One of the main mistakes that small and medium investors make is to reduce their investments to the more conventional stock indices. Generally linked to the Ibex 35, Eurostoxx 50 and little else. It is a form of limit business opportunities offered by the equity markets at the moment. To the point that real business opportunities that develop every year in the financial markets can go unnoticed. Being one of the most frequent mistakes made by the most conservative investors.
Because in effect, there is life beyond the national benchmark. Not only in national equities, but throughout the planet. With a series of very suggestive proposals, but at the same time original that are very receptive to investing the savings under higher profit margins. Because although the evolution of the stock market is always very similar between the different indices, there are small variations that can make you decant your decisions in one or another sign. Because the stock market is a very flexible financial market that allows you to move money anywhere, even to the least expected destinations.
So that you have the possibility of achieving these objectives, we are going to propose the alternative of directing your savings to other exchanges in your environment and also in the world. You will only need will and determination to import these changes in investment models from now on. Not surprisingly, new windows are opening where you can channel operations and who knows if to obtain better returns on the savings than you have generated so far. As you can see below, the alternatives that you have at hand are numerous and diverse in nature. Do you want to know some of them?
Outlier indices: the VIX
You have probably heard it on more than one occasion but you are not sure what it consists of. Well, it is a financial index that measures the volatility in the markets. The greater the instability in them, the more it will rise. To the point that you can get very high returns by opening positions in this other equity thermometer. Because you can even improve your positions in the most adverse scenarios for equities. This is one of the great advantages it brings you
However, this investment system will will require radical changes in your investment models. You will have to be more open to other ways of understanding investment, as it is in this case. In any case, it does not imply a strategy to invest all your savings. But rather the opposite, dedicating only a minimal part of them. Because the risks involved are very important. In particular, if the general conditions are not met, which is why this index appreciates in the financial markets.
Furthermore, the VIX measures the condition of the bags as a whole. Among the most stable periods or those that imply greater interference and uneasiness among small and medium investors. In no case should it be part of your main investment, but rather as a very effective complement to your savings. With an intensity that will depend on the profile you present as a retail investor. That is, if you are speculative, aggressive, defensive or intermediate. The main problem you will have from now on is that taking positions in this index will be more complicated than in the more traditional ones. And you will need some experience to perform the operations with some guarantee of success. It is one of the risks that you will have to take now if you finally opt for one of the most curious indices that world equities offer you.
Latino values in the Latibex
I know the index that includes the values of the variable income of the Latin American countries. From Brazil to Mexico and that can be more profitable at a given time. They are certainly closely linked to emerging economies. Hence, they are very volatile and of course more than in the traditional ones. With very strong fluctuations in their prices and that you can jeopardize your operations at some point.
If this stock index is distinguished by something, it is because he is more radical in his movements. To the point that it can make you earn a lot of money, but for the same reason have the opposite effect. Only the most experienced investors can be rewarded for their performances. Especially for knowing how they work. In any case, you should know that you will be dealing with values with a Hispanic accent. Never with financial assets from other geographic areas.
Another of his contributions is that the taking of positions in their values does not entail excessive commissions. But on the contrary, similar commercial margins are low as in the national stock markets. Either way, it is another alternative that you have to relate to the complicated world of money. But this time through a different and very well defined index. So that in this way, you can choose to make your savings profitable through a different investment strategy.
Stock market indices: Japanese TOPIX
You may be familiar with the well-known Nikkei index of the Japanese stock market, but not with this one, which is much more unknown. Well, how is it different? In something as simple as greater specific weight of banks and financial groups. To the extent that its evolution is decisive for the good or bad streak of this indicator of special relevance in the Asian area. It also better reflects the state of the Japanese economy, above the vision offered by the Nikkei. Where, in addition, the component of the companies of the new technologies is not very relevant.
To take positions in the Topix you can formalize it directly through the purchase and sale of shares in your market. Although the most advisable thing is to do it through an investment fund based on this stock market parameter. There are many models that include this possibility and even combining it with other international stock indices. As a very useful strategy to make your savings profitable and diversify. Not surprisingly, this is one of its purposes.
Companies that distribute dividends
Another original way of using equity indices is through companies that distribute dividends among their shareholders. As in the specific case of Eurostoxx Select Divide 30. It is a very stable way of making the savings profitable since the most important companies of the old continent are present and have this characteristic. They offer returns on equity in excess of 3%. Above those generated from any banking product (term deposits, promissory notes or high-paying account, among the most relevant).
It is a safer investment strategy than others. Motivated by the very characteristics of the components of this very special index. Where stability is the main contribution you can receive to make up your portfolio for the coming months. They are excessive risks in their contracting and where their operations can be formalized indirectly through investment funds based on this index of European equities.
The reference of European technology
Most of the time you have the Nasdaq as the benchmark of world technology. You don't have to go that far to hire companies of these characteristics. Because indeed, the German DAX has an extension to this innovative sector that can give you more than one joy from these moments. Not surprisingly, the most important listed companies in the sector are grouped together with commissions much more affordable than in the American market. Without the need to change currency to formalize your operations on the stock market.
In any case, it is one of the stock indices more unknown by small and medium-sized Spanish investors. It can be a real alternative to consider developing any touchdown to optimize your movements. Both for short terms of stay and for longer periods. It is one of the recipients of all kinds of capital and for all investment profiles, without having to leave the European continent.
Publicly traded soccer teams
Finally, it cannot be forgotten that you may find an equity index so original like the one made up of some of the best european football clubs. On this occasion, it is one of the most novel and innovative proposals that the financial markets can offer you at the moment. It is the same as the other indices, but with a very important difference. They are sports teams where you are going to invest your savings. With the characteristics that this class of operations entails.
Because its behavior differs significantly from that generated from other more conventional values. With a very high price volatility. To the point that it can create more than one problem for you to liquidate the operations. As a consequence of this peculiar investment strategy, you will be able to buy shares in some of the most popular clubs. Juventus, Manchester United, Porto or Betsikas they will be some of the most relevant in the current financial proposal. Of course, as long as it is empowered because the ball enters the door of the opposing team.
The slowdown in Topix futures indicates that long-term investors do not expect Japanese stocks to rise much compared to the strong winds that the Yen is carrying. There are times when you can also expect a drop to take advantage and buy shares in the stock market, but even that margin is somewhat difficult.