Are precious metals the only winner of the UK’s Brexit vote (aside from Theresa May)?

Are precious metals the only winner of the UK’s Brexit vote (aside from Theresa May)?

by Charly United Kingdom World
  • Silver prices up 18% since Brexit referendum
  • Gold up by more than $100 per ounce
  • easyMarkets uses historical lessons to anticipate further precious metal price rises

With the shock of the UK’s decision to leave the European Union beginning to fade into acceptance, and Theresa May bringing at least some degree of political certainty back to the country as she takes over from David Cameron as Prime Minister, it’s time to take stock of the last few weeks of upheaval.

The UK’s ‘leave’ vote will have lasting repercussions, on the country itself, on the EU and on global financial markets. Stocks plummeted following the outcome of the Brexit referendum and, while they have since rebounded, are likely to be on something of a rollercoaster over the course of the two years between the UK invoking Article 50 and officially leaving the EU.

The impact of Brexit on UK property prices remains to be seen. Knight Frank reported a 38% surge in London real estate sales in the week following the Brexit decision, with the pound’s plummeting value spurring many overseas buyers to purchase UK properties at bargain prices. However, this temporary boom is expected to be just that – temporary. Many sellers lowered house prices just before and after the referendum in order to sell fast, before the much anticipated slowdown in sales and prices began. Combined with foreign bargain hunters capitalising on the pitiful performance of the British pound, this led to a marked surge in the market.

The ongoing picture does not look quite so rosy for property. Chancellor George Osborne has warned that house prices could fall by as much as 18% by 2018 and analysts have projected that London offices could lose 20% of their value by 2019. Seven investment firms have temporarily suspended the trading of their UK property funds in order to avoid a massive fire-sale that could undermine the entire market, with more than £15 billion-worth of UK real estate funds have been frozen.

Amidst all of this uncertainty, gold and silver are enjoying a sustained spike in demand. Seen as safe-haven assets in times of uncertainty, gold and silver are certainly benefiting from the Brexit plebiscite. Gold prices have reached multi-year highs: the yellow metal has gained over $100 per ounce (8.5%) since 23 June. The rally in silver prices has been even more dramatic. Since June 23, silver has gained a staggering 18%.

The Bank of England’s easing of monetary policy is also expected to benefit precious metals.  Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, comments,

“If history is any indication, gold prices are set to rise as investors look to buy an inflation hedge for cheap. Buying gold “cheap” makes it more likely to outperform real estate in the long term on an asset price basis. Fears about Brexit are expected to drive more investors away from London’s real estate market and gold may well capitalise on the adjustment.”

The Brexit dust has begun to settle and precious metals have emerged as the clear winners. Gold has entered into a bull market and is unlikely to let up anytime soon without a major shift in the macroeconomic outlook.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Will global commodities suffer as a result of Brexit? The experts at easyMarkets think not!

Will global commodities suffer as a result of Brexit? The experts at easyMarkets think not!

by Charly United Kingdom World
  • Agricultural commodities shrug off UK’s referendum result
  • WTI Oil and Brent Crude prove somewhat more sensitive
  • Gold comes out on top, with ‘higher highs’ still likely to be seen

The UK is still reeling from the result of the recent EU referendum. Political parties have descended into chaos, the value of sterling has plummeted and the country is suddenly facing a future that is awash with uncertainty.

Nor is it just the UK that has been shocked by the Brexit decision. Markets around the world reacted to the ‘leave’ vote on 23 June and analysts and investors have been working overtime to make the most of the new situation.

Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, comments,

“Markets and currencies can be extremely sensitive to political events, as we’ve seen time and again. What has seemed interesting in relation to Brexit is the surprising lack of volatility that commodities have shown. After years of tumbling prices and sensitivity to even small-scale events around the globe, commodities are holding up rather well in light of the UK’s decision to leave the EU.”

