as feared by financial analysts, the materialization of Brexit sparked a sell-off that hit all the major financial markets: currency other than those shares, through the bond and those of raw materials. Thanks to the intervention of the ECB, the impact on Italian government bonds were however relatively small: the rate on ten-year BTP has moved from 1.32% to 1.5%. In any case, if the investor has regularly made the “cut” to the portfolio in view of the British referendum with your trusted advisor, you can remain relatively quiet. Obviously you can always consult with an investment professional to evaluate together any portfolio adjustments (from effetturare only if really necessary).
For those who continue to prefer investments do-it-yourself, here is instead a guide to orientate on the Stock Exchange after Britain’s output. With many practical tips to make money with stocks, bonds and exploit the jolt of the pound in the exchange market. Being careful, however, to remain calm, because in the coming weeks, the stock market ups and downs promises very pronounced. Therefore recommended to have in the portfolio a bit ‘of gold.
Ok pharmaceuticals and services. And you risk less with Pac
You can sell everything and wait for a return to calm in the stock market. This, however, means to account for the losses caused by the collapse of yesterday and wait months before reinvesting, plus the risk to do it at prices higher than the output. It is therefore the golden rule that the stock market gains those who keep their nerve; given the very tense situation, however, it should be fixed immediately what level of maximum loss you are willing to accept on the equity front (typically 15-20%). Reached which sell in any case, so as to be certain to have, for example, the minimum necessary money for a planned purchase. However different the advice for those who have cash to invest: according to experts the levels of Stoxx index 600 (Europe) below 280 points, the Eurostoxx (euro zone) under 270 points and the S & amp; P500 (US) less than 1,900 points in fact, they represent good entry levels. But with the foresight to buy in split, perhaps through the ‘savings plans’, so as to mediate the purchase price.
As for geographical areas, in short better Wall Street, which should lose less than other bags. If Europe, however, will give 15-20%, then you will fall in European markets at discounted prices. As for sectors, the shares of banks and insurance companies will continue to suffer so amplified compared to those services (utilities, gas, motorways), to pharmaceutical and those related to exports to Asia and the US. In a second phase, the most solid banks could represent an attractive buying opportunity. Same goes for the industrialists are less exposed to the UK market.
The ECB is protecting BTP. Focus on corporate bonds
The Brexit effect on the bonds is mitigated by the ECB, due to its high quality bond purchase program. It follows that those who have Italian or the euro zone government bonds can hold them in portfolio; also they prefigure interesting opportunities for corporate bonds: both those with intermediate rating (ie between “BBB” and “BB”) and high yield bonds (high yield). But better to avoid the individual broadcasters. It is indeed advisable to take specialized funds or ETFs, ensuring maximum diversification and better liquidity of the investment. Equally interesting are the bonds linked to inflation, which are serving a mild rise in consumer prices for the coming quarters: it is sufficient that the cost of the tent lives to accelerate beyond the 1 to 1.50%, expected for next year , to bring in extra yield interesting home. With a view to diversification, it should also be assessed a fee of US dollar bonds with a 3-5 year maturity (always through an ETF), which allow you to benefit from the strength of the dollar and not to be affected by rises in US interest rates. Better instead to sell any securities in pounds already in the portfolio (expected to depreciate again and to be the subject of speculation).
As for the emerging countries must finally distinguish between the local currency bonds and the dollar. For the first is better to lighten positions (may suffer from the devaluation of the currencies) while you can maintain in its portfolio the bonds in dollars, making an average of 5.5% and will suffer less. In any case, this investment should be made through funds and ETFs that ensure maximum diversification.
The dollar is back on the throne. Well crowns and francs
The dollar is back to being the true haven currency. In fact, although yesterday the currencies that have appreciated most of all were the Japanese yen (+ 6% against the euro and up 3% on the US dollar) and the Swiss franc (+ 1% against the euro), it is also true that central banks in Tokyo and Berne have already activated (and will do so with greater force in the next few days) to prevent their national currencies appreciate too. The dollar, however, will continue to be purchased even if the Federal Reserve were to decide not to raise rates. According to various investment houses, the euro-dollar exchange rate (around 1.10 to close yesterday) could bring to 1.05 and, in the event of rising US rates, up to parity. The board is required to use ETFs and funds dollar area and ETFs or short-term bond funds (1-3 years maturity), they offer a small return. Should then stay away from the uniforms related to the first (Russian ruble, Australian dollar materials, Canadian dollar) it’s likely that commodities lose ground in the coming weeks. Who had a fund or an ETF money in emerging currencies can keep it, but as long as you leave it in the portfolio for at least three years: in the next few months, in fact, currency fluctuations relative to the currencies of developing countries could be accentuated. Obviously better to avoid the pound which, in addition to possible further writedowns, will be the subject of speculation. Experts advise to allocate between 10% and 20% of the portfolio in pointing the half in foreign currencies US dollars, and the other half split in Norwegian kroner, Swedish kronor, Swiss francs and Chinese renminbi.
gold aims to share 1,500 and holds at bay the volatility
gold prices yesterday rose by more than 5% on the news of Brexit that scared him pushing investors toward safe haven assets. An extension that adds to the excellent performance that the yellow metal had already recorded year to date: the specialized gold ETFs listed on the Milan Stock already marked a 13.5% gain, which now touches 19%. According to analysts, the prices could rise in the coming weeks up to $ 1,400 an ounce, that is, another 5% and, in case of prolonged turbulence in the markets, pushing into the area $ 1,500. By contrast, in case of return of post Brexit concerns, compared with a potential drop in prices (which could bring back the gold under $ 1,300), subentrerebbero other supporting factors to the yellow metal. In the first place it is possible an increase in demand from developing countries (especially India and China, which in recent months have instead required less yellow metal). Second, central banks, also to strengthen its reserves, will provide to boost demand for physical gold. Thirdly, the statistics for the first five months of this year show that purchases on specialized ETFs on gold have been moved only a few investors: the presence of gold ETFs fact still remains uncommon in the portfolios of major international investors , especially after this turbulence, should feed substantial buying flows. As the ten-year German bund has a negative return, gold is a candidate to be an effective alternative as well long-term shelter: in this light, portfolio experts suggest devoting a stable share of 5% gold
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