Although equities are doing very well, it is no less important that the corrections during the second quarter of the year can be very significant. To the point that it can cause serious small and medium investors who have taken positions during this current year. This is a very relevant reason to show that there are most dangerous stock sectors than others and therefore should be avoided under all possible considerations.
Where, in the event of valuation losses on the stock exchanges, there is no doubt that they may have a worse performance than in other securities. Where at no time will you have to be positioned since the risks are very high. To the point that it can leave a lot of euros on the way and this is a situation to be avoided at all costs. Although at the end of the day everything will depend on what the final reaction of the equity markets is for the coming months. In which the outlook is not very favorable at the moment.
On the other hand, it cannot be forgotten that at the moment there are some sectors that are in a clear upward trend. While others in the opposite, that is to say in a bearish situation and that can determine the one that whether or not a good stock trade is carried out. Beyond other technical considerations that can also determine the valuation of stock values. In any case, it will be very important to detect the proposals that carry the most risk in order to separate them from our next investment portfolio for the short and medium term.
Sectors to avoid: new technologies
The segment of new technologies has been one of the most that has appreciated in the last six months and therefore requires major fixes. Especially if there is a change in trend in international equity markets. To the point that this class of values could depreciate around the digits and therefore there is a lot of money you can lose on them. Certainly, it is not worth positioning yourself in some of these aggressive proposals that have risen a lot in the heat of the last rises in the stock market.
The luck for your own interests is that in Spanish equities there are very few securities of these characteristics and therefore you will not be tempted to take positions in them. Where the volatility There is no doubt that it constitutes one of their main common denominators since there is a great difference between their maximum and minimum prices. As you can see in the charts of recent months and that it is configured as one of the most relevant problems for you to open positions from now on. In any case, you'd better refrain from these kinds of trading in the stock market.
Banks, better not
Despite the drop in the valuation of banks and financial groups, it is no less certain that this does not seem to be a good year for the sector either. Not surprisingly, there are many doubts that weigh on these important values in any variable income in the world. And where the perspectives indicate that they may continue to lose their positions as a result of the incidents to which the banking entities are subjected. Do not be influenced by low prices with which they quote at this time because you will surely be able to see them with valuations that are more adjusted to the law of supply and demand.
While on the contrary, it cannot be forgotten that this is a stock sector that is not going through the best of its moments. Not much less. It is greatly affected by the implantation of very low interest rates in the euro zone since its intermediation margin in the granting of credits is frankly lower. With a foreseeable drop in profits in the results of the next few quarters and that can take their prices to even lower levels than they show at this precise moment. Beyond other kinds of technical considerations and maybe also from the point of view of its fundamentals.
Electric: they have risen a lot
The reason for not taking positions in this sector of equities is diametrically opposite to that of banks. In other words, it has appreciated a lot in the last six months and they are already showing very clear signs of weakening in the financial markets. It is not the right time to take positions, much less after having reached the maximum prices of the year. Of course, you have already arrived, it takes time to make the savings profitable through these so relevant of the bags. Even though his dividend yield It is one of the highest, with an interest of around 6%.
On the other hand, it is also necessary to emphasize very clearly that this it is a regulated sector And this factor can harm you from now on in your personal interests. Because it can accuse the measures that the new government may take in the coming months. Especially after having reached the levels they have reached in this part of the year. While another aspect that must be considered is that which refers to its greater stability at the time of listing. Therefore, we will not have to expect big increases from these precise moments.
Cyclical companies: the losers
In the event that the slowdown in the international economy is confirmed, there is no doubt that cyclical values will be one of the hardest hit at the time of setting their prices. They tend to develop large falls in these periods and that in some trading sessions can be greater than 5%. It is not the time to be in this class of securities because it is a lot of money that you can lose with them from now on. And very little to gain, as has happened in previous times that should help you to be more cautious than before.
Cyclical stocks, on the other hand, tend to develop very violent movements in recessionary periods of the economy and this aspect cannot be forgotten to configure your next investment portfolio. Of course they are not profitable in these weeksIf not, on the contrary, it cannot be ruled out that their prices will fall if there is a confirmation of the new state of the international economy. As for example, in securities of the relevance of Acerinox or Arcelor Mittal that show great volatility in these circumstances.
Without at any time being a clear bet to make the available capital profitable since it is not the opportune moment to take positions within the current situation. Although you may have the occasional temptation to open positions in some of these special values. In this sense, it can be said without fear of mistakes that you are too late to take positions at this time of the day. economic cycle. On the other hand, in many of the cases they have already reached their target prices and there is very little potential for revaluation that they currently have. You will have no choice but to wait for a better occasion. If you do not want any other negative surprises in the next few months and they are doubtless it can be. As the sector indicators are pointing out. Much better to be on the lookout.
Negotiation is increased
The Spanish Stock Market traded a total of 34.680 million euros in equities in March, which is 7,2% more than in February and 29,6% less than the same month of the previous year. The number of negotiations grew 12,5% compared to February, to 3,1 million, 17,8% less than in March 2018. Where one of the most relevant data is that which refers to the fact that trading in futures on shares in national equities increases by 69,8, 35% in the quarter and that of the Ibex Futures 54 Dividend Impact, by XNUMX%. Indicating that it is being a good start to the year for the interests of small and medium investors.
Until now, the profitability of the Spanish stock market is in the double digits despite the general trend of the economy that is in a process of frank deceleration. This is a reason that has misled a good part of the agents of the financial markets who do not understand how the stock market can be rising at the moment. Therefore, they recommend a lot of caution from now on as cuts in share prices can be very significant. And from which small and medium investors who are in a state of total liquidity can take advantage. In other words, outside the equity markets, either national or outside our borders.