The new technologies sector is one of the most innovative proposals you have at the moment to invest your savings. If what you want is not to leave the European continent, you will have many more alternatives than you initially thought. We will help you to get the information detailing which are the financial markets to which you have to go to satisfy this desire in the world of money.
New technologies is a relatively recently created sector that has led companies that present these lines of business to be grouped into their own stock market indices. Given the strength of companies from all countries that are dedicated to this business activity of clear strength. In addition, it is a much more effective way for small and medium investors, as is the case in your case, to have a benchmark to look at.
The offer proposed by European equities is not as powerful as the North American one. But even so, it offers you enough proposals so that you can develop a very diversified investment. With some countries that have more extensive models than others. With the aim that you can invest your assets in any of the securities that are listed on their financial markets.
Technologies: where are they listed?
First of all, you will have to find out what the destination of your money should be if you want to fulfill the desire to open positions in the new technologies sector. You will have several Options, which can be very useful when its trend is clearly upward. To take positions in companies from very diverse sectors within this business activity. You will only have to know which are the most representative indices of these values.
Well, you should know that in Europe there is the so-called New Markets index that groups together the technological sectors of nations such as Germany, France, Belgium, Holland and Italy. They are listed in groups and offer you the opportunity to satisfy this demand that you have at the moment. It is an index that was created at the beginning of this century in response to investor demand.
The most important companies on the continent are represented. Although your offer is not overly powerful, for the moment. If you want to open positions you will be able to carry out the movements calmly from your usual bank. Not surprisingly, all entities in our country are open to this alternative in equities. They are the only difference that you will have to assume somewhat more expansive commissions than if you were to operate on the national market stock exchange.
How are these companies?
You will come across companies that represent almost all businesses that integrate new technologies. Electronic commerce, computers, processors, social networks or the internet among the best known. A good part of these proposals will be unknown to you since you will never have heard them. While others will be easier for you to recognize. They are even traded across geography.
In some of the proposals they are listed in a somewhat atypical way. Not like traditional values, but based on the expectations that your business lines are generating. It is due to this characteristic that its volatility is extreme. You can raise your price one day up to 10%, and then leave similar percentages. Not surprisingly, this is how the values belonging to the new technologies sector move. Not only on the European continent, but all over the world.
They present very pronounced differences in their prices. They can reach 10% in the same trading session, or even exceed it in the liveliest sessions of equities. It will be very easy for you to do intraday operations, that is, on the same day. Precisely because of this marked difference in their prices. Above those presented by other values on the European stock market.
Another alternative: the English bag
If you do not want to leave the continent to open positions in technological stocks, you have another very powerful option for your interests as an average investor. Through Technomark, the index of the English stock market that groups this class of companies. During this year it maintains higher returns than other indices with similar characteristics. With an appreciation of around 10%, even higher than that offered by the Nasdaq 100, which only appreciates 3%.
From this perspective of investment it can be a very interesting alternative for your interests. Although with two negative points that it will be convenient for you to know if you are going to open positions during the next few months. On the one hand, the operations will be in British pounds and not in euros. This incident will mean more expenses in its management. You will join the highest fees on this European equity market.
A second drawback is Britain's recent abandonment of community institutions. It can cause the response of your values to not be as positive from the next few years. Especially in a sector as sensitive to these economic changes as new technologies. You will not be able to forget this scenario if you are interested in seeking positions in the British market.
And what about Spain?
Unfortunately, our country is one of those that does not present a representative stock market index of these values. Not surprisingly, companies go it alone. In addition, there is not a powerful and wide offer, quite the opposite. Only Indra is one of the companies that has a significant weight in the selective index of the national stock market, the Ibex 35.
As a consequence of this scarce presence, you will have no choice but to go to the secondary markets to buy shares through the values of new technologies. But with another incidence. It is none other than that they are companies with little business consolidation and whose accounting offers many doubts to large investors. In addition, the fluctuation of their prices is extremely high. Up to levels unaffordable for any small investor as it is in your case.
These are very small capitalization companies that are not very liquid. Not surprisingly, they move very few titles every day. Sometimes I get really ridiculous percentages. That in any case, they will prevent you from leaving and entering these values at the price you want. In the best of situations you will have to formalize the operations at market price. An obstacle to optimizing your operations in the equity markets. With a real risk that can make you lose many euros in a few days.
Background of the technology index
In any case, it will be convenient for you to know that a few years ago there was a New Market in the national stock market. Specifically at the end of the 90s. Where the champions of this sector were represented. Terra, TPI, Tecnocom or Zeltia were some of its members. But this index disappeared due to the little specific weight that these securities had within Spanish equities in general. Even with the occasional scandal as a result of the dot.com boom.
After this moment, these securities have traded independently, each one on its own. Although the National Securities Market Commission (CNMV) is indicating that there is the possibility that an index could be created again that groups all the technological values of the Spanish company. Although no dates have been defined on when it would be operational for investors.
In any case, if your desire to enter the national equities to satisfy this demand, it is very true that you will have many problems to do so. You will have no choice but to go to other markets in your environment to buy and sell shares. Since the national supply is one of the poor in the entire continent. With just a couple of proposals of some relevance on the world scene.
Tips for operating with this sector
In order for you to channel your operations with greater guarantees of success, you will have to apply a series of guidelines that will be very useful in all kinds of situations and trends. They are the following that we expose you below.
- If you want to dedicate yourself fully to new technologies, the best alternative you have at this time is to carry out movements on the stock market through the international financial markets.
- It is a segment that carries many risks, and where it is not convenient that you allocate all the savings, but only a part of them. Or complement to other investments.
- You must be very meticulous with the selection of securities you make, as it may happen that some of them are very illiquid and prevent you from leaving the markets at the precise moment you want.
- You will bear in mind that although they are all values of the new technologies, they come from very different business segments. It will be convenient that you inform yourself of them before opening positions.
- At the time of investing, you should bear in mind that these proposals do better than traditional values in expansionary scenarios, but much worse in recessive ones or with falling stock markets.
- You have another certainly original way to make the investment that is through funds based on these financial assets. It will be the best way you have to diversify your assets.
- Do not try to rush the positions because these are values that fluctuate with great frequency, even with very radical movements that can spoil the possible benefits you have in your portfolio. Up to very dangerous levels for your interests and that you may not even be able to assume.