Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on September 3, 2024 at 7:45 am, by anakin
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on September 2, 2024 at 7:54 am, by anakin
This is particularly true if you are active in the financial markets.
Imagine you are just starting your day, coffee in hand, casually scrolling through the latest news on your phone. Suddenly, you see a headline.
“Jerome Powell, the Chair of the Federal Reserve, is set to deliver a speech.”
To many, this might seem like just another financial update, something for economists and bankers to worry about. But for a savvy CFD trader like you, these words could be a goldmine, or a trap.
Yes, you read that right. Jerome Powell’s words hold immense power, and if you are trading CFDs, paying attention to his speeches can be the difference between capitalising on market opportunities and watching your trades go south.
The power behind the chair
Jerome Powell isn’t just another high-ranking official in Washington. As the Chairman of the United States Federal Reserve, he is one of the most influential figures in global finance. His words have the power to move markets, alter economic outlooks and influence the direction of entire industries.
For CFD traders, this influence is particularly important, as CFDs allow you to speculate on the price movement of assets like forex, commodities, indices, and stocks without owning the underlying asset. This means you can profit from both rising and falling markets, but only if you know which way the market is headed. And that is where Powell comes in.
How Powell’s words move markets
When Jerome Powell speaks, the markets listen intently. His statements about interest rates, inflation and economic policy can send shockwaves through financial markets worldwide. A hint of a rate hike can lead to a surge in the US dollar, while a suggestion of economic slowdown might trigger a sell-off in stock markets.
For CFD traders, these market reactions are opportunities. But to seize them, you need to be able to anticipate how the markets will respond to Powell’s words. Here is how his statements can influence different aspects of CFD trading.
Interest rates and forex CFDs
Interest rates are a key factor in forex trading. When Powell hints at raising rates, it typically strengthens the US dollar because higher interest rates attract foreign investors seeking better returns. For CFD traders, this could mean adjusting positions on currency pairs, capitalising on the movement of the US dollar.
On the other hand, if Powell suggests a rate cut, the US dollar might weaken, creating opportunities to profit from pairs like EURUSD or GBPUSD. Understanding these signals and acting quickly can make all the difference in your trading outcomes.
Stock indices and Powell’s economic outlook
Powell’s speeches often touch on the broader economic outlook, which can have a significant impact on stock indices like the S&P 500 or the NASDAQ. Positive remarks about economic growth or controlled inflation might boost market sentiment, leading to a rally in stock indices. CFD traders can leverage this by taking long positions on these indices.
Conversely, if Powell expresses concerns about economic headwinds or hints at aggressive tightening of monetary policy, stock markets could tumble. CFD traders who are prepared can profit from these declines by shorting the indices.
Commodities and inflation signals
Powell’s comments on inflation are closely watched by commodity traders. Inflation affects the value of commodities like gold, silver, and oil. For example, if Powell indicates that inflation is rising faster than expected, it might push gold prices higher as investors seek safe-haven assets.
CFD traders who catch these cues early can take long positions on commodities, benefiting from the price surge. Similarly, if Powell’s tone suggests that inflation is under control, it could lead to a drop in commodity prices, presenting shorting opportunities.
Timing is everything
In CFD trading, timing is critical. Markets react almost instantly to Powell’s speeches, and by the time a news outlet distils his words, the initial market move might be over. This is why real-time analysis and quick decision-making are essential.
When trading CFDs, you are not just following market trends – you are predicting them. Powell’s speeches are often carefully worded to avoid spooking the markets, but even subtle shifts in tone can lead to significant price movements. As a CFD trader, being able to interpret these nuances gives you a competitive edge.
Staying ahead in the game
So, how can you effectively incorporate Powell’s insights into your CFD trading strategy? Here are a few tips:
Stay informed: Follow real-time updates and analyses from reliable financial news sources. The quicker you understand Powell’s statements, the faster you can act.
Understand the context: Powell’s words don’t exist in a vacuum. Consider what’s happening in the broader economy and how it might influence his decisions.
Align with your goals: Whether you’re trading forex, indices, or commodities, align Powell’s economic signals with your trading goals. Are you looking for short-term gains, or are you positioning for longer-term moves?
Don’t overreact: Markets can be volatile after Fed announcements. Make informed decisions based on a comprehensive view rather than reacting impulsively.
Powell’s words can determine your trading success
Jerome Powell’s words are more than just market-moving events – they are signals that can guide your CFD trading strategies. Whether you are navigating forex, commodities, or indices, understanding and anticipating the market reaction to Powell’s speeches can help you make more informed and profitable trades.
