There is a characteristic of money that all investors have assumed, especially in terrorism processes. It is the reference to the fact that capital has no feelings. It is governed by completely different parameters in which another series of contributions prevail. As a consequence of the Islamist attacks around the world, equity markets are seen influenced down every time one of these exceptional events occurs.
It is known to all that the attacks lead to a pronounced drop in the stock markets around the world, even under very striking percentages. But what you may not know is there are a number of values that do not comply with this rule of another of the financial markets. But they behave in the opposite direction. Fulfilling that old maxim in the stock market that alludes that even in the worst scenarios there are always business opportunities.
Because in effect, there are a series of securities and stock market sectors that raise their shares every time an event of these characteristics occurs. You will surely have to know them to take advantage of this circumstance and make the savings profitable even in the most distressing situations. It may not be moral or ethical, but after all, markets are markets. They are only guided by the value of money. For nothing else.
Terrorism: what values benefit?
After a major terrorist attack, virtually all equities plummet. But there are some of them who do not do so, quite the opposite. We are going to offer you which are the ones that pick up this curious trend. In the first place, all those that have to do with arms industry and with the national security services. Their revaluations are really striking, they even go up with a bang in these difficult situations.
However, it will be difficult for you to assume this purchase of shares since most of these companies are located on the other side of the Atlantic. Very specifically in the usa stock exchange through its main index, the Dow Jones. There are not many proposals, but there are enough to make your assets profitable through this unique investment strategy. They have important increases in their price that in some cases can approach up to 10% levels.
Within the European equities there are also securities of these characteristics, but more limited in their offer. You will have to go to the German or French stock market to satisfy these investment desires in equities. With a very bullish behavior in these scenarios of great international repercussion. They are prone to take positions in them when these scenarios of great importance and global repercussion unfold.
Security companies
It is another of the large sectors that collect increases in their prices every time attacks of these characteristics occur. His explanation is very simple, since his business lines are closely linked to the increase in security measures after the development of these terrorist scenarios. As a consequence, its activity grows through a greater demand for its services. So that in this way, the price of its shares responds to the volume of work carried out in these scenarios.
One of the disadvantages of opting for this investment model is that its proposals are not excessive. At least when it comes to Spanish equities. With only a couple of very localized values that do not respond to the need for investment by savers. You will have no choice but go to other international places to satisfy your wishes. Especially the United States stock market, which is the one with a much more powerful and diversified offer.
Shelter in other financial assets
When one of these situations occurs, you don't have to turn to equities. You have other very suggestive alternatives to make the savings profitable. And among them that of some certainly interesting financial assets. One of the favorites for taking positions is the gold. Not surprisingly, it acts as a safe haven every time these events occur.
The explanation must be sought in the fear of money seeking accommodation in the safest markets. And the one with the yellow metal certainly is. There are many investors who take advantage of these moments of confusion to take positions in this precise metal. In fact their prices are revalued with some force. Becoming one of the alternatives that you have at your hand to operate successfully in the financial markets.
However, it is advisable for very specific operations and with a not excessively high degree of permanence. This is due to the irregularity offered by their quotes. In some moments with extreme volatility that makes it very difficult to make an investment strategy. But very useful to take advantage of such unexpected scenarios.
German and North American bonds
These fixed income products is another of the fixed ones to take advantage of these moments of social instability. Its reason is because are the bonds that offer the most security in the most adverse moments. As a consequence of this characteristic, large investors direct their assets towards these financial assets. With deviations from other savings models, or even from equity markets.
The profitability generated by these products in these scenarios is higher, until you get really interesting percentages for your interests. But also for very specific processes in terms of their duration. An alternative you have to take positions in these high quality bonds is through mutual funds. You have a very wide offer, and that it is even combined with other financial assets. Both fixed and variable income. As a formula to diversify the investment.
In any case, they become other shelters to make the savings profitable with certain guarantees. Although in no case without guaranteeing you any performance. As is common in this class of financial products. One strategy that you can use when these events occur is to transfer your fixed income portfolio to these bonds. Surely you will do better in the income statement than you present at the end of each year.
Foreign exchange market operations
If we talk about alternatives for traditional investment, you cannot forget about the currency markets. They are very sensitive to these events and his movements are very abrupt. In this way, you will be in a position to take advantage of significant fluctuations in their price quotes. With a high possibility that you can obtain strong profits on open positions in some international currencies.
In any case, these are very risky operations due to the rapidity of this market's movements. Only if you are used to trading the world's major currencies will you be open to investing your savings. Although with great caution and limiting financial contributions. You can earn a lot of euros in the movements, but at the same time leaving you more than necessary. Due to the change in trend so fast that this financial asset shows.
There are some coins that you have to be aware of. The US dollar, Swiss franc and British pound will be some of the most important. With special attention to the crossing of changes between all of them. And of course under very fast operations, almost at breakneck speed. Are you willing to accept this special challenge? If so, you will have many options to materialize your demand.
The best recipes to operate
If one of these events occurs from now on, you will have no choice but to apply a series of recommendations that will be very useful to achieve success in each of the operations. Some you may already know, but others will be frankly original, and in some cases even innovative. Do you want to know what they are?
- To take advantage of the most favorable markets there will be no other solution than to carry out the very fast operations, instead of leaving them for the next few days. A few minutes means a lot of money in financial operations.
- You will have to analyze the level of falls in case the change in the investment strategy seems appropriate. You have many ahead of you, but they will depend on the profile you present as a small and medium investor.
- You have to look at the Commissions that can be applied to you for operations. Not in vain, with all certainty that they will be more expansive and may make the movements that you materialize in the different financial markets more expensive. And about whether they will be profitable for you.
- Don't try to choose markets you don't know or at least with those with little experience. It will always be better that you select those with which you are most used through many years of investment.