The American management company Fidelity has been the last to join the idea that the best option to make the savings profitable at the moment is equities. To do this, investors must be more courageous and take the risks that these kinds of operations entail. Either way, the advice of this intermediary goes along the lines of continuing to show confidence in the equity markets. Despite the important revaluations that have been generated during the last eight years. To the point of being the second of the most bullish periods since WWII. In any case, it will be a decision that you must make personally or with the advice of an expert at this time.
From this general approach, it is the moment when you owe yourself pose be a little more aggressive in your investments from now on. You are willing? In this case, you will have no choice but to know what are the changes experienced in this period of time. In this sense, in their latest quarterly report, the experts of the financial and investment firm point out that the valuations of some areas move at certainly high levels but, in general, they remain far from the highs of 2000, when the call exploded. dotcom bubble.
Nor can it be forgotten that a clear connection in the actions of the central banks of the whole one. Or at least the most relevant. In any case, it is one of the walls to prevent a crash from being generated in the stock market with enormous effects. Such as those that happened in 1987 and the most important in the 30s of the last century. In this way, it is more difficult for these serious events to develop, which can affect the vast majority of small and medium investors.
Brave on the stock market? There is globalization
One of the most significant changes in these years is that equity markets are globalized. The connection in the stock markets it is clearer than ever and any event or news event has repercussions throughout the world. In other words, the problems in the euro zone do not only affect this geographical area. But on the contrary they are expanding to other areas of the planet. As for example, the stock markets of Asian countries. There is always a link and of course more than in other times in the more recent history of the investment world.
In this sense, the idea that financial markets they are not insensitive to what happens in other parts of the world. Both in the most positive and most unfavorable aspects for the equity markets. To the point that today nothing is indifferent to investors. Anything plays a role, from euro volatility to political instability in some countries. As is happening at the moment with the problems between Spain and Catalonia. And like this many other cases.
Self defense mechanisms
Another aspect that has varied in financial markets is that there are greater instruments to defend against the most difficult moments for the stock market. One of these actions comes from the actions of central banks, on either side of the ocean. Where monetary policies is one of the actions to stop a possible disaster in this kind of financial markets. As the European Central Bank (ECB) after the serious economic crisis that began in 2007.
Nowadays these organisms have a great power of decision so that one of these unpleasant situations for the equity markets cannot happen. Even injecting liquidity as has happened the European Central Bank and the Federal Reserve of the United States. Not surprisingly, it is one of the functions they perform at the moment. Try not to let the bags get out of hand. Because the effects can be very detrimental to the interests of countries or geographical areas of the world.
Reverse product application
Until a few years ago, it was unthinkable that savings could be made profitable at unfavorable times for equity markets. Because through the so-called inverse products it is possible to earn money in these special scenarios. And also a lot, although at the cost of assuming more latent risks in each of the operations carried out by investors. One of these strategies is materialized by investment models, such as investment funds or warrants.
But perhaps the proposal that is attracting the most attention to investors is the operations of credit sale. Where as the chosen security loses positions in its value, the money that can be won in these very atypical scenarios will be greater. These movements are characterized because you can earn a lot of money, but at the same time leave you many euros along the way. It is a factor that you should take into account in case you are tempted to open positions in any of these financial products.
Investment funds with more risk
Either way, investment funds are the model most used by small and medium-sized investors to opt for this kind of investment. They allow you to choose even the index where you think their prices can go down. Only in national equities but also outside our borders. Through an investment model that is much simpler than in other more sophisticated formats. With the advantage that can be composed of other financial assets, from both fixed and variable income. Or even from alternative or more innovative approaches.
This class of investment funds are especially suitable for very short periods of permanence. At specific moments, as hypothetically could happen in a stock market crash. Where you would surely earn a lot of money and of course more than you can imagine from the beginning. Something that you did not count on when these events unfolded in the equity markets. They are new instruments you can count on to make your savings profitable. So that in this way, the balance of your checking account is much more favorable for your interests as a retail investor.
Easier to detect
Another novelty that the new times have in store for us is that these abrupt movements in the stock market can be detected more reliably. With the economic data that is generated day by day, but above all through the expert analysis of financial markets. Although there is a risk that it could be confused with mere rumors. To the point that you can get caught up in unwanted movements. On the other hand, you cannot forget that the main international organizations can anticipate these scenarios with a certain objectivity.
In this sense, there were already very relevant voices that warned about the serious crisis that was going to be generated ten years ago. However, the main problem with these alerts is that in many cases not all citizens are in a position to access this kind of information. But on the contrary, there are very few who will be able to anticipate these movements in equities. It is of course one of the great problems that you will have to face from now on.
Anticipate the events
On this aspect, there are some financial intermediaries who have been for many months on the possibility that we are very close to a very violent explosion in the stock market. They even allude to what may happen during the next exercise. It is then where you will have to value this kind of special information. To determine if the time has come to substantially modify your investment portfolio. Where there will be no choice but to go to refuge values that may be more profitable in these unfavorable scenarios for international stock markets.
The time in investing in one of the most appreciated assets. Where you must anticipate events. Something that is very complicated to happen unless you are in the decision channels. You won't have any kind of certainty about what might happen in three, five, or even more months. Although of course what you can do is give a more defensive touch to your investments. For example, moving from equities to banking products or even from monetary investment funds. With the main objective of protecting your savings against instabilities as strong as those that occur in crashes in the equity markets.
You cannot forget that if they happen, you can lose more than half of your financial contributions forever. It is something so serious as to make you think from now on. Because one of the basic rules in equities is that it is not necessary to always be invested. It is a serious mistake that can make you lose a lot of money. With a very simple solution on your part and that consists of taking positions when the situation of the financial markets so advises. Without forming that you have to invest money unnecessarily and assuming many risks. Of course more than necessary. In short, it is to make you think whether or not it is worth accepting these high risks.