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“The simplest trades are usually the best ones.” – Michael Hewson
There are no guarantees in the markets, but there are certain things you can do that would ensure your continuous victory. Interestingly, there’s also one bet you can make and reap sure gains from – as far as your long term investment goals are concerned. What kind of instrument is that? To answer the question, please let’s take a look at the interest rates below:
Australia = 2.50%
New Zealand = 2.50%
Canada = 1.00%
Great Britain = 0.50%
Switzerland = 0.25%
Europe = 0.25%
United States = 0.25%
Japan = 0.10%
Note: The above are the central banks rates of some countries whose fundamentals impact the global markets the most. The rates above were correct at the time of preparing this article.
You can see that the interest rate in the US is almost zero. The national debt of that country is extremely huge and it’s becoming worse and worse by roughly $1 trillion per annum. Because of this terrible debt condition, the Fed is striving to make sure that the interest rates remain as low as possible (almost zero). The effect on the Greenback is deplorable; plus the interest rates can only go upwards. When the value of something is almost zero, it’s nowhere to go but the north. Indeed, the forecast/bet on the possibility of the interest rates going up is the most accurate long-term forecast/bet you’ll ever make in your life.
In future, the interest rates have nowhere to go but towards the upside. So how can you take advantage of this? Congratulations, the astute bulls!
What is the Surest Bet in the Currency Markets?
Apologies, currency traders. Interest rates aren’t currency pairs, are they? So you may ask, is there any surest bet in the currency markets?
I don’t know of any single surest bet on Forex, but I know what can be done to ensure the permanent safety of one’s capital. Those things have been mentioned in the past and would be elaborated on in future articles. However, what I’ll say right now is: Keep looking for nice trading setups that offer low risk and high reward opportunities. Take advantage of them and disregard the confusing squawk about the markets.
Conclusion: We don’t need to know every piece of the fundamentals affecting a trading instrument – something that’s not attainable. We’d need to make decisions with the only information we’ve. Experienced fundamental analysts seldom see eye-to-eye on events affecting the markets. Sometimes, the fundamentals that aren’t expected can come out suddenly and have effects on the markets. The effects may be in your favor or against you, but no matter what, you can be victorious.
This piece is ended with the quote below:
“Over the long term, the market will correct expectations and reflect reality, rewarding traders that have anticipated that reality.” – Jose M. Pineiro
Source: Tallinex.com
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