There is no doubt that the selective index of Spanish equities, the Ibex 35, is in a lateral trend from which it has been difficult to get out in recent months. It moves on very wide levels, between 8200 and 9200 points approximately. With rises and depreciations depending on the many variables by which the financial markets operate. This fact has the main effect that it is much more complex for you to carry out an investment strategy. Both to make purchases and sales, and with operations, which opens up the possibilities in your operations on the stock market.
This is a process that of course is tiring a good part of the small and medium investors who do not know what to do with their investments. And there are already many months that this scenario has lasted, without there being a break in one way or another. And what is much more important, with little travel in its upward potential, as has happened during this past month of January. Where the rises have stopped right at the levels of 9200 points.
On the other hand, we cannot forget about the importance of looking for a way out of this lateral process that equities are going through right now. Because until the moment one or the other trends are not defined, there are very few strategies that small and medium investors can use. Beyond very specific and low-value operations with respect to the economic contributions of the contracts made.
Ibex 35: with little room for maneuver
From this general scenario, it is normal that you are not comfortable to make your capital profitable in these special moments for the equity markets. Not in vain, possible benefits are very limited since movements have revaluation potentials shorter than ever. Because in fact, at the moment it is very difficult to get interests that they realize with the double digits. Beyond a series of opportune values within the national continuous market, and that can make you have large capital gains in the operations carried out in the financial markets.
On the other hand, and given the uncertainty of the equity markets, there are not a few investors who have directed their savings towards traditional banking products always. That is, to fixed-term deposits, high-income accounts and in some cases even corporate promissory notes. It is a sure way to keep your life savings and in this case it is accompanied by a minimum profitability that in any case has been improved in recent months. In any case, there is one thing very certain and that is that small and medium-sized companies have a very difficult time making their investments at the current juncture.
The Ibex 35 looks to the floor of 8.751
The most prominent note in recent dates is the fact that the Ibex 35 is already very close to the supports it has at 8.500 points after losing a large part of the gains produced during last January. In any case, always in line with the downward mood of the rest of the world markets. One of the catalysts of this new stock market decline being the cooling of the negotiating spirit between China and United States. Of course, there are very few reasons to invest money in the stock market at this precise moment, beyond very specific operations.
It is true that not all of them were going to be bad news and in this sense, it should be noted that the data from German export and import they have been more positive than expected. Although it is still a very little relevant factor so that the bags can continue to rise from now on. Beyond the logical rebounds that occur in scenarios like the current one. Where, in the debt market, the Spanish risk premium rises to around 115,90 basis points. A rebound that does not fill small and medium investors with confidence. If not, on the contrary, it sows doubts in them.
What to do with laterality?
In this special trend in the stock markets around the world, the truth is that there is little investors can do. Have very few strategies to carry out your main investment strategies. One of the most relevant is based on taking advantage of the stock market heats of some of the Spanish equities. Because in this sense, you cannot forget that financial markets always generate real business opportunities. And right now there is no reason to stop being it. Certainly as it has happened in very complex years for the stock market.
In another vein, you cannot forget that to take positions in the stock market with some guarantees of success in operations, you will have no choice but to open positions in the lower part of the lateral channel in which we are immersed. Namely, around 8200 points, although we run the serious risk that this important support may be compromised. And in which case, the effects will be very negative for open positions since you can generate large losses in your investment portfolio. Even at the serious risk of being hooked on the value for years and years.
Very violent reaction at the start
Of course, there is one thing that is very certain, and that is the reaction to this side scenario will be very violent. In one sense or another, with a high intensity bullish or bearish escape that in that case will allow operations to be carried out with a greater margin of action. Also from bearish positions since you will be able to contract financial products in which declines in the equity markets prevail. For example, investment investment funds, warrants or credit sales. With a very interesting profitability if these circumstances occur in the end. Beyond other technical considerations and maybe also from the point of view of its fundamentals.
On the other hand, it is worth highlighting at the present time, which will be very important. wait for a certain time until the outlook in equity markets clears. Of course, this strategy will be worth it to protect and preserve your savings above other considerations of any kind and condition. You may have to be in this situation throughout this year or even longer. In any case, this is a very special scenario that we have not experienced for a long time and that is characterized by the fact that it is very difficult to operate in such adverse conditions for small and medium investors.
In this sense, one of the alternatives may be represented by the fixed income markets. Not surprisingly, in fixed income, the volume traded last year was 200.757 million euros, which represents 45,1% more than in the previous year. On the other hand, contracting in December increased 38,4% compared to the same period of the previous year due to the contracting of national and international public debt assets. In a strategy that is aimed at investors who have a more defensive or conservative profile. Where the security of the invested capital prevails over other more ambitious considerations. This is the purpose in this class of options to investment in the stock market.
Business on the stock market during 2108
The Spanish Stock Exchange traded in variable income 587.479 million euros in 2018 after registering 38.768 million euros in December, which in practice is 5,4% less than in November and 18,7% less than the same month of the previous year. The number of negotiations for the month was 3,1 million, 15,8% less than the previous month and 5,7% less than in December 2017. In other words, a decrease in the number of operations by investors facing one of the most complex years for equity markets. With a volatility that stood out especially after spending many years more unnoticed.
However, on the other hand, the good behavior that MARF has had in this exercise draws attention. Because in effect, the amount of the new issues included for trading in the MARF in December reached 671 million euros, which represents an increase of 226% compared to the same period in 2017. The accumulated volume At the end of 2018 it was 6.357 million euros, after growing by 60,1% in the year.
The outstanding volume in circulation in this market reached 3.320 million euros, which represents an annual growth of 46,9%. In what is constituted, on the other hand, as one of the best data within what is the investment sector within our country. As a counterpoint to the weakness observed in the selective index of national equities. With a volatility that stood out especially after spending many years more unnoticed by financial agents.