IAG has started the new Year leading the rises of the Ibex 35 after the Niki's purchase. This is the first news that has affected the equity markets in Spain. Can you be an indication of what may happen in the next twelve months that lie ahead? Well, without a doubt it is a small advance since if you want to obtain returns above the usual, you will have no choice but to take advantage of the corporate operations that will undoubtedly be generated from the financial markets. As has happened with the international airline and which will be followed by other movements that may raise the interest of your operations on the stock market.
If there is something that a good part of financial analysts agree on, it is that we will have to look for business opportunities in this year that we have just begun. With regard to Spanish equities, the objective applied by the experts is the 11.000 point level. It is a somewhat realistic goal and, as soon as market conditions help, it will surely be achieved. Or at least to get very close to this benchmark for 2018. For now, the year has started with small advances in the selective index of the Spanish stock market.
Another of the common denominators of this beginning of the year is the divergence between Spanish equities and those of the old continent. Because while the first has greeted the year with slight increases, in the other it has been the completely opposite effect. With slight losses of 0,5%, in line with what happened at the end of last year. A movement in prices that can be interpreted as absolutely normal if one takes into account that the Ibex 35 was lagging behind other European markets. As a consequence, above all, of the social and political problems in Catalonia.
Bankinter recommends banks
One of the doubts that small and medium-sized investors have to face the year with optimism is to know which are the best stock market sectors to position themselves. In this sense, Bankinter suggests the odd idea to make savings more efficient. To the point that it alludes to the fact that it will be the year of banking. Through securities such as Banco Santander, BBVA and Citi internationally. They consider that they have a very attractive price as to undertake operations in any of these proposals of international equities.
On the other hand, one of the reasons for feeling positive in this new year, from the point of view of this bank, is the economic outlook for 2018. They point out that it is an economic cycle that is being consolidated and that it is taking more power in Europe, which is one of the reasons for the appreciation of the euro. They consider that there is an upward path for equities and especially for banks. To the point that you think it is necessary position yourself in this sector so as not to miss the upward path that still remains for the Spanish stock market in particular. Despite the fact that at this time in Spain there are internal uncertainties that make your bag worth a little less.
No major change in the Fed
Another of the actions that should guide your investments from now on is the continuation in monetary policy by the United States Federal Reserve (FED). Not surprisingly, there are not a few analysts in the international financial markets who point out that no major changes are expected during the next twelve months. Some of them even go even further by stating that they do not see increases in interest rates in the short term. A factor that should help financial markets move with appreciation in share prices. Although they may be mild, but at the end of the day it is something positive for small and medium investors.
However, there will be no choice but to be very expectant of any decision that may be made in this important section of the economy. Since it can incline the evolution of the markets in one direction or another. At the moment, everything is developing with absolute normality. Although it is true that there are very few days of trading in the equity markets. In this sense, there will be no choice but to wait a few weeks to find out what is the most favorable decision to take from now on. It is not advisable to take hasty actions that can lead you to generate losses in your investment portfolio.
A specific bet: Repsol
If you have to take a value to open positions in this year, a very profitable proposal could be the national oil company. Because at the moment the company chaired by Antonio Brufau is in the process of consolidation. It moves under levels that are understood between the 15,305 and the 14,77 euros the action. In any case, what is really important is that it has overcome the great resistance that it had precisely at 15 euros. Level that from now on will automatically become support and which you will not be able to pass if you want to reach much higher levels during the rest of the year.
On the other hand, it cannot be forgotten that this proposal in Spanish equities is one of the most likely to revalue if the price of oil continues to rise in the coming months. Especially if it approaches the important barrier that it has established in the $ 70 a barrel. This price would open a new scenario for Repsol with very bullish connotations at all terms of permanence. Given these prospects, it will be one of the values that must be taken into account to form a very balanced investment portfolio and with a point of risk. To make profitable savings in a more optimal way than up to now.
Will it be the year of Pharma Mar?
In all the years it is constituted as one of the values to be taken into account, although in the end it almost always ends up disappointing small and medium investors. However, this time the investment strategy has changed due to the contracts it can form this year. A factor that would undoubtedly help you achieve more ambitious levels in equity markets. To the point that it could become one of the big surprises in 2018. In any case, this possible scenario will depend on many variables that must be met. Not surprisingly, it is a class of value that evolves according to the expectations it creates in the financial markets.
From this general scenario, Pharma Mar has just announced, coinciding in the first days of the new year, the start of the reexamination process by the European Medicines Agency (EMA) for aplidin (plitidepsin) in the indication of relapsed or refractory multiple myeloma. It would be very positive news for your interests and it could raise the target price you can achieve from now on. Not ruling out any kind of noteworthy facts that could boost its shares to levels not seen in recent years. And in this way, stop being one of the great hopes of Spanish equities for once. Beyond other technical and even fundamental approaches. It will be necessary to give her a vote of confidence in the next twelve months.
Be very careful with cryptocurrencies
A mention of this kind of investment that has exploded in the last months of last year remains for the end. Although from Citi they warn that it is not a safe investment strategy. Among other reasons because they consider the bitcoin as part of a bubble like dot-com companies were long ago and they warn that their burst is only a matter of time. Despite this, the most aggressive investors will disregard this advice and will try by all means to make profitable their movements very quickly in the financial markets outside the stock market.
If, for any reason, your intention continues to be to take positions in this financial asset, you will have no choice but to implement your decision with very low value transactions. So that in this way, you cannot get more than one surprise at the end of the year. Among other causes, because the correction that their positions may suffer is very strong. Above those generated by more conventional financial assets and with less risk in their movements. If it is true that it is an investment that is fashionable, but you should not open positions without prior knowledge of its operations.
In the end, you will have seen that this year offers you many business opportunities. Some you already expected, but other proposals may surprise you by the originality of their approaches. Are you willing to take on these challenges from now on? In any case, it will depend on the decision you make in this first days of the year that has just begun.
Very complete and interesting article. As you say, this year offers many business opportunities, with time it will be seen which is the most profitable.