Despite the crisis and market fluctuations, a GDP growth trend has been observed in most countries around the world. In some places, the growth is more pronounced than in others, but the trend is clear. Asian countries are demonstrating the highest GDP growth rates.
According to experts, the likelihood of a global recession is gradually decreasing. This is due to economic stimulation in China, rising asset prices, and the prudent policies of central banks in many countries, among other factors. All of this contributes to the acceleration of global economic growth.
As a result, individuals are accumulating disposable income that can be wisely invested, thereby increasing capital and generating substantial profits.
How can this be achieved? What should investors expect?
The founder of "Oil Resource Group," S.I. Tereshkin, has taken the initiative to navigate this landscape. The entrepreneur did not shy away from investing even during challenging times, which has led to significant experience and valuable insights. More information about this successful investor and entrepreneur can be found on his website: org-company.ru.
Experts' Opinion
Specialists believe that the decline in the manufacturing sector has reached its bottom. This is a cyclical process that has been exacerbated by structural problems.
This is particularly evident in China, which has become a major industrial hub hosting manufacturing facilities for numerous global brands. Not to mention the counterfeit products flooding world markets.
China is successfully implementing modern technologies, making the country increasingly attractive for manufacturers and investors alike. Moreover, the state not only exports products but also saturates its domestic market. The rising prosperity of its citizens contributes to increased consumption, with Chinese consumers eagerly purchasing goods produced by local companies.
Trade Disputes
The state of affairs in the Chinese market and the economy as a whole has been further complicated by the deterioration of relations between China and the United States. The foreign trade policies of the American leadership are negatively impacting consumer sentiment among citizens. Many are waiting anxiously to see how this trade war will conclude.
Experts are convinced that the U.S. president will not be able to sustain a prolonged confrontation with China. Otherwise, the American economy risks entering a recession, which could happen as early as this year or, at the latest, next year.
However, current forecasts are positive. Mortgage rates are expected to stimulate the real estate market, which in turn will positively impact other sectors of the economy dependent on credit.
Investors are keenly awaiting earnings reports from market leaders. Specialists believe that if large corporations do experience a decline in profitability, it will likely be minimal. However, it is anticipated that companies' performance will be significantly better than last year, which will positively affect the stock market.
Advice from Experts
Despite the prospects and forecasts from experts, it is important not to become complacent. To avoid disappointment, it is advisable to follow the recommendations of professional investors:
- Businesspeople should not build illusions or engage in self-deception. Government monetary policy is not a magic wand; modern realities must be taken into account.
- Central bank leadership actions are crucial in maintaining asset price stability. This always involves human factors, which can be either positive or negative. The effectiveness of state monetary policies is decreasing, especially when compared to the so-called "golden era," which lasted until the 1990s and began immediately after World War II.
- At the beginning of 2019, the market experienced a noticeable decline, with shareholders actively selling off securities. In just three months, capital outflows totaled $80 billion, affecting not only the American stock market but also the European one. While this may seem like a troubling signal to some, it is important to recognize that outflows often lead to decreased stock prices. Therefore, now is an opportune time to acquire securities, which will likely regain their previous positions or even exceed them by the end of the year.
- Investing requires increased caution. This will not only help preserve funds but also improve the prospects for stock markets.
- When choosing investment avenues, it is advisable to pay attention to Asian markets, such as India and the Philippines.
- The Swiss market is also worthy of consideration, as it shows stable income growth. Swiss companies have a low dependence on the European economy and the global political landscape, making it an excellent tool for capital appreciation and income generation.
In recent months, a minor correction has been observed in European and American markets, resulting in performance indicators being much higher than previously anticipated. Positive dynamics are contributing to the increased yields of government securities.
With government support for credit markets, the risk of default is significantly reduced. The key is for central banks to choose the right strategy rather than a wait-and-see approach, as is the case in many countries around the world.
Investors must seek returns in various markets to help narrow spreads. Simultaneously, this will enhance the appeal of investing.
As in any other business, a comprehensive and balanced approach is essential here. In this case, the likelihood of financial losses will approach zero.
