Ibex vs Eurostoxx: which index did I choose?

One of the dilemmas that thousands and thousands of small investors have at the moment is why the stock index to opt at this time. Either by the national selective, the Ibex 35 or, failing that, by the representatives of the European stock market, the Eurostoxx 50. To the point that many times indecision is installed in the opinion of savers. Although in principle they are two relevant indices of the variable income of the same economic zone within the old continent. This fact had to be a determination so that their evolutions in the financial markets were very similar.

In any case, it will be very important that you take note of any small difference between the two bags. They may be decisive for the end you choose one or the other market. Although the differences they will not in any case be excessive or violent, just as if it were the markets on the other side of the Atlantic, Asian or another distant or exotic place. So that you have a idea a little more defined from now on, we will help you get to know something about these financial centers every day several million titles are exchanged.

In principle, neither one nor the other is better or worse in principle. Without depending on the inertia of each of the financial markets. Even the general context of the general economy and the main economic parameters will be very decisive. Although there is one very sure thing that you can import and that is that the excesses in their prices are very well controlled. Both in one sense and another, as has become apparent in recent years. Not surprisingly, they have become two of the least volatile exchanges in the world.

Should I enter the Eurostoxx?

The selective index of the old continent groups together a good part of the most important Spanish companies that are listed on equities. Among them, and how could it be otherwise, the blue chip: BBVA, Iberdrola, Banco Santander, Endesa or Repsol. As a consequence of this situation, the most curious fact is given that you can invest your savings in any of the two financial markets where their shares are listed. Although in any case, it will always be much more beneficial to opt for the national selective index. More than anything because it presents much more competitive commissions. With rates below the European one and that will help you generate greater savings each time you open or close positions in any of its financial securities.

From this perspective, you will have no doubts where to go to invest in equities. Of course it is, but there are also other factors that will be very relevant for you to make your final decision. You cannot forget that the Eurostoxx 50 is listed on the most important stock exchanges on the European continent. To the point that you will determine its evolution, either on the ups or downs. But with not very important deviations, neither in one sense or the other. In any case, they are some of the candidates to be recipients of your savings and for the next few years.

Evolution of the two indices

First of all, you will be wondering which of the markets is behaving at this precise moment. Well, the Spanish selective was the best European index during the first quarter of the year. Small and medium investors seem to have returned their confidence to this equity market. In fact, so far this year, the Ibex 35 has appreciated by a little more than 10%. Practically double that of continental equities, which have grown by around 5% in this period. From this analysis it seems that the most advisable thing is to invest in the Spanish stock market.

But it is not such an easy decision that you should make from now on. The reason is because the behavior of the Spanish banking sector will be of greater importance. Because you cannot forget the remarkable dependence it has on equities the weight of financial groups. Much more than in the Eurostoxx 50, which is characterized by being more balanced in regard to the members of its stock indices. In any case, it will be a factor to take into account to relate to the always complicated world of money.

Because indeed, the Eurostoxx 50 is not free of large financial groups either. Although on the contrary, it has appreciated to a lesser extent than the national selective. But you should bear in mind that it was many years late in the quotation of its prices. It may be a small detail that can tip the balance for one or another equity index. Where your technical aspect It will be another element for you to take into account from now on.

Situation in trends

In spite of everything, it will also be very important that the two international places meet immersed in an uptrend. Not very steep, but with climbs at the end of the day. Where they can try to assume new maximum levels in their price. The question will be whether you can overcome his next resistance. In some cases, certainly not without some difficulty due to the problems of a political nature that affect some of the main economies of the euro zone.

The influence of interest rates on the European economy will also have to be monitored. It is special if the European Central Bank decides change monetary strategy and decide during this year to upload them. Its influence will be more than decisive so that it can continue with the upward trend of recent months. Both in one and in other equity indexes. To the point that

In this sense, although both are linked to the decisions of the European issuing bank, the continental index is even more receptive to all mandates. With an almost real-time replica of everything that happens at the financial institution's headquarters. Not surprisingly, it can be seen as your mouthpiece in the equity industry. While the Ibex 35 in many cases what it does is accompany the trend of this stock indicator. With important parallels between the two and that many times their prices remain at the same levels of rises or falls.

How to trade with these indicators?

Taking positions in these equity indices is frankly simple and does not offer any complications to carry it out from your usual bank. Either from the bank branch or from the computer or even the tablet or mobile. They will only require you to be a client of the financial institution, nothing more. They are simple operations to develop that only differ in their commission rates. Because in effect, operating with national markets is always cheaper than leaving our borders. It is one of the advantages of choosing this type of investment.

With completely the same mechanics in both cases, without any differentiation. You will only have to select which is the market where you prefer to make the savings profitable. Nothing more. This decision may be based on the point trend in which the indicators are immersed. In some cases you may be the best option and in others your rival in the financial markets. In both proposals you will have a selective group of companies that will be able to satisfy your demand to enter and exit these financial markets.

What is better now?

Of course, at the moment the technical aspect of the Ibex 35 is more suggestive than that of the European equity indicator. Although the same situation will not always be the case, far from it. Because at any time it can change, worse without very strong movements or disconnections between one indicator of the variable income and another. Where liquidity is one of the common denominators from both financial markets. To the point that you can enter and exit their positions at any time, without any problems.

It is also really noteworthy that both markets are exposed to the economic reality in the euro zone. And of course, the euro is at parity with the main international currencies. As in part it happens with other international stock markets of special relevance. However, the Eurostoxx has a major reference in the world stock markets than our indicator. For reasons everyone will understand and that makes one of the benchmarks of international equities.

At the moment, the values ​​of the Ibex 35 are more attractive. With a higher appreciation potential. But be very careful, because these goals can vanish at any time. With a change in the expectations of the bags for the next few years. Especially because of the convulsive situation that some member states of the European Union are experiencing politically. In particular, everything that surrounds France and the possibility that it could get out of the euro.

In any case, the decision to opt for one or another stock indicator will have you yourself. No one else, although it should be based on objective factors that help you formalize operations. With a very well defined objective and that is none other than to get more out of your condition as a small and medium investor. Which is at the end of what it is, as you will well know through your many years of experience in the financial markets.