No discussion of trading strategy is complete without some mention of correlation with regard to assets in a portfolio. This can seem daunting, but understanding correlation can be straightforward and profitable.
The price of oil has recovered well from a very poor end to 2018, helped by a 24-nation deal to curb production. But there are both macro-economic and geopolitical hazards ahead during this year and beyond.
Asset-price bubbles are to traders and investors what shoals of rocks and treacherous tides are to sailors, a deceptive situation that can pull them under. But how can you tell what is a justified price rally and what is a dangerous example of herd mania?
Singapore’s policy of keeping its currency within set trading bands seems to have paid off as its value has remained remarkably stable during the past year. Any volatility is usually caused by problems in other currencies, such as sterling’s Brexit-induced weakness.
Google-owner Alphabet started off the last major set of tech results from the current reporting season. Most announcement were well-received by markets, but Twitter struggled to impress.
Hopes of a powerful bull run in Spanish stocks last year were largely disappointed, but the benchmark IBEX 35 index has made a promising start to 2019. But challenges remain, not least the ongoing dispute over independence for the Catalonia region.
Most successful traders rely on one or more strategies to guide their actions in the market. Some systems are very complex, and off-putting for newcomers, but here are five simple and effective strategies that novice traders can profitably use.
London stock markets were higher today as Prime Minister Theresa May flew to Northern Ireland to say she can get an agreement to a deal that suits the province. But sterling was lower after a disappointing survey of the services industry.
Four of the biggest names in the tech world have just reported their financial results; Amazon, Apple, Facebook and Tesla. Some fared better than others, although share prices were generally buoyant.
Turkey’s currency has been buffeted by a trade war with the United States and concerns over the country’s foreign currency debt. Its value has recovered from the lows of summer 2018 but remains below its level of a year ago.
Cryptocurrencies endured a torrid time in 2018, with prices well below their peaks. Some have written off the asset class, but there are good reasons to believe cryptocurrencies will bounce in the year ahead.
Gold’s three-month rally shows no sign of losing steam, and demand for the metal will be supported by Chinese New Year celebrations, which begin next week. But the longer-term picture is less reassuring, with the price noticeably lower than a year ago.
The Dow Jones index rallied strongly after taking a dive on 24 December. But concerns over global growth, a deadlock in Washington and US-China trade relations have sent shares lower.
As Parliament debates amendments to the government’s European Union withdrawal legislation, the pound and domestic shares held their own on financial markets. But that could quickly change if legislative deadlock turns into a constitutional crisis.
Oil has pulled out of its price nosedive as output curbs agreed last month come into effect. But in the longer term, the prospects for crude are bound up with the extent of any global economic downturn.