Is it time to invest in emerging markets?

emerging

Both equities in Europe and the United States are about to reach their highest levels in the price of their securities. With some signs of weakness that a trend change may develop in the coming months. In addition, it cannot be forgotten that the bags from the second quarter of the year are traditionally bearish. Where it also plays against the fact that the American markets have a historical streak in their rises and this scenario must stop at some point or other. And this may be very close on the calendar.

On the other hand, it should be noted that the Spanish stock market traded 41.407 million euros in January, 6,8% more than in the previous month and the best month since October, although 18,6% less than in January 2018. The number of negotiations stood at 3,6 million, which represents 15% more than in December, according to the latest data from the Spanish Stock Exchanges and Markets (BME). In other words, a rebound in operations is being noticed by small and medium investors as a result of the upward rally that occurred in January. With widespread increases in all equity markets.

Faced with a possible depletion of the international stock markets, it is a good time to look for other alternatives to investment. In this sense, a good solution is represented by the equity markets of some emerging countries. With a upside potential superior to traditional markets. Although on the other hand, they are operations that carry more risks than the rest due to the special characteristics of these stock markets. Here are some ideas for directing savings in the coming months.

Emerging: Brazil the first

brasil

The Ibero-American power is the main bet by a good part of the international financial analysts. It is not in vain, his behavior has been very positive since Jair Bolsonaro assumed the presidency of the country. With generalized increases in the values ​​of this so important stock market in the American continent. Where the Bovespa has risen in this period more than 10% and shows an impeccable technical aspect from all points of view. In a way, caused by the wave of privatizations in this country and which the financial markets like so much.

From this general scenario, the Brazilian stock market can be one of the clearer options that small and medium investors have to make their savings profitable from now on. Beyond other technical considerations and also from the point of view of the fundamentals of the securities listed on this financial market. On the other hand, it must be noted that it is a stock market with many risks and this should serve to make you more cautious in the operations carried out.

Optimism in Southeast Asia

One of the financial markets that could benefit the most from a possible trade agreement between the United States and China is undoubtedly the one represented by the Asian dragons. All in all as they are blooming high intensity climbs and what is more important to you, with a remarkable volume of recruitment. This suggests that they may develop new increases from now on, even knowing that there will be timely corrections in their prices.

These international markets can be constituted in the big surprise that this year that we have started has in store for us. Where it is one of the most positive in the international order and with a significant potential for revaluation in the coming months. It can be an aggressive alternative for small and medium investors, as long as they can control their operations to avoid unexpected situations in their securities accounts. We are not only talking about the Chinese or Japanese stock market, but about all the countries in this important geographical area of ​​the world.

With risks, the Turkish stock market

It is undoubtedly the riskiest bet of all and due to the special characteristics of this international equity market. Where its stock index can rise a lot, but also depreciate with special relevance as a result of the evolution of the Turkish economy. Where the price in the financial markets of its currency also plays a very important role, especially in its change with the North American currency. Of course, the risks are latent, but the rewards may be among the most remarkable in international markets.

On the other hand, it is an equity market that is distinguished by being very volatile. With very important differences between its maximum and minimum prices and that makes this financial market very attractive for trading operations. Therefore, the Turkish stock market is one of the alternatives for investors more prone to risk and who know how to control their emotions at times of greatest instability. Because it is true that many euros can be left on the way and not everyone can assume this special scenario.

Other alternatives to investment

scholarships

Outside of these equity markets that we have pointed out, there is little else at this time. If at all a slight exposure to the russian stock exchange, depending on the evolution in the price of crude oil. But always in a minority way, that is, under operations of small monetary value. Although positions can be opened through investment funds in variable income in which there are shares that are listed on this financial market. Controlled everywhere the movements to undo the positions.

Finally, it is also possible to see what may happen in some emerging markets, such as that represented by the equities of India. Although we may be a little late as it seems that the best is over. In any case, it is a very powerful market and one that will have to be analyzed to determine whether or not I enter this stock market. Where the risks are also very high and it is advisable to be cautious in taking positions from now on.


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