Trumping the markets – what impact has the new US President had in his first month in office?

Trumping the markets – what impact has the new US President had in his first month in office?

United States
  • Gold trading at an impressive $1,235.60 OZ (easyMarkets)
  • SP500 trading at an all-time high
  • US Dollar Index performing strongly at 101.63

It may hard to believe, but the drama and turmoil circling 1600 Pennsylvania Avenue have not been around forever – Donald Trump has only officially been installed in the White House as 45th President of the United States for one month!

 

“The past month has been a carnival, with a parade of Trump’s statements and decisions, from the immigration ban to his latest talk of a fictional terrorist incident in Sweden. It wouldn’t be too shocking if the next big headline was ‘Trump has appointed a horse to a major role in his cabinet,’ after some of the announcements over the last month.”

James Trescothick, Reputation and Education Manager at forex and CFD broker easyMarkets

 

So, what impact has all of this had on the markets?

Following Trump’s surprise election win in November, the US dollar (USD) and the markets soared. The SP500 reportedly had the strongest run from a president’s first-term win since John F Kennedy. But now that Trump is actually sitting in the Oval Office, how has the market been reacting?

US dollar

Looking at the US Dollar Index (USDX), we may get a better idea of how the USD has fared. The US Dollar Index measures the value of the USD against a basket of six other major currencies (EUR, JPY, GBP, CAD, SEK, CHF). The index moves higher when the USD gains strength against these other currencies, and vice versa.

The USDX closed at around 100.55 on 20 January 2017, when Trump was sworn in. Since that date it has dropped to 99.20, before rebounding to around 101.75. At the time of writing, it is trading around 101.63.

Was it the Trump effect?

He would most certainly love to say he is the reason behind the strength of the currency, but the fact is that on the same day, a bout of positive US economic data was released. Also on that day, Federal Reserve Chair Janet Yellen testified on monetary policy and raised expectations for an interest-rate hike in March, which may have had a positive effect on the USD.

Gold

Any trader worth their weight in gold would tell you that the yellow metal is a safe haven and a hedge against inflation. A safe haven is an asset which investors flock to for safety when there is uncertainty in the markets. Trump’s win in November pushed gold prices higher before collapsing to around $1,123.36 OZ. Since the beginning of the year, however, it has managed to bounce back and is currently trading at around $1,235.60 OZ.

Was it the Trump effect?

 

“It is a consensus of opinion that political risk, which has risen considerably since Trump’s election, has made gold shine to many investors, and talk of uncertainty is keeping the yellow metal in demand. Some could argue that this is simply a repeat of 2016, when gold also started on a bull run, however it seems more likely that Trump has played a role in this one.”

James Trescothick, Reputation and Education Manager, easyMarkets

The stock market

The stock market, unlike gold, tends to rise when there is risk appetite and opportunism. Since the November election results, the stock market has seen gains, and the momentum has continued, with the SP500 trading at an all-time high.

Was it the Trump effect?

Well, Wall Street has actually referred to these recent highs as “the Trump rally,” which started in November. You may also credit a healthy labour market and expectations of an upcoming rate hike in the US for this move. However, it does seem that the market is also pricing in that Trump will push through corporate tax reforms and cut regulations, which in turn will boost US business.

He may or may not go through with the reforms. Nevertheless, it’s safe to say he has played a role in market movements over the past 30 days, and wherever you stand on the new POTUS, these past 31 days have not been without their fair share of action!

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk Warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full risk disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07).

Can’t buy me love? Plummeting cocoa prices make chocolate cheaper this Valentine’s Day

Can’t buy me love? Plummeting cocoa prices make chocolate cheaper this Valentine’s Day

United Kingdom
  • Cocoa prices down by nearly $1,000 per ton in last 12 months (easyMarkets)
  • 94% of people celebrating Valentine’s Day want chocolate (wallethub)
  • Over-supply and decreased demand combining to drive down prices (easyMarkets)

As men and women around the world rush to buy that last minute gift for their loved one, to cover up the fact that they forgot that Valentine’s Day was approaching, many of them won’t be paying attention to the price they are paying. However, there’s good news for all those last minute shoppers this year.

The most popular gift bought to show affection to one’s Valentine is chocolate. According to wallethub, 94% of people celebrating Valentines in the US want to receive chocolate, and it is estimated that $1.7 billion will be spent on sugary treats alone.

