As we enter the last quarter of the year, there are many and diverse doubts that assail small and medium-sized investors at this time. In order to know if it is a good opportunity to take positions in the equity markets or if, on the contrary, to maintain liquidity in the savings account. It is a period of the year in which stocks around the world tend to move quite intensely, both in one direction and another. Therefore, it is time for caution and be aware of the business opportunities that arise in these months.
After a summer that has been excessively volatile, it is normal for equity markets to calm down again. Without forgetting that this period of the year is when one of the most bullish movements takes place, such as the Christmas rally. Where the values are appreciably appreciated as a more than traditional formula to dismiss the stock market exercise. And that can help us to enter the parks again to make money more quickly.
Within this general context, we are going to offer some rules of action so that you can improve your income statement in the final part of the 2019 financial year. After a few months that have not been really comfortable for the interests of small and medium investors. Where in some values they have depreciated above 20%. Although something else quite different is what may happen from the month of January. But this aspect will already be the subject of other comments about what you have to do in your relationships with the always complicated world of money.
Investment strategies: revue securities
A system that a good part of financial analysts choose is to take positions in securities that present value. In other words, they have a higher potential for appreciation than the others. They are trading at a very cheap price as a result of the falls they have developed this year. To the point of being considered as authentic business opportunities due to the profitability of their business lines. There are several securities of these characteristics in the selective index of Spanish equities, the Ibex 35. As for example, BBVA, Santander, Telefónica and Mapfre, among some of the most relevant.
It may be that the last semester of the year could be a propitious occasion to enter these proposals of the national stock market. Because they have a long upward path at the moment and the risks are lower than in other listed companies. They are now quoting with discounts that do not adjust to the reality of their business results and you can make them profitable, at least in the medium and long term in an efficient and balanced way. Of course, proposals are not going to be lacking to comply with this investment strategy.
High dividend stocks
Another of the strategies that you can use in this last part of the year is to opt for this class of stock values. It is an investment system that is designed for small and medium investors with a more conservative or defensive profile. With the primary objective of gradually creating a stable portfolio of securities for the medium and long term. So that in this way, you have a portfolio of fixed income within the variable. Whatever happens in the financial markets. Because at the end of the day you will be receiving a fixed and guaranteed money every month.
While on the other hand, you cannot forget at this time that Spanish dividends are the ones that have grown the most among the large European countries in recent months. To the point that global earnings have broken a new record in the second quarter. An additional reason for you to be able to direct yourself to these very special values of the national equities. Like you can get an improvement in the quotes they have in the financial markets. Because in effect, there is a lot of capital flow that is directed to them by the most defensive investors.
Against business cycles
All the forecasts of financial analysts suggest that next year will be at least complex for the interests of small and medium investors. It can be the perfect pretext for your money to go to values that are not linked to economic cycles. It is one of the most effective strategies to face an adverse scenario for the equity markets. Where the risks will be significantly lower and you may even make them profitable better even if the equity markets fall in this period. You don't have much to lose by applying this investment strategy.
While on the other hand, they are securities that will not show excessive volatility. If not, on the contrary, they will show more stable prices and with fewer differences between their maximum and minimum prices. At the end of the day one of the great objectives of the most defensive investors who seek above all the preservation of their monetary flows and above other more aggressive considerations. This is in any case an approach that can give you a very good game from now on. Beyond other considerations of a technical nature and perhaps also from the point of view of its fundamentals.
Consolidated sectors
Another investment strategy that you can use for the last half of the year is to take positions in sectors with great resources. In other words, with fully consolidated business lines from the business point of view. So that from now on you do not have many negative surprises as happens in the most innovative sectors of equities. Where without a doubt that you are more exposed to developing losses in your income statement in the stock market. On the other hand, you provide your portfolio with greater security through a series of values strongly implanted in the national or international economy.
Of course, another of the contributions generated by the implementation of this investment strategy is related to the fact that they are financial assets that are not usually very violent, both in their rises and falls. If not, on the contrary, they base their attractiveness on the stability of their prices above all else. It is another of the ideas that you have on hand to use in the last semester of the year. Of course, it will help you protect your money above other considerations caused by its technical analysis.
Stock markets of emerging countries
As a more aggressive and innovative move is the fact that you opt for some stocks from emerging markets. But not just anyone, but those that show a better technical aspect and that may have a greater potential for revaluation. Under a very clear premise and that is that they should constitute an additional investment, not the main one. And in any case, low amounts that are not very high. In this sense, you can find some business opportunities in the stock exchanges of India, Japan, Russia or Brazil. But with operations very controlled by you to protect the money.
On the other hand, these financial markets can be the best way to pass the negative transaction in the main stock exchanges of the world. It is true that the risk is very high, but also the prize that you can obtain in this kind of very special operations. In this sense, you have to know very well what is the activity to which the company is engaged that may be the subject of your selective purchases from now on. Because the differences between one and the other are usually more than marked and represents a lot of money in the operations carried out. For this reason you have to be more selective than ever.
It enters a more lateral phase
Bankinter's analysis department shows that after the increases in the first months of the year, we are entering a more lateral phase in which we will experience moments of cuts (such as that of May) and months of increases (such as this month of June just finished). "We are going through a time when there are no major catalysts, and yet there are no signs of deterioration that lead us to think that the economy may enter a contraction more or less imminently."
Looking ahead to the remainder of the summer and given the usual decline in volumes that occurs in these months, we should not worry if a profit taking would take place in the stock markets and we should even interpret it as an opportunity to reorder portfolios or even buy an opportunity , they point from the commercial bank. In a diagnosis that is positive for taking positions in the equity markets. Among other reasons because there are no alternatives to the stock market at the moment. Due to the low value of the price of money.