The stock market rises and falls every single day. When you invest your hard-earned money, you should feel confident that you have done so in the stock of companies that will provide you with a fair return on your investment. If you want to feel confident in your investment strategy, then it is critical that you first identify potential problems that you may face with your investment. Here are some of the top problems that investors may face in 2015 and how you can work to overcome them.
German Stocks have Fallen
The years after the European financial crisis showed promising growth in the German markets. However, this was due to the export of goods to China and Russia. It is not guaranteed that Germany will continue its strength in exports, meaning that it is possible that the country could slip into recession. The best way to overcome this is to keep a very close eye on exports and how they are affecting the German economy. A sign of a decline in exports can indicate a good time to reclaim your investment.
The Chinese Market is in Decline
The popularity of China as a country for cheap exports has made it a great target for investors over the years. Unfortunately, the number of exports, as well as China’s growth, is already in decline. However, if you do choose to invest in Chinese stocks, then you should keep a very close eye on their economy. Pull your stocks if it starts to fall too low.
The United States Raises Bank Rates
It has yet to be known whether the rise in the rates of several different banks including The European Central Bank will cause the economy to crash again. Because the economy of the US is currently recovering, it is not known if this rise will prove beneficial or the opposite. It is believed that the end of low rates and a slow US wage growth can cause this to be unhealthy, by prompting more volatility in the curve of the US treasury. Watching the changes in the economy can be very beneficial if you plan to invest in any US-based companies.
Structural Reforms Are Increasing Profits
Something that you should also consider when investing is the decline in international investors in many foreign markets. The lack of interest from foreign investors caused a decline in profits. As a result, many companies turned to structural reforms. Time will tell if these will be able to benefit the countries by boosting profit, but considering that much of the world’s economy is in decline, countries showing promised should be watched by investors. These could indicate a new area where investors may want to consider an investment of funds, particularly if you are someone who likes to keep a diverse portfolio of stocks in different countries around the world.
As you can see from the previous problems that investors are facing in 2015, there are struggles coming from all areas of the globe. This indicates a possible global recession. The best way that you can overcome this is to invest your money very wisely and pay close attention to your stocks. Keeping an eye out for potential problems will help you catch possible changes in the stock market that indicate the right time to withdraw your investment. Another way to overcome this problem is to keep your eye out for emerging markets that are considering structural reforms as an answer. However, be careful not to invest prematurely-not all of these international markets show as much promise as others. There is a multitude of ways to gather information on investments, whether it’s through a google search, social media, the news, or a single website designated solely to investment inquiries, such as InvestWall.
The wrier of this article, Lautaro Martinez, is a freelance writer and businessman who shares tips and insight on financial stability. If you would like to learn more about Lautaro, check out his Google+ profile