Invest in water? In times of uncertainty in equities, such as today, many investors try to direct their savings to the strangest financial assets. Trying to take advantage of the opportunities that financial markets always generate. You have a wide offer to choose from. Of every nature and condition. To the point that it is a practically unfathomable decision for the most experienced investor. From different approaches to investment.
From this investment scenario, you can invest your savings in practically everything that is listed in the financial markets. In gold, corn, palladium, beef and even football clubs. And of course in water as it is one of the most essential energies on the planet. With a very high consumption by the world population. The problem arises when you decide to invest your available capital in this form of energy. How can you meet this demand in such a special investment? Well, we will give you some ideas to materialize this proposal.
Because in effect, you will have many more ways than you imagine to open positions in the water sector. Perhaps not in such a simple way as through other more or less conventional financial assets. But you will at least have a couple of proposals at hand to opt for this suggestive form of investment. Of course through the stock markets, but also through other financial products that can collect your demand at this time.
Invest in water in the bag
Of course, the easiest way for you to accept this challenge is through the equity markets. Through the values in charge of distributing this important energy. However, the main problem that you will find from now on is the limited supply that you have on the national stock market. Why are very few Spanish companies engaged in this business activity. It focuses primarily on Barcelona waters, with very little specific weight in the Spanish financial markets. Beyond this proposal the options are clearly limited.
To invest in water, you will have no choice but to go to the international markets. Where the offer of this class of companies is more plural. At least you have a choice to try to make your savings profitable. A good example of this scenario is represented by the german bag. Where more companies of these characteristics are listed and can be the center of your eyes to make up your next portfolio of securities for the years to come.
In any case, if there is a market where water companies are well represented, it is the United States. With one of the most complete offers on the international scene. Although to buy their shares they will require more expansive commissions than those here. To the point that it can cost you almost twice as much as compared to national operations. It is an aspect that you cannot forget to plan your investments from now on.
Reasons for your investment
There is no doubt that the water it is a scarce good on the planet, more than other kinds of energies. On the other hand, the increase in the world's population will reach almost 10.000 billion inhabitants in 2050. A direct consequence of this scenario is that it will cause an exponential increase in water. One of the great beneficiaries of this situation will undoubtedly be the companies linked to the commercialization of water. Of course, if they are listed on the stock market, you will take advantage of their movements.
In addition, another of the reasons that invite you to invest stems from the very characteristics of these securities. Because in effect, they are listed with great stability and rarely show excesses, both in one sense and another. On the other hand, volatility is not present in its lines of action. To the point of becoming safe haven values in the most unfavorable scenarios for equity markets. It will not be very strange that you can make profitable savings when stocks fall or are in a downtrend.
The benchmark for this strategic sector is the S&P Global Water. It is made up of companies that deal with water supply, technological efficiency and environmental services. With the advantage that it is currently in a free rise situation after having revalued by more than 200% during the last eight years. Precisely taking advantage of the final part of the important economic crisis that has occurred in almost the entire world.
Represented by funds
Without a doubt, this is one of the most recommended products to take positions in the water. You have many proposals that the managers have prepared in recent years. One of these initiatives comes from the JSS Sustainable Water Fund which maintains a annual yield close to 10%. It is not the only one where you can position yourself at the moment since the offer of these products has generated the Pictet Water, one of the oldest that exists at the moment. With a return on savings during the last three years very similar to the previous result.
Within this offer, Parvest Aqua Privilege-Capitalization also stands out. Not surprisingly, it happens to be one of the most profitable funds in this specialty. Being one of those who have a greater number of participants as a consequence of the evolution of the investment portfolio. Being one of the preferred destinations for the most experienced investors who are looking for the best product at all times. With rather conservative approaches and that can serve as a refuge from the worst economic scenarios.
However, these investment funds require special attention on your part. One of the reasons comes from the excesses of the past. Although, for many circumstances, they move under maintenance of the uptrend. It may be that your best situation is over and it is a bit late to open positions in one of these financial products. Although you have a more than powerful offer and you can formalize from your usual bank and under its usual commissions.
What can you do with the water?
In any case, this energetic liquid is characterized by brings some peace of mind during the most volatile moments in equities. Because in effect, you will not have many fluctuations in the quotation of their prices, since they move under very narrow margins and in all cases below those presented by other sectors. But in any case, importing the following lines of action will always come in handy. These are some of the most relevant.
- They generate a much more important offer than you can imagine from the beginning. For which you will have various options to make your financial contributions profitable from various approaches and investment strategies.
- Water is not a financial asset of cyclical character and therefore it can be used for all scenarios of the international economy. Unlike other proposals that are more adapted to economic cycles. You will always have them at hand at any time.
- It is an investment that can be more profitable in the medium and long term, which are the most recommended periods if you want to take positions in the water. Both in the direct purchase and sale of shares and in investment funds based on this energy.
- If what you want is to carry out speculative operations, it will be better to look at other financial assets with a longer duration in the short term. Not in vain, the return that will generate on your savings will be clearly insufficient for your interests as a small and medium investor.
- Another of the most effective strategies you have is to supplement through water your main operations in the financial markets. It will be a way to more effectively protect your positions in equities and fixed income.
- You have greater purchase options in international markets than in national ones. Through an offer that is diversified in the form of different strategies that are based on this much-needed energy for the population.
- If you have to choose a financial product that mostly welcomes this investment, those are none other than the Investment funds. Not surprisingly, they are collected by the most important managers of these models intended for investment.
- They are based on operations that are not very valid to obtain large capital gains, but on the contrary they will generate you more modest returns than in other financial assets. Intended for an investor profile with conservative tendencies and who does not want to take excessive risks.
- All the forecasts point out that its demand will increase in the coming years. It may be a piece of information that this year invites you to have greater opportunities to formalize operations on the stock market or even through other financial products.
- The listed funds they also collect these operations. Through a hybrid model that combines the purchase and sale of shares on the stock market with investment funds. So that you can take advantage of the benefits of the two products from now on.