The party seems to be still installed in the equity markets, and especially in the United States depending on the start of the new year. To the extent that a general opinion among independent financial analysts is that "they are as they have not been for a long time." But what must be verified at this time is how far their levels can go and on the term of permanence where to direct the operations in the stock market: short, medium or long. Because it will be one of the most important keys to highlight the success or not of the investments looking forward to the next few months.
Within this general context, it will be vitally important to define the terms of the investment since it may be the factor that differentiates a good investment from one that is not. In this way, it is completely necessary to carry out a correct strategy In the investment that in the end the stock market user himself must take into account the term to which his investment will be directed. Since the strategy to be used will depend on it so that the profitability is the most optimal possible, since it is not the same to operate in the short term than in the long term. With important differences in the final result of operations.
It cannot be forgotten that this year again, the cheaper price of money, as a consequence of the decision of the European Central Bank (ECB), will cause a good part of the capital of small and medium investors to go to the income markets variable. Because it is the best of all to make the savings profitable, although with the obvious risk that all its operations entail. Because it is true that you can earn a lot of money, but it is also more receptive to leave many euros on the way. A scenario that we must avoid at all costs to preserve the capital destined for this kind of investment has been common among stock market users.
Term of stay: short
This is a year, due to its special characteristics, very conducive to directing stock market operations in the shortest term. To do this, we must focus on highly liquid securities that allow us to enter and exit these financial markets with some ease. And what is more important: that in the end we do not get hooked on the selected stocks, as has happened to us in previous years. In this sense, the best solution must be to opt for the securities with the highest capitalization and the best way to look at the securities that make up the selective index of national equities, the Ibex 35. These are the safest listed companies that we can find. right now.
While on the other hand, the choice of this investment strategy will allow us to make operations much faster and we can enjoy the possible benefits that will bring us these operations in the stock market. Without having to wait for long periods of time that can change the trend of the equity markets at any given moment. To do this, it is very convenient to opt for stock values that provide a well-defined upward trend and if possible with an increase in the volume of trading, well, better than better. It will be the best guarantee for us to successfully complete the opening of positions in the equity markets.
Medium-term operations
Operations in the intermediate-term equity markets is another option that small and medium-sized investors have in this year that has started. They carry a bit more risk in the face of the possible change in trend that may emerge in the coming months, but it is still a quite viable alternative for more conservative stock users. With a vocation of permanence Between 6 and 18 months approximately. Where there will be no choice but to go to a selection of stocks with solid evolution in the financial markets. If possible, the so-called piggy bank values with which to create a stable savings exchange for the time we have open positions in the exchange.
Medium-term operations, on the other hand, must be covered by stop-loss orders or stop loss before what may happen from now on. So that in this way, and faced with the worst-case scenario in the stock market, possible losses can be limited in a very efficient way for the interests of small and medium investors, which is, after all, what is involved in these cases. Precisely in a period in which the end of the uptrend in the equity markets may be very close. In particular, after the increases in recent years and that in the specific case of the Ibex 35 has led to levels very close to 9.700 euros per share. From where at least one correction of some consideration could be gestated.
Long terms with more risk
Finally, there are the longer periods of permanence in the positions on the stock market and that well in other periods it was considered as a strategy of defensive or conservative profile, now things have changed and it has become a bias with greater risk. Because in effect, this period, which starts at three years, can give more than one surprise to small and medium investors from now on. Due to the cycle in which the equity markets are at the moment. Where it is very likely to be produce important and significant corrections that can lower the valuation of our investment portfolio. Whatever the investment strategy that we are going to use from this moment on.
On the other hand, it must be emphasized that if we opt for this long-lived investment model, we will have no other solution than to resort to the most stable values in our country's equity markets. In particular, those that distribute dividends among their shareholders and that can report an annual and fixed interest rate that oscillates between 4% and 8%. In this sense, electricity companies can be the solution to our problems since they are not as volatile as the rest. With a stability in its prices that must be highlighted and that can help us to create a more stable investment portfolio than otherwise. Like the fact that these proposals constitute an option to make the savings profitable in these long periods of time.
With other financial assets
Another solution to our investment problems may be materialized by the inclusion of other financial assets outside the equity markets. One of these examples may be represented by the inflation-linked bonds that of course they can do it very well from now on due to their special characteristics. The best option to be positioned in this very special financial product is through the investment funds that are integrated with these bonds and that constitutes a very reasonable strategy to improve our savings account balance in the coming years.
Another resource at hand that we have is to open positions moderately in gold given the fact that it can continue with its upward trend in the coming years. Despite the fact that it has been one of the financial assets that has appreciated the most in the past year, with a profitability of around 50%. One of the highest that financial markets can offer us in this period. Although with the more than evident risk that these excesses can be corrected from now on and that therefore it can bring the odd scare to retailers at any time.
Choice depending on the term
Not all securities are indicated for the same terms, but there are some more likely to invest them at certain periods. As a consequence, those securities with a strong speculative component are destined for shorter terms (Ercros, Avanzit, Natra, etc.). Others, on the contrary, need an intermediate period so that they can reap the possible benefits that are pursued. In this case, they are values that can be collected by expectations benefits created (Rovi Logista or Atresmedia).
And finally, there are the values that need more time to achieve the objectives set. These are defensive cut values such as banks, electricity or highways. In any of the cases, these terms can be modified depending on the evolution in the price of the security in question, and as the investment term is shorter, the more it will need the attention of the small investor. For a more defensive investment strategy than in the other terms and that require a completely different way to operate and that not all small and medium investors can contribute from now on.