Investing In A Volatile Market – Good Or Bad?

Posted on Feb 12 2016 - 4:30pm by Editorial Staff

Money

For those of you who have been keeping up to date with our Investing section, you will know that the markets and spread betting sites are a great way to protect your finances for the future, as long as you know what you are doing.

While many of you more astute traders or market enthusiasts will have been watching the news recently and noticed that Currencies, Commodities and even major Shares have been exceptionally volatile in 2016, this could prove either a blessing or a curse for wannabe Investors. So rather than leave you to fend for yourselves, we thought we’d try and tell you where to look if you wanted to ignore the hazards and jump in at the deep end.

Currencies

While the United States Dollar has hit a 5-year high against the Great British Pound and several other currencies, its’ future remains to be written as the Federal Bank looks set to keep increasing the Base Rate throughout the year. This could either plunge the currency back into a negative as the country fails to keep up with inflated targets, or could further devalue the ratio between world currencies against the Dollar. While this is a volatile trade at the second, the USD looks set to continue its’ domination for now and is worth a bet.

Commodities

As Crude Oil falls to below $27 again, to mark a horrific low in over 13 years, investors are asking that there surely has to be some reprieve soon. While a global glut is clearly in play and with Iran back at the supply table, this downward spiral doesn’t look set to abate anytime soon. Although there is a limit as to just how far the value can fall, quick-money trades on points up or down could be a great short-term investment to pick up an extra few bucks before Easter.

Bitcoin

Once hailed as an answer to investing money into a more secure fund, Bitcoin has proven more difficult to predict than even the rate rises. While a year ago, others were buying into the diversity that a BTC portfolio could offer, the fact that Banks are still vehemently against it and that votes are being cast to force companies to reveal their users have unsettled the share price a lot. While 2016 may yet prove to be a year of recovery, the share price is very volatile and is probably best left to the side for those who wish to play a higher-risk strategy. It has managed to stabilise its’ price the last fortnight and lost only a little ground against the Dollar, but anyone who wishes to get more involved with the crypto-currency is advised to double-check the previous few days’ performances before they do.

Stay tuned for more great stories and updates on the market and investing!

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.