With the recent disruption ad volatility seen in global markets, we foresee extremely low-interest rates worldwide for a considerable time, especially whilst debt remains so high.
Even though markets have somewhat recovered from the lows in March/April 2020, investor confidence has suffered considerably.
The volatility during the outbreak of Covid19 shows just how fragile the global economy can be. Sentiment will remain ‘shaky’ as no doubt we expect a continuation of the ‘debt bubble’ with several trillion most certainly due to be added in the coming months (updated 2nd Quarter 2020).
Over the coming years, we see a hyper inflationary period setting in, which is not unusual after such a prolonged (central bank induced) artificial money expansion.
We see more people spending less as their savings are reduced (due to low rates) and yields from many other (regulated investment) vehicles dramatically reducing over time, in line with rising global unemployment.
Formaltrade Asset Management remains independent of these (previously noted) market conditions. Our model is based on ALL price movements of one currency pair. Our model selectively sources particular trades in rising, falling and stagnant markets.
The capability of trading on such fine prices, allow us to gain on positions from the slightest of market moves.