Equities in the United States are performing the best this year, which is about to end. But what is more interesting is that this downtrend has been low for almost ten years. Exercise after exercise is churning new historical levels and that they are surprising small and medium investors. Where they have been able to make profitable savings as they have never done since forever.
An investor who has invested a total of 10.000 euros years ago will have seen how he has doubled or even tripled your investment. Something unimaginable in the equity markets in recent years. To the point that it is logical to think from now on and at any time the trend of the markets can change in the short, medium and long term. The question is whether this scenario will develop from next year.
Although one of the aspects that must be taken into account from now on is that the economic policy of the President Trump will not allow it. And we already know that one of the main objectives of the American president is to push the equity markets above other series of considerations. Not surprisingly, during his presidency the stock market has had its best performance in almost all of its history. And of course you do not want to be tarnished by getting a second term to be in the White House for another four years.
United States: Stock Market with Strength
If US equities have distinguished themselves for something in these three years, it is because of their great strength. Much more than in the case of the equity markets of the old continent. With an annual divergence in favor of the first of the financial markets of 6%, which is a percentage that represents many thousands of euros in stock market operations. With sectors that have even appreciated every year above 50%. This is something that of course has not happened in European equities,
While on the other hand, we must also emphasize that the corrections that the stock market has had in the US have been very insignificant and above all specific. To then resume the uptrend again and reach new all-time highs. With strong buying pressure against the seller and with a very high recruitment volume as a sign of interest on the part of all investor profiles. Being one of the common denominators of one of the most powerful markets in the world.
50% annual appreciations
The upward trend in American equities has maintained benefits that have not been achieved in other major international markets. In this sense, it has shown a much more regular trend and that has been on the rise year after year to reach these positions this year. In addition, the forecasts point to what it can do for the European indices in 2020. For which it cannot be ruled out that it will once again achieve historical highs. In all an upward escalation that has developed in the last decade.
While on the other hand, the US Dow Jones it has not shown many signs of weakness in the corrections that have been generated in recent months. As an excellent sign that the upside scenario in this equity market cannot be exhausted and the undoubted interest among small and medium investors may return. To exhaust in this way the profits that have been accumulating year after year. Almost double the initial investment that was started several years ago.
Predictable fixes
Either way, there will be no choice but to have many precautions in operations because the corrections can be very strong from now on. Where more than one investor can get hooked on their positions and therefore leave many euros for the change as a result of these doubts that are aroused in American equities. And that it can limit the contributions of small and medium investors in their respective positions. With a potential in its revaluation lower than in other years.
On the other hand, it should also be noted that US equities have reached their targets and everything that comes from now on can be considered as an additional reward. As it is completely normal that next year will not be so favorable for the Dow Jones and other indices of special relevance in the United States. If not, on the contrary, you can already give the first notices about a Change of trend, at least predictably. So that in this way, we are prepared to develop some other investment strategy that is more successful to make savings profitable.
Change investment portfolio
In any case, it is convenient to reduce positions little by little to avoid problems with this equity market. In order to target European or emerging markets that it has a good technical aspect at the moment and that allows opening positions with greater guarantees of success. In any case, it will be the perfect excuse to vary our portfolio for the next few years. Through prevention on what may happen from now on.
With the hope that, if necessary, the results in our savings account would be improved, which is, after all, what is involved in this kind of operations. But considering that equities have already risen a lot in recent years and it is not foreseeable that it will continue like this for many more years. Because do not forget that nothing goes up forever, much less in the always complicated world of the stock market. Despite the fact that the Dow Jones is very close to its all-time highs, with all that this means for investors' interests.