E Coronavirus And Brexit – The Key Events Investors Cannot Afford To Overlook In 2020

There are many challenges when it comes to effectively managing an investment portfolio. An understanding of the financial markets is a must, as is the need to understand when and how to restructure investments and undertake new trades. However, there is another side to investing that can be commonly overlooked – that is, an understanding of trending global, social and political events. 

When it comes to understanding the global financial markets, the first thing one commonly realizes is just how sensitive asset prices are. Nothing is ever really certain. Rather, the price growth of any asset is determined by a series of peaks and troughs that fall on an upward trajectory. 

Importantly, major events are likely to affect your financial portfolio in some shape or form. That’s why there is a need to understand both what is happening in the world, and how these global events are likely to impact the price of different assets. Rapid changes in the markets caused by political and social events creates both potential risk and return.

2020 has already proven to be an eventful year. In early January, for example, the heightened tensions between the US and Iran caused gold rose to its highest price in 7 years at $1,600 USD per ounce. If regional instability grows, we could see a similar price spike. 

Based on what we have seen transpire over the last month, I have listed below three social, political and economic trends investors need to have on their radar. 

No market is immune from coronavirus

One might think that coronavirus will only have a visible impact on markets that are dealing with a mass outbreak of the disease. It has already been predicted that China will adjust its 2020 GDP growth forecast, which currently stands at 6.1%, with some suggesting there could be as much as a 1% drop. As the second largest economy in the world, this would have significant implications for the performance of other markets as well. 

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Dean Gilmore 2 months ago Member's comment

Now that we're at the month's end, have your views changed? Would love to see an update or more articles by you.

Dick Kaplan 2 months ago Member's comment

Have your views changed at all now that the coronavirus is such a greater threat than we originally thought?

Alpha Stockman 2 months ago Member's comment

Two critical issues. But I believe the #coronavirus is the far greater threat as there is still so much we simply don't know about this disease, or how bad things will get. But it's already beginning to decimate certain industries.

Ayelet Wolf 2 months ago Member's comment

Yes, and Brexit mainly affects the EU. The entire world is being effected by COVID-19. Not just with so many becoming infected but the entire world's economy is getting decimated!