Spanish investors have always been very prone to investing their savings in brick. Well through the equity securities that represent this important sector. But above all through real estate operations that have given them very good profitability during the previous decades. Nevertheless, the economic crisis of 2008 has made them rethink this strategy and redirect their investments towards other financial assets, for the moment, safer and with some potential for growth.
The question that small and medium investors are asking at the moment is whether it is currently good moment to reinvest in the brick. Well, and with respect to the values that are listed in the national indices, after having strongly corrected their prices the construction companies that are listed in the variable income, in recent years they have started an upward escalation that has led them to partially recover their prices, although for the moment financial intermediaries do not end up opting for this sector index.
The construction companies listed on the Ibex-35 have shown significant revaluations in the last five years, and in some specific cases with a better performance than the selective index. In addition, they have a very interesting average yield per dividend, around 5%, and only below other sectors such as banking or electricity, which reach up to 8% in the best of scenarios.
Where can the savings be invested?
If the strategy you choose to invest savings is brick, and channeling it through equities, you have many options in the national benchmark index. Within the national selective, construction companies stand out and with very diverse lines of business, suitable for any investor profile. Sacyr, OHL (+ 28%), Ferrovial, FCC, ACS and Acciona, among the main ones.
They are joined by others that are listed on the Spanish continuous market, such as Realia or Inmobiliaria Colonial. Although they are values that carry many more risks than necessary. And that show an evolution in their prices not so homogeneous, with excessive volatility every day. With a very high difference between its maximum and minimum prices, up to two digits in some cases. These are securities in which it is very difficult to operate, and that only speculative investors dare to open positions with these financial assets.
The possibilities of generating large capital gains are very wide, but for the same reasons you can lose a good part of your savings in their positions. Of course more than you initially think. Unless, of course, that use a stop loss order to limit possible losses. And as a consequence of this clever strategy, also protect them in the most optimal way.
However, some of the listed companies are in a serious business situation and that may induce them to continue with the downward climb in their prices. It is not convenient to take positionsNot even if equity markets show a flawless uptrend. There is surely more to lose than gain in much of this stock offering. Or at least to act with some diligence, and a lot, but a lot of patience.
Eight tips for investing
If you think it is the right time to get back on track through equities, it is highly desirable that you form a strategy to make your savings profitable. That would necessarily happen by adopting a series of recommendations that can be very useful to operate with these financial assets. And that can help you make the performance much more satisfactory for your personal interests.
- Detects the strongest values on the market, and that they have certainly healthy business results. Avoiding, in any case, companies that are in debt or have deficiencies in their management models.
- The taking of positions in these values must be accompanied by a general trend in equity markets that is bullish. It will enable the appreciation of the shares to develop with greater potential, even outperforming other values in the selective index.
- You will have no choice but to perform a deep follow-up of your quotes, given the possibility that they will promote strong corrections that may take their prices towards the lows of recent months.
- If they are accompanied by dividend paymentBetter than better, since they will have a guaranteed and fixed performance every year. Essentially how it evolves in the stock markets where they are listed.
- Is highly cyclical stocks that respond better in expansionary cycles of the economy, while on the contrary, they tend to do worse than others in recessive periods, or at least when there are doubts about economic activity, both nationally and internationally.
- To protect your savings it will be very convenient that combine these actions with other more defensive companies. Not in vain, security will be one of your main objectives for the next few months.
- Try to adjust sales and purchases to achieve more profitable operations. And if you see that the market price is not satisfactory, it would be better to leave the operation for another more opportune moment.
- Some values already they have discounted the worst of their situations and their prices are adjusted, so it is possible that they may revalue in the coming months as long as business results are positive.
Other alternatives for brick
Fortunately for you there is life beyond the bag. Y you can invest in construction companies through investment funds based on this financial asset. The offer is very wide, and you can also combine it with other sectors, even with fixed income to limit losses in the most unfavorable scenarios for your interests. Through an investment portfolio that is balanced, and adapted to the profile that you present as a small and medium investor in brick values.
From this approach, you can choose between different funds of these characteristics and that can be profitable at certain times of the year. Not only are these financial products available, but through the listed funds (ETF) these objectives can be achieved. Being, in any case, an intermediate position between the purchase and sale of shares and investment funds. And that entail in most cases more competitive commissions, or what is the same, cheaper.
Even if you are an aggressive investor you have the warrants to take positions in construction and real estate companies, but assuming more risks. This is so because the profits can be doubled, but at the same time you can lose many euros in each operation. If you do not have sufficient knowledge about the operations in these more sophisticated products, it is highly advisable that you give up the attempt. And try to go only to the products that you really know and operate with a certain frequency.
As with credit sales, which require greater specialization on your part. And that they are not assimilable for retail investors who do not have experience in their operations, and in how their purchases and sales are carried out. It may not be the best inverter model for your characteristics.
Back to the same old model
And as a last resort, you will always have the solution of real estate acquisitions, as your parents did in the moments of the brick boom. Nevertheless, this strategy will require you to have greater monetary contributions, above average. And above they do not assure you in return that these operations gave in the best years of the market.
To assess this possibility, it will be convenient for you to bear in mind that it is frankly difficult for them to quote their prices at those of a few years ago, specifically in view of the 2008 economic crisis. prices that did not correspond to reality. As a consequence of this current trend, it will be more difficult for you to obtain the returns from other years that are more favorable for this kind of investment.
But you havent why limit yourself to buying real estate, if you also do not have enough resources to face this operation. It is enough with the acquisition of premises, or what may be more interesting, parking spaces so that you can make profitable your savings for the next few months, and maybe even years.
With a small capital, not very demanding, you can make your wishes of going back to brick again come true. And incidentally, get a bonus every month to help you adjust the budget for the domestic economy every month of the year. You will always generate a return on the assets you have available renting it out to other people. Even if it is your wish, you can sell it after a few years with capital gains.
As you can see, there is more than one alternative to invest in brick, and depending on the characteristics that emerge in your profile as an investor. Safely the most complicated thing will consist of choosing the model to channel the investment. Although as there are many, you will not have excessive problems deciding on your choice.
With a very well-defined objective, which is none other than to beat the poor profit margins currently offered by the main savings products. You will rarely get more than 0,50% for them, so as soon as the best ones, you will have met your expectations. It will be an unoriginal formula to return to the investment preferred by the Spanish at the end of the last century. Now you will have to assess whether this change in investment strategy is really worth it.