It is not news that instills much optimism in investors, but the reality driven by the opinion of some of the most famous analysts of the world's financial markets shows this. It is none other than the possibility that a more than important recession in the world's leading economy, that is, in the United States. With lethal repercussions not only on the equities of this important country, but of all the geographical areas of the planet.
Just thinking about this possibility puts small and medium investors around the world on edge. Not in vain, there is a lot of money that is at stake in these precious moments and it is not a question of losing it or being immersed in processes of a marked downward trend. Because in effect, it is about a new necessary to contemplate to take advantage of the opportunities that can be generated in the different financial markets. Both in reverse movements, as in what presents revaluations in its price.
All this comes into account in reference to the latest statements by one of the most important global investment gurus, such as Bill Gross. To the point that it has warned that a possible Fed rate hike could be the trigger for a major economic recession in the United States. Such has been its importance that it has reached a large part of the investors who move in the equity markets. Some are even pondering when will be the most opportune moment to undo their positions.
Signs of a new recession
In this sense, in a letter addressed to the most important investors in the markets, he warns that "he sees the American economy very leveraged" And he sees that the next increases in interest rates are a very clear and decisive signal about the recessive period that you can present to the international economy in the coming months. With a repercussion more than accused to the bags of the whole world. These are words that are beginning to print some fear among all savers. Regardless of the profile they assume from the beginning: conservative, aggressive or intermediate.
These disturbing words join others pointed out from other financial market analysts that are in the same line. In any case, something is brewing in the financial markets. You do not have to be very clever to realize this new and disturbing scenario that may appear from now on. It cannot be forgotten that there are already several voices that have been warning about the possibility of a new recession in the international economy. Even with the option of taking place already next year.
The guys in the eye of the hurricane
Of course, the interest rate situation is at the center of the discussion. As Bill Gross has recently commented in his articles and conference in half the world. A relaxation of the economy of the United States and the United States and a progressive increase in the price of money it would form this dangerous combination that could put the new world order in check again. Another very different thing is that this scenario occurs and is not due to strategies of this famous investor to obtain greater benefits from his already large personal accounts. It will be a matter of time to know which is one of the two scenarios that will be fulfilled from the next few months.
Beyond this approach, the possible debt bubble is also present. It is another of the reasons that other famous financial analysts explain to predict this recessive scenario in the United States economy and by extension all over the world, including of course the countries of the euro zone. In any case, it is something that small and medium investors will have to live with from now on. Above other strategies in investment and in its relationships with the always complicated world of money. To the point that voices are also rising about a housing bubble. And very specifically in Spain, after the increase in the price of housing.
Protection mechanisms in the bag
In any case, it cannot be forgotten that you will have to be especially cautious when investing in equities from now on. Even through much more defensive positions than before. Not all values will be valid to open positions since this summer. Where that which offers greater security will prevail over other technical considerations or simply imposed by the financial markets. Of course, they will help you achieve your desired goals and that they are none other than preserving your savings above all else.
Another of the measures that will be necessary to take are those that have to do with its technical condition. In this sense, the most advisable thing is that the values respect the supports in your quote. Any violation of them must be taken as the perfect excuse to abandon the financial equity markets. There will be no valid excuses for not applying this strategy because the losses that you can obtain in the stock market can be very strong and not only punctual corrections. From this perspective, the agility in the operations will be decisive to get out of these complicated scenarios that can develop from now on.
Also the weaknesses in the price quotation will be another of the signals to abandon the positions in a more radical way than on other occasions. As for example, when weekly closings are clearly descending. In addition, it is a very simple technique to carry out, even by investors with less experience in the financial markets. Because in effect, what it is about is to anticipate events. It is the main key to protect all your savings with greater guarantees of success.
Where to invest the money?
The question you should ask yourself from now on is to define what are the financial assets more likely to receive your financial contributions. Whenever this scenario occurs that we are talking about at the moment. Normally if it occurs, there is a financial asset that will rise with particular force during those months. It is nothing less than gold since its reaction to these scenarios is clearly bullish. To the point of becoming one of the safe haven values par excellence and where you can make profitable savings without excessive problems.
The only problem you will have at that precise moment is that you will not know with certainty in which products take positions on the yellow metal. Because indeed, if it is characterized by something, it is because it is very difficult to position oneself. In this sense, the simplest and most effective strategy is to subscribe an investment fund that is based on this important financial asset. Although in all probability combining it with other assets from both fixed and variable income. It will be a very useful way that you will have to protect your financial contributions from the beginning.
Reverse positions
The other great alternative to improve the balance of your checking account will necessarily be based on including the reverse positions in your equity movements. It is true that it is about a very risky option, but that at least it will help you to obtain benefits in the most unfavorable scenarios for the stock market. You can formalize it both in the purchase and sale of shares in the financial markets, as in investment funds. If you are going to choose the first of the alternatives, you will have no other solution than to formalize these movements through credit sales. A very fast way to generate great returns, but also to leave you a good part of the savings in the international markets.
Also the listed funds, popularly known as ETF, s, provide these very special characteristics, but through a much smaller offer compared to the other financial products previously indicated. However, they are more recommended to have them in periods of permanence in the medium and long term. Not only with the values of the stock market, but also with other financial assets of undoubted interest to generate a large return on the amounts invested. In any case, it is something you should always keep in mind is you do not want to be standing with your money in these scenarios that the guru of fixed income, Bill Gross, poses.
In any case, it will be a warning that will come in handy when you return from vacation. Where you will be looking at the way out that you are going to give your money from those moments. Without forgetting that business opportunities are present at any time and economic scenario. However negative these are. Not surprisingly, this is one of the advantages of investing, from all points of view. Now it is convenient for you to take advantage of these circumstances and of course have a little luck to meet the desired objectives from the beginning.