The pending bags of the elections in Germany

General elections will be held in Germany next September. Of which all equity markets around the world and especially those of the old continent will be pending. Because based on your results they can take the stock market one or another trend. To facilitate the decision you must make to protect your savings more safely and effectively. There are a few months until the elections take place, but without a doubt that the financial markets will notice some nervousness about what may happen to the locomotive of the European continent.

As a consequence of this important political event, it will not be surprising that the European stock markets evolve with great caution. Without excessive ups and downs in the price quotation of the main securities of this variable income. From this scenario it would not be a bad idea to wait a few more months until you can configure one investment strategy much more suitable so that you can make the savings profitable during the last months of the year and for the next few years.

In any case, it may be that if there are no surprises in the composition of the new German parliament, everything will continue as before. Or even that a new uptrend May it serve to celebrate that there will be no changes in economic policy in this important country. But in the meantime, volatility may set in in a timely manner in financial markets. Until the uncertainties generated are definitively cleared. Not surprisingly, there is a lot at stake in Germany, but much more in the euro zone.

Germany: Merkel's continuity

Of course, the best news for the stock markets of the old continent would be the continuity in power of the Teutonic Chancellor. It would be a boost to the fact that they could develop new increases as a result of their economic policies. A good starting point so that you can open positions in equities with guarantees of success. In particular, the chances that you will lose money on the investment will decrease significantly. Therefore, you will have a greater margin to carry out operations in this period.

Also coinciding with one of the best times to invest money in the stock market. As is the corresponding to the last quarter of the year. Not only in European financial assets, but also in Spanish. Where the business opportunities. Of course much more than until now. However, you will have to wait until you return from vacation to impose your decisions on your relationships with the world of money.

What if he finally loses the election?

But if, on the contrary, there is a surprise in the German elections and President Angela Merkel loses this electoral event, a period of great uncertainties would open up for all stock markets. Because indeed, doubts about the European Union project could go down soon. Or at least generate a series of doubts that impact on the decision of small and medium investors. With a foreseeable sales tax on purchases. With important cuts in the price of listed companies.

However, another scenario may occur in these very important elections for the European continent. It is none other than a coalition government of the two main political formations. In this case, it would be a solution that would be very well received by the financial markets. Where the rises in the all stock indices could emerge with great force. To the delight of savers who by this time have their positions open in the equity markets.

In any case, everything that does not go through these alternatives to form part of the government in this important Central European country will be a clear guarantee to develop a continued downward trend. Where you could drop a lot of euros along the way. More than you can imagine from the beginning. It is for this reason that you should be very attentive to the development of these elections. Not in vain, the future of your savings will depend on them. Especially in the operations generated in the short term. Where the volatility will be installed in case all the values ​​of the European stock exchanges.

What are the strategies to use?

However, you can take advantage of this political movement to prop up your investments. Or on the contrary, to protect them more effectively and to defend your interests as a retail investor. It is certainly convenient that you apply them quickly so that you can optimize all the operations that you are going to carry out from now on. Basically these will be some of the most relevant.

• It is desirable that you are in complete liquidity before these legislative elections are held. To protect you from the volatility of the equity markets during these months. Among other objectives to take advantage of the business opportunities that arise in the coming weeks.
• If you are thinking about going into the stock market right now, you'd better wait a few months to make this important decision. It will not involve a great effort and instead the reward that you can obtain from these operations will be more relevant. Not in vain, it will be a very useful movement to protect your personal interests.
• You accomplish one-off purchases to anticipate the most favorable scenarios for equities. So that in this way you are in the best possible conditions to optimize the movements that you open during these days. Even at the cost of taking more risks than necessary in these circumstances.
• Not only can you bet on rising stocks, but in the opposite direction, that is, for cuts in financial markets. One of the models that best reflects this trend are the investment investment funds. There is much you can gain, but also to lose.
• If you anticipate this scenario of a political nature, the returns you can obtain from now on are broader. This is an operation that can be used by more aggressive investor profiles. Or for operations with a clear speculative trend to take advantage of the specific price quotes of the listed securities.
• Another alternative is available through an investment portfolio based on the refuge values. Not surprisingly, it will help you protect yourself from the most unfavorable scenarios that may arise after the general elections in September. It will be another additional way to protect your positions from a much more defensive or conservative approach.

Other investment options

You don't just have to focus on the stock market to make your money profitable in this political context. You have other financial products that can be equally profitable for these very special situations. So that you can improve your profit margins, it is very convenient that you take into account some of the proposals that we expose you. You will be able to choose it depending on the profile you present as a small and medium investor: aggressive, moderate or intermediate.

The Investment funds It is the simplest savings model to accept these approaches. Because in effect, they can combine financial assets from equities with fixed income. Without leaving the same product and even combining it with other clearly alternative financial assets. They can be adapted to both favorable and unfavorable scenarios for equities. And that can be adapted to what happens in the German elections. It is one of the advantages that it can bring you to increase your income statement.

If in any way, you are afraid of opening positions in the stock market, you always have term deposits at your disposal. Without assuming any kind of risk and obtaining a fixed and guaranteed interest rate every year. Although under very unattractive margins for your personal interests. One proposal for this scenario is to subscribe a short-term deposit, between three and six months. Where you can make the most of this complicated period to make a correct decision.

Aggressive products to risk

If yours is a taste for risk, nothing better than aggressive financial products is the most correct proposal. One of them is credit sales if you think that the fall in equity markets is the most likely scenario. In particular, for the days prices to the elections due to the increase in volatility in the European stock markets. In any case, the risks will be infinitely higher than other more conventional products. Although under more modest financial contributions.

Nor can you forget about warrants for raise the return on your savings. But in this case you will need more knowledge to operate with them. It is not a product that is adapted for all kinds of investors. Because you risk that you can leave a lot of euros in the operations that you have open at that time. Although if you are a bit lucky, you can even double the profits of the stock market.

Finally, the listed funds, better known as ETF, s, which is a mix between mutual funds and the purchase and sale of shares on the stock market. But with greater protection over their positions. This is because they do not focus on a single investment proposal. But on the contrary, on a basket of financial assets, as on the other hand occurs in investment funds. Either way, the German elections will force you to make a decision to make your capital profitable.