The good news for all the Romeos and Juliets out there is that cocoa, the main ingredient of chocolate, has been in a downfall since August 2016. In fact, New York cocoa futures fell by 33% in 2016, the biggest drop since 1999.

If you turn the clock back a year, cocoa was soaring due to a rise in demand in China and other Asian markets, combined with the poor weather that swept across major cocoa producing countries in West Africa in December 2015.

Back in February 2016, cocoa was trading around $2,988 per ton. Now it’s trading around $1,993 per ton.

So what happened?

“It’s a simple case of supply and demand. Production from the Ivory Coast, which is West Africa’s top producer of cocoa, has a median forecast of 1.90 million tonnes. This is an increase of 20% from the International Cocoa Organization (ICCO) estimate of 1.58 million for 2015/16.

“Ghana, which is the second most productive grower, has also seen a rise in production, up 9% from the ICCO estimate for 2015/16 to a median forecast of 850,000 tonnes. Quite simply, there’s far more cocoa available than there was in advance of last Valentine’s Day, which has driven down the price.”

James Trescothick, Reputation and Education Manager at forex and CFD broker easyMarkets

Not only has the impressive crop from West Africa created a surplus, but demand has also impacted on prices this year. A recent industry report is indicating a lower than anticipated demand in North America in the fourth quarter. Nor is it just North America showing a slowdown in demand – Europe is also eating less chocolate. Health-conscious westerners are finally ditching their much-loved sweet treats in favour of more nutritious choices.

It is only Asia that is keeping its appetite for cocoa, but even with demand increasing in that region, it is still not enough to stop the decline.

The International Cocoa Organization is set to release its first forecast for 2016/17 later this month, so only time will tell if the fear of over-supply is real and how prolonged the price decline might last.

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Please refer to our full risk disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07). Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

The hidden dragon – What do Chinese New Year and Golden Week mean for financial markets?

The hidden dragon – What do Chinese New Year and Golden Week mean for financial markets?

World
  • Commodity and stock market volatility expected in the run up to Golden Week (easyMarkets)
  • Shipping industry and oil prices to be impacted by import/export disruption
  • Chinese stocks traded in the US projected to respond positively

Chinese New Year, which in 2017 marks the start of the Year of the Rooster on 28 January, is the beginning of Chinese Lunar New Year Golden Week – a week-long national holiday which can have a big impact on global financial markets.

Evdokia Pitsillidou, Director of Risk Management at pioneering forex and CFD broker easyMarkets, explains,

“Golden Week was implemented by the Chinese government in 2000 to promote internal consumption and boost domestic tourism, while giving people a break to visit their hometowns. The success of this initiative has played a role in China’s economic growth. The one thing that has been consistent during this period is the significant increase in volatility in financial markets.”

Two Golden Weeks are celebrated annually in mainland China: The Chinese Lunar New Year Golden Week (or Spring Festival) in January or February and the National Day Golden Week and Mid-Autumn Festival in October. Both last for seven days, with all workers given the week off for each Golden Week.

The date of the Chinese New Year is determined by the lunisolar calendar, which means that the dates of Golden Week shift every year. This makes it more difficult to use historical data to predict the impact on the financial markets.

In addition to China, the lunisolar calendar is used by Japan, Korea and Vietnam. Even Malaysia and Indonesia, which have a large Chinese population, observe the holidays, albeit not for the complete week. Thus, the New Year Golden Week has a meaningful impact on the Asian markets.

A little over a decade back, China’s impact on the world economy was not as significant as now, and its impact on the global financial markets was limited.

The situation has changed dramatically in the last ten years. China’s ranking among the world’s economic superpowers rose to #1 in 2015, according to the IMF, and the country is expected to retain this position for the foreseeable future. China’s contribution to world GDP was estimated at 18% in 2016. With the Asian dragon becoming the single largest contributor to world GDP, its economic performance has a massive influence on world markets.

A number of factors lie behind Golden Week’s influence on global markets.

Firstly, since Chinese companies are closed for the week, the financial markets witness a great deal of profit-taking activity prior to this time, resulting in fluctuations in the commodity and stock markets.

At the same time, importers of goods from China scramble to complete orders before Golden Week, while retailers stock more inventory. The shipping industry and, in turn, oil prices are impacted. The week creates disruptions for importers and exporters worldwide.

