Technology, semiconductors, small caps… are some of the themes that are gaining traction in long-term investors’ portfolios.
Small and medium-sized companies offer a variety of investment opportunities, both emerging and developed, and are also those that offer the greatest potential for growth when “chosen well”. Many of them are leaders in their home markets, innovative and capable of transferring value addition.
Actually, the year has started with a bang. Check out the performance of the MSCI ACWI, reaching a return of +10.6% so far this year. While small caps have been performing better, with MSCI World Small Cap returning 11.32%, smaller European companies stand out substantially with +13.2% See: Two options to invest in the universe of small caps.
A universe in which Spanish companies also enter. Touliana Leventi, Variables Analyst on Hire for Southern Europe de Ebradon Recent investment strategies recognize that “there are many Spanish companies that have a lot of quality, especially in the industrial sector. For example, the manufacturer of glass containers Vidrala is a very well managed business (.. .). There are forecasts for a positive first semester and there is a structural demand for glass, which is also a very respectable product with the environment as it can be recycled an unlimited number of times. Another case manufacturers of automotive components CIE belongs to Automotive which has a presence in Europe but also globally, and it has really helped the business manage the risks that are present in the European continent at the moment because of the war, the disruption of the supply chain.. “. See: “European small-cap companies have doubled the profitability of larger ones since 2000”
And when talking about supply chains, it is necessary to name the semiconductor sector, which is key to participating in the next phases of global economic growth. The variety of semiconductors is truly impressive. While some parts of our daily lives are being powered by older, low-efficiency semiconductors, other parts are being powered by “state-of-the-art” chips. If anyone is wondering about smartphones, the most capable models of the iPhone 14 run on 4 nanometer chips, which is currently the most advanced level in the world, says SiChristopher Ganatti, The Wisdom TreeThose who believe that technology like artificial intelligence will not work without semiconductors.
One technology, AI, is gaining interest. In fact, CHATGPT, an artificial intelligence chatbot prototype launched by OpenAI on November 30, is specialized in dialogue and has gained one million users in just 5 days, when Facebook and Instagram took almost two years to reach that level. Went. Created by San Francisco-based artificial intelligence company OpenAI, Microsoft is a $1 billion partner and investor, and together they developed the Azure AI platform. It seems likely that AI will be a critical component of the growth engine in the US and internationally in the years to come. You may be interested: 3 ETFs to Benefit from CHATGPT’s Attraction
When looking for assets to invest in over the long term, you’ve surely heard Spanish investors’ fever for Treasury bills, which have returned to yielding close to 3% in recent weeks. After the sharp fall in the markets in 2022, savers want to invest in them. However, this can also be done through investment funds that invest in Spanish treasury bills and other Eurozone countries with attractive returns. In this sense, there are funds that, in addition to investing in Spanish Treasury bills, diversify by buying bonds from other countries in the eurozone that currently offer attractive returns, such as Italian debt, which pays about 4% over 10 years. Is.
Carlos Gonzalez, Director of Individual Investor Relations at Cobas AM, shared with Investment Strategies the first findings of a research study on financial psychology through data from his BrainVester application. One of the findings of the study conducted by the manager, led by renowned manager Francisco García Parames, states that the greater the financial knowledge of the investor, the more risk-taking, the less loss-absorbed and the more likely it is to invest in the long-term. will have a greater tendency to and a high percentage of investment inheritance by the investor himself. See: “Fearful Investors Make Bad Investment Decisions”
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And don’t forget to read the latest issue of Investment Strategy magazine which defines which megatrends should structurally be part of a portfolio. Knowing that in the coming years we will live in an environment of low growth, with higher interest rates—more expensive debt—and structurally higher inflation.