In a word – no. Because trade is not a question of unrest, it is a question of being on the right side. With that said, you should start looking for arguments in favor of selling or buying a certain category of assets that will be profitable in times of uncertainty.
Earlier this week, we talked about companies with a high level of capitalization, as a way to increase the stability of your portfolio. Another category of assets worth investing in is asylum assets.
Asylum assets are investments that can save their value or even be profitable during periods of anxiety in the market. The most common safe haven is gold.
However, he is not one of a kind. Market participants believe that Euro and Jena feel better than others in times of instability.
You should know that safe-haven assets change over time and easily lose their status, so it’s important to always watch how they behave when there is a mess in the market.
On Tuesday and Wednesday, we saw US markets decline, in light of the heightened geopolitical tensions on the Korean Peninsula. President Trump said that his country would respond to any threat with “fire and rage.”
The Communist government, Kim Jong-un, said it was “carefully considering” a possible strike on Guam, the US territory in the western Pacific Ocean.
Last week, the United States published a package of new sanctions against North Korea at the UN Security Council in response to the launch of several ballistic missiles.
Now it is impossible to predict how the crisis will affect the markets. History shows that the geopolitical crisis has minimal impact on stock prices in the short term, and almost no effect in the long term.