Despite everything, investing in the stock market is the best option to make savings profitable, especially if it is aimed at the medium and especially long term. Because the risk in bonds it is even greater since in the end it can affect the balance of central banks without benefiting from their high profitability. Therefore, small and medium investors will have no other solution than to take their capital to the stock market if they want to obtain profitability. Where, alternative management and liquidity are the other option to reduce the total risk of the portfolio. Through a series of tactical adjustments that will have to be carried out with some regularity to form a balanced investment portfolio for the coming years.
It cannot be forgotten that the asset purchase programs implemented by the Central Banks They have favored a strong rebound in equity markets around the world. And that has led the international stock markets to rebound around 20% from their lows in mid-March. With high capital gains for investors who decided to open positions on those dates when financial markets were plummeting due to the fear of all agents in the markets. But that in the end they have brought a reward to stock users who decided to risk their decisions in the face of what was happening due to the expansion of the coronavirus.
On the other hand, the fact that it seems that in the end there has been a some stabilization of the quotation of the stock indices in the world. Where it is one of the questions to ask is whether this trend is temporary or if on the contrary it has come to stay permanently. From where there are defenders and detractors between one or another trend in the equity markets. And that will be crucial to shape our movements in the stock market from now on, whether it is an opportunity to buy shares or on the contrary, it is still better to wait for what may happen in the coming weeks or months. One of the most difficult decisions that small and medium investors have made in recent years.
Alternative for investment
It is the technological values that are coming out the best for me from this serious health crisis since it cannot be forgotten that the Nasdaq at the moment it has a slight revaluation since the beginning of the year. It is all a symptom of where the real business opportunities can come from now in the equity markets. From this point of view, there is no doubt that it is the best option currently available to small and medium investors to materialize their investment proposals. Despite the general belief that the risk of these financial assets is higher than that of the rest.
The changes in user habits has led to an unthinkable scenario just a few years ago. And that is that the values of the technology sector are now framed by the refuge denominator. That is, those are attracting a good part of the monetary flows in recessive periods of the international economy, as is happening in a few days. Above even the power companies and the food sector. A contrast that may surprise some small and medium investors, especially the more defensive or conservative.
Greater recovery than other sectors
Of course, and everything seems to indicate it, that the sector of the new technologies will be the one that best recovers, and most importantly, it will be sooner than the other business segments. This is what the evolution of the equity markets in general is indicating these days, with some very interesting divergences that must be taken into account in the technical analysis. By showing that technological indices they have a higher profitability. But they go even further by showing a difference in the price that is close to half or percentage point with respect to the rest that make up the financial markets. Something that a good part of the analysts in these positions of hiring of the titles are warning.
While on the other hand, it cannot be forgotten that technological values are part of the solution to the problems that derive from the current economic crisis caused by the expansion of the pandemic of this virus. Where they are, a higher revaluation potential can develop these days, with revaluations in some cases that may even exceed 50% levels. Something that is more difficult in the more conventional or traditional values that are subject to other parameters in their price. Because it is also necessary to emphasize that this sector is no longer the one of the future, but on the contrary, it is the present in investments for individuals.
Sectors linked to the health crisis
On the other hand, we cannot forget that technological technologies have been reinforced these days by the demand of a large part of consumers around the world. One of these cases is represented by the segment of the biochemical and pharmaceutical that have not stopped appreciating from the first weeks of March. To the point that they have grown in the equity markets by just over 40% in a very short space of time and above other competitors on the stock market. Being the object of purchases by a good part of the small and medium investors.
While on the other hand, we must also highlight the strength of online platforms that offer their leisure and entertainment content to the many people who are confined to their homes for so many days. The time has come to think that these may be the best investment options and with a more than estimable growth potential from now on. As for example, in the specific case of Netflix that has emerged as one of the most bullish values in all the international equity markets. Like other digital platforms with similar characteristics that are being highly demanded by the purchases of stock market users in any kind of investment strategy.
Another segment that can be valued more from these weeks in trading is the one that has to do with the application of programs for the different technological devices and that can see how they increase in their valuations on the stock market. Up to levels that can surprise a good part of small and medium investors. At least so that they include them in their next investment portfolios in order to improve their results at the end of each year and that is, after all, what is involved in these cases. Because it is also necessary to emphasize that this sector is no longer the one of the future, but on the contrary it is the present in investments for individuals and that it can be used to increase capital.
The stock market traded 46% more
The Spanish stock market traded in equities a total of 55.468 million euros in March, 59,9% more than the same month of the previous year and 46,4% more than in February. The number of negotiations in March was 7,61 million, 142,3% more than in March 2019 and 82,9% more than the previous month. In March, BME reached a market share in the trading of Spanish securities of 72,39%. The average range in March was 14,96 basis points at the first price level (16% better than the next trading venue) and 21,43 basis points at 25.000 euros.
Regarding the total volume contracted in fixed income in this period, it was 31.313 million euros in March, which represents a growth of 26,1% compared to February. Admissions to trading, including issues of public debt and private fixed income, amounted to 42.626 million euros, with a growth of 19,5% compared to the same month of 2019 and 83,7% compared to February of this year. The outstanding balance stood at 1,59 trillion euros, which implies an increase of 0,9% compared to March 2019 and 2% in the accumulated of the year.
On the other hand, it should be noted that during the month of March trading in the financial derivatives market continued to grow. Especially in index futures, in a month marked by increased volatility. On March 12, 77.763 Ibex 35 Plus futures contracts were traded, a daily historical record, excluding expiration weeks. The volume of Futures on Ibex 35 increased by 74,6% and in Mini Ibex Futures by 200,8% compared to the month of March of the previous year. In stock options, March was the third consecutive month of growth compared to the same period in 2019, with an increase of 60,4%.