Financial news followers will have undoubtedly noticed an absence of positive news regarding investments and marketing in certain areas of the world recently. Commodity prices on the downswing, Chinese stock market instability, a decline in economic growth in Singapore, and overall poorly-performing regional currency values. These conditions are affecting investors’ choices to involve their money in these unpredictable conditions. However, a savvy investor or advisor will know that even such volatile conditions can be circumvented, allowing for lucrative investment opportunities. The old adage of “buy low, sell high”, may not be quite as simple as it sounds, but it does lend itself to money-making opportunities when and where others fear to tread.
So where does one begin to look for indications of a strong investment choice?
Recent trends in commodities markets include plummeting oil and gold prices and a decrease in copper demand. The CRB Index is a popular gauging tool used to measure commodities performance at any given time. It has now reached it’s lowest mark since March 2009. This situation is the result of the current economic outlook for China. Due to it’s immense population, size, and emerging economy, China is a gargantuan consumer of commodities. Due to fewer construction products creating less need, and other world economics also struggling (with the exception of the United States), business will scale back, resulting in a lack of demand for commodities.
However, the very nature of commodities indicates that there will always be a demand for them. It will simply be up to the individual investor to do his homework and determine where he believes the demand will be the greatest, be consistent, and generate a profit as he prepares his portfolio and invests his money.
You can read more on falling currency values and equities here.