Equity, forex and commodity trading in the financial hubs of Hong Kong and Singapore are also impacted, coming to a near standstill on some of the days during Golden Week. Trading volumes in Asia fall dramatically during this time and there is a notable ripple effect on worldwide trading. Meanwhile some Chinese companies and even government agencies have been known to reserve announcing bad news for this period. This is done in an attempt to reduce the impact of the news on the financial markets.

In addition, the past few years have seen a large number of people travelling overseas during Golden Week, giving the tourism and retail industries a significant boost. Moreover, China receives a huge influx of tourists during this time. These trends influence CNY (yuan) trading, which in turns affect the offshore renminbi trading, the CNH. The business of overseas retailers, especially those in the luxury segment (including gold jewellery), gets a fillip, which is why we sometimes see a shift in gold prices around this time of year.

Finally, positive sentiment during the run-up to Golden Week lifts the FTSE China A50 Index, as well as the stock markets in the emerging economies. Chinese stocks traded in the US (as American Depositary Receipts or ADRs) also respond positively. However, this trend typically reverses in the weeks after Golden Week.

For individual investors, the volatility leading up to the Golden Week, the market calmness during the week and possible gaps that may appear when everyone returns to business at the end of the week represent some exciting opportunities.

Whether trading the CNH, oil, gold or CNX index, there’s plenty of action for investors to be on the lookout for around this time. And for those who are new to trading, Golden Week may be the perfect opportunity to get a feel for trading the Fear Index (VXX).

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Think big – make your New Year’s resolutions to buy a holiday home in 2017!

Think big – make your New Year’s resolutions to buy a holiday home in 2017!

Spain United Kingdom World , , ,
  • Political and economic volatility to create big opportunities in 2017 (easyMarkets)
  • Emphasis on quality of life will be key this year (Kyero.com)
  • Sun-kissed Spanish holiday homes available from just €190k (Taylor Wimpey España)
  • Achieve second home serenity through interior design in 2017 (Alexander James)

Let’s face it, New Year’s resolutions to lose weight, eat more healthily and drink less are all well and good, but they’re hardly likely to get 2017 off to an exciting start. So ditch the traditional resolutions to enjoy life less and instead resolve to enjoy it more – by buying a holiday home!

Evdokia Pitsillidou, Director of Risk Management at pioneering forex and CFD broker easyMarkets, explains,

“In many ways – certainly politically – the world was turned on its head in 2016. Thus many people are entering 2017 with a new mindset and looking at the way they live and their personal finances in a new light. Political and economic volatility may lead to big shifts in currency values and investors playing the markets successfully may consider putting their profits into property this year.”

Richard Speigal, Head of Research at leading Spanish property portal Kyero.com, agrees,

“I think we’re going to see a lot of emphasis on enhancing quality of life in 2017. Certainly our own data has shown that since the Brexit vote British buyers are looking more intensively than ever at the possibilities that a second home in Spain opens up. Sterling’s drop has made them seek out cheaper destinations – Almeria and Alicante are the big winners so far – but we’re experiencing a record level of interest in Spanish property that we expect to continue throughout the year.”

The prices offered by the Spanish property market (as well as Spain’s fabulous climate, excellent cuisine, stunning golf courses and superb beaches), means that British buyers can pick up good value property, even once the drop in sterling has been taken into account.

Leading Spanish homebuilder Taylor Wimpey España, for example, is selling spacious two and three bedroom apartments with generous terraces at La Floresta Sur (close to Marbella), from as little as €190,000+VAT. As well as the development’s two large shared pools, owners can enjoy free access to the facilities of El Soto Golf Club. Each apartment comes fully fitted with white goods and with private parking.

But an overseas holiday home isn’t the only option for those looking to buy in 2017. Robert Walker, Managing Director of Alexander James Interior Design, explains,

“We’re seeing a big trend for staycations at the moment and many holiday home buyers are looking at what they can pick up in the UK, rather than overseas. Jumping in the car and driving to your holiday home whenever the mood suits you is far less hassle than having to plan ahead and book a plane and the money you save on flights can be spent on the property itself.”

Using interior design architects to create a serene, harmonious environment within a holiday home is money well spent. The desire for relaxation is a key driver for many second home owners and with the right interior design service, the feeling of calm and peace as you walk through the front door can be almost palpable. Compare that to the stress of dealing with airports, flights, hire cars and the other trappings of a second home overseas and the attractions of owning a holiday home within the UK are clear.

If you still haven’t decided on how to improve your life in 2017, make buying a holiday home your goal this year!

