Banks, technology and gold: learning to invest for the full result

We are ending a week that has been positive in the markets, especially on Wall Street, with indices up more than 2%, continuing to reach all-time highs, and the start of the earnings season. In Europe, the bullish signs in banks and some other securities are more selective. What should we take into account?

On Wall Street, led by banks, the second-quarter earnings season has already begun. Four US financial institutions officially opened the second-quarter earnings season yesterday. A positive year for US financial institutions in the stock market, which, without reaching the pace and levels of revaluation of technology companies, is the second sector that the market expects most in the last half of the year.

And that will help the S&P 500 continue to rise. XTB’s Manuel Pinto acknowledges that “one of the criticisms (of the index) is its valuation, but the growth data continues to justify that data. In fact, Nvdia is expected to grow 100% more this quarter, 200% in Q3, and 235% in the final quarter, starting in 2025, with 200% growth. Concentration is positive for the S&P 500.”

These are the tech companies that have the most hope in the sense that their numbers continue to live up to their reports. All signs point to “yes.” In fact, while Buffett is not one to get caught up in the heat of market “fads” like those generated by artificial intelligence, the truth is that there are three stocks in his portfolio that could benefit greatly from the rise of this technology market. Amazon, Apple, and SnowFlake.

Are you interested in: Learning to invest is learning to make decisions or learning to choose. The goal of investing is not to make all the right decisions, understanding correctness as getting a good result or positive profit.

A sector that is favored by the expectation (and movement) of lower interest rates. But also by the political situation in an election year, when everyone is watching to see if Trump has the ability to form a government again. An option that could entail tariffs, which would ultimately lead to higher taxes that citizens would ultimately pay. Erica York, senior economist and research director at the Tax Foundation’s Center for Federal Fiscal Policy, assured that tariffs as a political tool are very attractive, but not from an economic point of view.

Outside the U.S., as the second half of the year begins, it’s important to look at what the market is doing… or not doing. Five Ibex 35 companies are outperforming by 35%, with average buy recommendations across the board for the second half of 2024. These are companies that have underperformed compared to the most bullish year, but they’re not in line with the more bearish values. Exercise, at least not for everyone. See: The Most Attractive Companies to Invest in the Second Half of the Year.

If we want to add other criteria for stock selection, PER can tell us whether a security is overvalued or undervalued, since a high ratio can tell us that the company in question is worth more than it should be and is expensive to buy, although it can also show good prospects for its future performance in the long term. Gestamp or Soltec are the shares on the Spanish stock market with the best price-earnings ratio.

But if we talk about the Spanish market, we must talk about the banking sector. In this sense, we set up a filter based on two indicators that help us identify long-term overbought levels in the banking sector. These indicators are: (1) the distance the price is from the 30-week simple average, and (2) where the weekly RSI 14 is in the main banks of our country. You are interested in: The banking sector in detail.

Spanish banks have seen a strong rise in their share prices in the first half of 2024, thanks to a favourable economic environment and prudent risk management. Banks such as Banco Sabadell, Unicaja Banco and CaixaBank are leading the resurgence, delivering solid financial results and attractive growth potential for investors. Following BBVA’s recent approval of a capital increase for its takeover bid for Banco Sabadell, the sector is heading towards consolidation that promises to redefine its competitive landscape and create new opportunities in the stock market.

In addition to the selective, Izertis has a plan for 2027, in which it sets ambitious goals, international expansion, growth and, among other things, the transition to a continuous market from BME growth. Analysis, forecast, valuation and recommendations for Izertis securities.

On the other hand, Inversa Prime has decided to liquidate its portfolio of assets in order to maximize value for its shareholders. The company’s value, supported by the recent Renta 4 reports and optimistic analyst forecasts, together with this decision marks an important milestone in the development trajectory of the company, which aims to turn a significant discount on its shares into significant returns for its investors through planned and strategic capital allocation.

Investment Strategies has developed medium and long term indicators that allow us to know the strength and trend of more than 10,000 stocks, indices, commodities, currencies and cryptocurrencies. A fantastic tool for picking uptrend stocks that allows us to set a specific operation and repeat it systematically.

Some indicators show that gold is in a very strong trending situation. And the price of gold futures (GCXXXX) ended last week up +2.63%, recording a weekly candle of influence that allowed it to confirm an accumulation pattern or positive implications in a double bottom. What strategy allows you to approach this situation?