand from the Three Kings on their next visit. A wish that can materialize under many euros after the operations carried out.

The best gifts for investors

If you want to benefit from a bullish variable income, you will have no choice but to prepare your letter to deliver it soon to the Three Wise Men. In which a series of wishes are included that could be very well received by the markets, and that in many cases will depend on its evolution from now on. Among these desires, of course, some ideas that we present to you below should not be missing.

Surely you will no longer settle for the usual perfume or tie, not even with a new mobile phone. You will want something new, more innovative, that will make you increase your wealth in this period. And if you are an investor, it will focus on shaping the ideal scenario so that the financial markets are more receptive to your desired wishes.

Not surprisingly, it will largely depend on whether your checking account is in better condition in its balance for twelve months from now. And in this way, face your most intimate desires: a trip with your family, change your car, or simply treat yourself.

From this moment you will be available to take a pencil and paper and write down all the demands that the financial markets may ask, and by extension benefit yourself, through the yield that you obtain from your savings. Besides, your alternatives to promote it are not at all satisfactory in the current moments in which the price of money is low.

With a fixed income that offers you practically no return through the main banking products (deposits, promissory notes, bills...). If you want higher returns, you will have no choice but to go to equities, although assuming greater risks. It is the toll that you will have to pay for choosing this investment model.

First gift: stability in the markets

Without this main feature, your investment strategy will not reach any port. So that this year can end with positive signals, from the stock market perspective, we will have to ask the Wizards of the East to eliminate all signs of instability that affect the markets.

Not only of an economic nature, but also from a political point of view (electoral processes, referendums, and even instability in governments). Or even social, where the war scenarios do not exert a positive influence at all so that the prices of the shares rise in the parquets. Quite the opposite, as you can see in the last weeks of 2015.

From this perspective, we will have to be aware of the next presidential elections that will take place in the United States next November. And as a distorting element to catapult the markets, the development of armed conflicts that have the Middle East as their epicenter. An exacerbation of them could have a clearly devastating effect for you to achieve your goals within a year.

Second gift: moderation in oil falls

Oil can erode the evolution of the stock market in 2016

It is true that the current crude oil prices can help the growth of some nations to be stronger, even so that gasoline is cheaper for you and you can contain expenses on your next trips. Of course. But as confirmed by the most prestigious analysts, it can lead to the creation of a process in which inflation in the European Union is negative.

And as a consequence of this trend, it affects the main locomotives of the community union, with serious problems in their respective economies. In any case, they would be poorly received by the stock markets, reflecting with important declines in stock price.

Third gift: more liquidity in financial markets

The European stock market will depend on the actions of Mario Draghi

The performances of the Kings of the East may be aimed at the return of another magician, but on this occasion of finances. The inevitable Mario Draghi, president of the European Central Bank (ECB), who through one of his classic recipes for monetary effectiveness boosts the prices of companies listed on variable income. He already did it several times during 2015, although it seems increasingly unlikely that a rabbit will be pulled out of the hat to boost investor morale.

A new injection of liquidity in the markets would have a very positive effect on company prices, and could help you make your operations with great benefits. Also, it will have to pay close attention to the movements of the United States Federal Reserve in its process of lowering interest rates starting this year.

Fourth gift: greater benefits in companies

If you want to make your savings profitable, you must have highly positive business results from those listed on the stock market. If this is not the case, it is certain that their prices will suffer and experience large-scale corrections. To keep this information in mind, you must know that all companies listed on variable income are obliged to present their accounts to the markets every quarter.

Depending on their results, the scenario that their prices will present will be clarified in one way or another. It can be him definitive impulse to buy or sell the shares of these companies. Even with very volatile movements that can delight the most aggressive investors who carry out their operations in the same trading session.

Fifth gift: growth of international economies

For this stock market exercise to be positive, it will be completely mandatory that the economies of the main countries are framed in a trend of clear growth. It will be the key to the performance of international stock markets for the coming months. It will even affect more important than other times, that the emerging take this path again, which serves to boost their markets.

An alternative that you have is to opt for the bags of some of these countries. And that after suffering significant collapses in their indices, they can reverse the situation, and grow again as a result of their budgetary adjustment policies. It is convenient that you take it into account to include a minimum part of your capital available for allocate it to these financial assets.

Sixth gift: greater stability in China

The Asian giant can condition the response of investors in the equity markets

And finally, a wish that cannot be missing from your letter to their majesties is that this exercise does not bring any negative surprises to China. Any downward deviation from its economic outlook could have a lethal effect on the remaining markets. You could already see an appetizer of this scenario this summer, with declines in European equities of up to more than 10% in some of the most representative stock market indices.

Any investment strategy this year will have to have the Asian giant as a point of reference, for better or worse. In any case, it will be decisive for whether or not positions are taken in the equity markets, always under great caution.

If in the end the Kings grant you all these wishes, things will surely go very well for your interests, and you will surely form a much more powerful heritage than the one you have right now, for sure. Nevertheless, surely more than one aspiration will be forgotten, and it can hinder your work to achieve your goals.

The prospects for the Spanish stock market by the main market analysts indicate that it will generate a revaluation of between 5% and 10% approximately. But any slip in the wishes you have set for the new year can destroy these forecasts. And that after all, they are nothing more than expectations, and it will be the markets themselves that will finally impose their reality through prices adjusted to reality.


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