It has not been a good year for small and medium investors. Although it is also true that it could have been worse. In any case, the selective index of the Spanish stock market, the Ibex 35, the year ended with a decline of 2%. With many negative elements during these twelve months. Brexit, tension in the currency market or doubts in the European Union have been some of them. With a certain air of disappointment for those who expected a somewhat better year for equities. And in the absence of significant returns on the main banking products (time deposits, promissory notes or corporate bonds).
The last session of 2016 is a true reflection of what has happened in this period. With a session in which absolutely nothing has happened from the point of view of technical analysis. There has been no volume of contracting, and even very few investors have appeared on the Madrid park. Nothing has done that the flight in the quotes has been resumed. Not even last minute makeup or the long-awaited Christmas rally. 2016 disappears, the truth, with more pain than glory. It has not been the true investment that many savers expected. Not much less.
With regard to other markets, the movements have been similar, although with improvements in their results. In this sense, the most remarkable thing has been the reaction of the FTSE 100. The British index has managed to defy Brexit and has taken advantage of the rises in raw materials and the fall of the pound to rise and end the year at all-time highs. Against the forecast of a good part of the main financial analysts. It is the great novelty that equities have left for this bland investment year.
The US stock market continues with bullish force
Another of the most relevant data that this period has provided us is that the index German DAX ended the year with a 7% appreciation. Not a bad result, especially when compared to the Spanish stock market. The market continues at full capacity is that of the United States. Despite the great surprise in the election of Donald Trump as the new president of one of the engines of the international economy. Nothing is causing a change in trend in its major equity indices. Follow his own, almost at record highs.
The main indices closed the year clearly in a positive situation. The Dow Jones with a revaluation close to 13%, while the S&P 500 has targeted 10% in its growth. Regarding the technological index par excellence, the Nasdaq, a revaluation of just over 8% per year has been pointed out. A new ruling by financial market experts who predicted twelve months ago that it would be more profitable to invest savings in the European stock market than in the North American one.
The united doubt that the US stock market presents at this time is when this upward spiral will stop, which has already lasted many years. Maybe when it happens downward reaction may be especially violent. With great care for small and medium investors who are going to raise their investments from now on. It may carry more risks than necessary. Especially during the last half of this year. Where the first corrections can appear with a certain intensity in their verticality.
Bullish sentiment on the Ibex
Returning again to Spanish equities, the perspectives of course they are positive to face the first months of the year. This is evident after the latest market survey. Not surprisingly, it is found that the number of bulls is at its highest since April 2015. That is, twenty months after that date. Because in effect, the number of respondents who are bullish for the month of January it has been placed at 75%. For only 10% that are declared negative with the evolution of equities.
However, this data does not necessarily have to lead to a rise in the price of the shares. It's mostly about investor sentiment. As in your own case. But it does not imply anything else. Although it can give you the odd sign of how the Spanish stock market will evolve from this month of January in which we are installed. Historically a period that has always been bullish. At least in recent years, with the sole exception of 2014. For many of the reasons that are well known to many savers around the world.
Another significant piece of data on which this survey affects investor sentiment is the one referring to the climate of confidence on the other side of the Atlantic. Because in effect, respondents think that the equity market that will evolve best in January is the United States. 35% of respondents think this way, although falling from the 40% that was the opinion of so little a few weeks ago. Either way, we will have to wait for the first few bars of the year to see what the real sentiment of the different financial markets is. Not only from the stock market, but from other assets. Among which are precious metals, raw materials or currencies.
European equities: best option
To better optimize your operations, you should know that in any case, European equities are in better positions to be selected to buy shares during this month of January. This is shown by 50% of those surveyed. A scenario that was not usual during the previous weeks. Where even, last month investors opted for American equities as a formula to make their assets more profitable.
From this general scenario, with many expert voices that opt for the stock markets of the old continent. Alluding to the fact that it has a much more extensive revaluation potential. With several stocks in the crosshairs of equity analysts. Where sectors like the bank can surprise regarding the increase in the value of its shares. All this despite the problems that more than one financial institution is going through in the places where they are listed.
There is also the option of emerging markets. Although under a higher risk if hiring. This investment is intended for much more aggressive profiles that seek a faster return on operations. They range from the stock exchanges in Russia to that of China, among another series of proposals of these characteristics. They have a very strong volatility and that can lead to differences of up to 15% in the same trading session. It is, on the other hand, another of the alternatives that you must have to carry out more minority operations.
Nine strategies to apply in 2017
Facing this new year that has just begun, it would not hurt if you applied some lines of action that could be very useful. Both to protect your savings, but also to obtain more powerful returns to your assets. And in this way, end the year with a more generous balance in your checking account. Not in vain, it should be one of the objectives that you should set yourself from these precise moments. Through the following tips that we expose you below.
- A key to succeeding in this attempt to invest your savings in equities stems from a diversification in operations. Without focusing on just one market, but on the contrary, on several and that have good prospects in their evolution.
- Let the first months pass to check what's the trend you can exercise. With the aim of clarifying the objectives. Even providing you with other financial products where you can invest your savings.
- Keep some defensive positions because surely there is more than one major obstacle along the way. You will not have the need to risk as in other exercises. Through well-defined proposals in their deadlines.
- You must keep a part of your heritage in complete liquidity. The reason is none other than to take advantage of all the opportunities that will undoubtedly present themselves to you in the coming months.
- You have more life beyond the bag. Through other alternative markets that may surprise from the month of January. Even unrelated to traditional equities. You can try new ones with savings designs.
- Information will be more necessary than ever. Therefore, you should not invest your money foolishly and madly. Among others, because you can get more than one negative surprise from now on. In this sense, you should plan your investments much better.
- Take advantage of those periods where it is easier to obtain capital gains. Some of them are the first months of the year, the Christmas period and those favored by temporary movements in the financial markets.
- Do not feed on operations. If for any reason they go wrong or with unforeseen objectives, it will be time to close operations and focus on new ones. See if you have better luck.
- And as a final conclusion, you should bear in mind that this year not to be an easy exercisebut full of obstacles along the way. There will be joys, but also without disappointments.