Understand the ups and downs of the Stock Exchange and how the Ibovespa is calculated

Even amidst the impacts of the pandemic, the main B3 index registered, in the second week of June, the biggest series of gains since 2018, renewing highs and closing above 130 thousand points; know how the indicator works

Pixabay / geralt The Bovespa Index is a theoretical stock portfolio that aims to reveal investors’ expectations and measure market sentiment

B3, which is the Brazilian Stock Exchange, is one of the alternatives with the greatest potential for return among all types of investments, but, on the other hand, it is also the one that offers the greatest risk. There, investors buy and sell financial assets such as shares, which are fractions of the capital of companies, public and private bonds, futures contracts and commodities. After reaching 125,000 points in January of this year, the Ibovespa, which is the main index that measures the performance of shares on the B3, dropped again, reflecting fiscal uncertainties and concerns about the second wave of the Covid-19 pandemic. Until, in June, the indices resumed their growth climb, recording the biggest series of gains since 2018, renewing highs and closing above 130 thousand points.

Economist Pablo Spyer, presenter of Minuto Tauro de Ouro at Jovem Pan, explains that the Bovespa Index is a theoretical portfolio that changes every three months and aims to reveal investors’ expectations and measure the mood of the stock market. “[O índice é composto por] several actions, if I’m not mistaken about 80 actions. And they have theoretical weight. For example, Vale represents more or less 10% of this index, Petrobras too, Bradesco, Itaú. If Vale represents 10% of the index and Vale was costing R$100, it represents R$10 in the index. Then you add them all [as ações], multiplies by your weight and you get, let’s say, at 120 thousand points. And then, each index contract is worth R$120,000. If you have 100 contracts, it is equivalent to R$12 million. The problem is that, if you drop 10%, you lose R$1.2 million. But if you go up 10%, you earn R$1.2 million”.

With regard to stock market fluctuations, Spyer recommends caution and portfolio diversification, especially for novice investors. “You have to invest slowly, you have to know the companies you are buying. Who is starting, must not speculate, must invest. If you take 10% of your equity and put it on the stock exchange, you are speculating, not investing. To invest, you have to diversify sectors. Within sectors, diversify actions. And don’t forget that you have to diversify in time [certo]. You have to go in slowly and invest a little every month”, he advises. It’s explained?

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