Of course, the second quarter of the year is not being calm for small and medium investors. Spain, Italy, the Middle East and North Korea are some of the geographical points that are adding instability to financial markets. And very specifically to the stock market that is suffering from these sources that are never good for a profitability of savings. Although there is also no lack of authorized voices that allude to the fact that we are witnessing a change in the structural trend in the markets. Even from the most alarmist forums, the worst-case scenario is predicted for the European Union.
In any case, it is a time to reflect on what you should do with your money from now on. This week, the selective index of variable income, the Ibex 35 has developed a significant fall of 2,49% and that has taken it to 9.521,3 points. This is its second largest decrease of the year, where all the values of the Spanish selective have ended with falls. Although where the incidence has been more pronounced is in the banking sector since some banks have depreciated above 5%. These are major words on the stock market, but it is what is actually happening with Banco Sabadell, Banco Santander or Bankia, to give just a few examples of this worrying scenario.
Another of the financial markets that is coming out of the current economic situation is the Italian. In this sense, the FTSE fell by around 3,5%, while transalpine equities were slightly more. Given this situation, it is strange to us that small and medium investors are beginning to be concerned about the state of their savings. And with a very relevant question, what should you do with your capital from these precise moments? Of course, they have financial tools so that losses are definitively installed in their income statement. Do you want to know some of the most effective?
Instability: reduce positions
This should undoubtedly be your first measure to preserve savings and above other more complex strategies. If you were making money in the stock market, it will be the perfect excuse to enjoy these capital gains at such an opportune time as the next vacation. In these months it is much better to be in liquidity than with the risks that are derived at the moment by the equity markets. Since it is not worth taking risks through operations with a very uncertain ending.
Another scenario that you can present from now on is that your positions in the stock market are in loss. In which case, the solution will be much more complex. However, you can make partial sales so as not to delve further into the drops. In the stock market it is always said that it is preferable to lose one euro than not five. It is time to apply this popular maxim among investors with more experience in this type of operation. From assuming that you have done a bad operation and nothing more. There will be time when you can offset this depreciation in your personal capital. Beyond other technical considerations and even from the fundamental point of view.
Look for other alternatives to investment
Another solutions Faced with this complex scenario that international stock markets are developing at this precise moment, it is to look for options that make your savings profitable. Of course there are, although it is true that they go through going to alternative markets from which you may not have experience to carry out any kind of operations. In this sense, accurate metals is one of the best decisions you can make. To the point that gold has appreciated these days under a double digit percentage. The reasons must be sought in that the monetary flows from half the world seek a refuge where to keep their personal and family assets.
The great drawback of this notable financial asset is that it is much more difficult to open positions. To the point that you may be forced to make physical purchases of this precious metal. In any case, it may be worth going through this process because its appreciation potential is of course very high. And in all cases, higher than the one offered by the bag at the moment. Despite the fact that some financial market analysts consider that despite the situation, there is still a good “value” of the Spanish companies that are listed on the stock market.
Diversify all investments
In no way should you keep all your capital available for investment in the same basket. If not, on the contrary, the key to avoiding more risks lies in directing them towards different financial products and even investment assets. In this way, you will limit losses in the worst case scenario in the financial markets. It is a strategy that is very easy to carry out since you only have to distribute it among financial assets that can work in this conjunctural state. Of course, it is not risk-free because at the end of the day we are talking about money.
From this perspective, one of the most effective strategies is offered by mutual funds. But as long as they combine several financial elements or assets with less downward propensity. In addition, they can be developed under active management, which is what enables the funds to adapt to all economic scenarios, even the most negative ones. To the point that you can get a return from these positions. With the advantage that there are many investment funds of these characteristics. From the most different formats and management companies that make them.
High-paying accounts
There is another solution that never fails in the most defensive or conservative profiles. As is for example this class of accounts that offer greater profitability to their holders. With a return on savings that unfolds between 1% and 2%. A very suggestive percentage that has nothing to do with the performance of the most traditional bank accounts. Without any requirement so that you can access these products intended for savings. Not surprisingly, a large part of the banking entities already have an account of these characteristics. Because they assure you a fixed and guaranteed performance every year. Whatever happens in the financial markets.
This kind of bank accounts are open to all customer profiles, although in some cases it is necessary that you direct your payroll or regular income. And in the most demanding models, up to various household bills (electricity, water, gas, etc.). So that you can even receive a part of these expenses at home through returns of up to 5%. In any case, it is one of the only resources you have at the moment to make the savings profitable. At a time when the price of money is at historic lows. In other words, the price of money is 0%, which makes high-paying accounts more attractive.
Inverse products on the stock market
If the falls in the equity markets become more acute, you will have the so-called inverse products available. These are models in which you can earn more money as the falls are more intense. However, it is a high-risk product since you can leave a lot of euros on the road. In addition, they are more suitable for very specific moments never to develop them in the medium and long term. Where you will surely lose a lot of money.
These movements can be executed from the purchase and sale of shares on the stock market through the so-called credit sales. To inverse investment funds that reward declines in financial markets. They can be applied on the Spanish stock market itself or on other international stock indices. Under a mechanics that is always the same and is developed with the same operating guidelines. These are products that can be very profitable if the desired scenarios are met. But on the contrary, they carry very intense risks that mean that they are not suitable for all profiles of small and medium investors.
Also through warrants you can apply this very special strategy, although from much more aggressive approaches than in previous models. In addition, you can carry these movements down in shorter periods of permanence. So that you can solve these positions in a very short space of time. Although they are aimed at investors with more experience in this class of financial markets.
Like other products, such as derivatives, structured and with similar characteristics. But they are not highly recommended due to the great risks you run in hiring them. Where you will have to risk your money to achieve your desired goals in the investment world. Above other technical considerations that financial markets present at those precise moments. Don't forget it if you want to preserve your savings.