Representatives of bull and bear market will change camps to capitalize on investment activities
In 2019, the global financial markets began to become unstable, which was the result of problems that appeared earlier. International trade wars, political tensions, a reduction in the cost of oil prices – all this eventually led to the fact that even before the end of 2018, the S & P 500 index fell to values that are lower than the annual maximums by 20%.
Experts also note that oil has fallen in price by 40% compared with last year’s summer figures. Therefore, now investors prefer not to be active and representatives of the bull and bears market have taken a wait.
How to deal with investments in the bull and bear market in 2019
Despite the obvious problems, the global catastrophe of the economy is unlikely to happen. As history shows, financial collapse occurs even when everything speaks against its occurrence. In addition, the fact that over the past 10 years, finance regulators have advanced in their ability to control the market will play into the hands of its players.
However, in the near future we should not expect only positive growth dynamics. Market analysts insist that there are no special reasons for joy. They expect that in 2019 the market will suffer from strong fluctuations in various assets. The main advice in this situation is not to play for the future, but to act on the situation. Investors, who have shown flexibility and the ability to adapt to changes, moving to the bull camp, and then returning to the bear flock, and vice versa, will benefit from the current situation of the sphere.
Experts also recommend keeping a large part of the investment portfolio in money or highly liquid assets. Moreover, for those who prefer to invest in specific objects and do not want to follow general advice, you need to rely on trends and moods of the chosen niche.
For example, in the new year we can expect an increase in the dollar against other currencies, as the US Federal Reserve still raises the base interest rate on it. However, in this case, the monetary policy of the European Bank must be taken into account.
Bonds of large ruble corporate borrowers can also be popular and bring a higher yield than in the case of deposits.
Financial market experts advise not to discard exporters ’shares. These are metallurgical companies, representatives of the oil sector and fertilizer manufacturers. However, here it is necessary to monitor how the situation will develop, in particular, the situation with the sanctions pressure on oilmen.
