As 2017 draws to a close, many traders are already looking towards the new year and potential investment opportunities. Predicting such movements is always a bit difficult and yet, there are a handful of suggestions that could very well allow you to enjoy a more financial liquidity in the coming months. What do some of the experts have to say? Let’s take a look at four predictions which could be worth your while to consider.
- Keep an Eye on the American Markets
The United States has always been an economic powerhouse and while some are noting that China is on the rise, investors should still be keen on becoming involved with American indices. There are some very real statistics to back up this observation. The S&P 500 has shown an annual return over a period of 10 years of just over 8 per cent. The Dow Jones Industrial Average is at or near all-time highs. Furthermore, domestic businesses should continue to perform well in 2018.
- The Technological “Big Boys” on the Block
The technological sector has traditionally performed well; even during times of mild recession. Anyone who is interested in taking advantage of stable returns and dividends should therefore pick up tech-based shares such as Apple, Google and Microsoft. Although this is certainly not brain surgery, many analysts are predicting that 2018 could be a breakthrough year for these massive enterprises.
- Will Gold Rise?
In truth, the 2017 financial year has confused both the bulls and the bears alike. The price of gold was quite volatile and many are wondering whether or not this trend will continue in 2018. Some professional wealth managers expect the upcoming year to provide much-needed stability to this precious metal. Increased industrial demand as well as a healthier global marketplace could cause gold to top out at $1,375 dollars.
If this scenario comes to pass, it is not entirely out of the question to see gold touch $1,500 dollars per ounce. Another factor to consider is the current political state of affairs within American politics. The unpredictable nature of Donald Trump could cause the dollar to fall in relation to international currencies such as the pound and the euro. This would create a very bullish scenario for the precious metal. So, be sure to keep an eye on his Twitter account!
- Currency Trades and the Pound
The Brexit has dominated European headlines for more than a year and 2018 will be a watershed period in regards to how the United Kingdom engineers a split from their European counterparts. Unfortunately, many wealth managers are less than optimistic when referring to the value of the pound. Morgan Stanley recently predicted that the value of the pound could very well fall below the euro during the first few months of 2018. Although this is not good news for British imports, such a situation will represent an excellent buying opportunity for those who are active within the Forex markets. Of course, this is a short-term prediction. Prices will likely stabilise once the exact stipulations of the Brexit are solidified. It is still probable that the pound will remain in bearish territory for some time to come.
Please note that these predictions may or may not come to pass. Investors will need to keep abreast of the latest news updates and they should refer to CMC Markets if they hope to obtain the most objective opinions. Either way, 2018 is certainly shaping up to be an interesting year.