For more information, please contact:

easyMarkets: +44 203 1500 748 or www.easymarkets.com

Kyero: www.kyero.com

Taylor Wimpey España: 08000 121 020 (00 34 971 706 972 from outside of the UK) or www.taylorwimpeyspain.com

Alexander James Interior Design: 020 7887 7604 or www.aji.co.uk

5 resolutions to make you more money in 2017

5 resolutions to make you more money in 2017

United Kingdom World
  • Trading no longer just for the chosen few
  • Vast online Learn Centre from easyMarkets equips newbie traders with the info they need to get started
  • Markets more sensitive than ever to global events in 2017

New Year’s resolutions don’t have to mean pain and deprivation. If hitting the gym more and eating or drinking less don’t appeal, there are much more interesting alternatives available. With that in mind, here are five New Year’s resolutions from Evdokia Pitsillidou, Director of Risk Management at pioneering forex and CFD broker easyMarkets.

  1. Trade!

“We want 2017 to be the year that everyone can test out their skills as a trader and find out if making money through trading can revolutionise their personal finances,” explains Pitsillidou. “We’re constantly looking for new and innovative ways to democratise trading. Being able to improve your finances through trading shouldn’t be an avenue open only to the chosen few.”

  1. Learn

Jumping headlong into trading without knowing what you’re doing probably isn’t the most sensible of plans. As Evdokia Pitsillidou observes,

“Taking a studied approach and using resources such as the easyMarkets Learn Centre is much more likely to result in outcomes that are beneficial to your cash-flow! So resolve to learn the basics before plunging into trading in order to maximise your effectiveness.”

  1. Proceed with caution

When trying anything for the first time, a cautious approach is always good. To empower those new to trading to proceed with caution, easyMarkets has introduced the dealCancellation tool. This innovative produce allows traders to cancel a losing deal within 60 minutes of making it – perfect for those still learning the ropes and wanting an extra layer of risk mitigation at their disposal.

  1. Read the news

Global markets have never been more sensitive to political happenings, so keeping abreast of the news is essential for anyone who plans to take up trading in 2017. The unfolding of the Brexit process in particular is likely to be of keen interest to those looking to trade currency pairs over the months ahead.

  1. Think big

It’s not just politicians who can create headaches (and opportunities) for traders. Everything from weather patterns to shifting global consumption patterns can impact on the price of commodities and the value of currencies. As easyMarkets’ Evdokia Pitsillidou points out,

“You really do have to keep your finger on the global pulse if you’re serious about trading. Of course, you’re not alone. We provide detailed market news reports and real-time trading charts to share our expert knowledge with all those who want to profit from trading, whether they’re old hands or complete newbies. This is knowledge that we want everyone to be able to use to their own advantage.”

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Traders’ Guide to Financial Fitness in 2017

Traders’ Guide to Financial Fitness in 2017

United Kingdom World

From the Desk of Evdokia Pitsillidou, Head of Risk Management at easyMarkets.

2016 was a highly unpredictable year for the financial markets. Brexit, the election of Donald Trump and the resignation of Italian Prime Minister Matteo Renzi were just some of the major headlines that drove the markets this year. These and several other developments will be at the centre of the 2017 financial storm. Against this backdrop, we decided to give traders five tips to prioritise financial fitness in 2017.

Diversify

Diversification is one of those recommendations we hear ad nauseam, mostly because it’s true and we rarely ever do it. Financial diversification – the process of allocating capital in a way that reduces risk exposure to one particular asset or market might be the key to financial fitness in 2017 and beyond. EasyMarkets has done just about everything to increase traders’ ability to diversify their investments. We have over 300 markets to choose from, so there’s no excuse to put all your eggs in one basket. Forex, commodities, stock indices and contracts for difference (CFDs) are just some of the markets you may use to achieve diversification.

Monitor the Economic Calendar

Today’s financial markets are highly market driven. A high-profile news event, economic data release or monetary policy decision may set the market ablaze. Traders must be able to anticipate these moves in advance and prepare accordingly. Luckily, this isn’t particularly difficult to do. Start off by glancing at the economic calendar every day before you start trading. Monitor it carefully every single day for potentially volatile events, then research those events to get a sense of what might transpire.

Prioritise Risk Management

In the world of trading, you must manage risks to experience rewards. Risk management should be part of every fit trader’s regimen. This includes employing tools that may help you minimise loss and lock-in profit. Guaranteed stop loss, negative balance protection and take-profit orders might therefore be part of your everyday vocabulary. EasyMarkets took risk management a step further in 2016 by introducing dealCancellation, a tool that allows traders to cancel a losing position within 60 minutes and have any losses returned for a small fee.