Agricultural commodities seemed to largely shrug off the politics of Brexit, though of course all commodities strengthened against sterling after its spectacular fall on 24 June and the further fall of 5 July, when the pound dropped 1.5 cents to its lowest value against the dollar for more than three decades. Sterling’s value of $1.3117 (as at 5 July) is now 12% lower than before the Brexit vote.

WTI Oil and Brent Crude showed greater sensitivity to the UK public’s leave decision. Both took a few hits on the day of the referendum result, spreading ripples of nerves in relation to economic growth, but both have since rallied admirably and retracted most of their losses, although they are still trading below their pre-referendum levels.

While it’s still early days in the new post-Brexit era, and much will change over the coming years, so far as commodities are concerned the initial reaction has been far less wild than many feared it could be prior to the referendum.

And of course gold, as ever, is the winner in these times of uncertainty. Its value rose by more than 5% in the 48 hours following the referendum result and reached a high it hasn’t seen since July 2014. easyMarkets’ Nikolas Xenofontos observes,

“On Friday last week gold jumped a massive $100, but profit-taking brought prices back to the $1,300 range. What is interesting about the rise in gold is that it pushed out of a predictable price range so we may see higher highs. Along with other precious metals, the fundamentals are providing a lot of support for gold.”

Overall, the situation remains surprisingly positive, with commodities proving more resilient than expected in the light of such a shocking political move by the UK. It’s certainly an encouraging starting point for the coming two years, as the country’s Brexit negotiations really get underway.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

How could UK fracking impact energy prices and the wider economy in the short and long term?

How could UK fracking impact energy prices and the wider economy in the short and long term?

by Charly United Kingdom World
  • 159 onshore block licenses issued in 2015 (Oil & Gas Authority)
  • Just 19% of Brits support exploration for shale gas (DECC)
  • UK shale producers would require £33 billion worth of infrastructure (EY)

Fracking – the process of drilling into the ground and then using high-pressure water to release trapped gas – has been one of the most controversial subjects in the energy industry for years, but the tale took a further twist in May 2016 when North Yorkshire County Council approved Third Energy’s application to frack a well in Ryedale. The decision has been hailed as an important step forward for the UK’s fledgling fracking industry by supporters of the process and as a betrayal of the environment by those who are against it.

But leaving aside the ‘should we, shouldn’t we’ debate, what could fracking in the UK do for energy investments and the wider economy in the short and long term?

Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, comments,

“It’s no secret that the UK’s government has advocated for the production of shale gas, an industry it purports could help the world’s fifth largest economy strengthen its energy independence. However, with public support for hydraulic fracking at all-time lows, the Conservatives may have a few hurdles to clear before bringing this industry back online anytime soon.”

In 2015, 159 licences for onshore oil and gas fracking blocks were issued, a move that pushed the UK one step closer to establishing a viable fracking industry. The US shale boom of the past five years has brought fracking back into focus, with UK energy producers seeking planning permission to begin hydraulic drilling, hence Third Energy making headlines last month by formally seeking planning rights to begin the controversial process.

Economic prospects

For energy investors, a UK fracking boom is almost too good to pass up. If the US shale boom is any indication, shale production is an extremely lucrative enterprise that has the potential to disrupt the entire industry. UK energy companies have already identified billions of pounds’ worth of oil trapped beneath rock layers. Recent advances in fracking technology also mean that shale producers would be able to maintain output levels at competitive prices.

UK shale prospects are bright. There are about 1.3 trillion cubic feet of gas alone in the northern Bowland shale region. Extracting even a fraction of those reserves could be worth billions and the economic benefits wouldn’t stop there. Shale producers would also require an estimated £33 billion worth of infrastructure to effectively realise this market, according to accountants EY. Infrastructure development stimulates construction spending and employment, which have numerous multiplier effects on the economy.

According to the British Geological Survey, other regions with high shale gas opportunities include southern England’s Weald Basin and Scotland’s Midland Valley. Scaling up production capacity in these regions also means greater investment opportunities in field development, subsea technology and operations.

