“You’re going to go through tough times – that’s life. But I say, ‘Nothing happens to you, it happens for you.’ See the positive in negative events. Joel Osteen
There is no doubt that living in our post-modern world is not easy. Each and every morning we wake up to the next round of “bad news”. Consequently, I find myself wondering what more can go wrong. Last week I woke up to the following major geopolitical and socio-economic news events:
- The UK as formally triggered the Brexit divorce process.
- Donald Trump has decided to sign an executive order reducing EPA (Environmental Protection Agency) funding.
- India is battling to contain racial violence on African Students just north of New Delhi.
- The South African president, Jacob Zuma has just fired the popular and successful Minister of Finance and his deputy.
- European Union countries are on tenterhooks awaiting the next terrorist attack.
I could list pages and pages of economic, criminal, and political events that continue to plague our world; however, creating lists of stressful events which keep on adding to the current global uncertainty, is not going to solve the challenges of living in the world. The fact of the matter is that it is not easy to thrive in our current global climate.
Nevertheless, we do not have much choice in the matter. No matter what goes on around us, we still have to get up in the morning and get on with life. Therefore, the question that begs is: How do we deal with the pressures and stresses of our post-modern world.
Economic unpredictability and the financial markets
I believe that there is always hope; ergo, there are always ways to overcome our current circumstances. Before we have a closer look at some of our options, let’s define economic uncertainty as well as the financial markets:
According to EconomicsHelp.org, “economic uncertainty implies the future outlook for the economy is unpredictable. When people talk of economic uncertainty, they usually imply there is a high likelihood of negative economic events.”
Furthermore, a financial market is a “market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural products.”
Financial markets vs economic uncertainty
When we look at these two definitions, it is acceptable to assume that times of economic volatility and unpredictability will affect the outcome of financial market trading. For example, the Brexit process is creating a lot of uncertainty in the markets for the simple reason that no one knows what the result of the divorce between the UK and the rest of the EU will be.
As a result, traders and investors will be hesitant to invest in companies that are directly and indirectly linked to the Brexit process because it is tough to predict the impact of Brexit on their share price. Consequently, stock prices and the overall financial market profitability will drop.
Trading in times of economic volatility
The good news is that it is not all “doom and gloom.” It is possible to embark on a successful financial market investment career; however, it is important to get the basics correct. The most important fundamental to take note of is to ensure that you open an account with a reliable online trading broker.
It is now relatively easy for everyone to gain access to the internet. In fact, up to 50% of the global population currently has access to the World Wide Web via a mobile device. As you can imagine, ease of access to the internet is both a good and a bad thing. The rise of the internet provides people with access to income generation opportunities, as well as makes it easy for the unsuspecting trader to be fleeced of their entire savings.
Furthermore, it is straightforward for anyone to open a brokerage and to offer consumers the option of trading online through their platform. Therefore, it is vital to make sure that you are investing in the financial markets through a bona fide company such as Lionexo. The risk of losing your entire investment is just too high for you not to make sure that you have signed up with a reputable broker.