Discovering Volatility

Volatility is the ugly step-sister of the trading world that many market participants simply don’t want to talk about. Unfortunately, ignoring volatility won’t make it go away. In the era of high-frequency trading, computer-based algorithms and globalized markets, volatility is here to stay. Rather than be afraid of it, learn to trade it. The CBOE VIX (a.k.a. the “fear index”) allows traders to trade volatility tied to the S&P 500 – Wall Street’s foremost stock index. Put simply, volatility usually moves in the opposite direction of the S&P 500,[1] giving you ample opportunity to buy and sell volatility. EasyMarkets recently added the VXX Fear Index CFD to its MT4 platform. Give it a shot if you’re interested in trading volatile market-moving events.

Be Skeptical

The final piece of advice on the road to financial fitness is skepticism. Be sure to have lots of it as a trader, as your day might be filled with sifting through fear mongering, poor analysis and a heavily biased media. Skepticism has a lot of unique advantages in the financial markets. Chiefly, it may help you avoid herd mentality, or the irrational euphoria that gets traders to do silly things just because others are also doing it. Herd mentality has led to massive asset bubbles and more devastating market crashes. It is the bane of the financial markets, and should be avoided at all costs. Since there’s no single tool or strategy that will overcome it, your best defence might be a healthy dose of skepticism.

A regimen centered on diversification, risk management, research and skepticism might help you become financially fit in 2017. Remember: trading is a marathon, not a race. Just as crash diets never work, the same applies to trading. Learn to pace yourself and don’t be afraid to embrace new markets and strategies in 2017. This is especially true if what you’ve done before hasn’t brought you success. After all, the definition of insanity is doing the same thing over again and expecting different results.

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

[1] CBOE. The Relationship of the SPX and the VIX Index.

Make a mint from your armchair in 2017 – the perfect New Year personal finance resolution

Make a mint from your armchair in 2017 – the perfect New Year personal finance resolution

Uncategorized United Kingdom World
  • easyMarkets trading platform offers more choice than ever before
  • Market-leading dealCancellation tool allows people to recoup losses within an hour of making a trade
  • Democratisation of trading allows individuals to keep pace with the rapidly changing world

The arrival of a New Year is always a good time to try out a new venture, focus on self-improvement and assess one’s personal finances. From losing weight to finally taking home improvements that have been needed for a while, New Year – and the traditional resolutions that accompany it – is a symbol of fresh starts.

For 2017, pioneering forex and CFD broker easyMarkets has come up with a simple way for individuals to take on a new venture at the same time as tackling their personal finances in a different way. Evdokia Pitsillidou, easyMarkets’ Director of Risk Management, explains,

“For 2017, we’ve made it easier than ever for individuals to learn to trade from the comfort of their armchairs. Our goal has always been to democratise trading and for 2017 we’re offering a host of incentives and great features that open up trading to all those who fancy trying their hand at it.”

The 2017 easyMarkets platform is offering traders a 30-50% bonus on their first deposit (up to $2,000), the ability to trade on multiple devices (laptop, PC, tablet and smartphone) and more products to trade than ever before. Those trading on easyMarkets have a choice of 115 currency pairs, 21 metals pairs, 12 commodities, 14 indices and 27 options pairs. Day trading, forward deals, pending orders and options are all available through the site.

As such an array of possibilities may seem bewildering to budding traders, the easyMarkets team has provided an extensive knowledge centre as part of its site. Educational videos, weekly hot topics features and comprehensive eBooks all mean that those who are new to trading can start 2017 armed with the knowledge they need to starting playing the markets. Trading tool such as trading charts, live currency rates and a trade simulator all make it even easier.

The UK’s political and economic environment in 2017 looks possibly volatile, as the ongoing Brexit process continues to have an impact on the country. The triggering of Article 50 will no doubt send ripples through the markets and many traders may be poised to take advantage of that fact. Now, those seeking a new approach to their personal finances in 2017 may also look to benefit from the tumultuous situation.

Even the most cautious traders have been considered as part of the easyMarkets offering, with late 2016 seeing the launch of the market-leading dealCancellation tool. With dealCancellation, traders have 60 minutes to cancel a losing trade – so if things don’t pan out as expected immediately after their trade, they have the option to turn back time and have any losses returned.

