Learn-To-Trade.com Toronto’s leading provider of professional stock market trading courses designed to create successful traders on the financial market, is announcing that current global geopolitical and economic conditions are sending investors to safe haven assets, like gold, and making trading foreign currency more attractive.
“Despite signs that the U.S. economy is rebounding, the major stock indices in the U.S. and abroad are facing serious downward pressure,” says George Karpouzis, co-founder and director of education at Learn-To-Trade.com “As a result, investors are turning their attention to gold and the U.S. dollar to protect their assets against economic and political uncertainty.”
Karpouzis explains that the International Monetary Fund (IMF) cut global growth forecasts as a result of weaker growth in the U.S., China, and other major markets. The IMF cut its global forecast growth for 2014 to 3.4% from its April projection of 3.7%. More specifically, the IMF downgraded U.S. economic growth in 2014 to 1.17% from 2.8%. Among the BRICS countries—Brazil, Russia, India, China, and South Africa—only India was not downgraded. (Source: Talley, I., “IMF Cuts 2014 Global Growth Forecast,” The Wall Street Journal, July 24, 2014; https://online.wsj.com/articles/imf-cuts-2014-global-growth-forecast-1406216058.)
Karpouzis also notes that increasing geopolitical tensions in the Ukraine and Iraq have been helping lift certain commodity prices higher. Gold prices are up almost three percent in the first week of August, while the S&P 500 is down approximately two percent. At the same time, percolating tensions in Ukraine and, more recently, Iraq have helped send the U.S. dollar index higher; up more than two percent since the beginning of July.
“With corporate earnings already priced into much of the recent stock market gains and geopolitical tensions creating volatility, many investors are on the lookout for margins of both safety and growth,” he adds. “In addition to looking for potential gains on the stock market, investors could take advantage of the market volatility and consider foreign exchange, or ‘forex,’ trading.”
“Forex is a currency market where investors speculate on the price of one global currency against another. Unlike the stock market, there is no real bear or bull market in forex trading; currencies move up and down against each other based on volatility,” Karpouzis concludes. “Since the beginning of July, the Volatility Index is up 35%. For those who don’t mind risk, signs of uncertainty could create interesting opportunity for forex trading.”
Learn-To-Trade.com is the leading provider of stock market training courses in the Greater Toronto Area. Led by licensed industry professionals, Learn-To-Trade.com’s extensive stock market trading courses provide its members with all the tools necessary to trade financial products in today’s complex and fast-paced markets. Stock trading training courses with Learn-To-Trade.com teach investors both basic and advanced stock market investing principles, including how to read and understand stock prices and quotes, fundamental and technical analysis, and various trading strategies. Stock trading training at Learn-To-Trade.com also provides extensive training and knowledge in stock option trading, stock index trading, futures trading, futures option trading, forex trading, risk management, and capital preservation. Learn-To-Trade.com members utilize real-time, simulated trading platforms to paper trade until they gain the confidence to make independent market decisions and produce consistently profitable results. As the leading and oldest financial educator in Canada, Learn-To-Trade.com’s instructors are also educators for the Toronto Montreal Exchange, as well as the TMX, through which it offers educational sessions to the major banks across Canada. To learn more about Learn-To-Trade.com, visit the company’s web site. Contact Learn-To-Trade.com by phone at 416-510-5560 or by e-mail at info@Learn-To-Trade.com.