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This Monday, May 11, confinement is coming to an end in France and New York. In Germany, it ended on April 20 and two weeks before in China. Each time, the announcement of the date of deconfinement made the stock markets jump. However, once faced with a fait accompli, they remain cautious. A situation which can be explained by the fear of a second wave, but which does not prevent good investments.
Investing in Forex in times of instability
For individuals, online trading software is the best solution to invest in the stock market without delay and without unnecessary costs. Among the investment opportunities that these platforms offer, the Forex market is still the most popular. Indeed, it is quite simple to understand and allows you to do good business in times of instability.
The health and economic crisis that the whole world is going through promises to permanently overturn the world economic order. Currently, the US dollar could be the big loser and investing in currencies that will benefit from its fall is a good opportunity. You just need to follow the exchange rates on a specialized site to find out even more about the matter.
The advantages of leverage
Online trading platforms rely on the CFD market. They therefore do not allow you to buy real stocks or really invest in a currency, but rather to bet on the variation of their price. This allows them to offer leverage, that is, a multiplier that applies to your earnings. Be careful though, because it also applies to your losses.
In any case, in a period of uncertainty for stock markets around the world, leverage is a strong argument to convince individuals to invest. With good leverage, a small Forex investment can prove to be extremely profitable. When the markets are unstable, it can even make a fortune.
The fear of a second wave leads to the CAC 40
While a little bit of stock market instability can do the trick for clever and alert investors, we must not hide our face and deny the risks currently weighing on the French and global economy. The fact that deconfinement is not enough to restore investor confidence is a sign of a worrying situation.
In recent days, the number of outbreaks of contamination has exploded all over France and the hypothesis of the arrival of a second wave of contamination worries many. If the country were to confine itself again, the economy might not recover this time around. In such conditions, it is difficult for the stock market not to be cautious.