The statistics of the last decades in the equity markets they are not very favorable for the interests of small and medium investors. It's even a sword of Damocles even though investment sentiment has picked up in recent months. But the numbers are not the most suitable for taking positions in some of the listed securities. There are other periods much more favorable to carry out operations in the financial markets. Among them the third and especially the fourth quarter of the year. Where the uptrend emerges in an almost generalized form.
It is for this reason that you must be especially cautious in your dealings with the stock market from these days. Nevertheless, you have a series of strategies to continue making your savings profitable. Perhaps not in the stock market itself, but in other alternative markets and even from the fixed income itself. In any case, if you opt for the stock markets, it should be through very short-duration operations and where you can profit from the rallies that are generated during this period.
Of course, one position you can take from now on is to refrain from initiating any movement. So that in this way, you can have sufficient liquidity to take advantage of the business opportunities that may arise. as of the second quarter of this year. It will be the moment to take advantage of the most suggestive scenario that equities markets usually provide. And most importantly, with the support of your checking account balance to formalize purchases.
First trimester: everything against
The omens for this time of year are not the best you can find. Because in effect, the first symptoms go in this direction. Where even one is getting bigger serious correction in indices on the other side of the Atlantic. After the majors have managed to reach their all-time highs, after significant revaluations in the early days of the new year. And that together with the series of doubts generated by European equities, it may affect that this first quarter is similar to that of other coming years.
Given this scenario, if we take as a reference what has happened in the last ten years, you will not be able to have much optimism for the short term in your investments. To highlight this situation, you will only have to check how the Spanish reference index, the Ibex 35, during the month of January it has depreciated 1,4%. All a sign about what can happen during the next days. In any case, in percentages very similar to those of other years.
In addition, during the last decade the results are in this line, as you will see from now on. For the past ten years, the month of February has clearly been a seller almost 80% of the time. A period that has served so that small and medium investors have chosen to rest in their operations in the equity markets. Or most likely as an excuse to take profit. In this way, to be in complete liquidity in the face of what the financial markets may provide.
Bearish pattern development
Another of the main characteristics that historically this complicated quarter of the year has given us is the formation of a bearish pattern. That in many cases has had its continuation with many months ahead. It has even been necessary to wait until after the summer holidays for the definitive change in its trend. All these antecedents do not make it very easy for you to operate in the markets during these dates. But rather the opposite, to be crouched to see how is the evolution of the main indices of the stock market, both national and outside our borders.
In this sense, there is a saying very liked by investors that refers to what to buy in October and sell in February. This may be one of the strategies you can use during this difficult time of year. In any case, the experience of other years This is witnessed with special relevance. To the point that it may be more what you lose than what you gain. Being in complete liquidity can be a good solution to all your problems in the stock market.
In any case, what you cannot give up in any way is trying to find real business opportunities. Because indeed, do not doubt that these will be presented, even if the general scenario is not very favorable for your personal interests. Buying opportunities in equities are always there. Although with many probabilities that will be represented by second row values. They are the most likely to develop these movements. Not surprisingly, they are characterized by the fact that their prices are more independent than the reference indices of the stock markets.
What strategies can you use?
Faced with these bad prospects that this quarter of the year presents, the strategies that you can use to defend your interests as a small and medium investor are different. From different angles of actions that allow you a more optimal diversification of your movements in the financial markets. From this scenario, you can import some of the advice that we are going to provide you at this time.
- Before investing your savings again, you can give yourself a temporary rest You even think about what your next investment goals are going to be. So that in this way, during this year you have things clearer in your relationship with the world of money.
- It is a good time to formalize a series of investments that until now you had forgotten. A good part of them come from alternative sectors. But also a new return to fixed income. Although it is at the cost of a rather poor performance. Where it will cost you a lot to exceed the 1,50% barrier.
- Don't try to force your investments into the stock market. If it is not the time to invest your money, you do not have to break your head. This time you will have to wait and wait for better times to return for the equity markets. They are just like that.
- If, despite everything, you decide to make an investment that is for not very high amounts. It will be a very effective way to protect your capital against unfavorable scenarios for your interests as an investor. You do not have to risk more if it is really worth it.
- Your operations must be very flexible and above all calculated for the shortest terms. It will be the most suitable period for operations at this time of year. Above other approaches aimed at the medium and long term. There will be time to carry them out.
- Before investing your money, think more than once if you need to execute the purchase orders. Ultimately, this decision will be based on a very well thought out decision. As a strategy for you to achieve your goals with greater guarantees of success. You will certainly not regret these performances for the next few months.
- Perhaps it is the most opportune moment to close your positions in the stock market. Especially if your positions are winners. It will not be worth it to rush your investments since the reward you can get will not compensate you in making these decisions.
What are the strategic values?
In any case, if you continue with your intention to remain linked to the equity markets, you have a series of values that may be more favorable to your interests. With a lower risk in your oppositions and that would start from the following proposals.
Electrical values: they are the ones that perform best in the most adverse scenarios in equities. In addition, they distribute to shareholders with dividends with yields of up to 7% per year. Intended for periods of permanence in the medium and long term. With which you can cover yourself if things do not go as you initially imagined. With a very wide series of proposals and what is more important, completely diversified. To help you achieve your goals.
Refuge values: they are classics in these situations that large capitals are targeting them with great force. Apart from the previous group, other sectors such as motorways, food or some construction companies are also included in this select group. Its evolution in the markets can be positive, although they go through more than complicated moments. It is a period in which it is more advisable to take positions in any of these proposals.
Listed with dividend yield: Another option you have for this period of the year is to buy shares in companies with a high dividend yield. It will be a way of forming a fixed income within the variable. Without excessive risks in taking positions precisely for this reason. In addition, you will have several alternatives to make this strategy effective in such an original investment.
Without forgetting that you can also hire a term tax that leaves you an interest close to 1%. In this way, you will be in a position to safeguard your savings in an efficient and safe way. With a minimum return on the contributions made. Without any link with the equity markets during its period of permanence.