The world is changing fast. 2017 is the year for those who want to get ahead to adapt and change with it.

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

New Year, new investment – the most intriguing asset classes of 2017

New Year, new investment – the most intriguing asset classes of 2017

United Kingdom World , , ,
  • Care homes and hotel investments set to make their mark in the New Year (Properties of the World)
  • Commodity trading will attract a host of new traders in 2017 (easyMarkets)
  • Buy-to-let continues to entice virgin property investors (Surrenden Invest)
  • Undiscovered areas of Spain tipped for growth in 2017 (Kyero.com)

New Year is almost upon us – time to turn over a new leaf. For investors, New Year can serve as the inspiration for broadening their portfolio and discovering the benefits of new asset classes. In that vein, let’s take a look at some of the most intriguing asset classes and investment models of 2017.

Jean Liggett, pioneering CEO of Properties of the World, is quick to promote the benefits of care home investment in 2017. She explains,

“We’re going to see care home investment taking off in a big way in 2017. It’s an interesting asset class as it’s one of those rare investment models where absolutely everyone wins. The UK’s population is ageing and we need to build more care homes, providing superior accommodation that affords comfort and dignity to our citizens as they age.”

Investing in a care home can provide individuals with impressive returns. Wagon’s Way in Tyne and Wear, which is available for investment from £58,500, offers circa 8% NET rental returns for 25 years. The sustainable investment model carefully balances the needs of the investor, those living in care, their families, the community, care professionals and the Care Quality Commission (the UK’s regulatory body for care homes). This ethical balance makes care homes a particularly intriguing asset class for 2017.

Hotel investment is also coming into its own. At Caer Rhun Hall Hotel in Conwy, North Wales (rooms available from £75,000), investors have the chance to pick up an asset that will not only generate strong returns (circa 10% per annum) but will also afford them personal usage. There’s also a 125% developer buy-back option for investors’ peace of mind. With a renewed focus on staycations in the UK, hotel investment in 2017 could be big news indeed.

Investing in commodities may also be an exciting option in 2017, according to Evdokia Pitsillidou, Director of Risk Management and pioneering forex and CFD broker easyMarkets. She comments,

“Trading is no longer something that’s only for fulltime traders working in the City. Increasing numbers of individuals are looking to trade for themselves and the appeal of commodities and metals is strong, particularly for those who are new to trading. Gold and wheat are two investments to watch in early 2017, though of course investors need to do their own analysis before they try their hand at trading.”

Naturally, existing strong asset classes will continue to be popular in 2017. Despite the government tinkering with landlords’ incomes through changes to stamp duty and tax on second homes, UK buy-to-let remains a popular way for virgin investors to profit from property. Jonathan Stephens, Managing Director of Surrenden Invest, comments,

“The UK’s housing crisis is still far from resolved. The country has been working hard to increase the rate at which it has been building homes and the latest purchasing managers’ index shows that construction reached a nine-month high in November. Despite this, the Federation of Master Builders has reported that 87% of local authorities don’t believe they will hit the government’s housebuilding targets by 2020. This means that buy-to-let still presents a huge opportunity for those looking to invest in property for the first time.”

Artillery House in Manchester city centre is an excellent example of the kind of property that is attracting virgin buy-to-let investors in large numbers. With 7.5% NET assured return, a comprehensive management programme and a Q4 2017 delivery target with apartments fully furnished and ready to rent, this kind of development allows investors to be truly hands-off.

Finally for 2017, there’s holiday homes as an intriguing asset class. While the concept of buying a holiday home predates even air travel, what’s exciting about 2017 is the range of destinations available. Richard Speigal, Head of Research at leading Spanish property portal Kyero.com has flagged Oliva as an interesting choice for 2017. He explains,

“In terms of broadening the story, I’d pick Oliva out right now. Alicante has long been the epicentre of British buyer activity, but Kyero saw a shift northwards in 2016 to the neighbouring province of Valencia. The reasons are nicely told in the small coastal village of Oliva.

“We were alerted to something happening when the town appeared for 3 months running in our ‘trending destinations’ list, having attracted over 1,500 enquiries since July. For its size, Oliva is punching way above its weight and it seems post-Brexit buyers may have sensed an opportunity, as prices there have been slower to recover than in other areas of Spain. With six miles of beautiful coastline, a cosmopolitan vibe, two international airports an hour away (Valencia and Alicante) and the potential for capital growth, Oliva ticks all the boxes for investment potential in 2017.”

