Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Thursday, 23 May 07:51 (GMT -05:00)



Business And Politics News

How to Protect Investment Capital in 2019?


Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.
 
According to the CEO of CFS Management, 2018 was change they way we think and know about safe-haven assets. The thing is that last year, we saw trading wars while the Fed quit the quantitative easing program, which made investors withdraw their investors from emerging markets. That's why bond markets dropped considerably, even though they had been growing steadily over a couple of years in a row. At the same time, the indexes related to emerging markets lost 4-6% on average over the same period. The biggest amounts were lost by those who had invested in Argentinian and Turkish bonds. The Argentinian and Turkish CEMBI indicators plunged by 27% and 16% respectively. So, no wonder that investors ar now thinking about the ways to protect their investments from major this roller-coaster and possible unpleasant surprises in 2019. In particular, when thinking about the most promising assets to invest this year, we should consider the following factors:
 
- interest rate hikes
- the trade war between Washington and Beijing
- increasing political tensions in the EU and the situation around the Brexit 
 
The consequences of the first 2 factors started to influence international markets last years. The 3rd factor definitely needs special attention. Leading international experts share the same opinion that European economies will face major difficulties caused by bloated sovereign debts and the ECB's tougher monetary policy. At the same time, the economic growth is weak, which only adds more fuel to the fire.
 
Italy is already facing major financial difficulties. For example, the local government will have to refinance its huge debt to the amount of 300 billion euros. However, given those internest rate hikes, refinancing huge debts becomes a real challenge. Following the domino logic, the Italian problem may spread over many other economies of the EU. As a result, European banks will get weaker. Some EU states may even face economic recession. 
 

Investors Don't Anticipate Double-Digit Profits 

 

Strange as it may seem, more and more retail investors learn to evaluate the big picture more or less objectively, including the assets to invest in, as well as the related risks, opportunities, and various factors influencing financial markets. That's why most of them do not expect double-digit profits anymore. They are mostly focused on preserving their capital in the first place, and making moderate profits on top of them in the second place. These days, they are mostly investing stocks, bonds, structured products, as well as residential and commerical property. On top of them they are seeking investment opportunities among small-scale businesses.
 
With that being said, the expert says that when devising an investment portfolio in 2019, we should tend to buy safe-haven assets like gold, dollar, assets, UK and Japanese stocks. UK stocks have already lost a bit of their value due to the Brexit issue, which means you can buy them at a discount. At the same time, Japanese companies have been actively working on improving their corporate management, which will result in benefits for investors.
 
Also, we can consider buying emerging stocks, even though these assets should be treated carefully, without too much exposure to them. The thing is that such assets have been pressed due to the Fed's tough money-and-credit policy. This year, the assets have a good chances to recover.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM

Roma May Drag Moscow and Brussels Into Major Financial Crisis

International experts are trying to evaluate the situation in Italy. Some of them are convinced that the EU is not going to save the Italian populists. For those of you who don't know the details, in October, the European Commission rejected the draft budget devised by the new Italian government. This means that the draft budget needs to be improved in order to approved.
Publication date: 19 December 11:48 AM

USA Strikes Iran Again

As you probably know, a couple of weeks ago, the United States imposed a new round of sanctions on Iran. International experts say that the package includes 700 new points, including an embargo on the import of crude oil from Iran. It's interesting to note that the sanctions will touch upon some other states as well. Some temporary exception are said to have been maid for 8 partners of the USA.
Publication date: 29 November 12:04 PM

Trump Offers Putin to Compete for Multi-Polar World, Eggert Says

According to Konstantin Eggert, a Russian journalist writing for Deutsche Welle, Donald Trump is offering his Vladimir Putin to compete for a multi-polar world, but on American terms. In particular, he highlights the fact that many international experts started panicking when finding out that the USA had withdrawn from the missile control treaty with Russia. They say that this is the end of the strategic partnership between the United States ans Russia and the disruption of the nuclear arms control system created decades ago.

Publication date: 29 November 11:07 AM

The world is on the verge of another global race

International experts are commenting on the events taking place over the last few years. In particular, President and CEO of Atlantic Council Frederik Kempe believes that we are nearing another race between the world's biggest superpowers.
Publication date: 07 November 09:02 AM

Trump Wants More Control Over the Fed Since It's Too Independent

Donald Trump seems to have confirmed his authoritarian style of governing the state. If he has his way, he would probably turn himself into a king instead of a president. What are the reasons to think this way about the American president?

Publication date: 31 October 11:46 AM

Google Introduces Home Hub for $149

Google Corporation has released a couple of new devices, including several smartphone and a display named Home Hub. For those of you who don't know, Home Hub was introduced a couple of days after Facebook launched its first gadget - a smart screen. This device is designed to consume audio and video content from certain resources. It support voice control and is adjusted to the user's location. So, what is so special about Google Home Hub?

Publication date: 31 October 10:16 AM