There is no doubt that investments will change significantly as of this fall. One of the reasons to explain this trend is because the European Central Bank (ECB) is going to stop stimulate financial markets and this is going to be noticed in the price of the shares on the stock market. You may have to wait a few months, but it is a countdown that will undoubtedly affect a large part of small and medium investors. It is a first factor that will have to be taken into account from these precise moments.
On the other hand, and with regard to Spanish equities, the first signs of a deceleration of the national economy. A fact that also will move to equity markets. With a foreseeable cut in the price of the shares. Of course, the large revaluations that have occurred in recent years are no longer to be expected. This is a period that has gone down in history, at least for the moment. In any case, it is another aspect to be considered by investors.
As a consequence of these two important economic trends, stock users will have no choice but to change your strategy to make your savings profitable. In some cases, with slight variations in the securities portfolio, but in others, under a radical change in its direction. In order not to stay out of play, there is no other option but to adjust these movements. For this task to be carried out correctly it is necessary that we are going to provide you with some of the classes on where the financial markets can be directed from now on.
How will this year be for your investment?
A strategy to improve the profitability of investments is based on choosing more conservative values to the detriment of the more aggressive proposals. In this way, you will also be more successfully protecting your personal or family assets. From this scenario, one of the best ideas materializes through listed companies that distribute dividends among their shareholders. Not in vain, the fixed and annual interest they provide is around 5%. Much more than that offered at the moment by fixed income and that rarely exceeds levels of 1%.
On the other hand, we must address values from safer sectors and that they have great profitability in their business lines. A clear example of this trend is represented by electricity companies and businesses linked to basic energy. In this sense, there is no choice but to go to values where safety prevails over other technical considerations. Although this strategy may report that its performance is lower in the term to which we have directed the investment. In the financial markets there are enough stock market proposals that meet this very special characteristic.
Find alternative models
In these kinds of scenarios, there is always an option that very few investors had from the beginning. These bets are precisely the most profitable of all, although there will be no choice but to seek them with some perseverance. Depending on the evolution of financial markets, you can be the oil, some other precious metal or even coffee itself. As they say on the stock market, there are always business opportunities even at the most unfavorable times for the financial markets. Of course, it is that simple and it is something you should have as of this fall that has just begun.
On the other hand, the search for an alternative investment model can be much more profitable for your interests. Even if in exchange for taking more risks, so it is highly recommended that you opt for very small stock market operations. Because at the end of the day the interest you can get can compensate you perfectly. Even more than in a large operation carried out under a very high amount of capital. You will have no choice but to make calculations to verify which is the deviation that you have to make from your checking account.
Increase the profitability of deposits
One of the most relevant effects of the possible rise in the price of money in the euro zone it resides in the fact that the profitability of the main savings products rises. From now on they will offer you more money for the deposited capital. The difference will not be much, but at least it will be enough to give you a little whim from next year. In this sense, bank term deposits will be some of the most benefited by raising their interest rate by a few tenths of a percentage point. And as a winning product of this scenario that is going to take shape from this fall.
It may be the occasion to be a little more conservative in your positions and go back to time deposits. Especially if they are accompanied by a generous offer and bank promotions. As for example, those destined to new clients of the bank. On the other hand, you cannot forget that from this period onwards savings will benefit more than the investment itself. Quite the opposite of what was happening up to now. Well, it may be time to vary your investment strategy and be as immobile as you were until now. Because at the end of the day what it is about is making money profitable. Nothing more, nothing less.
Take advantage of declines in values
Another investment system is based on detecting the business opportunities but within the stock markets themselves. Although it seems a bit strange and maybe even with a clearly contradictory message. Well, this scenario will cause you to be completely ready to buy the shares of a security at a much lower price. As a consequence of this operation, there is no doubt that the profitability of the stock market operation will be much higher than until now. Perhaps in that listed company that you liked so much, but that you did not decide to buy because you thought their prices were too high.
However, this investment strategy has a negative factor and that is that you cannot carry it out in the shortest term. If not, on the contrary, it is intended to longer stay periods and generally to the taste of the most conservative or traditional users. In this sense, it can be interpreted as a new opportunity offered by the financial markets so that you can return to the world of equities in general.
Contract reverse products
Although in an even more limited way, it is also a unique occasion to return to inverse products. That is to say, those that generate their capital gains in the bearish movements of the financial markets. With earnings that can be more generous if this condition is met. But also at the cost of assuming greater risks in operations due to the complexity of these movements. Because if they are not favorable it is really true that you can leave many, perhaps excessive, euros in each of the operations that are governed by this very special characteristic for certain investors.
On the other hand, it is formed as a peculiar strategy to protect itself from open positions in the equity markets. Because indeed, of course it will help stock market losses are not so pronounced as of this fall that we just started. While another of its most relevant characteristics resides in the fact that inverse products are very valid for cycle changes and above other options in the particular investment.
Formalize short-term products
As a last investment strategy, the hiring of investment models that depend on the new conditions of the financial markets stands out. They are for a short time but of course very optimal for monetize savings under greater efficiency from all points of view. However, this investment model is reserved for the most aggressive investment profiles that you can risk in their positions. If this is your case, do not doubt it, because the interest that you can obtain is more than estimable, although logically assuming more risks than from other positions more acceptable by the majority of users.
From these investment models it is much easier to achieve your highest priority objectives, but without a doubt there will be no choice but to develop a much more constant investment follow-up. In case at any time you have to undo positions to avoid a significant loss in the invested capital. Not in vain, it is a situation that you must anticipate with the contracting of this kind of financial products. Because it is true that you can earn a lot of money, but for the same reason, leave excessive euros on the way. To the point that not all investors can withstand this more complex scenario that can be presented to you at any time. Because it is the most important peculiarity of this class of products intended for investment.