The crisis in China, as a consequence of the appearance of the coronavirus, is not affecting international equities excessively, but it is affecting a series of stock values. Both in the bearish and bullish sense and that can cause a change in the investment portfolio for the next few months. Because at any time its impact can be noticed in some of the companies that are listed on the financial markets. This is one of the reasons why it is necessary to anticipate which companies are most vulnerable to the coronavirus. In order to get away from them and opt for safer and more profitable financial assets, at least in the short term.
Within this general context offered by the equity markets, both national and outside our borders, it is necessary to detect these securities on the stock market. So that in this way, small and medium-sized companies are in perfect conditions to adjust their investments to avoid unwanted effects. Since in any case, the impact of the coronavirus that emerged in China is causing an avalanche of sales of the results forecasts (profit warning) for this year among multinationals of very varied sectors and of diverse nature. So it is foreseeable that they will have to adjust their prices according to the new scenario in the international economy.
Where it is already emerging the fact that some companies listed on the equity markets are revealing, in greater or less detail, the impact they foresee on their income statement for this current year. With important downward deviations in some cases that refer to those that have a great relationship with that Asian country. And that they may be the most affected by this fact that the financial agents did not have at the beginning of the year. To the point that they can lose a lot of money in the coming months if positions are taken in their titles. Being one of the most palpable risks that investors have as of now.
Coronavirus: international listed
Within equities outside our borders, there are several companies that have already made downward forecasts. These are the specific cases of Alibaba, the Swiss food giant Nestle, Nissan and PepsiCo, among the most relevant have announced that their accounts will be affected by this health event and their production may suffer. To the point that their prices can be readjusted downward sooner rather than later. And therefore you have to move away from their positions on the stock market. Not surprisingly, they present a great risk in their operations and of course you have more to lose than to gain.
While on the other hand, it must be stressed that these financial groups have substantially lowered their forecasts regarding the operating margin for this year, warning that if the coronavirus crisis continues, the accounts will be even lower. That is, they can suffer high intensity depreciations and to avoid highly recommended situations the most useful advice is to stay out of the equity markets. By taking positions in other financial assets that show greater strength and security and that can even act as safe havens for the most adverse scenarios for financial markets.
Company results
One of the most relevant aspects that should be anticipated in the coming months is that which has to do with income between January and March of this year, which could fall after years of continuous high growth. In this sense, there may be some other negative surprises that can misalign your investment portfolio and you have no other solution than to order it and adjust it with new events that occur from now on. Where the greatest risk you have is that you can get hooked on their positions and thus have a serious problem in your investments. That is to say, with a quoted price very far from that of the purchase and that it can take a long time to recover its initial positions.
It should also be noted that China is not only the second largest economy in the world. But it is also one of the most important markets for technological, automotive, luxury and consumer goods companies, airlines or pharmaceutical companies. Sectors that can be undoubtedly one of the most affected by the crisis in China after the appearance of the coronavirus and that therefore must be avoided at least in the medium, and especially in the short term. There is no need to complicate things at times like today, especially when other financial assets are present, safer than those mentioned.
Profit drop
The greatest risk of these operations on the stock market is that the income of these companies, between January and March of this year, could fall after years of continuous high growth. To even move into a downtrend and that can lead to get caught with the step changed by small and medium investors. In any case, the effects of the coronavirus may not arrive very soon, but instead have to wait a few months. As for example to the second or third quarter of this year and where the depreciation of its valuation in the stock market can be generated. Therefore, it is necessary to act with great caution with these financial assets from now on.
On the other hand, they are the luxury and mass consumption companies, airlines or pharmaceutical companies, but it is also the great global factory where investors must be more careful in their analysis to integrate their investment portfolio. Despite the fact that in the first months of 2020 the balance is positive for investors' interests. With an average profitability in the equity markets very close to 5%, especially in the United States, which has been unstoppable for many years and, of course, at historical highs. In a bullish rally that has not been seen for the past century.
Repercussions on the Spanish stock market
Regarding the variable income of our country, it must be indicated that it has regained the psychological level that it has in the 10.000 points. Although you have to check how long it can hold at these important levels or if, on the contrary, it is a one-day flower. In any case, the effects of the coronavirus have a different impact on the values of the Spanish continuous market. Where it is the companies of the mass consumption sectors, airlines and in general the cyclical ones that may have a worse performance in the coming months. To the point that they are already showing signs of weakness in the configuration of their prices and in any case they must be in liquidity before what may happen.
On the other hand, all the signs indicate that at some point in time the long-awaited corrections may occur and in this sense the coronavirus may be the pretext for the appearance of these movements. Even in a very violent way and that can catch many small and medium investors off guard. This is one of the scenarios that some financial analysts foresee for the second part of this year or even anticipate for the second quarter. And from where stock users can lose a lot of money in their investment portfolio and what they have to do is not reach these levels of obvious risk. With very few alternatives except for the change in financial markets.
Favorable positions on the stock market
On the contrary, there are another series of sectors and stocks that can be very profitable in this new scenario offered by equities, both nationally and internationally. From where you can get excellent capital gains, although it is true that maintaining the tension in this class of operations. One of these sectors is undoubtedly the electric that it is going through one of its best moments in all its stock market history. To the point that some proposals are in the figure of free rise, the most favorable for the interests of small and medium investors. Among other reasons because they no longer have resistance ahead.
Another of the stock market sectors that may perform better than the rest is the pharmacist. It can skyrocket in the conformation of its prices from now on and thus improve your results in your savings account at the end of the year. Despite the greater volatility that is formed in the configuration of their prices, as they present a greater difference between their maximum and minimum prices. With divergences that can reach 5% or with greater intensity in this parameter. In what is an ideal scenario for the operations of traders since they can optimize their operations in a very short space of time, even with a difference only of hours.