Despite what you may think, there is not only one class of indices in the Spanish equities. But on the contrary, you are in a position to enter several of them. More than you think at the moment and that they are of a different nature and even completely different content. To the point that some of them may miss you, since it may happen that you do not even know them. And of course you haven't even traded with them at any time.
It is completely true that the benchmark index of the Spanish stock market, popularly known as Ibex 35, takes the glory of the big investors. But you must bear in mind that there is life beyond this powerful and important proposal of the national financial markets. With an important diversification and that can adapt the profile that you present at the moment as a small and medium investor.
Each of the stock indices has its own characteristics. Not all are the same, although in some they come to complement each other with exquisite efficiency. Like the positions you open in them through your investment portfolio. You will only have which are these selective groups of equities. And what is more important, if they are suitable so that you can open your positions in some of these financial proposals from now on. Are you in a position to accept the challenge?
Indices: the most selective of all
This is undoubtedly the Ibex 35, which brings together the most important companies in the Hispanic economy. From BBVA to Telefónica, through ACS, Inditex, Indra and a long list of great businesses. The pointers of our business activity. Their number is not excessive, but in any case they are renewed minimally every quarter. With the entry and exit of new investment options. It is one of the most dynamic European indices, with a wide range of equity proposals that pay out a dividend to all of its shareholders every year.
It is the least complicated of them all, and by far. It is convenient that you take it into account now in case you are going to opt for this investment model so traditional among Spanish investors, and sometimes from outside our borders. Don't forget it from now on. You can take advantage of the strong banking presence, for example, with respect to other proposals in the indices of the old continent. To the point that it is the most dependent on it. Through a wide range of financial entities. From large to medium banks.
What does this stock index bring you?
The Ibex 35 is one of the indices that offers you to execute a series of operations with great liquidity. You will not have problems at any time, neither to enter nor to exit the markets. Not surprisingly, your hiring volume is more than important, continually changing stocks. It is where the evolution of national values is best reflected. Above other sectoral groups, although these are of less importance.
Of course, not all sectors are represented. In any case, it is the banks, construction companies, electricity companies and services that predominate in its composition. For, on the contrary, they are scarce in others of the relevance of new technologies, chemicals, etc. In any case, they represent large-cap companies. Some of them are even listed in the main index of the European stock market, along with other values of the countries of the euro zone.
A very important aspect that you must take into account is that the securities that make up this benchmark are those chosen by the managers to make up their investment funds. As a consequence of this important characteristic, its shares show greater dynamism in the evolution of their prices. It may be one way or the other. They are also in the mouth of any investor case. From the most defensive to the purely speculators.
The Ibex 35 is distinguished because it probably makes it impossible for any of its companies to present a suspension of payments or simply go bankrupt. Something, that without frequent, occurs with increasing regularity in the values of the Spanish stock market, but coming from other segments not as important as this one we are talking about.
In addition, you can opt for credit sales, if your belief is represented because you expect the financial markets to lose positions in the coming weeks. Not surprisingly, this is one of the most important indexes to perform this kind of operations in most of them. Where you can make the savings profitable, even in the worst possible scenarios. Something that, on the other hand, you cannot develop in other groups on the Spanish stock market.
Continuous Market, with more options
Then there is this more general index and in which you find the greatest business opportunities. More than anything by the greater number of companies. Very varied and different in their business models. With up to 100 possibilities to buy your shares, mainly through small and mid-cap stocks. Not exempt from important risks and with very pronounced characteristics in some of the cases.
Of course, here you can find yourself in everything. It is the catchall of national equities. You can detect values of all kinds, from very solid companies to eminently speculative proposals. Or even some that are certainly very dangerous as a result of their weak financial position. It is not strange that through a very detailed analysis you come to find companies that have a strong debt in their accounting. The surprises are at the level of the equity floors.
Volatility is another of its most pronounced notes. With large differences between their daily highs and lows, which makes these stock market proposals very suitable for speculative investors. It is quite normal for some of these securities to be traded on the same day. Even with few differences in the schedule. The daily or weekly variations in their prices, on the other hand, are very sensitive. The opportunities to achieve high capital gains are greater, but for the same reason heavy losses can also be generated.
They are small-cap securities that are easier to manipulate. Through the movement of very few titles, it is in a position to achieve great differences in their prices. Up to unimaginable levels on the Ibex 35. They can be carried one way or the other without too much effort on the part of large investors. It is a reality that you will surely have suffered in your flesh on more than one occasion.
Other stock indices
You still have other indices of variable income that are different and very particular in their conception. As they are at present, the Ibex Medium Cap, which groups together mid-cap companies and the Ibex Small Cap, which for its part includes small capitalization companies. They can be other interesting options for your expectations as a small and medium investor. Although, of course, with less liquidity to operate with them, and with respect to other indices of the national stock market.
If what you want is to speculate with a value to obtain larger and faster capital gains, without a doubt that the Continuous Market better satisfies your expectations. Although with the undoubted risk that the trend is reversed. And as a consequence of this movement, you enter into losses in the open positions in this financial market. You should, therefore, think a lot about this option in the bag. The opportunities are enormous, but the risks are never left behind.
There are always purchase opportunities in both indices, although the Ibex-35 securities offer greater security due to the specific weight of their companies. If, on the other hand, the selected term is short (even ultra-short), companies that are listed on the Continuous Market are more advisable due to their high volatility, but taking into account the risk involved. In any case, it will be a decision that you will have to make from those same moments.
Alternative markets on the stock market
There is one last alternative, which is not less suggestive because it is complicated. It is the Alternative Stock Market (MAB). As complicated as it is speculative it is. Lesser-known listed companies are included in this group. Because indeed, very few of them will sound familiar to you. And less to make your savings profitable. Where not investing money in companies that do not offer any type of guarantees can be the key to your success.
Their danger reaches such a point that in many stock exchange forums they are encouraged to buy them. With the suspicious claim that you can earn a lot of money in a short time. Nothing is further from reality. It is, in short, a bad strategy for any profile that you present as an average investor. Not in vain, accepting these proposals in equities will generate excessive risks. Therefore, you will not deserve to accept these very high challenges. It will become a very risky strategy, above others offered by Spanish equities from now on.
In any case, it is another option that you have from now on. With values that go up 30% one day and the next session it loses it, even with greater virulence in the quotation of its prices. Only the most experienced investors in these markets will be in a position to accept the trades. Of course, at your own risk. At the end of the day what we are talking about is equities.