Since Guatemala, it is observed how protectionist tariff Free press.
The uncertainty derived from this commercial war between powers recalls the reactions of investors during the Covid-19 pandemic and for Guatemalan entrepreneurs, it is key to integrate the stock market analysis in their strategy to anticipate risks and take advantage of opportunities in this changing economic panorama, Higueros recommended.
From Guatemala, what is reading the effects caused by Donald Trump’s tariffs on the international stock market?
From our perspective in Guatemala, we have been able to observe how the tariffs imposed by the administration of Donald Trump have generated strong instability in international markets. These protectionist measures have had a direct impact on global trade, causing significant falls and historical corrections in the stock exchanges. This behavior reminds us of what we live during the Covid-19 pandemic, when investors reacted with panic against an uncertain economic landscape. Now, we face a new commercial war between the main powers, which only intensifies that uncertainty.
In the specific case of Guatemala, the impact has not been only indirect. We have also suffered direct consequences with the imposition of the so -called “10% universal tariffs on all imports to the United States, and even higher rates for 57 key commercial partners. This measure considerably affects Guatemalan exporters, who today face unprecedented pressure.
We observe how many companies are obliged to rethink their strategies and seek alternative solutions to maintain their competitiveness in this new economic scenario.
What is the importance of understanding the behavior of the bags, what are the decisions they make or stop taking investors?
Understanding the behavior of stock exchanges is key to any investor or serious analyst. The bags function as a true thermometer of the general state of the economy: they show us how market expectations are in relation to the future of companies, the macroeconomic environment and global political stability. Therefore, when we see an abrupt fall in the markets, it is generally related to negative signals in economic indicators, geopolitical tensions, adjustments in monetary policies or, in many cases, a generalized feeling of uncertainty that takes over investors.
Given these movements, there are three possible paths for those who participate in the market: buy, sell or maintain their positions. Each of these decisions is related to the investor’s profile, its strategy and their risk perception.
There are those who, with a more strategic and long -term vision, see market falls as opportunities. At that time, companies with solid foundations may suffer excessive punishments in their valuations due to generalized panic, which opens the door to investments with quite attractive security margins.
On the other hand, there are the investors most influenced by volatility or that operate in the short term, who choose to sell to avoid major losses. Some even adopt a bearish posture, taking advantage of the fall through short sales with the expectation of repurcharging cheaper.
And, finally, we have investors who decide to keep their positions, understanding that these falls are usually corrections within a broader cycle. These profiles tend to have a longer investment horizon and greater risk tolerance, which allows them to navigate volatility without being carried away by the noise of the moment
What does it mean that values of values close in red, mixed or green?
When we talk about the “they close in red” bags, we mean that the main stock market rates of that day ended with a fall with respect to the closing of the previous day. For example, if the S&P 500, which groups the 500 largest companies in the United States, opens the day in 5000 points and closes in 4900, that represents a negative day. That is, the market closed in red, reflecting generalized losses in the shares.
On the contrary, if we say that a bag “closed in green”, it means that the indices rose in relation to the previous closure. It is a sign of a positive day in which most companies recorded profits. If Nasdaq, for example, rises 2% in the day, we say that it closed in green, which usually responds to factors such as good corporate results, encouraging economic data or less global uncertainty.
There are also days when the market closes “in mixed.” This happens when there is no clear trend between the main indexes: some close upwards and others down. It is a sign that investors are divided into their perceptions. It may be that certain sectors, such as technological, have had a prominent performance thanks to good results, while other sectors such as energy or industrial were pressed by factors such as the fall in the prices of raw materials or geopolitical tensions.
How long will it be sustainable for the bags to continue in this behavior?
The sustainability of the current behavior of the stock exchanges depends on multiple interconnected factors in the macroeconomic, political and social fields. Financial markets directly react to elements such as government policies, interest rates, inflation and, more recently, commercial tensions such as those caused by tariffs imposed during the Trump administration.
Everything indicates that this dynamic will remain determined by what happens globally. If negative factors such as tariffs and restrictive monetary policies persist without a clear solution in the short term, volatility is likely to continue and that market corrections remain part of the scenario.
On the contrary, if a decalled in commercial tensions are achieved, interest rates are favorably adjusted, and a sustained economic recovery is consolidated, markets would have space to resume a bullish trajectory, generating greater stability in the medium and long term.
What is the recommendation for medium and large entrepreneurs in Guatemala in relation to the reading of the International Stock Exchange?
For medium and large entrepreneurs in Guatemala, understanding the reading of international stock markets is not an option, but a strategic need. Although in many cases they do not participate directly in the stock exchange, the decisions that are made in these markets indirectly, but significantly, their operations, import costs, access to financing, and even the international demand of their products.
My recommendation is that they incorporate stock behavior analysis as part of their financial planning and decision making. The bag is a reflection of what is happening at the macroeconomic and political level in the world. For example, a rise in interest rates in the United States may involve the global credit, while a drop in the technological sector could anticipate a deceleration in digital investment.
In addition, understanding market trends allows you to anticipate risks and take advantage of opportunities. There are signals that stock market rates give us before the impacts reach our local economies. Reading those signs with criteria can make the difference between a company that reacts late and one that is advanced with vision.