Downside risks

There are many downside risks associated with fracking. The first and most obvious is the environmental degradation that is associated with this unconventional drilling practice. Greenpeace has cited concerns over frack fluid, a highly toxic chemical compound that is needed to make this method of drilling viable. Frack fluid is further contaminated by the heavy metals and radioactive elements naturally found in shale rocks. This is a major cause for concern because a large portion of the frack fluid returns to the surface, where it could contaminate rivers, streams and even underground water supplies.

Greenpeace also notes that in the US alone, up to 10 million gallons of water are needed each time a well is fracked: an enormous drain on resources.

A negative public backlash is the last thing a UK shale industry needs in order to be successful and sustainable. Four out of five Brits have a negative view of the practice, with the strong majority favouring renewable energy sources. Only 19% of Brits support exploration for shale gas, according to a recent survey conducted by the Department of Energy and Climate Change (DECC). That’s down from 29% two years ago.

While oil prices have recovered in recent months, they remain well below pre-crisis levels. What’s more, the latest rally has been driven mainly by hopes of a production freeze among OPEC producers and supply disruptions in places like Canada (wildfires), Nigeria (militant attacks), Libya (war) and Venezuela (economic collapse). All of these countries would pump more crude oil if they could, which suggests the latest rally is anything but sustainable.

In other words, spending billions of pounds on a cyclical industry with an uncertain future may not be the best way to grow the economy. With electric cars becoming even more affordable, some analysts are concerned about a final death blow to the oil and gas industry by the turn of the decade. While this is certainly speculative, it raises a lot of questions about the future of oil and gas, especially in the current context of a slowing Chinese economy. Beijing has made it abundantly clear that it is prioritizing consumption-led development over export and investment-led growth, as it seeks to steer its massive economy in a way that mirrors its advanced industrialized peers.

Regardless of your stance, the UK government appears poised to give oil and gas companies the political backing to pursue fracking: it seems the fracking conversation has come full-circle over the past five years.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

easyMarkets weathers the Brexit storm and keeps its promise to clients

easyMarkets weathers the Brexit storm and keeps its promise to clients

by Charly United Kingdom

The Brexit referendum result is in and the UK public has spoken – 48.1% voted to stay in the European Union and 51.9% voting to leave meaning a BREXIT will take place. The GBP fell to 1.3250 – an 11.42% drop and the lowest since 1985.

Leading up to the Brexit referendum, easyMarkets announced to its traders that it would not alter its trading conditions. Leverage would remain at 1:200, No Slippage, Fixed Spreads and Free Guaranteed STOP LOSS.

Following the Brexit event easyMarkets can confirm that client orders were executed at the requested prices and that no clients suffered from negative account balances. CEO, Nikos Antoniades says “Our goal is to keep traders safe especially when trading in such volatile conditions. The Brexit event was the perfect scenario for us to show that we honour our promises to our traders”

easyMarkets has positioned itself as one of the easiest and safest brokers to trade with. Promises are easily made when the markets are predictable however easyMarkets has again honoured its commitment to traders under even the most adverse market conditions.

For more information please visit www.easyMarkets.com.

 

For PR information please contact:

Charlotte Day

Head of Content & Social Media, easyMarkets

charlotte@easy-forex.com | T: +35725828899

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

With just a fortnight until the Brexit referendum, what is the final push doing to the pound?

With just a fortnight until the Brexit referendum, what is the final push doing to the pound?

by Charly United Kingdom
  • Pound-dollar exchange rate down by 2.1% between 26 May and 3 June (easyMarkets)
  • A Brexit may shave 3.5% off UK GDP by 2020 (Institute for Fiscal Studies)
  • Euro-pound exchange rate rising sharply, a sign of things to come should Brexit occur (easyMarkets)

Britain’s European Union (EU) referendum debate shifted into high gear last week when the pro-Brexit campaign took the lead in the polls for the first time ever. The British pound was one of the biggest casualties, a trend expected to continue should voters continue to lean in favour of Leave.

