Inflation rates are rising higher and higher.. wha..

Inflation rates are rising higher and higher.. what does that mean for us traders.

  At this point its no secrete, the United States economy, one of the largest, in the world is experiencing record breaking levels of inflation. The effects of this inflation has been felt across the globe as markets and stocks has been what seems to be a downfall. The question is how did we get here and what does that mean for us traders.

  Due to the recent pandemic, there was a lot of money pumped into the US economy into businesses to encourage economic activity when everyone was locked up. This included funding packages for normal citizens who had lost their job due to the restrictions. This was all good and well but the chicken has come to roost as too much money with not enough resources causes inflation. This included the recent rise in oil prices thanks to the Ukraine and Russia war. The prices of everything dependent on the chain supply of oil has had to rise due to this and has caused quite the panic.

  But as history has shown many times, when there is a crash in the markets and when assets and commodities are cheap it is the right time to start buying in hopes for the next rise. And that is what we should be looking for in the market, indications that the economy is starting to stabilize and things are about to rise in orders of magnitude.

  Firstly due to the uncertain nature of this market you are going to need a broker with the cheapest barriers of entry. You may have to enter the market more than once to find that buy entry and to really benefit from this you will have to hold your position for days and months on end. So you will have to find a broker with small spreads and no overnight or over weekend charges. Also because brokers probably don‘t want you winning in the market, you are going to have to find a regulated broker who won’t mess with your trade or deny you your winnings when its time to cash out. To find such a broker I recommend you use WikiFx. This app helps you find the best regulated brokers with the best ratings and service. And if any misconduct is found on behalf of these brokers, you can report it through WikiFx as they are connected to every regulatory agency out there.

  Secondly you are going to have to watch the US government closely. The government has to start releasing policies such to reduce the amount of money within the economy. They can increase income and sales taxes to reduce the amount of cash present within the economy. They can also restrict money flow by instructing banks to increase the levels of money stored in their banks at any moment,. This means that instead of the usual, say 30% of all funds a bank should always have on site they can increase that to say 45%, heavily discouraging banks to give out loans and give out loans at higher interest rates. This will discourage people from taking out loans and ultimately it will discourage spending within the economy .

  It is paramount that you start watching important economic news from the US and pose yourself in a position to pounce on the opportunity when it arises. Markets dont fall forever, so do not join in on the panic. Arm yourself and prepare for the incoming bull market.

https://www.wikifx.com/en/news....detail/2022070121946

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