It is no secret that stock markets around the world have suffered from a lack of liquidity in recent times. This problem has been exacerbated by a worldwide economic slowdown, with many companies have taken a hit in their share prices. Although this may mean that there is less money to be made in the financial markets, it is good news for those who can take advantage of it.
In the United States, the S&P 500 is up against record highs but the stock market is nowhere near a bear market. It is still possible to make money in stocks on a consistent basis, even if this does not necessarily make sense. The same applies to the UK market, which is currently up but at a slightly lower level than it was when the FTSE 100 was last up. There are many benefits of investing in UK shares, including the fact that the FTSE 100 is up but the Euro and UK dollar are both weaker than they would otherwise be at this time.
The FTSE 100 is a good indicator of how the rest of the world is doing in terms of global economy. It is affected by events in other countries, and therefore it will usually be influenced more by international events. The FTSE 100 will also generally show stronger economic performance. For investors, this can often mean that the value of the UK pound should go down as a result of stronger economic activity around the globe. The British pound can sometimes be considered one of the most stable major currencies and is often thought to have a better track record for making profits in the long run.
Although the FTSE 100 is only up by about thirty billion pounds compared to the S&P 500’s loss of more than a trillion pounds in the last few years, this is still quite a large amount of money. The fact that this is such a large difference means that this can offer some great potential for profits for investors. However, a lot depends on how strong the recovery process in Europe is going to be and the strength of the overall economy.
One benefit that investors do not always take into account is the fact that if the UK’s economy has a bad few months, then it can affect the overall FTSE 100. By causing it to fall. This will not be a huge impact on the UK’s share price. However, if this is the case, this means that there is a greater potential for investors to profit.
Another area of potential benefit is the fact that many financial markets around the world are now reporting that they are not seeing much growth in their economies. In the UK, this can mean that there will be a smaller market share for the FTSE 100. A market that is stagnant means that there is less competition in the shares to make profits in the long term. This can have a knock-on effect on the market in general and can sometimes lead to a decline in prices for the market share.
Of course, when a company makes a profit, they tend to raise their share prices because they feel that they have bought shares for a lower price than the current value. The upside can be significant and is usually seen immediately after a company makes the profit. If this occurs then the market share will rise quickly, although if the company continues to report positive growth, it will remain steady until the next quarter.
In order to gain the most from the FTSE 100, it may be wise to buy in during the first two weeks of every quarter. This allows you to profit from the high volatility of the market as well as from its long term stability. The longer the quarter is, the more likely that the market will continue to be stable and will not go against you. So, if the news does not affect you too negatively then you may want to wait until you have an opportunity to buy.