After months of campaigning, Brexit appeared to be a long shot, with Prime Minister David Cameron’s Remain camp holding sway in virtually every poll. That changed last week when at least ten polls published in the UK clearly showed Leave was now in the lead.

The pound-dollar exchange rate traded on the global market plunged from 1.4698 to 1.4384 between 26 May 2016 and 3 June 2016. That’s a massive 2.1% decline that rarely occurs outside of a major fundamental shift in the market. The euro-pound exchange rate also rose sharply over the same period, perhaps a sign of things to come should Brexit materialize on June 23.

A vote to leave the 28-member European Union would affect more than just the British pound. Experts are in general agreement that an exit from the EU would spell bad news for the British economy, at least in the short-term. The Institute for Fiscal Studies, a highly respected think-tank based in London, recently forecast that Brexit would shave 3.5% off UK gross domestic product by 2020, which could damage public finances by up to £40 billion.

With the EU remaining the single most important market for British goods, it is possible that small businesses would see their competitiveness diminished as a result of Brexit. The tax implications of Brexit and how they relate to small businesses would depend on many factors, including the nature of Britain’s future relationship with the EU. At a high level, not being part of the EU would eliminate Britain’s ability to influence the EU’s taxation system and other levies related to co-operative procedure and financial transactions, according to Simmons & Simmons Elexica’s Brexit: the tax implications.

However, it’s entirely possible that a weaker pound could offset the loss of trade competitiveness for UK businesses. Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, comments,

“A weak currency could help the UK tourism sector, which accounts for roughly one-eleventh of GDP, weather the storm of Brexit. Nearly two-thirds of Britain’s inbound tourists come from EU countries. That’s equivalent to about nine million people. Maintaining their business is essential for Britain’s continued success in a post-EU environment.

“According to proponents of the aviation industry, Brexit would also severely reduce the availability of cheaper flights to and from the UK because it could affect existing air service agreements. Lesser business travel may also lead to fewer air links, making it costlier for travellers to connect to and from certain cities.”

In addition to a weaker currency, a Brexit could reduce bureaucratic red tape for domestic businesses. Pro-capitalist arguments suggest Britain’s relationship with the EU has created too much red tape. UK businesses have complained of suffocating regulations and highly restrictive employment rules from Brussels that make it difficult for SMEs and entrepreneurs to operate successfully. This sentiment is also shared by large businesses. A recent survey conducted by PricewaterhouseCoopers (PwC) found that four-fifths of UK executives said they were concerned about “over-regulation.” Another poll conducted by the Institute of Directors shows that 60% of its members want British parliament to reduce “unnecessary red tape” emanating from Brussels.

The impact of Brexit on matters related to housing and rent prices is subject to great debate. Vote Leave has repeatedly stated young people would find it more difficult to buy their first home if the UK remains part of the EU due to “uncontrolled” migration. As one might expect, the Vote Remain campaign has attacked this premise, claiming that most immigrants move into the private rented sector, which has created more competition for accommodation – something that benefits all of society.

One of the most hotly contested debates concerns the impact of a Leave vote on UK employment. Remain campaigners generally concur with the consensus that voting out of the EU would harm economic growth, thereby leading to higher unemployment. At the same time, stricter immigration laws could make it more difficult for UK businesses to source the right talent for high-demand roles at both ends of the skills spectrum. Economists argue that financial services and the automotive industry could face the biggest loss of jobs. A recent study conducted by PwC on behalf of CBI found that Brexit would lead to 950,000 job losses in total.

Most of these questions do not have a clear answer. In fact, it could take years before we find out the true impact of Brexit.