So, the next time Jerome Powell is set to speak, don’t just scroll past the headlines. Tune in, listen carefully, and use his insights to your trading advantage. In the world of CFD trading, staying ahead means paying attention to the words that matter, especially those from the Chair of the Federal Reserve.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
New contracts will automatically be rolled over as follows:
Please note:
• The rollover will be automatic, and any existing open positions will remain open.
• Positions that are open on the expiration date will be adjusted via a rollover charge or credit to reflect the price difference between the expiring and new contracts.
• To avoid CFD rollovers, clients can choose to close any open CFD positions prior to the expiration date.
• Please ensure that all take-profit and stop-loss settings are adjusted before the rollover occurs.
• All internal transfers for accounts under the same name will be prohibited during the first and last 30 minutes of the trading hours on the rollover dates.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Even though inflation has cooled down a lot since its peak of 9.1% in June 2022, it’s still remains high, and there’s no telling if it might creep up again.
Elon Musk and Warren Buffett have some similar advice for dealing with inflation. Musk once tweeted that when inflation is high, it’s usually better to own things like a home or stocks in companies you believe in, rather than holding onto cash.
What are your thoughts about probable inflation rate over next few years?
As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
The second half of Musk’s tweet echoes investing wisdom from Warren Buffett, CEO of Berkshire Hathaway. Back in 2009, during the tail end of the Great Recession, Buffett told shareholders that one of the best ways to guard against inflation is to own a piece of “a wonderful business.”
His reasoning? No matter what happens to the dollar’s value, a great business will always have demand for its products.
In case you missed, here’s another reason why the dollar could be losing its value in the near future.
Not all investments react the same way to inflation. Some are pretty much immune to its effects, and a few might even thrive when inflation rises. Here are 4 inflation-proof investment strategies to keep you at ease during economic uncertainty.
4 inflation-proof strategies to help you sleep better during economic uncertainty
Gold
Gold is often seen as a hedge against inflation, especially in countries where the local currency is losing value. In these places, people turn to gold or other strong currencies when their own currency fails. Since gold is a tangible asset, it generally holds its value.
However, gold isn’t a perfect inflation hedge. When inflation goes up, central banks usually raise interest rates. In this environment, holding gold, which doesn’t generate yields, can be less advantageous compared to assets that do, especially when interest rates—and yields—are high.
Commodities
Commodities are an essential part of the global economy, encompassing items like grain, precious metals, oil, natural gas, and even foreign currencies and financial instruments. They often serve as a barometer for inflation, with their price movements reflecting broader economic trends.
Commodities have shown resilience to bouts of inflation and have been a hedge for bonds and stocks, according to Goldman Sachs Research. They also offer protection for portfolios to volatility from elections and geopolitical events. https://t.co/mjU2LETgwFpic.twitter.com/f00Qc1FhZV
When the price of a commodity rises, it generally indicates increased production costs, which can, in turn, drive up the prices of goods derived from these commodities. This relationship links commodities closely with the Consumer Price Index (CPI), a key measure of inflation. As commodity prices climb, they can contribute to higher CPI readings, signaling rising overall inflation.
However, commodities are also known for their volatility. Prices can fluctuate widely due to changes in supply and demand, geopolitical events, or economic conditions. For instance, disruptions in oil supply from geopolitical conflicts can cause oil prices to spike, influencing inflationary pressures across various sectors.
Treasury bills, notes, and bonds
US Treasury bonds are debt instruments issued by the U.S. government, and they pay interest as well as return the principal amount when they mature. They’re favoured because they have a high credit rating and are considered very safe, making them a reliable choice for consistent income, especially for retirement portfolios.
However, the value of U.S. Treasuries is influenced by interest rates, which change in response to inflation. When interest rates rise, Treasury prices usually fall, and when rates drop, Treasury prices generally increase.
Bills, with maturities of one year or less, are sold at a discount and have interest rates based on their price. Notes and bonds have fixed interest rates. The value of these securities drops when interest rates rise because new securities offer higher rates. Longer-term bonds are more affected by interest rate changes than shorter-term ones, so they can be more volatile.
Cryptocurrencies
Cryptocurrency, especially Bitcoin, is a solid bet against inflation because it has a fixed supply of 21 million coins—unlike fiat money, which can be printed endlessly. Since Bitcoin isn’t controlled by any government, it stays stable even when traditional currencies are losing value.
For example, people in Venezuela used Bitcoin to protect their savings when their money lost value. Plus, Bitcoin is easy to access and trade, making it a smart choice to keep your wealth safe when inflation hits.
Bottom line
A diversified portfolio is the best hedging strategy
Don’t just hold on to cash! Market conditions can change unpredictably, it’s important to diversify your portfolio and assets.
Even if inflation isn’t a concern, having a range of assets across your portfolio helps manage risk and capitalise on various opportunities.
VT 
