International stocks and the U.S. dollar are once again faltering as the U.S. Federal Reserve is once again debating a rate hike. Anyone that pays attention to the news knows that 2016 has been brutal so far, and although we aren’t even a full month into the year yet, it has been one of the worst starts to a calendar year ever, shattering all sorts of records in the U.S. during the first few weeks of the year.
Now, as the Fed attempts to fix things on their end, international investors are beginning to lose confidence, pulling money out of the market and making the worldwide decline even worse. Add to this the fact that the largest company in the world—Apple—announced that they had their first drop in revenue for the first time in 13 years, and confusion in the markets now seems to be the norm. However, the biggest culprit is still crude oil. That’s hovering around $30 a barrel right now, and no matter what the big oil economies try to do, the price doesn’t seem to be able to come up off of this mark.
The refuge of traders lately has been the U.S. dollar, but even this is seeing some problems. The dollar is posting gains against the Japanese yen over the last several days, but because of the added worldwide pressure, the gains are not as much as they should have been, according to experts. This would make binary options a great place to trade because directions are still predictable in this market, but thanks to trader and investor reluctance, the movement is very small. When volume is large, prices tend to drop, but right now, volume is tiny when upward gains are made. This isn’t always the case, but in the world’s current economic condition, this is becoming a noticeable trend, even in the Forex market. By using binary options, you can use this data to your advantage, complete with a highly predictable trend over mid-timeframes, and still reap bigger profit rates because of the all or nothing nature of binaries. Again, this won’t always be the most profitable method of trading, but for trading the USD against the other three major currencies, including the yen, this seems to be the most trustworthy method at the moment.
Short term trading is very unpredictable right now, unfortunately. The best long term strategy is in the stock market right now, and it is a very boring one: buy and hold. You should be looking for big blue chip style companies that have been hit far harder than they should have been. Right now, these are plentiful. Big corporations like Apple, GE, McDonalds, and Visa are all being hit hard because of the global decline. In some cases, drops are warranted, such as what Apple is seeing. In others, profits are much higher than expected, and prices are still declining. Taking advantage of this by purchasing the artificially lowered stocks is a great way to supplement your portfolio, even if you are more focused on the short term. Not only does this add to your profit rate in the future while it struggles now, it adds a dimension of diversity to your trades, helping to alleviate short term risk. This is not a foolproof strategy, of course, so you should be doing in depth research before any actions are made, but it is a viable strategy and traders with extra cash in their reserves can make this strategy extremely profitable, even once stock fees and commissions are taken into account. Looking for dividend stocks can also add to this, although it would only be by a couple percentage points a year. Still, every bit helps when times are uncertain like they are now.