For more information about the upcoming vote, refer to the easyMarkets Brexit Q&A.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Feeding the world – the future of agricultural commodities

Feeding the world – the future of agricultural commodities

by Charly World
  • World population to reach 9.1 billion by 2050 (UN Population Divison)
  • Demand for agricultural commodities to grow at 4% between 2015 and 2030 (FAO)
  • Weather patterns, the environment and production challenges all impact on agri-commodity prices (easyMarkets)

The world population is expected to reach 9.1 billion by 2050, according to the United Nations Population Division, placing more pressure on nations and agricultural producers to meet rising demand for food. Complicating this challenge is a shrinking rural labour force, which is expected to strain our ability to feed the world over the next three decades, according to the Food and Agriculture Organization of the United Nations (FAO).

The world population is expected to grow by nearly a quarter between 2016 and 2050, producing an extra 1.7 billion people who will require food and nourishment. Agricultural commodities are already a multitrillion dollar global industry and for investors, agricultural goods in the form of grains, softs (cocoa, coffee, sugar, fruit and similar) and livestock are a key component of the global commodity market.

Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, explains,

“Agricultural commodities are a fascinating area of investment. They make up a large share of global gross domestic product and attract investment from all corners of the globe. Agriculture on this scale is a complex undertaking, with environmental factors, weather patterns and production challenges all impacting on the supply – and the price – of these commodities.”

Agriculture is already one of the biggest contributors to global warming and this is expected to worsen as demand for agri-food products continues to grow. Over the coming decades, producers therefore have the dual challenge of producing more food while simultaneously reducing their carbon footprint. Maximizing crop yields, using resources more efficiently and reducing waste will be considered crucial for ensuring the sustainability of this industry and guaranteeing that humanity’s growing population is adequately fed, according to National Geographic’s Five Step Plan to Feed the World.

While demand for agricultural products continues to rise, it has done so at a slower rate since the 1990s. Agricultural demand grew by only 2% between 1989 and 1999, down sharply from previous decades, according to data from the FAO. This is attributed to slower population growth and the fact that a significant portion of the globe’s population had reached relatively high levels of food consumption, thereby limiting the scope of further increases.

Future demand for agricultural goods is forecast by the FAO to rise only 1.4% between 2015 and 2030. The combination of slower demand growth and efforts to more efficiently mass produce agri-foods could impact how commodities are priced and ultimately traded in the financial markets.

Investors also need to be wary of the impact of drought and severe weather patterns on production. The impact of the El Nino weather pattern on sugar prices serves as the perfect example. Raw sugar futures gained a staggering 31% over just four weeks, spiking at $16.71 per pound on 23 March 2016.

Like most industries, the future of agricultural commodities will be tied to supply and demand. In the case of agriculture, however, special consideration must be given to environmental degradation caused by factory farming, deforestation and other potentially adverse practices. According to the United States Environmental Protection Agency, more carbon dioxide in the atmosphere may lead to greater environmental risks that could further degrade crop yields. Global warming is also impacting livestock and fisheries, which could further threaten our food supply.

These considerations will likely be played out in the financial markets over the years, as investors speculate on these fascinating and essential commodities.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

2016’s New Investor Tribes: Which of these dominant investor types are you?

2016’s New Investor Tribes: Which of these dominant investor types are you?

by Charly World
  • Global broker easyMarkets defines the new investor tribes
  • Wealth preservers, guided investors, free thinkers and aggressors dominate the market
  • Tribal characteristics shaping investment preferences for 2016

Back in 2012, author Michael Pompian identified four categories of client when it comes to behavioural finance: the preserver, the follower, the independent and the accumulator. Now, global broker easyMarkets has taken the concept a step further and examined how these dominant investor types can be grouped into four investor tribes.

Hanaa El Moudden, Senior Market Analyst at leading online trading services provider easyMarkets, explains,

“Understanding the various investor types can help new and experienced investors identify and join their respective tribe and enjoy greater success. It’s about knowing your characteristics as an investor and understanding how those will shape your investments in 2016.”

