One of the most important parameters that you must have to measure the evolution of your investments is through the quotation of the Ibex 35. Because in effect, the national stock index will be one of the thermometers more relevant to determine how equities are doing. Depending on your behavior, it will be time to enter or exit the financial markets to try to make profitable operations that you formalize in the financial markets.
From this perspective, there are not many clues that the Spanish stock market is giving you. Because it has already been many months, too many in one side trend that does not finish leaving. With its consequent ups and downs that on more than one occasion have been able to mislead you when developing your investment strategies. From this stage, one thing is very clear up to now. It is none other than surely you will not have achieved capital gains very high in your investment portfolio. At least if you've opted for the selective index.
In any case, there are always a series of stocks that have performed better than the national average in recent years. Regardless, it is not one of the best for investing in equities. Both in national markets and outside our borders. Although one of the questions that worries you most now is how far the Ibex 35 can go. The opinions of financial analysts on financial analysts are many and of diverse nature. levels you can reach in the short and medium term.
Ibex 35: where does it have its limits?
To answer this question that thousands and thousands of small and medium investors have, nothing better than to ask what are the doubts that grip the Spanish stock market. Of course they are more numerous than you can believe right now. Within the national economic sphere, but also from other geographical areas of special relevance for all users. Either way, a certain caution to enter positions open by Spanish investors.
Within this scenario, the selective of the Spanish stock market has pointed to slight appreciations during the last stock market sessions. With an upturn that on none of the days has exceeded levels of 1%. In large part due to the imposition that national banks have taken. Meanwhile, retail investors are naturally awaiting macro data from the European Central Bank (ECB), of employment and of course of the Federal Reserve of the United States (FED) that will take place during the next months. Not in vain, they will be decisive in setting the course for the Spanish stock market and for the whole world.
Influence of the European stock markets
With all certainty that you have and will have a lot of influence what the equities of the old continent do. Because they are intimately connected and with many common interests that mark their trend. Well, from this perspective it is always very desirable that you take a look at these stock indices for when you are going to close to open positions in the national equity markets. They will provide you with signs of great help to channel your operations in the financial markets. Even giving you the odd guideline for action on what you have or don't have to do at all times.
In any case and at this precise moment, the European market has a really similar situation to ours. Where they are pending of the same parameters as in the Spanish stock market. As is the case in these precise moments, where all financial markets are more aware of the official crude oil reserves data to see if we have a strong increase in them, as advanced by several relevant sources linked to this sector of the world economy.
Either way, the Politics is in fact decisively marking the year that we have been in the financial markets for a few months. Brexit, elections in France or the economic decisions of the new president of the United States, Donald Trump, are undoubtedly bringing more than one small and medium investor out of their minds. Not surprisingly, everything seems to indicate that they have as much or more influence than the results on the evolution of the listed companies. Y Everything seems to indicate that 2017 will offer more of the same and without solution of continuity.
Selective index levels
Either way, the million dollar question is how far the Ibex 35 can go. There is no magic wand to guess with complete certainty. But there are certain levels that will be decisive to show its evolution in the coming months. A very data for short and medium term operations. Well, on this possible scenario there are many variables that can be calculated at this time. One of the main ones is that you can reach levels of 12.000 points in the medium term.
It is precisely at these prices where it has one of its most relevant resistances. Not surprisingly, one coincides with the arrival of its all-time highs a couple of years ago. If this desired objective is achieved, it cannot be ruled out that it could reach even higher quotas. To the extent that he could enter a stage of free rise. But we are only talking about a mere hypothesis since there are still many intermediate steps in which to focus the reference stock index of the national stock market.
Meanwhile, a more modest and affordable target used by financial analysts is located in the important 10.000 point barrier. Not only is it a historical point of reference, but it also constitutes an old support that violates to initiate a downward trend that has led it to test and even exceed 8.000 euros. It is not ruled out that if the stock market is well accompanied by macroeconomic data it can achieve it this year. They are effortless, as on the other hand it is totally understandable if you are a regular user of the financial markets.
Caution in aggressive products
So that you can follow the possible trend of the Spanish stock market, it is highly recommended that you focus on traditional stock market operations. Leaving aside the most sophisticated and aggressive financial products due to the great risks involved in their operations. It is true that the benefits can be more even greater than in buying and selling shares on the stock market. But you can also leave you many euros on the way. In all likelihood more than your domestic economy allows you at the moment.
One of the reasons for making this determination is due to the recommendation by the new management of the National Stock Market Commission (CNMV) on the significant damages that these products can cause you. To the point that in their statements they have tightened their fence on them and in a very clear and diaphanous way. Where, the president of the market regulator, Santiago Albella, has clearly expressed his "concern" about the commercialization of products such as contracts for difference (CFD) or binary operations.
You have to remember that today many models of these characteristics have emerged that can create more than one problem during the investment process. They are not the most suitable for you to operate in the different financial markets. Where the best thing you can do from now on is put them aside. So that in this way, you avoid falling into unwanted scenarios and they can lead you to lose a very important part of the available capital.
What if the stock market goes down?
Nor can you rule out, much less, that equities lose positions from now on. It is a scenario that you should definitely foresee to protect your money. Through different strategies whose main purpose is to minimize the balance of your securities account. One of them comes from a line of action as simple as diversify all your investments. Without investing everything in a single security, asset or financial product. But through the opposite, that is, through different investment models.
Another field of action that you have to apply this approach is the one derived from being more defensive in your purchases. Because in effect, you can opt for less cyclical stocks that are better suited to the most unfavorable scenarios for equities in general. Even combining this financial asset with fixed income or even with alternative investment formats. At least it will make you lose less money if the stock does not behave as you expected and has a drop in its prices.
Another suggestion for these very special situations derives from the maintenance of liquidity in your accounts during some moments this year. It will be one of the most effective keys so that you can take advantage of the business opportunities that may be presented to you in the coming months. So that you can have the necessary resources to face the operations. At least with a certainly important part of the savings you have in your checking account.
Finally, you cannot and should not forget that you can not only invest in national equities, but that there is life beyond it. With operations that can be more than interesting for your capital profitability needs. It may be the best time to execute these operations.