One of the keys to determining the stock market evolution in this exercise are the business accounts presented by listed companies in each quarter. It is a parameter of special relevance so that your prices take one trend or another. To the extent that many investors take this unique strategy to enter and exit the financial markets with greater guarantees of success. Not surprisingly, we are talking about one of the most reliable and objective data that financial markets provide. It is not surprising, then, that their target price often depends on this evaluation that companies have to pass four times a year.
Well, the business results of the past year have been very positive. By experiencing a growth of around 15% compared to the previous year. However, a slowdown has been detected with respect to the data for the first two quarters of the year. Where the business activity grew above 20% levels. This part of the analysis is worrying a good part of investors. In the sense that they think that the good part of the economic cycle in Spain has already been discounted. It will be very important to check what the business results of the first quarters of the new year will be to gauge what the real state of Spanish companies is.
Another aspect that may have a special impact on these results is the effect of the so-called Catalan problem. To the extent that it may end up affecting the accounting of companies listed in variable income. Not only with those from Catalonia, but also with others that have commercial relations with this part of the national territory. In any case, we will have to be expectant about what may happen with these data in 2018. Not surprisingly, it is not ruled out that there is a slowdown in the accounts of some of these companies. A factor that would influence the price of the shares that would depreciate significantly as a result of this change in expectations.
Expectations of the results in 2018
In any case, the forecasts for this new year suggest that profit margins will moderate. As a consequence of the more expansive end of the economic cycle that is being experienced. In this sense, the Bankinter analysis department shows that it is still in a bull phase in the international economy. This factor should help equities around the world rise across the board in this period. Although in all probability it is less than that experienced in previous exercises.
The results of the first quarter will be very important in determining the evolution that Spanish equities will take during a good part of the year. It will be one of the data that small and medium investors will be most aware of. To the point that any deviation from forecasts it can cause a sudden change in the price quote. Of course, in one way or another and that will generate that in the operations you can earn a lot of money. But for the same reason, also leave you more euros than necessary in the financial trading floors.
How should you act?
To take advantage of this data that will come out in 2018, you will have no choice but to import a series of tips that will be very useful to make your savings profitable. These are some of the most relevant.
- You should take advantage of any improvement in the forecasts to accumulate positions in the selected values.
- You can abide by a maxim that alludes that you must buy with the rumors and sell with the news. In these scenarios it brings you great utility in operations.
- La volatility In the days prior to the publication of the results it is very high and will help you to operate in the same trading session.
- Usually the surprises They do not affect many values on the national stock market and it is precisely in those proposals where it will be worth risking your capital.
- You must bear in mind that these business results are generated four times a year. Therefore, you will have several opportunities so that you can profit from the movements in a satisfactory way.
- Right now we are in a bullish scenario so any negative surprise will be heavily penalized by the financial markets. With risks of sharp falls in the markets.
- Do not try to rush operations to the maximum as you run the serious risk of get hooked in the values that you have chosen in those moments. Even without you being able to conveniently adjust the starting prices, just as you want from the beginning.
Strategies for leveraging data
In any case, you can take advantage of the publication of the results of the listed business lines to boost operations in equity markets. With a very clear objective that is to make profitable all your movements in the stock market. With great possibilities that you can improve your current account balance from these movements. Through the following actions that we expose you below.
One of the objectives of this strategy is to be in an excellent position to generate large capital gains from this peculiar strategy. It will be a period of a few weeks that you will have to accumulate shares and sell them at prices higher than those quoted up to now.
The moment of publication of the business results can be used to undo positions. Although these are very favorable since serious corrections can be generated to try to adjust the law of supply and demand. It does not matter that you miss additional increases that may occur in the values.
The specialized media usually give the odd clue about how these results will be. You can take advantage of this fact to take one measure or another in the financial markets. It will be a very useful information that can benefit you to make your operations on the stock market profitable. And in this way avoid unnecessary risks in taking positions in the selected securities.
All that is some results below expectations created should be used to undo positions as quickly as possible. Not in vain, you run the serious risk that you can leave many euros on the way. You will have no other solution than to avoid this scenario so unwanted by small and medium investors.
What to do with positive results?
If in the end this scenario occurs, you should not be too afraid to open positions in equities. Not in vain, it is the advance of a short and medium term uptrend. With more options to obtain benefits without excessive efforts on your part. At least until the new date when the results of the next quarter are published. You will have enough time to emerge successfully from these movements in the equity markets. As has happened with some of the most relevant values of the selective index of the Spanish stock market. For example, with Ferrovial or Inditex as representatives of this investment strategy.
On the other hand, you can also wait for this data to come to light and have greater security in each of the operations. It is true that you will miss a part of the upside potential, but it will be worth it not to risk excessively before a sudden change in the price. Something that without a doubt can happen to you without using this unique strategy. It will surely make you earn money at the end of the year. In one or more operations carried out in this period.
Some advantages of its application
With all certainty that you are considering what are the benefits that you can obtain from this strategy from now on. Well, it will be very practical for you to take into account what are some of these contributions that can help you earn more money from these precise moments. Take note because you may need it at some point or other.
- It is one of the most effective systems for protect your investments. Among other reasons because they will prevent sudden downward movements. At least for a few weeks where this impact on the share price will take effect.
- It can be a step for the values to move in an uptrend of certain consistency to use the best of investment strategies. With a minimum margin of error that will help you to achieve the objectives pursued from any term of permanence.
- You can repeat these operations how many times you want that this function of the data that is repeated in many of the securities that are listed in Spanish equities. Beyond the technical aspect that these financial assets present at the specific moment of their publication.
- On the same day of its publication, a high volatility in prices and that it can be a very interesting situation for you to do trading. That is, operate through purchases and sales in the same trading session.