2016’s New Investor Tribes:

  1. The wealth preservers

Goals: Financial security and wealth preservation

Behavioural orientation: Risk-averse, passive

The wealth preserver tribe has two clear goals when investing: maintain financial security and preserve wealth. Wealth preservers are the most risk averse investors. They are perfectly content avoiding high-risk investments and the high rewards they promise. For these investors, losses are rarely justified and losing gains is even less acceptable. Contrary to popular belief, the preserver tribe isn’t just concerned about the future. Rather, they’re extremely enamored with the short-term. They are meticulous and obsessive over short-term performance and seek to preserve every penny earned in the market.

Investments they are likely to be watching in 2016: gold and silver

  1. The guided investors

Goals: Managed investment portfolio

Behavioural orientation: Passive, lacks interest in markets, disengaged from investment decisions

Guided investors invest out of necessity, despite not having a strong interest in the financial markets. This tribe generally refers to people who seek to build wealth passively through a managed portfolio or instructions from a financial professional. Guided investors generally don’t have their own ideas about the market and have no trouble admitting it. They simply recognize that investing should be part of their life in some way and seek out professional resources to help them achieve their investment decisions.

Investments they are likely to be watching in 2016: options

  1. The free thinkers

Goals: Create wealth through independent analysis and active investments

Behavioural orientation: Active, analytical, risk taker

The free thinker tribe loves the financial markets and spends a great deal of time researching securities. Free thinkers are usually among the first to open up an online trading account and are less likely to delegate trading tasks to fund managers. Independents are what Benjamin Graham describes as active investors or individuals who buy and sell their own securities and continuously monitor their investment strategy. Free thinkers make a lot of time available to investing and are less likely to adjust their strategy because of changing investor sentiment. However, they need to avoid becoming too contrarian in their views, as this could cost them in the long run.

Investments they are likely to be watching in 2016: USD/CAD and DAX and dow30

  1. The aggressors

Goals: Create wealth through aggressive investment strategy

Behavioural orientation: Aggressive risk taker, very confident, engaged in decision making

The aggressor tribe takes a highly active approach to investing. They embrace of a high level of risk and lack willingness to stick to a long-term investment plan. The aggressor is highly emotional and extremely confident in their abilities, making them more likely to adjust their portfolios and holdings in response to changing market conditions. Aggressors are active researchers who tend to dig a little bit deeper to find information than the other investor tribes. Unlike guided investors, aggressors are unquestionably the only ones steering their ship.

Investments they are likely to be watching in 2016: Energy commodities

 

Identifying your tribe

Your approach to the financial markets, risk appetite, investment interest and availability all play a role in dictating your investor tribe. The good news is all investor tribes may  generate wealth in the financial markets. By understanding your behavioural orientation and level of interest in investing, you can start to piece together the best investment strategy for you.

If you’re just getting started in finance, you should learn as much as you can about the market and the risks and rewards associated with investing. By reviewing the different markets and opportunities involved, you can begin to embrace the tribe that best represents your interests.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Holiday homes are pushing the boundaries of Europe – in more ways than one!

Holiday homes are pushing the boundaries of Europe – in more ways than one!

by Charly Turkey World ,
  • Turn to Turkey to enjoy Europe without worrying about a Brexit (Universal 21)
  • Brexit debate is impacting on overseas property purchases (easyMarkets)
  • Smart homes and eco villas push the boundaries of real estate in Istanbul (Universal 21)

Everywhere you turn in the UK right now there’s talk of the potential impact that a Brexit could have, if the nation votes to leave the EU on 23 June. The debate has touched upon everything from the single market to travel restrictions, including the impact on those buying second homes overseas.

Nikolas Xenofontos, Director of Risk Management at global broker easyMarkets, recently observed that,

“The Brexit debate is already influencing those thinking about buying property overseas, leading many of those considering purchasing a holiday home in Europe to pause their plans temporarily, pending the outcome of the referendum. Should the UK vote to leave the EU, this temporary pause may well turn into a longer period of uncertainty for those wanting a second home in Europe. Buying a holiday house that you plan to retire to one day becomes less attractive when you don’t know what the restrictions on living there might be in a few years’ time!”

