This new year will mean that you have new business opportunities compared to previous years, especially through emerging ones. One of your objectives will be to detect them and you can make the most of your savings more effectively. If possible with yields of two digits. If this is so, within twelve months, more or less, you will have met your investment requirements. From a series of financial proposals that in many cases will be new and innovative for you.
From this analytical perspective, it will be very beneficial if you focus on a few financial assets, where you can concentrate your operations in equities. Once the fixed income markets do not go through the best of times. Even the opinion of the main financial analysts is unanimous on this aspect. Your returns will be minimal and that in the best of cases.
To obtain better returns, the only option is to divert the savings to the equity markets. And one of the options you have right now is emerging markets. It is true that its risks are greater compared to traditional squares, but the rewards will also be more suggestive. As you will be able to verify through this article. Not in vain do they open up to you new business opportunities and some very suggestive. You will be able to reveal it in a few moments.
Emerging: raw materials
If there is any aspect that can make you opt for these international markets, that is none other than the better picture of raw materials from the month of January. Because indeed, the commodity price outlook has improved, and emerging market (EM) economies should be able to pick up on this trend. With an intensity that can take some of its main indices above the prices of the most conventional financial markets.
Growing back above the limits of other years is one of the major objectives of emerging markets for this year that just started a few days ago. Supported by evolution of some of the raw materials relevant. Among them those that are linked to fuel. Not surprisingly, it can be one of the great positive surprises that financial markets have in store for you from now on. And you must be prepared to execute your operations and optimize operations during these months.
The momentum of these financial assets may be the final trigger for these financial markets to have a strong upward momentum from very early on. Both assets are closely related, and depend on each other to mark the evolution of their prices. It is something that you must take into account if you want to take advantage of the business opportunities that are surely going to present themselves in the coming months.
Improvement in emerging economies
But if there is some mention that you have to value in these equity markets it is without a doubt that it improves in their respective economies. Because in fact they can present substantial improvements in your accounting accounts. Specifically, they are being implemented new reforms of their economies. What opens up new opportunities in your operations on the stock market. With the entry of significant amounts of investment capital, and which have already been detected during 2016.
Another factor that can give impetus to emerging markets, in the opinion of a large part of financial analysts, is the rather real possibility that the growth in China is greater than previously expected. To which the rise in oil prices can help and which has also helped to curb the depreciation of emerging currencies. They are catalysts that will help emerging countries to emerge that year. They are not difficulties and of course they are under a lot of volatility in their listed markets.
To the point that it will be one of the economic constants where markets and financial agents will be attentive. Not surprisingly, its upward journey may be one of the most important that you can get at the moment. You will only need a little luck and a little intuition when choosing the emerging markets where you will invest your savings. With a range of offers Worthy of value since you will be able to choose between different equity markets and of very different natures. It will be one of the problems you have now, the many proposals that emerging markets offer you.
As an alternative to fixed income
This investment strategy can be one of the alternatives that you have before the low profitability of fixed income in general. Because in effect, this investment is not the best idea you have to start the new year. To the point that some analysts are talking about a bubble in this financial asset and that can explode at any time. You must be vigilant in the face of this dangerous situation that can lead you to leave many euros on the way. More than you may initially think.
From this scenario presented by emerging markets, you have several strategies to optimize your operations and achieve a more than acceptable return on your savings from these approaches to investment for individuals. You will have to increase your positions in these alternative markets. Depending on the profile you present as a small and medium investor for this period of investment in equities.
Given the lack of profitability in fixed income, emerging markets can be an alternative for investment. Not without risk, but with an appeal for the new year that can will attract thousands of small investors as it can be in your own case. In fact, this kind of investment has been included in many portfolios by a large part of the management companies for the course of 2017. Something that had not happened in previous years.
Risks in operations
However, movements in these financial markets can bring more than one negative surprise. With respect to some of the countries involved in these characteristic markets. As a consequence of this variable, the Russian intervention in the Middle East it could have implications for central and eastern Europe. While Brazil faces very important elections during the first part of the year. And it remains to be resolved what will happen with the economic measures by the Argentine government. Together they will give more than one clue as to what the evolution of these markets may be during the coming months.
As for the two giants of the Asian economy, Japan and China, they are not without doubts either. Especially if they are going to continue with their current monetary policies. Any variation can generate changes in the intentions of financial agents from now on. Both from a positive and negative point of view. To the extent that it will determine your positions in equities. In one sense or another, as is normal in these situations. Not to mention the emerging ones with less specific weight on the international scene.
Another very important point to value your investments in emerging markets is determined by how their respective currencies will be quoted in the markets. It will, therefore, be another element to assess if you are going to open positions in securities of emerging markets. Not surprisingly, they are highly influenced by these markets. With a clear interrelation of their currencies. Showing during the latter a high volatility in the quotation of their prices. With very marked oscillations between its maximum and minimum prices. Above other financial assets.
Keys to operate with emerging markets
If, despite everything, your intention is to invest your savings in these markets, you will have no choice but to import a series of actions. They will be very useful to obtain the desired capital gains. In addition, they will help you protect your savings more effectively, even in the most unfavorable moments for your interests. Starting from the following lines in your application.
- The profitability you obtain may be much higher, but at the cost of raise risks. You will have to assess whether this equation really compensates for accepting the operations in any of its markets.
- You have many stock markets to choose from. Therefore, you must choose the ones that are best technical aspect have when you open any kind of movements in the equity markets. You can even protect your investments by having the currency hedged. In this specific case, the euro.
- Do not dedicate all your savings to this type of operation. It will be worth it with your dedication a minimal part thereof. This strategy will help you contain losses in the worst-case scenario that may arise this year.
- The investment mechanism in these markets is different from that of the more traditional markets. Where it predominates, especially the short term stay. With much faster and more flexible movements.
- They carry commissions that are more onerous than in national markets. Practically doubling their rates, although you can benefit from a series of offers from financial intermediaries.
- Finally, you can't forget that you need a certain knowledge of values that operate in these stock markets. Because some of them may not even sound familiar to you about their business models. It is one of the main problems to invest in these investment destinations.