It is true that panic has gripped the movements of small and medium investors and that it has caused all equity indices around the world to have fallen. left 16% on average in the valuation of the shares. But you also have to look at the positive side of this serious incident to get out of the scaremongering that is reflected in some of the main media. Because it cannot be forgotten that even in the most adverse scenarios for equity markets, real business opportunities are generated in which to make capital profitable.
In any of the cases, it must be assumed that the Ibex 35 has passed in a very short space of time from levels slightly above 10.000 points to score 8.000 points. Where the virulence of sales is being imposed in a very clear way before the panic of investors of all possible profiles. To the point that many of these stock users have made bad operations in the financial markets. With a price very far from that of the purchase and that they have had to carry out these operations due to the fear that the equity markets may continue to fall in the coming days.
Within this general context, there is no choice but to highlight some positive aspects that this new scenario has brought us in the financial markets. So that in this way we can take advantage of this royal state on these financial assets. You cannot forget a golden rule that governs this type of operation and that says that you should not sell in times of panic. Of course, you have to remain calm over other considerations typical of technical analysis. Above all, it is necessary to act with great caution that can lead small and medium investors to make mistakes of complex resolution.
Coronavirus: cheaper prices
One of the advantages that this new panorama has generated is that you can now buy the shares at more competitive prices than a few weeks ago. With discounts in some of the cases of up to 30% and that therefore produces that its potential for revaluation is much higher at this precise moment. From this point of view, this is a business opportunity that you have at hand, especially for operations aimed at the medium and especially long term.
While on the other hand, there are values in the markets that have been unjustifiably punished and that therefore they will have to recover sooner rather than later. Like the fact that they are trading at prices in which their lines of business that are fully consolidated are not valued. In this sense, they represent a clear buying opportunity from now on. Even with the risk that they may continue to fall in the coming days or weeks. Because the operation can be profitable in a not excessively long period of time and with prices that can be very suggestive for the interests of small and medium investors.
A floor may be forming
Another positive news that this unpleasant impact on public health brings us is that derived from the fact that we are very close to the conformation of a floor in the equity markets in much of the planet. A small clue about this important aspect that interests all investor profiles. In the sense that South Korea has been one of the countries most affected by the coronavirus and yet the Kospi has shown improving trends, which could even suggest that the stock market has bottomed out. Being one of the slight signals that the financial markets are providing us in a few convulsive days for stock users at an international level.
While on the other hand, this clue that the Kospi is offering us is that we can be closer to this expected stop in all the equity markets in the world, or at least in the most relevant and which are the ones that determine the evolution of these financial assets. To a greater or lesser extent, since the positions in these markets at this time are in a clearly negative situation and that may increase panic among all financial agents. Where sales are being able to sweep the positions of the few orders that are in these so difficult that small and medium investors are living.
Liquidity in savings accounts
Another of the most positive aspects that the coronavirus has left us in the stock market is that we can enjoy greater liquidity, as long as we have carried out the consequent sales on equity markets. Because indeed, there is no doubt that this fact can help us to plan investments for the last half of the year. With a more comfortable position after the general collapse of the international equity markets. In some cases, with a reduction in the share price of up to 50%. That is to say, half as cheap as it was just a couple of weeks ago and that in this way the risks of deeper falls will be reduced. In this sense, it cannot be forgotten that the Ibex 35 is already below the important level of 8.000 points.
On the other hand, being in complete liquidity will not serve to be from now on with greater tranquility to see the business opportunities that are emerging in the financial markets. Because without a doubt they will appear in some very specific financial assets. Now it will be precisely the users who are in this situation who will be able to take advantage of these brutal falls in the markets. In most cases with a bargain prices that can be used to make operations profitable from the last part of this year. With the option of obtaining very infrequent interests in other historical periods and that occurs rarely.
Cheaper credits
Among the positive aspects that the coronavirus has left us in the stock market, we cannot take the factor that refers to the fact that borrowing will be cheaper from now on. Due to the new rate cut that is expected in the euro zone and despite the fact that it is now in negative territory. But what is really relevant is that this trend can be maintained for a longer period of time. Since, before the appearance of the coronavirus, all the forecasts pointed to an elevation of the same as a monetary strategy to promote economic growth. Now all these plans have been derailed and you can have credits with a very tight interest rate to the needs of its applicants.
A good proof of this situation is the case of the mortgage loans that will generate that the monthly payments do not increase, at least in the next six months. In this general context, it should be noted that the latest data from the National Statistics Institute (INE) highlight this trend. When verifying that during the last month analyzed, for the mortgages constituted on the total of properties in December, the average interest rate at the beginning is 2,46% (1,4% higher than in December 2018) and the term average 21 years. 57,0% of the mortgages are at a variable interest rate and 43,0% at a fixed rate. The average interest rate at the beginning is 2,14% for variable rate mortgages (2,8% lower than in December 2018) and 3,00% for fixed rate mortgages (4,3% more high).
Corrections in financial assets
The other positive aspect that the coronavirus has left us has to do with adjusting the entry prices in a large part of the financial assets. As for example, in oil that is already below the psychological barrier of $ 30 a barrel and it can and can constitute a real buying opportunity at the current levels and at all terms of permanence. Both to take positions on the oil companies that are listed in the variable income markets, national and international, and to carry out direct operations on this raw material. Although it may present some volatility in the next trading sessions.
While finally, there are some raw materials that already have very suggestive prices. As in the specific cases of coffee, corn or soy. In any case, these types of operations are more limited to small and medium investors due to the complexity of their financial markets. Where the best option is represented by investment funds based on these financial assets. Although in any case they are aimed at longer periods of permanence and that will require greater caution in their correctness. Now all these plans have been thwarted and troubled in the euro zone to adjust interest rates.