Safe-haven values are those that perform better in financial markets in the most unfavorable scenarios, or what is the same, when they depreciate significantly in the face of some very complicated circumstance. It's a more innovative way to protect savings, but without disengaging from investments. To the point that they can be optimally profitable. With really suggestive performances.
To apply this special investment strategy, it is only necessary to detect which financial assets comply with this contribution. From now on, choose those that best suit your profile as a small or medium investor. With the advantages and disadvantages that we are going to ask you from this information.
Whenever the situation in the financial markets, and especially those of equities, are not the most favorable for your interests, you will have to think about investing in safe haven securities par excellence. Some of them you may probably know, but another may even surprise you with its high originality. In any case, they will satisfy investment demands in the most difficult scenarios. From recessive movements to military conflicts, and without leaving any terrorist attack behind you.
Safe haven values: precious metals
If there are any kind of refuge values that are recognized for their characteristics, they are none other than the precious metals: gold, silver, platinum and palladium. Some will be easy to subscribe, while in others taking positions will be a really complicated process, and sometimes even limited to large contributions or money from large fortunes. It is the only problem you can have if you intend to open positions in any of these financial assets in the next few days.
Within the precious metals, it is precisely gold that most fulfills this purpose. Not surprisingly, every time the equity markets show long-term downward trends, the yellow metal shows a much more positive evolution, even with important revaluations. This is partly what is happening during this year. Currently, the bullish tone of this metal contrasts with the bad behavior of the international stock markets.
In these circumstances, investing in the golden metal can generate large capital gains, and in any case above those expected. It will be one of the reference safe-haven values in which you should open positions if you do not want to have more than one dislike in other financial assets. In fact, right now gold is one of the few options you have to end the year with benefits. With an annual revaluation above 30%.
The other precious metals, especially silver, also provide greater stability in their price quotation in the most unfavorable scenarios. Although with certain nuances that you should know before entering their markets. They do not collect returns on invested capital as easily. Without being as clearly configured as a refuge value as its older brother, the yellow metal. And with respect to the other precious metals, its incidence is actually less.
Sovereign Solvency Bonds
An excellent alternative to form safe havens in the worst moments of international equities are certain sovereign bonds. Specifically the German and the North American. The reasons are clear to all investors. They are none other than the solvency of their respective economies. To the point of making them indispensable in any investment portfolio in times of great uncertainty.
In these difficult scenarios, there are thousands and thousands of savers who look to these financial products to safeguard your financial contributions. Even to seek a more than estimable performance in the worst moments of the international economy. It is a somewhat defensive option that you should take into account in case this scenario occurs. It will certainly help you a lot to preserve your capital.
Another aspect of special incidence is how sovereign bonds are contracted. Well, the simplest and most diversified way is formalized through investment funds based on fixed income, and very specifically from these countries. They can even be combined with other equity assets to try to increase investment returns.
It should not be forgotten that in the most unfavorable scenarios for the economy, many investors divert their savings towards these financial products. It is one of the few instruments where they can make their monetary contributions profitable. More complicated will be how to channel their demands, and through which investment models.
Other alternative assets
Even in the worst moments there are always business opportunities. This is a phrase used by investors with more experience in the markets. And to a large extent they are right, although they must be detected at all times. With the important advantage that they can generate even higher returns than those derived from fixed income. Even though they are intended for the most aggressive users of the financial market.
One of the most interesting may be that it aims to take positions in oil and other energy derivatives. Provided that their markets have a more favorable tendency to open short positions. Anyway, it is necessary provide learning to operate in their markets, since it is more complicated than in other financial assets.
It can become another of the refuge values par excellence at any given time. The problem arises in the lack of proposals through Spanish equities. You will have no choice but go to other international places if you want to trade black gold. Especially in the United States, where you will surely have infinite options that will satisfy this very special demand that you have developed.
The market materials It can be another alternative for very specific cases in your investment. Although you will have no choice but to go to exchange-traded funds to fulfill your wishes. Not surprisingly, it is the most advisable financial product to take positions in any of these financial assets. With the presentation of much more competitive commissions in relation to the purchase and sale of shares in the traditional equity markets.
What do they provide?
These financial assets generate a series of advantages that can help you make profitable savings in a moment of your life. Through their special characteristics they will allow you to avoid the moments of increased instability in the different financial markets: currencies, stock exchanges, bonds, etc. It will be highly recommended that you know what this kind of atypical investment brings you.
- They are markets or securities more receptive in the less favorable moments for investment in general. And that they can even produce yields above the usual.
- These are less common financial assets in your operations, and you may not even have operated with them. Is he increased risk that you will have to face if you want to open positions from now on.
- Only on stage most unfavorable You will have the desire to invest your savings in these assets, since they are not normally part of your investment portfolio. It is a somewhat special investment.
- You do not want to invest a lot of money in these financial products, but only a minimal part of your assets. Not surprisingly, there are many risks involved in its operations.
- They need a some learning since they move under different parameters in the quotation of their prices. It is something that you must take into account every time you go to face any operation with these investment models.
- Like their name, they are values that give refuge to capital in most unstable moments, not only in the economy, but also in situations of warfare, attacks, political uncertainties, and even in recessive periods.
- They are usually investment options only valid for these scenarios so well defined. And that under normal circumstances they are not receptive to the demand of small and medium investors.
Behaviour standards
To operate with these financial assets that act as a refuge in certain scenarios, there will be no choice but to import a series of actions. They will allow you to obtain better benefits to the operations, and that you can get some capital gains to the open movements in these values. These will be some of these guidelines in your performances.
- Try to invest your savings in a safe haven, but that they exercise as such, and shows an evolution according to your expectations as a saver.
- You can find some financial assets that usually take a favorable position to the slightest problem in the main financial markets. Offering a positive return in these scenarios.
- Current with some caution that its movements are governed with a high volatility. As soon as they go up in their prices, as after a few days they go down. You must know how to operate with these kinds of values.
- In some of the cases, investments are made through highly sophisticated financial products. They can help you earn a lot of money, but also to lose it in a few trading sessions.
- Don't worry too much about your commissions or expenses in your management. They are in the same line as the usual buying and selling of shares on the stock market. It will be one of the advantages that these investment models offer you.
- They hardly ever serve as complement to traditional investments. But you must take these financial assets for very exceptional cases, and greatly limiting their duration.
- To better ensure your chances, it will be really advisable that an expert in these financial markets to manage your investment, and even be able to propose the best designs to save your savings in the most difficult moments.