The Three Wise Men will bring many gifts this New Year. There will be no shortage of classic ties, colognes, and the latest mobile phones. But what you might not know is that, to be a little more original, they may bring a few surprises for small and medium-sized investors . This way, you can take advantage of them to make your savings grow more efficiently. They might even arrive at your home office in the first few days of January.
You'll surely be thrilled with a series of suggestions for improving your financial management. These innovative options will allow you to invest your available capital . Some will be gifts you're already familiar with, while others will be unexpected and surprising ways to manage your money.
These very special gifts that the Three Wise Men will bring you this year come from products not only in equities, but also in fixed income and even alternative investment models. In any case, they are all very favorable for protecting your interests as a small or medium-sized investor. Would you like to know some of them and what you'll find by the fireplace on January 6th? Well, pay attention because this will give you more than one clue to help you make your decision from now on.
Three Wise Men: oil in their saddlebags
Certainly, one of the most enticing gifts these special figures could bring is a rise in the price of oil on the financial markets. This is unlikely, however, due to the tensions brewing in Middle Eastern countries, especially after Saudi Arabia 's moves on the international stage , which are closely tied to oil prices. Indeed, oil is one of the financial assets most likely to appreciate in the coming months.
The price of a barrel of oil is currently hovering around $50. However, if the status quo in this region changes, it could jump to $60 or $70 per barrel. In that case, you should take advantage of these movements in the financial markets. If you don't want to leave the domestic markets, the clearest option is Repsol. It's a stock in an upward trend and is currently trading around €15 per share, despite going through a period of price correction.
How to invest in crude oil?
However, you have other options for investing in this important financial asset. One of the simplest strategies involves investment funds based on this energy source. Furthermore, combining these funds with other financial assets allows you to diversify your investments, enabling you to adapt to all economic scenarios, even the most unfavorable ones for a significant portion of the financial markets. This will be a very useful way to protect your positions in this type of financial product.
Another option is to invest in an ETF that tracks this asset. If this is the gift the Three Wise Men are planning to leave at your house, you should know that it's a more aggressive way to make your savings grow. However, it also offers much more competitive fees compared to investment funds and buying and selling shares on the stock market. The advantage is that you can choose from a wide range of models that meet these criteria. Although, to do so, you'll need to access international financial markets.
Bonds of some peripheral countries
These products could certainly be one of the surprises of 2018, particularly those bonds from countries experiencing a significant improvement in their economic activity. Portugal is one such example , a country already seeing a rebound in its key economic indicators. This will translate into an improvement in Portuguese bonds, with substantial potential for appreciation from this point forward. They are so valuable that they should definitely be included in your investment portfolio.
Within this class of fixed-income products, it's also worth taking a look at Greek bonds. They can certainly bring some joy to small and medium-sized investors during this period. However, this type of investment carries significantly more risk than others. This is due to the unique characteristics of this European Union nation, which have caused major problems for its economic authorities. If this is the gift you receive from the Three Wise Men, don't hesitate to accept it, though perhaps with some trepidation.
Russia Stock Exchange as an option
Without a doubt, one of the potential surprises for the new year could come from Russian equities. This is because they have been somewhat underperformed in previous years, giving them considerable upside potential. So much so that many financial analysts believe they could be a key player in the coming months, with returns that could reach double digits. The outlook for the next two months is very positive.
On the other hand, the Russian stock market offers a wide range of companies linked to energy-related financial assets . Given this scenario, you currently have many opportunities to invest your money in a number of highly profitable stocks, even if they are relatively unknown. It's important to remember that this stock market is significantly undervalued compared to other European markets. There is considerable potential for profit from these investments starting now.
The banking sector in general
European banks could also bring you more than one pleasant surprise from now on if they're among the gifts the Three Wise Men bring you this year. While it's been one of the worst-performing sectors this year, its trend in 2018 could reverse, making it one of the best. However, to avoid mistakes, you'll have no choice but to be very selective in your choice , focusing on the institutions that have posted the best business results in recent quarters.
From another perspective, it's also worth remembering that banks are more likely to experience significant price increases if the overall trend in financial markets is upward. Furthermore, you shouldn't forget that they distribute very attractive dividends to all their shareholders, providing fixed and guaranteed income every year. This allows you to enjoy an interest rate close to 5%. In addition, this business segment offers a substantial discount on its share prices, making it very attractive for small and medium-sized investors.
More profitability on deposits
One of the defining events of this new year is the increase in interest rates by European monetary authorities. This could be a welcome gift, a real boon for improving your capital. Its effect will be immediately felt in fixed-term deposits, as their yields will indeed rise compared to current levels. If you have a very conservative or defensive investment profile, now might be the perfect time to invest in this type of fixed-income product.
These deposits will help you build a more stable savings portfolio. This will be boosted by promotional deposits that can reach interest rates of up to 3% . You won't have to risk your investments at any time, nor link them to other financial assets. A significant advantage is that, in some models, you can receive your returns in advance: semi-annually, quarterly, or annually, depending on the specific plans offered by the financial institutions. Whatever happens, you'll have a fixed income deposited into your checking account.
Term deposits, on the other hand, do not have any kind of commissions or other expenses in their management or maintenance. With a wide offer by all the banking entities that operate in Spain. From totally conventional deposits to those of increasing profitability, among other formats of these financial products. So you can rest without any kind of worries. These are, after all, some of the most relevant proposals that this year will be in your letter to the long-awaited Three Wise Men. With all certainty that you will be satisfied in the demand of such a special day and where the illusion will be present in all Spanish homes.