stocks to buy now
stocks to buy now
The five actions you should buy
Although some securities generate significant dividends, remember that there will always befall due to market risks.
FP summarizes the safest actions to invest at this time.
It is clear that the stock market has become the target of many lately. However, the purchase and sale of shares is not an easy business and many people are not clear on what actions to invest. FP reveals the recommendations of an expert to buy the values that, for the moment, will bring you more profitability.
In the first place, do not trust the actions that generate a high return on investment so they are very attractive and people around you are interested in them, especially if they are associated with the financial sector and/or oil.
According to the analyst of Corredores Asociados, Francisco Chávez, these sectors present higher risks due to adverse market conditions, such as, in the case of gasoline, the reduction in price and its direct impact on Ecopetrol.
That is why the most advisable thing is to invest in shares of companies that generate peace of mind for your pocket despite not giving such a high return.
An important aspect of why investing in these actions is that they are companies that "have diversified businesses, not only in their products but also in their geographical location, most of these companies have investments in other countries", the analyst pointed out.
Below we present the top five of companies to invest and the respective value of their shares:
1. Nutresa: $ 27,400
2. Cementos Argos: $ 9,880
3. Empresa EnergÃa de Bogotá: $ 1,605
4. Sura Group: $ 38,000
5. Grupo Argos (formerly Interlagos): $ 22,400
If you have a free capital to invest and want to preserve or increase it through the stock market, you can consider doing so through the recommended companies, as these will provide greater security for your end-of-year finances.
What stocks to buy today?
When stocks are bought with the valuation in the lowest deciles, the expected return is much higher than if we do it in the high deciles
To affirm that in the long term the stock market has been one of the most profitable investments, it is something known by all and easily demonstrable. It happens in most markets and our Ibex (with dividends) that is at 6% of historical highs, the Dax (which includes dividends) or the S & P with and without dividends, are clear examples of this. Sheltered by this idea, passive management has seen in the simple indexation a sale argument of clear success in the current cycle. Nine years of increases and an average annual return of 7.15% in the case of the S & P adjusted for inflation have served to attract many investors to this type of management where, in general, what matters least is the valuation that is it's paying.
But the "buy and hold" that has worked in this period has also had its negative moments. If we take the series of the last 20 years and in that same asset, we see clearly that twice that strategy has not worked and, both in the 'dot com' crisis and in the financial crisis, the valuation levels were above the historical mean. That is to say, the market thus contemplated was expensive and the prospects of profitability were very low. There is a negative correlation between valuation and future profitability as seen in this graph. When shares are purchased with the valuation in the lowest deciles, the expected return is much higher than if we do it in the expensive deciles. Even very extreme (> 80) the expected future profitability is negative (Gotham Partners chart).
In this way and applying the idea about the S & P500 to try to see what the future can bring us in terms of profitability, if we bought that index today the first thing we see is that, since 1881 and except on 2 occasions, we are buying in the area more historically speaking. This first appraisal is taken from the CAPE where taking the price of the asset today and divided by the average of 10 years of benefits gives us the following graph.
If we create a regression from 1881 to 2016, we see clearly what we can expect to buy at a time like the current one where we have readings of 30. That is if we buy today and for the next 10 years, the expected return is 0% which, logically, is not linear and we can have variations (peaks and valleys) at that time.
If we add another valuation measure such as the capitalization of the market against GDP, we can see if the price of the shares grows more or less than the global economy. Using data since 1950, it turns out that we are already much more expensive than in 2008 and that only in the 'dot com' bubble did stocks become so expensive.
And all this well loaded with leverage as shown by the new record reached in Margin Debt. In this case, the levels of 2000 and 2008 are already exceeded.
See if the market is expensive that some analysis houses suggest that buying 10-year US bonds at a rate of 2.33% is an even better option than buying a variable income.
Thus, when you decide to enter the market, it is not enough for your well-founded analysis to add a bit of context to the global valuation level. It is clear that looking to the past does not guarantee the future at all, but from history, you can draw conclusions that can help manage the currently available cash of each one and thus avoid mistakes in a moment of euphoria like the current one.
