If the trend in the growth of the Spanish economy is confirmed, there would be a series of securities listed in equities that would be more likely to develop an upward escalation in the coming years. For this to happen, the recovery must be maintained at current rates. In this sense, the Gross Domestic Product (GDP) of Spain is located slightly above 3%. You will need to confirm it during the following quarters of next year.
If this expected scenario is fulfilled, the outlook for national equities is more positive than in other geographical areas. As noted by leading financial market analysts. But of course not all values would behave similarly. Not surprisingly, there would be some who would have a greater potential for revaluation. Assuming a clear business opportunity for small and medium investors.
For this situation to occur, the only requirement that will be demanded is that the economic recovery be fully effective and no produce relapses in business activity from now on. So that you can take advantage of this scenario, we are going to show you which are the values of the Spanish stock market that are more likely to rise in the coming days, as well as the sectors most sensitive to the recovery.
Recovery: where to position yourself?
With economic growth above 2,5%, it would be in a position to enter the financial markets. But through some very well identified companies. It will be the best opportunity for you to make the savings profitable in the best possible way. With a higher return than other financial assets. And of course that of derivatives of fixed income. Where its main products (bank notes, time deposits or bonds) rarely grant an interest rate above the 1% barrier.
All the recommendations of financial analysts go the same way. In the sense that only equities can generate minimally acceptable returns. Although in exchange for assuming a higher level of risks. It is something you will have to live with from now on. It will take a greater effort to get profitability above 5% every year. For any firm, the results of the preceding exercises will be more difficult to achieve.
One of the keys to achieving your goals will be to be in the right place at the right time. To do this, you have to recovery confirmed of the Spanish economy. But once assumed, you will have no choice but to develop an investment portfolio with the best proposals in the financial market. So that finally the performance is broader than that of the Spanish stock market.
Mostly cyclical stocks
The first choice of your decision should be made up of those stocks that perform better in expansionary periods of the economy. They are the so-called cyclical values of the stock market. You have a few proposals to satisfy this demand in investment. Its performance will undoubtedly be more expansive. To the point that you can obtain important returns on your savings. Do you want to know what these values are we are referring to?
Well, they are represented mainly by companies that benefit from expansionary periods in the economy. Especially those coming from the industrial sectors and linked to certain raw materials. Among them, the steel companies due to their intimate connection with these economic processes. They stand out above all options, Arcelor and Acerinox that will have a very strong revaluation potential.
Other of the chosen companies are those linked to the automobile sector. Although with the serious drawback that there are not many companies of these characteristics in the stock market. You would have no other solution than to go to the European equities. Or even to the United States, where you have a very complete and diversified offer so that you can open positions in some of its main securities.
Banks in the spotlight
Another of the stock market sectors most benefited from this expansive scenario is the one represented by banks and financial groups. They have lost a lot of money on their quotes over the past few years. And for this very reason, they are the ones who can lead the rises in the equity markets. Not surprisingly, you have with them more to pay than lose. But being very prudent to make purchases. In any case, they must be very selective. And they are not exempt from high volatility in much of the listing process.
They also have an added incentive in their proposals. It is none other than the dividend distributed among its shareholders. With an annual and fixed yield that approaches levels close to 5%. In any case, it is currently a very confusing sector that creates many doubts among small investors. In part, derived from problems in the development of the European Union (EU), as a consequence of the serious reluctance of some partners.
But if the recovery in Spain is very strong, with all certainty that banks will go up. Furthermore, there is a compelling reason to underpin this approach. It is none other than the high dependence of this sector on the part of the banks. Something that does not happen in other exchanges of the old continent. It is something you can take advantage of to improve your checking account balance. You have many options to choose from. From large financial groups to small and medium banks. With an absorption process that can incentivize your attractions from the month of January.
The luxury sector, among the favorites
When preparing your investment portfolio, you cannot forget these values. Also its revaluation potential could be very powerful, above other sectors of the stock market. However, the problem is that very few companies of these characteristics are listed on the national stock market indices. It is in the French stock market where you have the greatest alternatives for this investment. As values like Hermes or Bulgari which can meet your demand.
This sector performs better in expansionary periods. While in recessions their positions weaken to very important levels. The real problem is to identify a proposal with which you agree to open positions in equities. They are very volatile, which can sometimes drive you away from their positions. With some differences in the price that can make you want to buy their shares at a good price in the markets where they are listed.
More recommendations: technological
Another of the most sensitive sectors to experience strong increases if there is an effective recovery in the Spanish economy is that which has to do with new technologies. Precisely in expansive periods is where their behavior is much more conducive. With rises in the financial markets higher than normal, and their revaluation percentages approach 6%. Something that does not happen with other more conventional values.
As well the risk is higher. You must take this into account if you are thinking of opening positions in any of their companies. But despite everything, it can compensate you in your investment expectations. Although low monetary contributions not as high as in the previous examples. Not surprisingly, if things don't go as you expect, you can drop a lot of euros along the way. You will have to analyze if you are really willing to assume these losses and under what conditions.
Within the national stock market, you have excessive proposals to invest your money. Indra, Abengoa and little else. You will have to resort to the companies that make up the Alternative Stock Market. But with greater risks, since they have a low cap. With business lines not sufficiently established in the Spanish scene. But if the economic recovery is a reality, their shares will undoubtedly rise. And a lot.
Keys to improving positions
If you want to use any of these strategies, you will have to be very attentive to the data of the Spanish economy. It will be the definitive clue to enter the financial markets. Any breach may ruin the illusions placed on these values on the Spanish stock market. For this, it will be necessary that you comply with some of the following observations.
- These investment strategies will generate a higher return than through behavioral guidelines more conventional. Although the risk will also be significantly higher.
- There are not so many values that meet these characteristics. Therefore, you will have no choice but analyze the offer that provides you with variable income.
- These movements must not go aimed at very long terms, but in relation to the expansive period of the Spanish economy. Around one or two years may be more than enough for the application of these very special operations.
- To make this strategy effective, you have different values. From the more aggressive alternatives to another more defensive. They will have to be directed according to the investor profile that you present.
- Remember, that although they are very favorable movements for your interests, you will not obtain the revaluation percentages of previous years. They will rarely come close to them in the current situation of the international stock markets.
- You can shore these selective purchases Through dividend payments distributed by some companies. As an action to protect your savings more effectively.
- Another element that you should assess to start your operations in the financial markets is the technical aspect experienced by the selected values. It will be a very important part of your strategy. Until further enhancing profits.