Traditional habits of investing are changing

After 2008 the four biggest central banks have been pumping ten thousand billion euros in total to the world’s financial system. Their purpose was to stop the impending financial collapse in 2009 and after that revitalize global economy and get stock share prices to upswing. The extraordinary moneyrevivals of central banks have raised the future’s profit’s risks as fast as the central banks have been brought financial markets to new records.

The world’s stock markets have been breaking share price records like economy is close to rising to new spheres we’ve never seen before. At the same time, interest rate markets have been breaking records to the other way like there was going to be the recession of all time. Only the future will show which one comes true.

These circumstances have caused a change also to profit expectation, which is outstandingly low. At the moment there is available more likely a risk without profit than a profit without risk. Because of that, investors have to choose either meagre profit expectation or high risk.

For a century-long period of low interests and just entering to the period of negative interests just change the way how profitable investments are made. When taken plenty of gearing loans you get your investments to pay off.

Many large international companies have changed their actions from investing and growing to buying their own shares with loan money and fund big dividend to their shareholders. Surely companies will run into debts with this, but what’s the matter when loan is cheap? Companies pry themselves with pleasure. With raised value of general fortune will increase balance sheet’s fortune values which enables incurring of a debt without a threat of solidity.

There are still some chances to make good profits in share market. You should take advantage of Brexit. A wise investor buys shares from companies who benefit the UK’s leaving from the common market area. Or you could just travel to Britain and enjoy the cheap pound!

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One Response to Traditional habits of investing are changing

  1. juliaalanko says:

    Good post. It’ll be interesting to see how Brexit will affect the markets in long-term.

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