The Ibex-35 starts the week with the dimension of the 9000 points as first objective but with the uncertainty and fear of a new correction. IT IS A GOOD TIME TO INVEST IN STOCK MARKET? The current situation of the financial markets requires to perform an exercise of reflection par savers and investors. Many analysts already recommended increase positions in equities and buy close to its value of support actions. They argue that cycles in bag are not eternal and, in the same way that the upward trend and the sobrevaloraciones was reversed by a bearish situation and with a clear negative trend now suffering from investors; the cycle sooner or later will be corrected. Perhaps your argument is logical and empirical because we can corroborate it by our experience and data that we have.
We can say that the stock market cycle sooner or later revert. The eternal question however has a difficult to answer: when change cycle? Other experts and analysts believe however that although the stock indexes traded below their theoretical supports, the current scene with a financial crisis that has become an economic crisis not invited investment in stock exchange, investment funds and income variable in general. They predict that the coming 2009 will be a year with an economic downturn in major developed countries and international trade will be seriously affected. In such case the main companies and multinationals will massively begin to register negative results and your listing will be affected by these expectations. Against this background there is no brackets that are worth. A POINT OF INFLEXI?N for the investors currently with the crisis in the real estate sector, uncertainty in the financial markets and the global crisis affecting many extracts of our economy; the task of the investment advisor seems arduous and complicated. Invest in a sector or emerging business is another alternative available savers or investors although its aversion to risk has to be notable. Public debt, fixed, deposits, preferred income or subordinated debt does not offer profitability or to cover inflation.
Traditionally has invested large sums of capital to obtain high returns in short time in real estate, stocks or mutual funds. Then appeared the raw materials or emerging sectors. As a result there will be a flight of capital to the few expectations of these traditional formulas. We hope that the improvement of productivity, added value and investments that are intended to improve our quality of life are the options that investors choose.