The solution, according to Universal 21, is to buy a home in Istanbul. Istanbul’s largest management company, Universal 21 offers select apartments for sale in Istanbul, including luxury eco-friendly villas.

Istanbul is the only city in the world that spans more than one continent. Divided by the Bosphorus strait, the city sits in both Europe and Asia. It’s a heady mixture that has fascinated visitors for centuries. It’s also a fantastic solution for those looking to buy a second home outside of the EU, but also maintain easy access to Europe.

Istanbul’s homes don’t just push geographical boundaries. They also offer some of the world’s smartest and most eco-friendly residences. At Oceanic Bay View, concave roofs collect rainwater for reuse (the water is collected in a giant tank under the inner garden), electricity is generated through solar panels and a wind turbine (saving up to 60% in electricity consumption annually) and the entire villa’s systems can be controlled by computer or smartphone. Luxury is built into every element, from the Jacuzzi and sauna to the cinema room, staff quarters and organic winter garden.

If a luxury villa isn’t quite within budget, then Concept 21 offers an excellent alternative. Completed in 2015, the seven star resort offers contemporary two, three and four bedroom apartments centred around delightful landscaped gardens and an expansive outdoor pool area. The development comes complete with a host of amenities, including a cinema, children’s playground, basketball court, volleyball court, five a side football pitch, gym/fitness area, sauna, hamam, steam room, indoor pools and spa/massage area.

In these uncertain times, Turkey’s luxury property market offers some incredibly interesting options to those looking to bypass the whole Brexit debate and move forward with purchasing their dream home overseas.

For more information please contact:

easyMarkets: +44 203 1500 74 or www.easymarkets.com

Universal21: 0203 287 8700 or visit www.universal21.com

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

easyMarkets’ 5 Golden Rules of trading commodities for beginners

easyMarkets’ 5 Golden Rules of trading commodities for beginners

by Charly World

From food to fuel, commodities are the lifeblood of the global marketplace. They play an essential role in daily life and yet until just a few years ago very few people outside of the financial industry had ever considered trading commodities on the open market. Becoming a commodities trader seemed like a daunting prospect and one that was restricted to those willing to spend every waking hour in a skyscraper in the city.

Now, thanks to the power of the internet, accessing commodities and learning everything there is to know about the market has never been easier.

Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, explains,

“With the evolution of CFD (contract for difference) trading, and the growth of online trading platforms, investing in commodities is now accessible to all. An increasing number of individuals are learning to trade commodities and appreciating how exciting, and how profitable, it can be.

“However, you do need to follow some basic rules in order to give yourself the best possible chance of success. It’s like any job or hobby really – the more you put into it, the more you are likely to get out of it!”

For that reason, the easyMarkets team has put together its five golden rules of trading commodities for beginners, so that all those with an interest in doing so can know where to start.

The easyMarkets 5 Golden Rules of trading commodities for beginners

1. Find the best commodity broker

The internet is awash with brokers. To find a good, trusted one, narrow your search down to a broker that: (1) has been in business for more than 10 years, (2) is regulated and (3) offers CFD trading. The first two are self-explanatory. The third one is explained in more detail below.

2. Trade CFDs

CFD stands for contract for difference, which is essentially a contract between you and a broker that says both parties will exchange the cash difference between the opening and closing price of a commodity. This makes commodity trading so much easier because you no longer have to pick up that bushel of wheat or gallon of oil you purchased in the market. You just profit from the price difference in cash. Only a few online platforms offer CFD commodities trading so you may need to shop around.

3. Study the markets

Commodity prices are influenced by a wide array of factors, ranging from supply and demand to government actions and even the weather. When trading anything, studying the financial news and checking price charts are important – and this is particularly so with commodities.

