This new trading year may not be like the rest. At least that's what some of the most celebrated analysts in the equity financial markets say. Faced with this scenario that may arise in 2018, there will be no other remedy than current caution and a little diligence. Any mistake in your investment strategies can cost you dearly from now on. Therefore, you will have no other solution than to avoid it at cost. Not surprisingly, it is your own money that you are gambling in stock market operations. And your mission in this exercise will not be to lose it, but to end the year with earnings in your checking account. The broader they are, the better for your interests as a small and medium investor.
So that you can plan your operations from now on, nothing better than to analyze some of the keys through which the fixed income market can move in 2018. Where some of the most relevant objectives that you will have to face from now on are the following: which are represented by be more selective than ever to find the value of different assets. It may not be an easy task to carry out, but with a little perseverance you will be able to achieve your goals from now on.
From this general scenario, you cannot forget that more than ever you should be focused on the macroeconomic advance and in monetary policy movements (with their respective impact on the profit and loss account and the balance sheets of listed companies). It will be one of the first lessons so that you can carry out the operations in the stock market with greater guarantees of success. To the point that it will be a great help to define your strategies in the investment world.
Withdrawal of economic stimuli
First of all, QE has been very beneficial for this sector. Because ultimately you cannot forget that the interest rates on public debts have fallen steadily and continuously. But of course this scenario will not last forever and this financial aid or stimulus may cease this year. In theory, this scenario should hurt European equities, and among them to the Spanish one. But no less true is what I have done that this movement may already be discounted by a large part of the financial agents and very specifically by investors.
Even from such an innovative point of view it can represent an impetus for the stock market to develop another new leg up. Because it would be indicating that the economy in this geographical area is doing very well. And this at the end of the day is always very well received by the financial markets. A bullish stock market is in line with a sustainable economy, but above all healthy. In this sense, this factor can be one of the positive surprises for you if you are going to invest your money in the stock market during the next twelve months.
Staying liquid as the key
If you have to be cautious from now on, nothing better than being proactive about what may happen in the financial markets from now on. In this sense, liquidity in your checking account it will be a more than important factor. Among other reasons because it can be used to find the best business opportunities that may arise. There will undoubtedly be more than one and you have to be prepared for this important moment. For this reason it is very convenient that you are not always in a position of buying positions.
If not, on the contrary, you should put a series of values on the radar in which a very significant revaluation potential is generated. Being selective in this regard will help you meet your goals more effectively than before. You will only have to remember the occasions that you have lost due to not having enough liquidity in your checking account. Try not to let this scenario happen to you during the next few months. It is something that will not cost you much effort and will also allow you to rest from so many operations that you have been carrying out in the financial markets.
Financial sector, why not?
When considering the sector to which you have to direct your savings, you should not forget about the financial one at any time. A conclusion in recent months is based on the fact that the financial sector has done its homework and therefore represents an opportunity to boost your movements in this period. In addition, you have a very extensive offer as to meet your demand with sufficient sharpness. On the other hand, a large part of these credit institutions distribute a hefty dividend among their shareholders. To the point that you can make operations profitable every year with an interest rate of around 5%.
The risk is lower than that of other leading sectors, but with a profitability ahead that can be very interesting for your interests during this year that you have just started. It may be an operation that is worth doing. It's special if the overall equity scenario is bullish. Not surprisingly, you will have much more to gain than lose. Take this advice into account to face your next investments. It will be a great help to face this new year. Being, on the other hand, one of the most relevant sectors of equities.
Short-term bonds
Nor do you need to limit yourself to the stock market to make your money profitable for any period of permanence. You also have fixed income and within it the bonds. It is a financial product that can make a lot of sense in the short-term portfolios. And especially if you hire it through financial assets based on this very special investment model. It is a more conservative option than the previous ones, but with a more than interesting profitability in a somewhat complicated year.
Corporate bonds, on the other hand, generate a profitability around 5% And although the return is not guaranteed, if it can beat the margins of the usual banking products (term deposits, high-income accounts or guaranteed savings plans9. Where it is rarely possible to exceed margins above the one indicated above. that can come from different companies and business niches Not surprisingly, one of their main common denominators is their diversification.
Possible international conflicts
Nor can we forget the role that the eruption of war conflicts in any part of the planet can play. They could have a depressing effect on evolution of equity markets. Even generating serious losses in some of the sectors most closely linked to these events. As for example, the tourist, transport and financial groups. It is an unpredictable phenomenon that can appear at any time. So your self-defense mechanisms will be significantly less.
However, this unpleasant variable has much more limited effects than others. It may be that shortly after these events occur, the price of shares will drop rapidly. But after a few days it will tend to stabilize. This is a lesson that these movements bring us in recent years. With examples throughout the history of the great conflicts of humanity. In theory they should not worry you excessively, but they should be very attentive to their development. Because it can also cause great business opportunities to appear, as you can see in recent years.
Economic growth data
In no case should this variable be lacking to form a stable investment portfolio for the next twelve months. Where the greater the business activity, the higher the profits of listed companies. It will be a very objective signal about what the course of equities this year that we just started. Both with regard to the national stock market and that coming from outside our borders. Serving as an analysis tool to determine your preferences. Even to leave the positions if this was the best of the scenarios in 2018.
In any case, these are just some of the variables that may emerge during the development of this year. Although it is very good that you keep them in mind before their possible appearance. So that in this way, you have a powerful investment strategy in place to improve your profitability from now on. Whether one or the other is the scenario that accompanies international equities during this year.
So that you are more protected in all the movements that you are going to perform from now on. Not in vain, another of the keys to success is not improvising in the launch of your operations on the stock market. It is a suggestion that you will have no choice but to assimilate during these days. So that you can have a deserved reward for the efforts made from any kind of approach in management.