Tag Archives: Investors

There are many transactions that you can do with your portfolio in T-Advisor

We have a very long experience providing financial tools for investors. That’s why we publish regularly posts about our solutions, because we have always detected that users do not take advantage of many gadgets, features and details developed for them to a better management of their portfolios.

Do you know what kind of financial transactions you can do in T-Advisor? Let’s say that you have your portfolio and you add some assets: either stocks, ETF or mutual funds. The usual operations are “buy” and “sell”. Those are easy, but there are quite a lot of them. Think about that:

  • If you have funds, you maybe think to transfer from one to another. There are transactions of buy and sell, but transferring the money, not a payment or refund with cash.
  • What about stock dividends or bond coupons? If you receive those payments, you have to register that increase of capital.
  • In the case of bonds, they can be cancelled or they can expire, with the subsequent effects in your portfolio.
  • Again, what refers to shares or ETF, there can also be splits and sold of rights.
  • However, there are also movements linked to cash, because a portfolio has an associated account. Let’s only think about the different charges that you can register. We show you in this list:

Cash operations in portfolios in T-Advisor

Not bad, huh? T-Advisor has several functionalities that deserve to speak with more details. These are some of them. An investor need a tool that has the right features to register all kind of movements related to his or her assets. This is the way to improve your independent wealth management. This is a reason why we say that we make available professional tools for self-directed investors.

Spain: investors are waiting for a new government

Why is the Spanish stock exchange one of the weakest when the economy is showing one of the highest growths in the European Union? If we see the evolution of the benchmark Ibex 35, we will notice a clear change since the beginning of 2015.

Ibex 35 evolution in the last five years

There was a continuous growth since the turmoil in 2012, when many investors bet for a bankruptcy of the fourth largest EU economy. This situation would have been very risky for the whole EU and the solution came finally with a banking bailout of 40,000 million euros.

Spain was very dependent economically from tourism and building. The crash of the building sector and the global crisis that affected the tourist sector were painful for both growth and employment. The recession took the unemployment rate over 24%. What is the current situation? GDP growth around 3.2% in 2015 and unemployment around 20%, but while the tourist sector is again flourishing (partly, because of the political crisis in the south bank of the Mediterranean Sea), the building sector disappeared and the country didn’t move to any alternative economic sector.

The current decrease begun in January 2015, when the business and consumer confidences fell and the stock exchange went down. Behind these trends, there were two factors: the possible political instability due to the appearance of new parties (particularly, the populist left-wing Podemos, which became very strong in the surveys) and the economic unbalances in the country (debt near 100% of the GDP, high budget deficit, weakening of the Social Security, trade deficit).

The failure of the politicians to create a government after the election on last December didn’t help to take decisions to reverse a possible stop in the economic improvement. The repetition of the election in June resulted similar, because the scenario is not clearer. The weak victory of the right-wing Partido Popular seems to be the beginning of a period of long negotiations to pass bills and budgets.

Our global trend chart of Spain shows the evolution of the last 12 months. It is easy to perceive that the Spanish market had low opportunities to invest. The Brexit also operate negatively.

Global trend evolution of the stock market in Spain

What can investors expect for the next months? It depends on the speed to compose a new government and the decisions that it takes. If the decisions agree what the markets expect (budgetary control, spending cuts), the exchange will possibly experience a relief and more opportunities will surge to invest.

The tools that you need to invest efficiently with your portfolio

Think about that you have a portfolio. Fine, you have organised your financial target into a structured composition of stocks, bonds or any asset that agrees your investor profile. However, you are a motivated investor and have interest in monitoring, improving, analysing… and you do not find the right tools to do it.

What kind of tools do you need? First of all, you need a platform that lets you easily create your portfolio with simple steps and implement your assets from your own Excel file or directly on the system. It is important that you can select properly your profile since the very beginning.

T-Advisor tools: screen to create your portfolio

Once you have created your portfolio and included the assets, you need to monitor and analyse it. It is not only about different timeframes for performance or volatility, but also an analysis of the diversification and the risks. As investor, you should take into account that one of the main goals is capital preservation. This means that a right investment strategy should outperform the benchmark in bull periods and have substantially less losses in bear periods. Diversification benefit, which assets contribute more to risk or a comparison with the composite benchmark (or smart benchmark, as it is denominated in T-Advisor) are useful tools for it.

T-Advisor risk analysis screen

This analysis should also include a graphical analysis of the allocation to understand the risk concentration in different concepts.

T-Advisor asset allocation analysis

And finally, what refers to analysis and monitoring, you should have access to a kind of scoring to perceive the quality of your portfolio and some suggestions to improve it.

T-Advisor scoring and suggestions screen

In the case of you perceive that your portfolio needs an improvement, your platform should include a tool to analyse where the troubles come from and optimise the results. The optimisation has to propose an efficient frontier for the portfolio allocation and a proposal of what changes you should implement.

T-Advisor optimiser tool

Efficient frontier optimisation in T-Advisor

And, last but not least, you need an alert system to react when there are deep movements in the markets that affect your portfolio. Your platform should also provide you a system to set the alerts depending your own needs.

Alerts setting in T-Advisor

T-Advisor is your alternative to create, monitor, optimise and modify efficiently your portfolio in a self-directed way. There are many platforms, but they usually have less tools or under payment. You can choose T-Advisor for free to feel the investment experience and control your finances on your own.

We are living a market crisis, but what are the alternatives for my money?

At the very beginning of the year, an analyst already mentioned the reasons of the bear market that we are still living.

1-year evolution in the main world markets

It is not only the crash in China and the aftermaths (slow economic development, cut in commodities demand), but there are many factors to explain. Just to quote them:

  • Oil price: far from be good news, the hard drop of the oil price could really show a weak demand, not a high supply. That means that the economic development could be worse. In addition, oil companies are highly indebted. With a low price, they will suffer to pay back.
  • Rising rates in US: The increase in the rates decided by the Fed last year will not be the last one in the next months. The economic development in US has some warnings this year and the central bankers prefer to watch instead of send a negative signal. Let’s see…
  • Deutsche Bank: recently added. One of the main European and world banks reported high losses, but the worst was the suspects about its solvency. Such crisis would put the euro in a hard position to continue existing.

Deutsche Bank YTD evolution

We could mention some others, but many people ask: are we living a recession again? Some analysts are very pessimistic, others stay in a middle position. In any case, the market evolution, which is driven by irrationality sometimes, is not a good economic crisis predictor.

The question is other. In former crisis, there have always been alternatives to move the money and obtain returns. What is currently the alternative? Stocks are dropping, investors are paying interests for the safest bonds, commodities are in the lowest points for years and traditional banking products offer very poor returns. The best to do:

  • Don’t panic: ups and downs are usual in markets. Even drops are common. If you have a strategy defined by your risk profile, keep it.
  • Don’t be obsessed by news: media are continuously bombing with negative news to get attention. Switch them off!
  • Don’t sell massively: the big mistake an investor can do is selling in a market sell-off.
  • Keep a long-term perspective: common investors are not traders. They invest to make future plans. If you do not need the money now, keep calm. Let’s wait till the landscape is clearer.