If there is a figure that offers confidence to small and medium investors, it is none other than the historical highs reached in stocks, sectors or indices of equities. It assumes that they have reached the top of their price in their entire life. After having continuously broken all resistors that opened up in their wake, and that have not been few. Until finally reaching this figure so enviable for the many users of the financial markets. With very well defined bullish connotations from the beginning.
In addition, one of the advantages that a security provides in a situation of all-time highs is that it will have the free rise within reach. Where you will no longer have any more resistances along the way. To the point that its appreciation potential is truly unimaginable from all points of view. Even though there may be punctual corrections in the evolution of their prices. Something on the other hand completely logical and normal to try to adjust the positions between buyers and sellers.
Well, despite the weaknesses that the national stock market is going through, there are a number of stocks that are in this pleasant situation. That is, in a scenario of record highs. Where the possibilities that the positions of the investors improve during the next months are more than tangible. Not surprisingly, some of these companies have generated appreciations of more than 1.000% During the last years. To the extent that its shareholders have been able to amass a fortune through these investments. It's that simple for them, and with anger for others who did not take positions on these values.
All-time highs: Spanish stock market
A good part of the values that make up the Ibex 35 They present a flawless appearance from appearance. In some cases under its highest prices in its history, and in others under the free rise trend, as is the specific case of Ferrovial, Inditex and Aena. These are values that can still give you more than one joy in the next equity sessions. To which are added other companies that are in a very close situation to achieve these much desired objectives. And that in any case, they can be part of the portfolio of securities that you are going to make from these precise moments.
Because in effect, if there are a series of proposals in equities that currently have the highest prices in their history. In some cases, you will feel the vertigo from buying so high, and on the other hand, the possibility that it enters a long-haul upward spiral. Of course, you will not be able to be indifferent to their resolutions in the financial markets. In most of them, with a consensus of the main analysts so that you can make purchases in these values.
American stock market in free rise
Not only are some Spanish companies in such a favorable situation for their interests. Of course not, and the best example of this scenario is offered by the most prominent stock indices in the United States. With the Dow Jones, Nasdaq 100 and S&P 500 leading the way. Because in effect, all of them are at maximum price levels in their entire history. Something that they have been doing progressively for years. Very specifically since the economic crisis of 2017 began. To the point that it is one of the most profitable equity markets in the world during this period. With significant capital gains for small and medium investors who have invested their savings in one of their companies. With returns that even exceed the 1.000% barrier. Above the returns generated by the most aggressive financial products on the market.
From this scenario, there are not a few savers who think that it is too late to benefit from this very positive trend. But the facts have been denying these ideas for many years. As you can see through an exhaustive analysis of its most relevant graphics. In contrast to the variable income of the old continent, which are still very far from these levels.
It is enough to check how long the national stock index par excellence has. With a wide route until reaching the surroundings of the 16.000 points for the 9.500 in which the Ibex 35 is currently listed. In addition, many of the remaining indexes of the old continent stock market, as in the case of the Italian one, are in a situation very similar to ours. It makes a very substantial difference to equities on the other side of the Atlantic.
Higher price fixes
On the other hand, you should not worry that corrections are generated, and even very severe, with the highest prices in the list of quotations. Moreover, it is a very healthy way so that in the next sessions you can try to reach new goals and go up again in the financial markets. Not in vain, it is an operation to adapt the current supply and demand of the shares. To the point, it is a very healthy move for companies that go through this process in their listing.
Don't worry if the corrections are too strong. Usually nothing happens nor does it mean a change in trend. You just have to be very attentive that support levels are not violated in prices. In this specific case, it would be necessary to close positions and settle the operation with the profits generated up to that moment. But only in this hypothetical scenario that can be raised at some point. Because sooner or later it will have to happen since the shares are not in free rise throughout their lives. Not even in medium or long-term periods. You should not forget if you want to optimize your operations from now on.
Another aspect that you must take into account for a correct investment is based on selecting the securities that go through this process in their quotation. They are more likely to carry out your operations with greater guarantees of success. Much more than in other movements or figures of other characteristics. To the point that the potential for appreciation may be more than important. It is enough that you check the companies that have gone through this trance and verify the money that you could have earned in the case of having opened positions in advance.
Strategies you can use
Given the advent of this particular scenario, you have many lines of action. Their main objective will be that you can make your savings profitable as much more efficiently than until now. Even trying to rush the capital gains you hope to get. Although first, your first mission will be to detect what are the values that present this situation. They won't be much, so your work will be noticeably simplified. Until only a couple of proposals were reached. Then apply some of these tips.
- You can take advantage of specific cuts that will be generated in the actions to take positions in the company. If the scenario so advises, it can even be formalized through very aggressive purchases in the movements that you develop from now on.
- You will only have to worry that stock prices do not violate your supports. If this doesn't happen, you can rest easy regarding your interests in the equity markets. With the confidence that everything will develop as you expected from the beginning.
- Keep in mind that you no longer have no resistance and that prices can rise to levels never imagined. It may be an opportunity to stay in value and try to speed up the rises. At least for a not too short period of time.
- If you are positioned in value, you have another even more aggressive strategy. It consists fundamentally is to perform new buybacks to take advantage of this very special situation and not that it does not present you many times in your history as a small and medium investor.
- These movements are usually accompanied by a strong trading volume. This in practice means that the interests of the buyers are clearly prevailing over those of the sellers. Many securities are traded on the stock exchanges every day.
- You must be very attentive to the formation of these movements. Because indeed, it is very important that you detect them at the beginning. With no other objective than to increase the potential for revaluation of your investment portfolio. With higher chances of success you will get more profit.
- In a way, all-time highs are intimately linked with free uploads in stock prices. To the point that it is very complicated to differentiate one from another figure. Since they are generally part of the same process, as you can see in the graphs.
- It will always be better invest your savings in values that develop this scenario than in movements in the opposite direction, where you have a lot to lose. Even to leave you a good part of the invested capital. Therefore, you will have no choice but to take advantage of these scenarios that will surely present themselves to you at some point during the investment.
- Finally, check that only a couple of proposals will meet these demands, and they are where you should focus all your efforts. Not surprisingly, the reward you have will be the best reward you have for the application of this investment strategy.