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Main risks for global and local stock markets

Hello everyone!

As you may know, investing in stock markets is a rather risky business and no one can guarantee absolute profit. And at the same time, the income received from investments is directly proportional to the degree of risk that we are ready to take on ourselves!

We are now living in an interesting time and are witnessing tectonic shifts in the modern world order. It can be felt that clouds are beginning to thicken and a crisis of a planetary scale is around the corner! Therefore, I think it will be useful to note the main risks, in my opinion, for global and local stock markets:

  • Possible further tightening of the monetary policies by the global Central Banks, due to persistently high inflation. Currently no one knows exactly how long this period of high rates (higher for longer) can last;
  • Geopolitical risks (China/USA, USA, EU, Ukraine/Russia, USA, Israel/Palestine, Iran, the Arab world, Turkey, the Russian Federation - the so-called Middle East crisis) capable of developing into a strategic confrontation and a new redistribution of the world;
  • The rapidly growing US government budget deficit;
  • Recession risk in the world's largest economies (USA, Japan, EU, UK, etc.);
  • Global systemic credit risks (bond/debt market);
  • The global banking crisis and the fall of real estate markets (commercial property), etc.

     Friends, of course everything can turn out differently, but since I am an unconditional optimist, I believe that everything will get better! I declare responsibly - dawn is inevitable in any case and the sun will surely rise over the planet!

What is important: of course, optimism is good, but I think it is also necessary to start fixing profitable positions and be as careful as possible when opening new ones (no leverage). Now is the time to prepare more cash in portfolios to be ready for redistribution in the markets! And of course, always remember that the most important thing is portfolio diversification!

source: Telegram-channel about stock trading and investments "Club of Traders"

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Очень круто!