This holiday period that occurs every year brings with it a series of doubts among small investors and that they need to clear up. The main one is derived on what they have to do with their savings during these days. Knowing in advance that on Good Friday the national stock markets close. Many are tempted to undo their equity positions while spending a few days off with loved ones. Others, on the contrary, are inclined to open positions in their investments, and from which they can obtain the necessary capital gains to defray the cost of these vacations.
During this week, in all financial markets the exchange of securities is really less, buy and sell operations on stock exchanges decrease. And as a consequence, volatility in share prices is more pronounced than in other periods. You should know that large investors also take their vacations, and this is one of the dates of the year in which this capital outflow from the markets occurs. Now you must be the one who has the word on the strategy to use during this vacation period.
The main objective of your actions, in any case, should be aimed at protecting savings, above all. And in this sense, everything It will depend on the profile you present as an investor: conservative, aggressive or intermediate. And also the current status of your positions: if you are in complete liquidity, or on the contrary, you have open positions in the equity markets. Depending on these variables, your line of action during this week may vary considerably.
Is it time to make investments?
If you do not have open positions In your investments, it is preferable that you wait a few days if your intention is to make selective purchases. It will only be a short delay of a few days, and the end result will be worth it. Furthermore, on these very special dates, historically there have been no major revaluations in listed companies. Except for events of special relevance, which rarely occur on these very important days.
From this scenario, your investment strategy is very well defined. Refrain from taking positions in normal market conditions. Do not worry about the stock market going up this week, since you will have time later to enter, without rushing prices. And if it goes down, it will be a perfect excuse to buy later for more competitive stock prices. Especially if your approach is aimed at the medium and long term.
Anyway, It is a week that can help you define the strategy to use for the next few days. Even to choose the securities that make up your investment portfolio. You will have more free time to undertake this analysis with peace of mind and monitor the values. Not surprisingly, you will have at hand a wide range of tools to channel this decision: information, graphics, recommendations from brokers, etc.
In addition, as the evolution of the main stock indices around the world is developing during the almost three months that we have been in the new year, it will not be good for you to rush into the decision. There will already be more opportune moments to enter the markets, and probably with better prospects to make the savings profitable. It may even take a few months to formalize the operation with greater guarantees of success.
Nor will it be very favorable for your personal interests if you lose liquidity on these dates when you will have to face a series of additional expenses: meals, transport, travel, shopping ... It is therefore more advisable than money have it saved in your checking account in case of any incident that can happen to you during the holidays. And once you return, it will be time to consider the status of your investments, and what to do with your assets.
Do I undo my positions on the stock market?
Another very different scenario comes from the situations in which, for whatever circumstance, you have open your positions in equities. The decision you must make will be closely related to the balance of your investment portfolio. And that in each case, it will be very different. As well as the degree of solvency of your checking account for the next few months.
The first of the scenarios is that you are in losses, as a result of the collapse of the stock markets around the world. And that in the case of the Ibex 35, it has gone in eight months from being at levels close to 11.000 points to flirting with the barrier of 8.000 points. If this is your specific case, you will have no choice but to endure. And under no circumstances should you undo the positions during Easter. Unless you are forced by very just causes.
Another possibility that opens up is for situations in which you have capital gains in the purchase of shares. If so, you have two completely valid options to exercise them. On one side, make partial sales to have sufficient liquidity on hand as to meet the expenses that will be generated during this trip. And on the other, close positions in their entirety, especially in the face of an exhaustion of the upward movements that the contracted securities have developed. Not surprisingly, it may be a good time to carry it out, and return to the markets in a few months.
It can even serve as a transit to make other subsequent investments. In other words, if you are not satisfied with the evolution of your shares, you can take advantage of this week to sell them. And the following week redirect them to other listed companies that offer a better technical aspect, and especially, with greater possibilities to revalue in the financial markets.
What should your goals be in this vacation period?
You will not be in just any week, but in a few days where rest and tranquility will prevail. And these characteristics are what you will also have to contribute to the status of investments, regardless of the profile you present. Only then will you achieve your goals with greater force. Protecting all movements that you formalize in this special period of the year.
The purpose of your actions will be none other than to prevent you from losing part of your savings this week. Like you can spend a few days relaxing, forgetting for a few moments the evolution of financial markets and the world of finance. It will only be a very short period of time, in which you will be able to regain your strength, to impose your criteria with greater firmness and conviction when you return from vacation.
To do this, you must be very clear about what you want and what your goals are. Once these issues are clearly defined, it will be much easier for you to impose the criteria on what you have to do with your savings during this Easter. And to that in a general way they would be summarized in the following approaches.
Decalogue to preserve savings correctly
You should not have the need to operate in the equity markets, precisely in these very atypical days in the stock market, since the year is very long and there will be more opportune moments to take positions on the main financial assets, even with more information.
In all cases, the protection of savings must prevail in your operations above other contributions, and avoid any sign of volatility that the stock markets develop during this period of the year.
If you want to make your investments profitable during Holy Week you can subscribe to other safer banking products, such as a highly profitable deposit, and with an extremely short period of permanence. In this way you will protect your monetary contributions more effectively, counting on a guaranteed return, although excessively modest.
Do not try to rush these days the operations of buying and selling shares, since it will not make sense, unless you need liquidity to meet the main expenses that will arise from these vacations. Although importing greater risks to this decision.
You should also bear in mind that only half of these days will be business so you can operate in the equity markets. Therefore, it will not be profitable for you to concentrate operations on so few dates, and also with much more limited movements than normal.
They are not particularly relevant periods for upward movements to occur of a certain consistency, and for the same reason, depreciations are not very significant either. Not surprisingly, the stability in the prices is usually one of the common denominators of this week.
It is a very opportune time to save money on very safe products, and that they have a high degree of liquidity. Perhaps you can hire a mixed investment fund with which you meet these very necessary objectives.
If you have open positions in the equity markets, stay informed through your mobile of how your actions evolve, before the appearance of any source of instability in the parks and you would have to rush into the sale of your positions in the holiday period.
Do not try to perform very fast operations during the first days of the week to get the capital gains necessary to pay for your vacation. You risk that the play turns out badly, and you have liquidity problems in the later dates.
And finally the best advice for you to have a better time this next vacation period is that you forget about all your investments, and focus exclusively on relaxing and resting with family and group of friends. Not surprisingly, you also deserve a relaxing break after seeing the high volatility that the stock market presents at the beginning of the year.