Globalism has ushered in an era where the interconnectedness of international markets has grown more complex than ever before. The days when investors could primarily focus on domestic economic indicators has long passed. Investors now must closely watch world events, which have the power to drastically change the value of their investments, both in U.S. and international markets.
Volatility is the primary symptom of international events. From an investor’s perspective, this volatility can be a blessing or pure poison, depending on their mix of investments and their long- and short positions. To ride the waves of globalism-induced volatility profitably, investors must keep their eyes constantly on international events. Here are 5 hot zones that will drive volatility in the near future.
Russian Investments Risky
U.S., China Tariffs
Volatility can be expected as the midterm elections approach. A shift to a Democratic Congress could create gridlock in Washington. The shift may also result in policies that hurt the finances of companies in the health care, energy, and financial sectors. Any political stability can be expected to create volatility. Investors need to closely watch the developments around the midterms.The world community has grown more interconnected than ever before. While international trade can enhance economic opportunities and stimulate growth, deterioration of international relations and international market conditions can quickly cause a widespread recession. With the potential for volatility international trade engenders, investors must pay close attention to world events.