What if the dollar falls sharply?

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One of the consequences of the economic and monetary policies of the new president of the United States, Donald trump, is that its currency, in other words, the US dollar, may depreciate in the coming months. What's more, many analysts go further by predicting that this is a real fact that small and medium investors should count on to make up their investment portfolio. Up to the point that will determine your returns.

If you need to know what will happen in the markets with a receding dollarNada mejor que unos consejos que te ayudarán a canalizar tus operaciones con mayores garantías de éxito. No es que be un escenario muy irreal, pero puede ser el que verdaderamente se presente. Sea cual sea el caso, te traerá nuevas posibilidades de negocio, algunas de ellas posiblemente interesantes y en cierto modo innovadoras. De mercados emergentes a inversiones alternativas. En definitiva, de ahora en más se te abren nuevas alternativas para inversión.

Dollar: does it affect the markets?

Un escenario de alza de la moneda norteamericana implicará un cambio radical en tu strategy de inversión desde el principio. Será el momento adecuado para cerrar posiciones en algunas de ellas y open them in others. Because in effect, strength levels are going to vary with great intensity. To the point where it was not receptive to your investments before, it will be from now on. You must show great agility to anticipate events and from this dynamic you can make your savings profitable with greater power.

Because if the dollar falls sharply, it will be time for you to look at emerging markets. One of the most suggestive proposals, even when with some risk, is based on increasing your exposure to Russian equities. It seems that it may be one of the positive surprises of this new stock market exercise. It should not be surprising that the main economic indicators show it. To the point that it may be time for you to start this new scenario in your relationships with the world of money with your first operations.

One of the facts that supports this new investment option is that the oil price will continue to increase during this year. Even with unusual force, as some famous analysts of the financial markets admit. In which case, it will favor the Slavic economy due to its heavy dependence on black gold. Where the Russian stock market could pick up this new macroeconomic scenario with strong rises. Given this, you can open positions in this international equity market.

The russian economy It has exceeded analysts' expectations, a fall of 0.5% was expected and at the end it was -0.2% and growth is expected for this year. These data support the trend that may be one of the financial assets to pay attention to this year. With real opportunities in its revaluation and with a very important growth potential compared to other more traditional markets.

Emerging countries that can go up

Russia is not only the nation that can benefit from this new economic situation. In addition, other emerging countries with a great specific weight on the international economic board. One of them is undoubtedly Brazil, if it achieves a stabilization of its political system. With a very high revaluation potential and higher than that presented by other stock exchanges. It is another destination where your savings can be directed for the next few months. They are not risk in the exposures that you formalize from now on.

Other international economies that can take advantage of this scenario include some in Southeast Asia and very fundamentally Latin Americans. They can give you more than one positive surprise of these moments. Nor can we forget the Indian stock market, which for several months has been experiencing one of the best equity returns in the world. Above the big stock markets that are on the minds of the big investors.

Evolution of the North American currency

All these investment approaches can occur as long as this correlation of forces is generated between the main currencies of the international monetary order. Because in effect, everything seems to go in that direction. To the point that everything truly indicates that the dollar will continue to depreciate in the next few months. With a change in the investment portfolio that you must do from now on.

Of this dynamics, the currency market will be another of the financial assets that you should be very attentive to during the coming weeks or even months. It will show activity above normal. With a more than remarkable volatility that will delight the merchants. If you are one of them, congratulations because a new period is opening full of very strong emotions and great options to make your operations profitable in this financial market of such importance.

Fundamentally, the operations that you formalize in the financial markets must be very fast. Through exchanges with other particularly important currencies: Swiss franc, British pound or the euro itself. As a consequence of these actions, you will be in a position to carry out any type of initiative. From the most conservative to the most aggressive of financial markets. You will definitely have no limitations in your approaches.

Other low-priced winners

Whatever the case, a progressive decline in the US currency brings other winners when it consists of financial assets in which you can invest your savings. The market for precious metals It will be one of them and is presented under different investment proposals. From traditional gold to other less conventional metals, such as silver or palladium. They are configured as one of the options that you have from now on with the new dollar scenario.

Another of the pillars is the price of oil in the markets. Because it will undoubtedly be one of the financial assets that may experience a greater appreciation during the next twelve months. Even with the opportunity to get closer and even overcome the barrier of 70 dollars a barrel. Not surprisingly, it is one of the big beneficiaries of the decline in the US currency. With a very direct link between both options.

Nor can you forget what can happen with other raw materials. Fundamentally those linked to the main foods and that you can also give yourself more than one joy if you open positions at the moment. However, they will require a greater and in-depth knowledge of their financial markets. At the same time, it will require you to increase your investments from totally different financial instruments than those you used until now.

Operations in the financial markets

Definitely, new possibilities open up to make your savings profitable. Some will be more or less conventional, but others will possibly start from much more innovative investment approaches. Therefore, you will be in a better position to take full advantage of movements around the money world. Based on the following actions that we expose you below.

1. You must do your first approximations to the currency markets. Your activity will be at levels higher than usual. Even though always under more modest investment approaches. As a complement to your usual investments in the equity markets.
2. The alternative markets They will be some of the centers where you should look to place your money. You have enough proposals to satisfy your demand, even for the strangest financial assets that may seem to you today.
3. A continuation downward in the price of the US dollar should make change wallet from other different approaches. To the point that you must replace all the investments you had until now.
4. In some mutual funds, and to protect your investments, you will have no choice but to cover your operations with the contracted currency, in this case the euro. It is a very effective strategy for these occasions.
5. Be very careful with more sophisticated financial instruments. You must know how to operate with them in a situation as special as this, with the dollar continually correcting their positions. Only if you have experience will you be able to open positions in these savings models.
6. You will have no choice but to look at the financial assets that have a price in dollars or euros. Because depending on this important variable, they will be more likely to accept the challenge of your new lawsuit. As an example of this scenario, precious metals are always listed first. It will be a small signal about what to do with your money.
7. And finally, do not hesitate to expand to those financial markets this trend of the US currency is more beneficial. Not only the emerging ones, but even some more than exotic squares that until now you had not considered accessing them.