Of course, this year is not being very positive for the stock markets, much less this week that is about to end. The declines in financial markets have been installed with unusual force due to the fact that the selling pressure it is imposing itself too clearly on purchases. All international stock indices are negative and very few stocks are resisting the abandonment of investors from the financial markets. In short, a desolate market for users who want to make their savings profitable through this instrument to invest money.
The selective index of the Spanish stock market, the Ibex 35So far this year, a little over 10% has been left, while the Eurostoxx 50 is approaching a 9% depreciation. With similar margins are the remaining squares of the old continent that have seen a very important part of their share price in a very few days. Although the most worrying thing for a good part of the small and medium investors resides in the fact that the financial markets have been in a downward trend, at least in the short term.
In any case, all is not lost for investors and if they wish to obtain a return on their savings, they currently have other investment alternatives that can be very effective in achieving their most immediate wishes. Depending on the profile they now present as investors: aggressive, conservative or in an intermediate position. Because what it is about at the moment is to stop the losses in our portfolio of securities. For which we are going to follow a series of strategies to survive in this bearish state of the equity markets.
Stock market declines: liquidity
The most basic and at the same time simple position is to be out of the markets at this precise moment. Not only will it help to protect the capital destined for investment, but on the contrary it will become a powerful tool to take advantage of the business opportunities that without a doubt will appear anytime. Although the declines in the stock markets are a current dynamic, there is no doubt that there will always be some other stock market proposal that is receptive to purchases. In this sense, the stock market always gives you an opportunity to make successful savings profitable.
If you want to achieve these goals, nothing better than being out of the equity markets right now. Because there is one very sure thing that you will get more advanced and that is to buy shares at a more competitive price than the one now offered by listed companies. In this sense, it is absurd that you carry out operations on the stock market at this time when you know that in a few months you will have them much cheaper. Despite the fact that in the coming days the expected christmas party rally.
Go to fixed income
Another option provided by the financial markets is to change the investment chip. This in practice means nothing less than exchanging equities for fixed income. Although its mechanics are substantially different since it is governed by other models in investment. But at least you won't lose money and you will get a fixed profitability and guaranteed every year, although it will rarely exceed 1%. On the other hand, it can serve as a bridge investment until equity markets clear up. With the advantage that you will not have an economic cost for its contracting, such as the example of fixed-term bank deposits.
Another benefit of this choice is that without a doubt you will avoid problems and you will not have to worry these days about the evolution of the financial markets. It allows you a certain relaxation in days of high tension such as those that stock markets are experiencing all over the world. Beyond other technical considerations, we will leave your explanation for another more timely occasion. On the other hand, you cannot forget that this class of financial products will improve their profitability in the coming weeks as a result of the rate hike in the euro zone. In other words, it will become more attractive to small and medium investors.
Take advantage of reverse products
A much more aggressive strategy these days is the contracting of so-called reverse products. That is, those that generate profitability if the stock markets go down, as is what is happening at the moment. In addition, there is not only one investment model that applies this special characteristic, but on the contrary there are many and of diverse nature, as you will see below. However, they are more complex since they require a deep knowledge of the markets and their own investment mechanics.
The simplest of all is the reverse investment fund whose strategy is based on the fact that you will earn more money as the falls in the financial markets are deeper. It is that simple and can make you earn more money than you imagine from the beginning. Although for the same reasons there is a lot of money that you can leave on the way. For this reason it is intended for a very specific investor profile, in which aggressiveness prevails over other considerations.
Other products to trade down
These mutual funds are not the only excuse for you to be able to operate with the stock market going down. You also have the credit sale but as long as you keep in mind that it is a financial product with leverage. And this means that there are many risks that you are going to take with this innovative and special stock market proposal. But above all, be sure that a share on the stock market is going to develop a very well-defined downtrend. Because if not, the effects can be counterproductive to your personal interests.
Other products that include this characteristic in the bags are: derivatives, but in this particular case with greater aggressiveness if possible. This system is only reserved for investors who provide more experience in this class of very particular operations and who can lose a lot of money if expectations are not met in the end. Something that can undoubtedly happen, although the trend of the stock market is clearly bearish at the moment. In any case, it is another of the alternatives offered by the financial markets to operate with the stock market going down.
From real estate platforms
As a last resort, you always have to try the so-called real estate platforms that allow you to invest money in any of their projects. It is one of the investment models that are on the rise at the moment due to its peculiar characteristics. Through this kind of investment you can get a return on your savings of between 6% and 10%. Although you must comply with a period of stay that can be extended up to 15 months when the operation ends. On the other hand, it has the great advantage that you will not have to face any kind of commissions or other expenses in its management.
In any case, you can choose between several real estate projects, which may be located not only in the national geography, but in other neighboring countries. Of all, to fulfill this desire in investment you will have no choice but to select a real estate platform with full guarantees and that it is registered correctly. Not surprisingly, intrusion is one of the biggest enemies of this sector that has begun to develop in Spain. Although at the moment the investment proposals are rather specific and very minority.
Contributions from 1.000 euros
In any case, you can avoid the low profitability that banking products offer you at the moment. And without assuming, on the other hand, the risks derived from products from equities. Although for this you have to park your money for several months. Through this investment format you can make savings contributions very affordable for all pockets. From 1.000 euros you will be able to enter these platforms and for a maximum that will vary depending on the characteristics of these new companies.
It is another way of understanding investments and in this case it is not without risk either. Among others, that the returns of the operation at the end are not those previously established and may fall by a few percentage points with respect to the initial proposal. Not to mention that it is a product that will not allow you to make redemptions, neither partial nor total, but on the contrary, you must keep the investment until its maturity. That is, until the end of the operation that the real estate project will last. These are basically your conditions to contract these investment formats.
I have money invested in the stock market and I have already lost a large amount. What I do? I sell? or is there an option to lose less?