You can poll a hundred investment advisers and market gurus and get 100 different opinions on why the markets are where they are or doing what they are doing and when it is going to “change.” The bottom line is … you can’t change what the markets are doing, or predict where the economy is going, or change any of the dynamics. So, as an investor, you have two options. You can fidget and worry and walk around the floor about it … or worse … try to “overanalyze” and end up with analysis paralysis … and do nothing. Or … you can find a way to profit from it.
This is where I think Forex fits in well. You see … I see the Forex (FOReign Exchange) market as a “want versus need” type of market. This is why. Investors may want to buy stocks … or want to buy bonds … or real estate or any number of “traditional” assets. But … when times are tough … or funds are scarce or uncertain, then they just don’t have to buy … so the markets react accordingly.
Now, with Forex, despite economic conditions around the world … Europe, Asia, Canada, Australia or the United States … major banks, multinational corporations AND countries … need to exchange their currencies to make their Commerce. Period! And, as long as those currencies are moving (changing value) with each other, there is an opportunity to chase that price action. Now there are risks in each and every investment and there are also risks in Forex, so each investor should do their due diligence before investing, as they would with any other opportunity, and then decide if it is suitable for their style of trading. investment.
As with any investment investors may consider, do your research, get the facts, ask questions, and do your homework. I believe that once any savvy investor follows this process, Forex will find a place in their overall investment portfolio diversification plan.
