Finann markets do not have a quiet period and are falling sharply. At the same time, all stocks, the share of funds and commodities have been growing in the last year. Europe is not leading.
The crisis peaked last year and many of us spent several years growing. For a long time it seemed promising, but in the autumn she was given the first warning signs that this time the situation may be different.
The problems of the Arab Emirate of Dubai have sown the first seeds of doubt that further economic development will not be according to economic lessons. Since the meeting of this year, the Czech Republic has been struggling with debt problems, which, however, were fully reflected in the arrest of May and passed on to the weakening of the euro area.
Despite the development of the economies in the United States and Asia, according to current statistics, it looks positive, European problems have completely obscured it and financial indices have turned red.
The situation is apparently the worst in Europe
The vast majority of stock market action is in a nutshell this year. This applies not only to the worst affected countries, Spain and Portugal, where markets are falling by tens of percent due to debt, but thus the developed markets in London and Frankfurt. The shares of banking companies are losing the most, as they are mainly distrusted by the holdings of Czech bonds.
Traders in Czech securities were thus sown. The stock market index of the PX stock exchange grew in the first quarter, but it has lost more than five percent since the May arrest and did not give a positive outlook. The stock exchanges in Varav and Budapest have similar results.
The trader will not be able to deal with the previously risk-free government bonds, which have become a trap for many corporate traders today. The price of high-risk country bonds fell sharply. Even individuals will be able to sell their debts through bond mutual funds due to the inability of some euro area countries to meet their debts. They often invested in these bonds and increased their returns with the promised growth rate.
Thus, the owner of the mutual fund with the shares in the portfolio could be disappointed, as well as the traders with the shares themselves. Also lose investment in commodities, including oil and their derivatives. The only commodity constantly raising records is gold, which, due to the current uncertainty, on the contrary, the demand for yellow metal has risen sharply. The dark gold proves the rise of one of the safest financial assets in times of turmoil and nervous markets.
He gave insight into the uncertainty
It is clear that, for years to come, the budget deficits of most European countries will not disappear with the exception of the magic wand, and Europe will have to pay for over-indebtedness. This could, of course, be reflected in the economic growth of individual countries and financial assets, which are firmly linked to the performance of the economy, such as stocks, commodities and bonds. In addition, according to the financial sector, it is still quite under pressure from the US administration, which accused several banking houses and rating agencies of a fraudulent act just before the crisis in 2008.
The strategy of long-term financial investment drench would not have to pay off in the future as much as in previous years. The actual extent of the problems of the economies can only be estimated, but with the high appreciation of investments, which we witnessed last year, we can say goodbye by the end of the year.