Today’s financial markets are slightly bearish, however, it is still possible to grow and build wealth in the financial markets. Here are some up to date and current trends in 2016, and tips that will help you to build wealth in today’s financial markets.
1. Currently, commodities are at an all time low. For example, oil, silver, gold, and other commodities are very low and this is a good time to purchase stocks in the commodities with the simple rule of buying low and selling high in the future. Investing in these commodities also leverages risk against a potential crash in the currencies.
2. Currently, the US dollar is high relative to other currencies. There may also be a slowdown of the Chinese economy, which could create a knock-on effect in the Western economies. If you are doing currency trading, selling the US dollar while it is high to get other currencies that are more stable such as the Euro, the Cayman KYD, or Australian AUD will help you to ride out that potential downturn of North American economies due to a predicted Chinese economical slow down.
3. Currently, the technology industries are always churning out the next start up company for investors to buy stock in. While these can be risky to invest in not knowing the actual future since they are new to the markets, if you do your proper research, you can find some goldmines in the making to invest in. Taking a risk on a new technology stock can be a good bet given the area of progress it is focused on. If it is in education, health care, and elder care, these are relatively stable areas of growth in the next decade. The area of 3D printing is also an interesting area of growth. Choosing to buy new technology stocks and in the right sectors of technology can be a great starting point for building wealth.
4. Start investing in a diverse fund as early as possible, as this can increase compound interest over the years, resulting in higher rewards later on.
5. Using momentum to your favor will also help you as this has been a time-tested strategy for building wealth. Watching a stock move up rapidly is a good sign that if you jump on the steep upward curve, it will continue to go up for a certain period of time. You want to watch this carefully to see if it continues to go up, and when you’re satisfied with the steady or positive direction, you can purchase this stock and watch your money increase with it.
6. Finding an area of specialty that you really know a lot about, such as social media, health technology, or e-commerce can really help you to make better choices for building wealth in the financial markets.
Overall, despite the bearish economy, there are always opportunities for the astute investor to continue to build wealth. Keep these tips in mind and steadily build up your portfolio for a successful financial year in 2016.