April 26, 2022

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Most volatile investment assets that you should know about

If you are a serious investor it is always advisable to learn about volatile investment assets. Even though it is a somewhat advanced investing concept it would definitely pay out more profit then doing the basic beginner investor stuff which mostly includes checking out stock prices or today gold price Kharagpur or Odisha. Knowing about these volatile assets will help you plan your investments better and also open up new opportunities:

Energy

The most volatile markets to trade are often the ones that produce energy. If you want to find the most exciting place in the world to do business, head for a field of energy production.

The main reason is that energy is a very different kind of commodity. You can’t just buy a barrel of oil and carry it to your car or light your home with it like you can with gold or wheat or pork bellies. Oil has to be transported, and it has to be stored, and occasionally it has to be burned up somewhere. The only thing people know how to do with oil is burned it. And while they’re burning it they keep producing more until they’ve burned up all their supply.

Energy is pretty much what you make of it when you use it, so if you’re trading energy there’s no such thing as “an open market.” It’s almost always a market for something else like oil or gas or coal, plus an occasional deal for the electricity you get from your local utility company. Since most people live over-supplied on electricity, that means if you’re trying to make money in an energy market there’s only one possible strategy: sell futures on the stuff that will be available in six months

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Commodities

Commodities are a range of physical goods in the trading world that include agricultural products, such as coffee, wheat and sugar, minerals, such as gold and oil, and even lumber. Commodities are usually traded in bulk on regulated exchanges around the world. The market for commodities is generally considered to be one of the most volatile markets to trade. While gold is also a commodity it is relatively less volatile so you won’t get an idea of the volatility of the commodities market merely by keeping track of things like gold price in Himachal or whichever city you are from. So to learn about volatility of commodities you should track the assets you are interested in individually. Visit this page for more info.

Financial markets

One of the most volatile markets to trade in the financial sector. Banks, brokerage firms, financial services, insurance companies: all of these fall under the umbrella of this broad sector. These companies are sensitive to changes in interest rates and operate on borrowing money and lending it out at a higher return (similarly to credit card companies). This can be a highly profitable business model when interest rates are low. And when they’re high? Well, you get the picture.

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Financials are therefore one of the first sectors to decline as interest rates increase, and one of the first sectors to rise as interest rates decline. The market tends to overreact to this sector, so you can often see incredible volatility in trade prices. That’s what makes financials a great target for day traders.

Technology

The technology sector ranked fourth in S&P Global’s list of sectors with the most volatility. It is one of the most volatile industries in terms of earnings growth, and it tends to be a target of market swings. Technology stocks have also been some of the best-performing shares over the past decade.

The volatile nature of the industry is due to several factors, including fast-paced innovation and ever-changing consumer tastes. A new product can make or break a company, and at times, an entire industry.

In addition, the tech sector has seen rapid growth as companies have become more reliant on new technologies. The largest companies in the world are now focused on technology — giants such as Apple, Microsoft, Google and Amazon. This year, those four companies were among the top five highest-valued companies in the world.

 


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