…keep your finger on the pulse!
In this day and age, the world is a fluid and volatile place. It seems that virtually every day some major event takes place around the world that causes at minimum stock market jitters and at most tumbling currencies.
If some type of aggressive action takes place in the Middle East, the price of crude oil may spike. If the U.S. markets are roiled due to some negative economic news, the price of gold inches upwards. When the Fed raises interest rates the Greenback climbs higher. If the United Kingdom holds firm on its Brexit demands, the Euro slips against the U.S. Dollar.
In short, it appears that based on the speed at which breaking news is now reported and that so many “analysts” are willing to state opinion as fact, the global financial markets are vulnerable to literally hourly fluctuations that may end up impacting foreign markets and economies….and your profits.
What is an investor to do?
A recent survey of investors who traded more than $500,000.00 U.S. Dollars annually showed that on average they reviewed more than 40 different publications, electronic newsletters, e-publications, newspapers, etc., a month….and that they actually received more than 69 pieces of financial information during that same time frame!
This of course does not include the financial television, radio and internet programs they watch or listen to. Nor does it take into account the basic news and opinion shows they may tune in to that do not specialize in financial or economic stories. When you consider all of the time and effort that such an investor places in their attempt to remain abreast of market and global trends, it’s no wonder that today’s investors feel completely overwhelmed.
Another interesting factoid that creates almost as many questions as it does answers, is what the average rate of return for investors from the 1970-80’s was when compared to investment returns for today. The average return for a wide-market investor today is just over 6%. However, a really good return on investment for an “active investor” is 15% annually. In the 1970-80’s the average return for a wide-market investor was close to 7.5%. A really good return on investment for an “active investor” was very close to the same 15% annually that can be realized today.
Hence, the question appears to be just how helpful is the influx of more up-to-date information for the “plugged-in” investor today when compared to investors almost 50 years ago? Is there truly an advantage to being supplied with more detailed and voluminous data as an investor in the currency and stock markets?
The answer appears to be “no,” when you consider that investors today may simply be unable to process all of the data that they collect.
Most investors will tell you that it is impossible for them to process all of the information, data and news that is collected and sent to them on a daily basis. The amount of raw data that is provided through the internet, television, social media, radio, email blasts, newsletters, periodicals and traditional publications is almost unfathomable.
The amount of information collected and shared is only half the issue. The other challenge is in actually analyzing all of that collated data. In other words, it’s one thing to receive relevant information about a currency or economy. It is entirely another matter when it comes to weighing all of that data so you can make accurate and valid assessments regarding how best to buy or sell currency on the open market.
If you have read the articles we have published over the last couple of years, you know that we are always cognizant of stating two main points. First, it is imperative that you rely on solid, accurate data when it comes to being able to make effective decisions regarding your currency management. Second, that you rely on a solid, experienced currency management partner who can help you decide how best to interpret the data you are receiving. This partner should also be capable of saving you money on your transactions while protecting your profits.
This partner should be MosaicaFX.