The five actions you should buy
Although some securities generate significant dividends, remember that there will always befall due to market risks.
FP summarizes the safest actions to invest at this time.
It is clear that the stock market has become the target of many lately. However, the purchase and sale of shares is not an easy business and many people are not clear on what actions to invest. FP reveals the recommendations of an expert to buy the values that, for the moment, will bring you more profitability.
In the first place, do not trust the actions that generate a high return on investment so they are very attractive and people around you are interested in them, especially if they are associated with the financial sector and/or oil.
According to the analyst of Corredores Asociados, Francisco Chávez, these sectors present higher risks due to adverse market conditions, such as, in the case of gasoline, the reduction in price and its direct impact on Ecopetrol.
That is why the most advisable thing is to invest in shares of companies that generate peace of mind for your pocket despite not giving such a high return.
An important aspect of why investing in these actions is that they are companies that "have diversified businesses, not only in their products but also in their geographical location, most of these companies have investments in other countries", the analyst pointed out.
Below we present the top five of companies to invest and the respective value of their shares:
1. Nutresa: $ 27,400
2. Cementos Argos: $ 9,880
3. Empresa EnergÃa de Bogotá: $ 1,605
4. Sura Group: $ 38,000
5. Grupo Argos (formerly Interlagos): $ 22,400
If you have a free capital to invest and want to preserve or increase it through the stock market, you can consider doing so through the recommended companies, as these will provide greater security for your end-of-year finances.
What stocks to buy today?
When stocks are bought with the valuation in the lowest deciles, the expected return is much higher than if we do it in the high deciles
To affirm that in the long term the stock market has been one of the most profitable investments, it is something known by all and easily demonstrable. It happens in most markets and our Ibex (with dividends) that is at 6% of historical highs, the Dax (which includes dividends) or the S & P with and without dividends, are clear examples of this. Sheltered by this idea, passive management has seen in the simple indexation a sale argument of clear success in the current cycle. Nine years of increases and an average annual return of 7.15% in the case of the S & P adjusted for inflation have served to attract many investors to this type of management where, in general, what matters least is the valuation that is it's paying.
But the "buy and hold" that has worked in this period has also had its negative moments. If we take the series of the last 20 years and in that same asset, we see clearly that twice that strategy has not worked and, both in the 'dot com' crisis and in the financial crisis, the valuation levels were above the historical mean. That is to say, the market thus contemplated was expensive and the prospects of profitability were very low. There is a negative correlation between valuation and future profitability as seen in this graph. When shares are purchased with the valuation in the lowest deciles, the expected return is much higher than if we do it in the expensive deciles. Even very extreme (> 80) the expected future profitability is negative (Gotham Partners chart).
In this way and applying the idea about the S & P500 to try to see what the future can bring us in terms of profitability, if we bought that index today the first thing we see is that, since 1881 and except on 2 occasions, we are buying in the area more historically speaking. This first appraisal is taken from the CAPE where taking the price of the asset today and divided by the average of 10 years of benefits gives us the following graph.
If we create a regression from 1881 to 2016, we see clearly what we can expect to buy at a time like the current one where we have readings of 30. That is if we buy today and for the next 10 years, the expected return is 0% which, logically, is not linear and we can have variations (peaks and valleys) at that time.
If we add another valuation measure such as the capitalization of the market against GDP, we can see if the price of the shares grows more or less than the global economy. Using data since 1950, it turns out that we are already much more expensive than in 2008 and that only in the 'dot com' bubble did stocks become so expensive.
And all this well loaded with leverage as shown by the new record reached in Margin Debt. In this case, the levels of 2000 and 2008 are already exceeded.
See if the market is expensive that some analysis houses suggest that buying 10-year US bonds at a rate of 2.33% is an even better option than buying a variable income.
Thus, when you decide to enter the market, it is not enough for your well-founded analysis to add a bit of context to the global valuation level. It is clear that looking to the past does not guarantee the future at all, but from history, you can draw conclusions that can help manage the currently available cash of each one and thus avoid mistakes in a moment of euphoria like the current one.
No hay comentarios.