The dark clouds that hang over Spanish equities can serve as an excuse to opt for some defensive values that may perform better with a falling stock market. With which we can make a better return on our capital destined for investment and that can give us more than one joy in a scenario of great instability in the financial markets. Reinforced in some cases with the distribution of a dividend that offers a return above 5%.
Within this general context, it must be emphasized that there are always business opportunities even in the stock market sector. To satisfy this need that some small and medium investors have, we are going to propose a series of proposals to invest the money to be more calm in this scenario that can occur in the equity markets. With values that can even have a very interesting upside potential.
Almost all the proposals that we offer you belong to defensive sectors that can do so in bearish movements in the stock market. With less risk in the operations taken and with much more controlled volatility in the prices that mark in all trading sessions. Where it is more complex that the differences in their prices do not exceed levels of 3% or 4% and that they can produce a serious distortion in the securities portfolio from now on.
Telefónica despite everything
After the last falls in the stock market, the risks in the positions of this value of the Ibex 35 have fallen significantly. Where it is more complicated that it can fall over the levels of 5,50 euros per share. While on the other hand, it must be emphasized that this value of national equities in the medium and long term can be very profitable for the interests of small and medium investors. As well as having a very stable line of business where you can make profitable savings in any kind of economic scenario.
Ferrovial exercises with shelter
This company in the construction sector is the safest of all and is also in an upward trend in the medium and long term that undoubtedly supports our actions in the equity markets. And that therefore can exercise shelter value if in the end there is a crash in the stock market. To the point that it can be one of the few listed companies that can move in positive territory in the worst case scenario. While on the other hand, it is also necessary to emphasize that it is one of the values that have a greater potential for revaluation. So that in this way, it is one of the companies with the most recommendations by financial market analysts.
Mapfre at a good price
The insurance company of another of the best options to make profitable the savings in the moments of greater instability in the markets of variable income. With a target price slightly above three euros a share. While another of its incentives is high dividend that it distributes among its shareholders, by generating an interest rate above 6%. With very little volatility in the conformation of its prices and that allows it to be a very stable bet on the stock market to save money. And that at the moment is trading very close to the levels at 2,50 euros.
Red Eléctrica and its safety
This is another of the classics within this special group since it is another of the proposals on the stock market that acts as a safe haven value in the worst scenarios for investors. With the added advantage that it has undergone very severe corrections in the summer, already to some extent unusual in this class of values. With a dividend distribution of around 6% that makes it very suggestive for purchases by retailers more defensive or conservative. Being an alternative that can be profitable in medium and especially long-term periods. With very few risks in operations and where in the worst case your losses will not be excessive.
Repsol with high expectations
Although it is a purchase with greater risks, there is no doubt that its current situation makes it very favorable to invest the savings from these precise moments. Not surprisingly, it has raised its dividend yield to 7%. Being in any of the cases one of the most recommended values by broker and variable income analysts due to its good prospects in the price and which will serve to become part of our next portfolio of securities. Despite the logical corrections that can form from now on. Although it is convenient to remember that their prices will depend on the evolution of crude oil in the financial markets. And in this aspect it can give us more than a scare in the coming months.
Endesa a value piggy bank
Electricity is another of the most interesting bets of the selective index of Spanish equities, the Ibex 35, to take positions for the medium and long term. For several years it has been doing very well in the equity markets. So that in a few years has gone from 15 to 23 euros per share in which it is listed at the moment. While on the other hand, it should be noted that Endesa has appreciated this summer, with a rise very close to 5%. With a better performance than in the rest of the securities in the selective club of Spanish equities. All this without attracting hardly any attention and without volatility in the configuration of its prices. To the point of being one of the favorite values for small and medium-sized investors with a more defensive or conservative cut. With very few risks in operations and where in the worst case your losses will not be excessive.
More hiring of titles
The Spanish Stock Exchange traded 46.916 million euros in Variable Income in October, 44,4% more than in September and 13,2% less in the same month of the previous year. The number of negotiations in October was 3,4 million, 9,4% more than in the previous month and 22,2% less than in the same period of the previous year. As of October 31, BME reached a market share in the trading of Spanish securities of 76,01%. The average range for the month was 5,18 basis points at the first price level (20% better than the next trading venue) and 7,22 basis points with a depth of 25.000 euros in the order book (38,8, XNUMX% better), according to the independent LiquidMetrix report.
While on the other hand, Fixed Income trading amounted to 24.732 million euros in October. This figure represents a rise of 0,6% compared to the volume registered in September. The total accumulated contracting in the year reached 294.374 million euros, with a growth of 70% in relation to the first ten months of 2018. Where, the volume admitted to trading in October was 25.791 million euros, which represents a 24,4% rise compared to the previous month. The outstanding balance grew by 1,5% so far this year and stands at 1,55 billion euros.
With regard to financial derivatives, the situation is very similar to previous financial markets. Where it is shown that the Financial Derivatives market increased trading by 3,3% in the first ten months of the year compared to the same period of the previous year. Volume in Stock Futures grew 48,4%; Futures on Stock Dividend, 96,1%; and the IBEX 35 Dividend Impact Futures, 137,1%. Trading in the month of October compared to September increased by 7,4% in Futures contracts on IBEX 35; 30,7% in the Mini IBEX 35 Futures; and 12,2% in Stock Options.
Rebound in financial markets
At a time when equity markets seem to have saluted from the sluggishness of recent months. When starting a rebound in the valuation of their prices and that also coincides that the US stock market is once again at historical highs and clearing a good part of the doubts that the different financial intermediaries had. In what may be the start of a new bullish phase in equity markets around the world. And that is leading small and medium investors to return to the financial markets to make their capital profitable, at least until the end of this current year.
It is a new opportunity that this financial asset gives us and at a time when almost no one was confined to this unexpected comeback. Although now it will be necessary to check what will be its duration and under what intensity. With many signs in a positive sense and that have not been seen for many months and that of course now seems to be serious.