Whether it’s an entirely new asset class or a new opportunity in an established investment model, there’s no doubt that 2017 is going to be an exciting year for investors.

 

For more information, please contact:

Properties of the World: +44 20 7624 5555 or www.propertiesoftheworld.co.uk

Surrenden Invest: 0203 3726 499 or www.surrendeninvest.com

easyMarkets: +44 203 1500 748 or www.easymarkets.com

Kyero: www.kyero.com

 

Is Brexit driving up the cost of Christmas dinner?

Is Brexit driving up the cost of Christmas dinner?

United Kingdom
  • Fluctuating commodity prices and FX rates set to make Christmas dinner more expensive (easyMarkets)
  • Cost of Christmas pudding ingredients up by 21% (Mintec)
  • Arabica coffee beans up 43% when accounting for sterling’s depreciation (easyMarkets)

The press has been awash with reports that Brexit will lead to rising food prices in the UK. There have also been entirely contradictory reports stating that Brexit presents an opportunity for food prices in the UK to decrease, with the Institute of Economic Affairs reporting that by avoiding the EU’s “costly agricultural regulations,” the UK could enjoy easier access to food from around the world and lower prices.

So will Christmas dinner this year cost more or less?

Evdokia Pitsillidou, Risk Management Associate at pioneering forex and CFD broker easyMarkets has been exploring that very question. She explains,

“Sterling’s depreciation is certainly having an impact. We’ve already seen electronics firms like Apple and Electrolux raising their prices. Apple Mac prices have risen by up to £500 in the UK, following a hike in October, and Electrolux announced a 10% increase for home appliances.

“We’ve also seen food prices rising, with the infamous ‘Marmitegate’ row between Tesco and Unilever seeing Tesco flex its giant corporate muscles in order to try and keep costs down. Walkers and Birdseye have also announced price rises, with others tipped to follow, while other firms are reducing the size of their goods in order to maintain steady prices – so consumers receive less for the same money.”

Walkers has cited “fluctuating foreign exchange rates” as a direct cause for its 10% price hike on crisps. Clearly the impact of Brexit on food prices is being felt. The tumbling pound has caused local distributors and consumers to have to pay more for the same goods, as their local currency has less value. However, the UK’s decision to leave the EU is far from the only factor at play when it comes to food prices.

When it comes to the traditional Christmas day roast, livestock prices are lower on a yearly basis, although for meat-eaters in Britain the price declines have been cancelled out by sterling’s depreciation. Still, meat has at least not increased in price for the holiday season – at least not yet, though prices began to rise in November, so any further steep increases could potentially impact on the Christmas day feasting.

Globally, wheat and maize have reduced in price, which is good news for those loading up the Christmas table with stuffing and bread sauce.

When it comes to sweet treats, however, mince pies, Christmas puddings and Christmas cake are all set to cost more this year. The rising prices of raisins, sugar, butter and chocolate will all be felt when it comes to dessert time this festive season. According to commodity data firm Mintec, the cost of Christmas pudding ingredients is up by 21% in total.

Coffee is also more expensive, with Arabica coffee beans up 20% in the global market (due to drought-related crop losses and lower supply) and a whopping 43% in sterling terms to account for the currency’s depreciation. So those looking for a strong cup of coffee to stave off the impact of Christmas-related partying, or to keep them awake after the excesses of the Christmas meal, might find that their coffee is costing them quite a bit more.

Even Santa’s glass of milk could be more expensive this year, as a result of the rebound in dairy prices over the past few weeks. The bi-weekly Global Dairy Trade auction in New Zealand saw dairy prices up slightly for the year-to-date, so that Christmas cheese board won’t be quite as reasonable as last year’s.

easyMarkets’ Evdokia Pitsillidou concludes,

“There’s been some significant fluctuations in the price of commodities over the past year and, on balance, it looks as though the Christmas dinner table could well cost shoppers more this year. Rising food prices are not good news for families over the festive season, but keeping costs low by buying local produce wherever possible is one way to combat the increases. The impact of Brexit on food prices over the longer term will become clearer once Article 50 is triggered by the UK government and trade negotiations begin in earnest. Until then it’s time to eat, drink and by merry. Although maybe to eat and drink a little less than last Christmas!”

