One of the most immediate strategies investors will have from now on is to face the last quarter of the year. A really important period for everyone since traditionally it has always been clearly bullish and where they have placed all their trust to make the savings profitable. Precisely for this reason, it will be necessary to be aware of the notable events that may develop during these three months of fiscal year 2017. It will be very important to analyze them to avoid any kind of errors that could ruin our operations.
In any case, it is a period of the year where there is usually a lot of news with great repercussion on the equity markets. Both in one sense and the other and you must be very aware of them if you want to obtain a remarkable performance from the movements you make from now on. In addition, it is the part of the year where the long-awaited Christmas rally takes place. Where the prices of securities are revalued with great intensity. With interests that can exceed the 5% level in a few days of listing.
So that you have greater support in the strategies that you are going to use, we are going to provide you with what will be the events that will be present in the last months of the year. Of course, it won't be much, but instead of a lot of intensity. To the point that it can be of great help to make your purchases in the financial markets. Or even if it were required to exit the bag at any sign of weakness. Basically these will be the most noteworthy events that will take place in the final stretch of this year.
Relevant events in companies
We will have to be very aware of which accounts will be presented by listed companies. Because there may be a certain slowdown in them. If this were this way, there is no doubt that it would be reflected in the share price. Because indeed, it would not be surprising if important price corrections. Not surprisingly, the momentum of business accounts in the last quarter has been less than last year. It will become an excellent parameter to determine if it is the right time to exit or enter the financial markets.
The slowdown in the profits of listed companies may be one of the brakes that the equity markets continue to rise. As developed in the first part of this exercise. Any weakness in them, they would be interpreted as an excuse to exit the open positions. On the other hand, they will give the odd signal about how business activity can be during the next financial year. Both in terms of companies in the United States and those of the European continent.
Economic growth reviews
Another of the variables that will be very relevant is the one related to the economic growth of the main Western countries. And very specifically in Spain where expectations have been fully satisfactory for the interests of small and medium investors. Although with a serious drawback and that is that any downward revision could be the trigger for a change in the trend of financial markets. With the majority of sales operations compared to purchase operations.
With regard to economic growth in Spain, anything that is lower than 3% would not be good news to start operations in this important period of the year. Forecasts suggest that there could be a slight slowdown in GDP. It will be a matter of time before this data arrives, but at some point it will have to happen. So that as a consequence of them, there is a massive exit by small and medium investors. Although it will be very interesting to check its intensity. According to projections made by the Spanish government, the current expansionary scenario could still last a few quarters.
Domestic news
There is no doubt that what may happen in Catalonia could also take its toll on the stock exchanges. To the point that, depending on the outcome of this political process, it could lead the stock market indices to their highest for the year. Or, on the contrary, imply a sudden change in trend that leads to strong cuts in share prices. It will be something as important as it can determine the evolution of equities during this period of the year. Where the values of the banking sector would be the ones that gained greater prominence from the month of September.
On the other hand, any sign of political instability it would be interpreted very negatively by investors. Where the worst news for the financial markets would be given by some sign that general elections may be held in a rather short period of time. In addition, the fact that they carry out many strikes would not help the Spanish stock market to have a bullish continuity during the last months of this year. Not surprisingly, the most important financial agents will be very aware of the social and political environment in our country.
Cycle change in the bag
Another possibility that the last quarter of the year can offer is that it can change the general trend of financial markets. Going from bullish like the current one to clearly bearish. Not in vain, you cannot forget what some of the most famous international financial analysts have been announcing. The question is when this turning point will occur. Because in effect, most predict that it will become effective as of the next fiscal year. But neither can it be ruled out that it can be advanced and takes place before the end of this current exercise.
If this worrying scenario is confirmed, it will be a very worrying situation for your interests as a small and medium investor. Where it will be completely necessary for you to be absent from the financial markets as quickly as possible. Because indeed, if you get hooked on the bag, do not doubt that you will be in a serious situation in which you can leave a lot of euros on the way. It is something that you must anticipate above other technical and fundamental considerations. Where the most important thing is that you are in a liquidity situation and can take advantage of the business opportunities that arise in the financial markets. Because surely they will occur at some point.
Bullish Christmas Rally
Nor can you forget that it is precisely in this period that the long-awaited Christmas bullish pull takes place. One of the periods of the year when it is more profitable to open positions in the equity markets. Where returns on savings can easily overcome the 10% barrier. Where the most aggressive values will be the most sensitive to developing this important upward stretch in the stock markets of practically all international markets. This rally normally takes place in the month of December, although it can be advanced to November.
However, there is a serious risk that a sharp cut could be generated after the momentum of this foreseeable bullish rally. From this scenario, the best of your strategies would be based on leaving the stock market at the end of the year. Or at least, during the first weeks of the next exercise. Because the scenario can become very dangerous to protect your savings. It is preferable in this sense not to risk too much. Because in effect, you have more to lose than to gain. Don't forget it to protect your equity positions at this time of the year.
Respect the supports of the actions
One action that should never be lacking in your operations on the stock market is to respect the supports in prices. Because if they are violated, you will have no choice but to leave the financial markets with a special aggressiveness. There is no greater sign of weakness than this. Especially, if they are exceeded with a lot of hiring of titles. Not in vain, it would imply being immersed in a downward stretch of great intensity and with many signs of continuity during the coming months. Prices would normally tend to seek the next support on the charts. In this sense, technical analysis will be of vital importance to foresee these very relevant situations in the equity markets.
In any case, the most optimal of the strategies that you can use in this period of the year is to formalize the purchase in those values that overcome the resistance that they have in front of their price. In this way, you will be providing greater security to this class of stock operations. Not surprisingly, in theory they would have a potential upward travel from which you can benefit from these levels. It is a very simple strategy to apply and is available to all kinds of investors. On the other hand, you must bear in mind that these resistances would become new supports from now on. Surely you will find more than one security that presents these characteristics to operate during the last quarter of the year. They will be the easiest to develop your buying and selling operations. With the ultimate goal of improving your checking account balance for this final period of 2017.