At this time there is little doubt that in a short time we will be immersed in a new economic crisis. Although it remains to clarify the intensity that can develop from these moments. Where one of the most affected will undoubtedly be the equity markets. To the point that they can lose a good part of the valuation in their actions. At a time when the cuts have already made a dent in its position in the financial markets.
Within this general context, it is the best occasion to analyze which are the securities or financial assets that can act as a refuge in the next few months or years. With the primary objective of opening positions to make the savings profitable with greater guarantees of success. Where they can have a better performance than the rest of the stock market values and in this way they can optimize operations in the equity markets. As an investment strategy to overcome the recessionary scenario that is looming in the world.
On the other hand, you cannot forget that what it is about is that don't lose money from now on. Above other class of considerations of a technical nature and perhaps also from the point of view of its foundations. Which is, after all, one of your goals when developing any other investment strategy. From this point of view, you have to target the securities that provide the greatest security to your portfolio from now on.
Shelter values: food
It is one of the classics to offer you greater security in your investment portfolio in times of economic recession. Not surprisingly, you are not affected by the monetary problems in the world because you always need to eat. That is to say, it is a value eminently against business cycles and therefore it can perform better in this scenario. Even with the possibility that their positions may appreciate in the most adverse scenarios in the equity markets.
On the other hand, one of the negative aspects of this investment strategy is that there are very few proposals in Spanish equities. And almost always represented by food distribution companies. Although one of its most relevant values is Day that has been one of the most bearish values of the Spanish stock market. And end its poor performance in financial markets at levels below the euro unit. Not being in any case a recommendation to take positions in the stock market due to the risks that you incur in operations.
Consumer goods
It is without a doubt one of the sectors in which you can position yourself when the dreaded economic recession hits. Not surprisingly, a price curve is going to be planned that can be very interesting from now on. With weekly closings that are characterized by being with rising prices. And this is the best of the signs that it may be a clearly bullish business segment as of right now. While on the other hand, they are listed at a certain discount that makes them very interesting in any kind of investment strategy and aimed at all terms of permanence: short, medium and long.
While on the other hand, it is a sector that is not very volatile, but on the contrary maintains a higher stability in the conformation of its prices. From this point of view you will not take excessive surprises in taking positions since their divergences are not very striking. To the point of giving you more protection against adverse scenarios in the equity markets. Therefore, they can be one of the options to carry out your investments from now on. Although its offer in national equities is not one of the most powerful. If not, on the contrary, it is much more limited so that you can open positions.
Companies linked to health
Of course, this sector cannot be missing from your investment portfolio due to the very characteristics that it contributes to your securities account. To the point that this year it is one of the most bullish sectors because there are many small and medium investors who have directed their capital towards these very special values. In addition, they are very far from its most relevant supports which means that they may develop an upward trend of a certain intensity in the coming months. Through a section that you can take advantage of from now on.
While on the other hand, this class of stock values are very prone to rise in the most adverse scenarios in equity markets. Because in effect, it can become a great business opportunity that you can opt for when changing your next investment portfolio in the following weeks. It is in any case, one of the investment strategies that you can use to make your money profitable. Because you cannot forget that these values also go against economic cycles and therefore can be very beneficial for your personal interests.
Power companies never fail
When selecting the safe haven values par excellence, the values of the electricity sector should never be lacking. This is due to the fact that they perform much better in this kind of scenario in equity markets, both nationally and abroad. In this context, they can raise their prices in these recessive periods since this is what they have done last summer. With price increases of its shares of up to 4%, while the rest of the values plummeted in their valuation.
On the other hand, these investment values are distinguished because they are not volatile. If not, on the contrary, they show a high stability in the formation of your quotes. In other words, they do not rise much in equity markets, but neither do they depreciate with particular intensity. In any case, they are considered very calm and especially aimed at the more defensive or conservative profiles of small and medium-sized investors. Where safety and preserving savings take precedence over other considerations.
Security services
Perhaps this is one of the most defensive sectors and one that is most forgotten by small and medium investors. But in reality its behavior is better in the most adverse scenarios for the stock markets. A reason more than enough to trust the companies in this sector from now on. In Spain, one of the representatives is Prosegur but it is currently counting on its listing due to the fact that it is a company with high exposure to Argentina. In any case, it is one of the most defensive values of the national equities.
While on the other hand, it has a lower capitalization and that means that it may cost you a little more to adjust its purchase and sale prices. In addition, very few titles are exchanged in all trading sessions. Either way, it is one of the values to consider if an economic recession is on the horizon. Because they are not linked to economic cycles, as one of the great advantages to include it in the next investment portfolio. With little volatility in the price of their securities and that help to maintain more stability in their price
With high dividend interest
There is another, more general way to protect your positions on declines in the stock market. Through companies that distribute dividends among their shareholders. With a performance that at the moment can shoot up to 8%. Much higher than that offered by banking products and derivatives of the fixed income markets. They act as safe haven values in the face of the most unstable scenarios in the international stock markets. To look for a powerful refuge to the monetary flows and that in this way they cannot lose their value and therefore depreciate.
In this way, you can constitute a fixed income portfolio within a variable. Without excessive exposure to what may happen in the financial markets. Of course, it is a very interesting way for you to obtain a fixed and guaranteed profit every year. Through a current account charge that can be quarterly, semi-annually or annually depending on the policy designed by each credit institution.
So that in this way, you are in the best of conditions to create a very stable savings bag for the medium and long term. Which is, after all, one of the great objectives for some small and medium investors. While you are positioned in the equity markets you can have a constant level of liquidity from now on and without assuming excessive risks in operations.