For further details, visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Winter round-up: the 2017 Where To… list

Winter round-up: the 2017 Where To… list

World , , , , ,
  • The best locations for spending your money in 2017
  • Buy a second home in Spain, invest in a hotel in North Wales and holiday in Tenerife
  • Stick with the UK for buy-to-let investment and play the stock market from the comfort of your bed

With one eye on the future and one on the hottest property and location trends of 2016, it’s time to look at the best places to spend your money in 2017. The 2017 Where To… list covers everything from holidays and holiday homes, to property investments and playing the stock market.

Where To… Buy a second home

When it comes to buying a second home, Spain is the obvious choice for many. Post-Brexit vote reports are that property sales and enquiries from British buyers have ramped up noticeably. Leading Spanish property portal Kyero.com has reported record enquiry numbers since the referendum. Head of Research Richard Speigal comments,

“Spain offers a great climate, fabulous food and excellent value for money. Brexit doesn’t seem to have deterred British buyers in the slightest. In fact, it seems to have spurred many on to purchase their dream second home sooner rather than later.”

The golf courses and beaches of the Costa del Sol are ideal for those looking for a second home in Spain. Taylor Wimpey España is offering spacious apartments and townhouses at Horizon Golf near Mijas from €270,000+VAT.

Where To… Invest in a hotel

An up-and-coming asset class, hotel investment looks set to take off in a big way in the UK over the next couple of years. Jean Liggett, pioneering CEO of Properties of the World, comments,

“Hotel investment offers excellent returns and benefits from not being subject to stamp duty. It’s ideal for property investors who are looking to get more for their money.”

Those investing in Caer Rhun Hall Hotel in Conwy, North Wales (rooms available from £75,000), can look forward to returns of circa 10% per annum, 125% developer optional buy-back and two weeks’ personal usage of their hotel room per year.

Where to…Holiday over the winter months

When it comes to winter sunshine, Tenerife is one of the top short-haul destinations for those travelling from the UK. Idyllic beaches with a sea temperature of 21°C and an average December temperature of 17°C, combined with excellent value for money make this an enticing destination. There’s plenty on offer to entertain the whole family all year round, and some outstanding value hotel rooms available over the winter months.

Cheap Holidays Tenerife has rooms available from as little as £93 per night for those looking to stock up on vitamin D before Christmas and from just £98 per night for holidaymakers planning a break in the New Year.

Where To… Invest in a buy-to-let property

Despite the increase to stamp duty on second homes earlier this year, the UK’s buy-to-let market is still faring well. There are plenty of cities around the UK that offer great returns and the potential for capital growth. One of the most exciting for 2017 is Belfast.

Property prices in Northern Ireland remain some 40% below their 2007 peak, but they’re rising fast. Buy-to-let investors with an eye on capital gains as well as healthy yields are examining the market there closely. With Belfast accounting for 43% of Northern Ireland’s total rental transactions, it is the natural choice for those looking to invest in buy-to-let.

The Frontiers’ Collection at The Sandford, located in Belfast’s thriving Titanic Quarter and available through Property Frontiers, offers one bedroom apartments from £114,750 and two bedroom homes from £141,750.

Over in England it is Manchester that is turning heads as a buy-to-let destination. Surrenden Invest is supporting would-be landlords to avoid paying the proposed ‘Green Tax’ by offering the low-carbon technology Artillery House for investment. The contemporary development enjoys a prime city centre location in Manchester’s ‘Golden Triangle’ and will be one of the city’s most energy efficient buildings. The 12 high end, boutique apartments are available for investment from £120,000.

Where To… Play the stock market

If stocks and shares appeal more than bricks and mortar, 2017 could be the perfect time to try out your skills as a trader. easyMarkets is on a mission to democratise trading, making it possible for anyone with an interest in the markets to dabble from the comfort of their own home. Not only do they offer learning resources and regular insights for those who are new to trading, but their innovative dealCancellation product means that losing trades can be cancelled within 60 minutes of making them – perfect for nervous newbies!

 

For more information, please contact:

Kyero: www.kyero.com

Taylor Wimpey España: 08000 121 020 (00 34 971 706 972 from outside of the UK) or www.taylorwimpeyspain.com

Properties of the World: +44 20 7624 5555 or www.propertiesoftheworld.co.uk

Cheap Holidays Tenerife: 0800 0124 300 or www.cheap-holidays-tenerife.com

Property Frontiers: +44 1865 202 700 or www.propertyfrontiers.com

easyMarkets: +44 203 1500 748 or www.easymarkets.com