The worst that can happen is not that the Spanish stock index is very close to 9.000 point levels. But you can head further down in your trend breaking bass player. With the possibility that small and medium investors can lose many euros in their operations in equities from now on. This is at least one of the scenarios posed by the stock market for the last quarter of the year. Where sales are being imposed with crystal clear on purchases.
The alarms have cleared in good part of the investors and the fear to be in open positions in the Spanish stock market are more than latent. Not in vain, the contracting volume it has dropped notably during these summer months. There are even many funds that have already withdrawn their capital from Spanish equities. Of course, there is no panic in the parks, but there is a pessimism that has not been lived for a long time. To the point that operations have decreased sharply in this period.
Although the banks are the ones who are accusing the most of this worrying scenario, it also affects other stock market sectors of particular relevance. It is the right time to look for securities and financial assets that act as a refuge from the moments of instability that equities are offering. At a time when fixed rent he's not going through the best of times. Not much less. If not, on the contrary, it offers a very meager profitability that just exceeds levels of 1,50%.
Assets with dividend distribution
One of the alternatives that the stock market offers us at this precise moment is that of the securities that distribute dividends among its shareholders. It is a very effective strategy to temporize this gale that is being generated in the stock market. It cannot be forgotten that through this investment model a profitability of up to 7%. A percentage that is not provided by any financial product, at least guaranteeing it from the beginning. In this sense, it is worth remembering that term deposits, bank promissory notes or high-paying accounts barely offer 1%.
There are many stocks that bring this very special characteristic and you can choose from many stock market sectors. Although in any case, it is an investment model that is aimed especially at the medium and long term. If you are willing to keep the money for so long, of course it is an alternative that you have to make your wealth profitable successful staff. Beyond what the shares are quoted in the financial markets since what really matters is that you will have a fixed and guaranteed interest every year.
Fixed and guaranteed interest
Dividends is a very popular strategy for a more defensive or conservative investor profile who, above all, wants to preserve their capital. In addition, it generally corresponds to companies of high cap which are very stable and little given to speculation. From this aspect you will have nothing to fear, but you can have extra income in all exercises, without having to be validated by the financial markets. To the point that you can create a stable savings bag little by little and without excessive risks in hiring.
Right now, no product guarantees this profitability, neither in fixed nor stable income. Therefore, you have more to gain than lose through this unique investment strategy. You cannot forget that it is money that you can count on every year, because it is guaranteed from the beginning. With intermediation margins that go from 3% to 7% and therefore you have a lot of values to choose from the distribution of dividends. All this without having to abandon your positions in equities. Despite the scenario of great instability that the stock markets are going through, especially the Spanish one.
Look for bonds that offer security
Another alternative in the current international scenario is represented by the assets that offer the most confidence. And in this sense, the bonds can be a correct choice, as long as it is from a country that generates security. As for example, in United States right now. It is true that the interest provided by this investment is not very high, but at least you will not lose money in the operations that is after all. The best way to take positions in this financial product is through an investment fund.
Better in an investment fund because it allows diversify the investment together with other financial assets, both from fixed and variable income. To the point that you will eliminate risks in the positions taken with the funds. Even from an active management that can adapt to all scenarios of the financial markets, even the most negative as can be predicted at the moment. On the other hand, you have the great advantage that you can choose between many models and of diverse nature. With commissions that in some cases can be more affordable than buying and selling shares on the stock market.
Increase in interest on savings
If you are a more defensive investor, you will always have the resource of banking products of a lifetime and that from now on will improve your profitability. As a consequence of the foreseeable rise in rates of interest in the euro zone and that will generate that they are a little more profitable than until now. In this sense, a good option may lie in signing a bank deposit with a somewhat longer term of permanence that raises the interest it will report to its subscribers. At least for the duration of the phase and instability in the stock markets and limits the risks in financial operations.
On the other hand, it should be remembered that these savings products are intended for any kind of saver, Without restrictions. They are not complex models and you can hire them for modest monetary amounts. This is one of its advantages over other investment formats. It will help you assess the suitability of your hiring for the current conjunctural moments that investors are going through. In any case, it is another of the alternatives that you can evaluate at this time and beyond other technical considerations.
Most defensive sectors
In any case, there are a number of stocks in equities that may perform better than the average of the main stock indices. Some of them are those of defense and military equipment who are seeing how their actions are being appreciated with a certain intensity these days. The problem lies in the fact that there are very few such proposals in national equities. To the point that you will have no choice but to go to other financial markets, such as the United States, which has higher commissions that will undoubtedly make your operations more expensive.
Another option on the stock market is to go to the values that are linked to primary consumption. One of these cases is represented by the food companies. In difficult times, they have a better performance on the stock market than the rest. With very little volatility in its prices and that allows you to create a stable investment portfolio for the next few years. With very few differences between their maximum and minimum prices, so that you can obtain small returns on their positions.
Bet on declines in the stock market
As a last resort, you always have to bet on a falling variable income, although these operations carry excessive risks that you may not be able to assume at a time as complicated as the current one. Because it is true that you can earn a lot of money in their positions, but for the same reason also leave you many euros by the way. You will only have to use this special strategy if you think that the stock market has a great downward journey in the coming months or even years.
This investment system is enabled both in the purchase and sale of shares and in other financial products. As for example, Investment funds or warrants and whose strategy is present in equities stocks, sectors and indices. Although of course you must provide some learning in the use of these financial products. Not surprisingly, a small difference can mean many euros in the operations carried out.
The margins are very narrow and you have to know how to operate with these financial assets like few others. On the other hand, you may not be in perfect condition to trade them for different reasons. Although in the end the decision will only depend on yourself, depending on the profile that you present as a small and medium investor and that in each case will be completely different, as you can understand at this time.