The Stock Exchanges live days of tremendous volatility.SOPA Images

No one likes to make mistakes. Even less in the world of investment. The markets have been dragged for weeks by the health and economic crisis linked to the Covid-19 pandemic. In this great roller coaster full of descents and rises of great intensity, doubts about the best strategy to follow multiply: to undo or not positions ?, to transfer or not the most risky funds to other more conservative ones ?, to leave or not looking for new opportunities?

If investment professionals recommend anything, it is, despite everything and taking into account what has already been experienced, “keep calm and not make decisions influenced by the emotionality of the moment,” according to Gadea de la Viuda, from Abante Asesores. Or as Gabriele Miodini of Eurizon Capital points out, keep our nerves under control, wait for events and remember Warren Buffett, who has said that “a business is not bought or sold based on the headlines of the day” and that “the Stock Market it is a mechanism by which money is transferred from the impatient to the patient, ”cites the latter, which Borja Fernández-Galiano, from Dunas Capital uses, to equally recommend calm and lucid thinking in these times.

All experts know, however, how difficult it is to stay calm; Hence, for those seeking peace of mind, they generally recommend transferring balances from more risky funds to more conservative ones. Ignacio Perea, from Tressis, acknowledges that an alternative in this sense is pure monetary funds, although he warns that, taking into account the current level of interest rates, “we must be aware that they also generate negative returns.” Quality fixed income, with a flexible mandate, can be a good option for a conservative profile, explains Alicia García, from M&G Spain, and, among them, those funds with short maturities because, as Javier Turrado, from Bankinter Gestión explains. of Assets, this short duration will allow the investor to have a low sensitivity to the movements of the interest curves. In these days when, however, fixed income is suffering a lot due to the lack of liquidity, Pablo Martínez Bernal, from Amiral Gestión, considers that “perhaps it is not yet the time to enter”, an opinion that he shares with those responsible for Diaphanum and with Norman Villamin, from Union Bancaire Privée (UBP), who bet, for those seeking investment havens, for currencies such as the British pound, at levels of 0.9 against the euro, or the Japanese yen and the Swiss franc.

Historic economic stimulus programs announced by both governments and the world's leading central banks, coupled with the end of the tunnel looming in China in the face of the coronavirus pandemic, have encouraged markets in recent sessions. Wall Street, for example, experienced its biggest rise since 1933 last Tuesday, rising 9.8% in the case of the S&P 500 index. For some experts, the markets have started to turn quickly and it is not worth waiting too long. , avoiding being gripped by fear.

Martina Álvarez, from Janus Henderson Iberia, acknowledges, with some optimism, that opportunities have opened up for investors with long-term horizons. From Inversis also believe that it is not a bad time to take positions, although they warn that it is better to do it in different sections: “In no case firing all the bullets at once.” An idea shared by Fabiana Fedeli, from Robeco, who believes that, although the markets will indeed recover, “the tide will lift all the boats.” What is important and difficult is now, in his opinion, to distinguish between the final winners and losers, and it is therefore convenient to choose the entry points slowly and gradually.

However, warns Mariano Arenillas, of DWS Iberia, it will be necessary to continue supporting, at least in the short term, significant volatility in the markets, making it suitable even for the most aggressive profiles to bet on investment funds or shares linked to companies with sustainable dividends (something difficult at a time when many companies begin to review their remuneration) or infrastructure companies with a defensive profile. For Gonzalo García Valero, from Caser Asesores Financieros, this group should join sectors such as health and food, which have been severely punished and whose fundamental data should not deteriorate as much. At Banca March they believe that “being out of the market now would make us lose the best days of recovery” and, therefore, they include companies linked to mega-trends such as technology, sustainability or the environment in the previous group.

Transfers versus sales

In any case, investors in investment funds must remember that they always have the possibility of rearranging their portfolio by moving money from one product to another at no fiscal cost. A transfer between investment funds (or the same between pension plans) is basically transferring all or part of the investment held in one to a different fund. It can be done within the same entity - just give the relevant order and wait a maximum of five business days - or between different managers. In the latter case, the procedure is simple: the entity that markets or manages the fund in which you want to invest is contacted and a copy of the statement of position in the original fund is delivered if possible. As a limit eight working days later, if everything is correct, the transfer is effective.

It should be clear that at no time are the amounts of money moving from one fund to another available to the investor. Here is one of the main differences regarding the effective sale of an investment fund, to which is added that in the case of transfers there are no tax effects while they do appear in effective sales: capital gains are taxed and capital losses are deducted in personal income tax. Regardless of the tax and gambling considerations that tax compensations between benefits and losses may give, for some experts such as Álvaro Manteca, a certified financial analyst and member of the CFA Society Spain, the option of effectively undoing positions may be attractive to the extent that “liquidity is the most precious asset right now. As the old Anglo-Saxon saying goes: Cash is king (cash is king).


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