4. Diversify your trading

Diversification is a term you’ve probably come across quite a bit in researching the financial markets. Let us summarize it quickly for you: diversification is the process of using several investments in a portfolio in order to reduce your risk exposure to any one particular asset. In other words, don’t put all your eggs in one basket! Be willing to trade precious metals, energy products and agricultural goods. By doing so, you optimise your profit opportunities and ensure you’re not overly exposed to just one segment of the market.

5. Trend is your friend

This is a well-worn adage in the financial markets. What is basically means is that if a market is moving in a particular direction (being bought or sold off), then following the trend may be wise. Unless you have very good reasons to go against the trend, in which case you might be in for a windfall!

As a commodity trader, you should be constantly on the lookout for a trend, regardless of whether it’s up or down. In trading, a simple trend is defined (by Seery Futures) as a commodity reaching a 20-day high or low. If you apply sound money management rules, like limiting your maximum loss to a few percentage points, you may be able to ride the trend to profitability.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Brexit debate’s impact on FX rates already having knock on effect on overseas holiday home market

Brexit debate’s impact on FX rates already having knock on effect on overseas holiday home market

by Charly United Kingdom World
  • Opinion polls currently showing 52% of people in favour of Britain remaining in the EU (What UK Thinks)
  • Many UK buyers of overseas property adopting a ‘watch and wait’ approach (easyMarkets)
  • Changing FX rate can mean gaining or losing thousands of euros in a matter of days when buying a second home overseas (easyMarkets)

From UK-based business owners trading overseas to individual savers looking to purchase a second home abroad, all eyes are on the ‘Brexit’ debate when it comes to the potential impact on currency exchange rates.

Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, explains,

“Brexit isn’t just about the impact that Britain leaving the EU could have on exchange rates in the event of an ‘out’ vote, it’s about the effect that the uncertainty around the whole process is already having on exchange rates. Sterling has already been influenced by the Brexit debate and will continue to be as the referendum approaches. There’s a real sense of caution afoot at the moment. We’re noticing everyone from holiday home buyers (or would-be buyers) to business owners is taking a ‘watch and wait’ approach and there are going to be some interesting market movements as 23 June approaches.”

The case of second home buyers is a particularly interesting one. Since the referendum’s announcement, sterling has weakened and recovered on more than one occasion as a direct result of Brexit developments. At the time of writing it is trading at levels seen before the announcement, reflecting a range-bound path that sterling is expected to maintain against its peers until a clear indication as to the outcome of the referendum is known.

A second home buyer who exchanged £200,000 for euros on 19/02/16, would have found himself with €258,906 to spend on his dream home overseas. However, had he made the exchange on 21/02/16, he would have had just €256,213: as loss of €2,693 in just two days.

“Brexit may have a big impact on the purchase of overseas property,” continues easyMarket’s Nikolas. “Many potential buyers are pausing their plans until later in the year, waiting to be certain of the outcome of the referendum before they go ahead and invest their capital in a second home abroad. Turbulent exchange rates and the uncertainty over factors like freedom of movement are likely to put the brakes on the overseas property market for the coming months, so far as UK buyers are concerned.”

Of course it won’t be a case of the market simply stalling until 23 June and then picking up again post-referendum. Some buyers will judge the likely outcome for themselves well in advance and act accordingly. Others will wait until the weeks before, when a clearer indication of the outcome can be predicted, although the UK’s 2015 election demonstrated that opinion polls don’t always get it right. Currently the What UK Thinks: EU Poll of Polls is showing 52% for the ‘remain’ camp and 48% for the ‘leave.’ The figures have moved no more than three percentage points further apart for the past six months.

In all likelihood, the anticipation of an exit vote would be likely to weaken the pound, while a predicted vote to remain in the EU would be expected to seriously strengthen sterling’s position across the board. In the meantime, all eyes will remain on the exchange rate as the referendum date approaches.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).