Global Instability Is Here to Stay, Says The IMF

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In an announcement on Tuesday, the International Monetary Fund stated that the risks of global instability have significantly increased significantly since April of this year as there are still a number of ongoing global events which are threatening economies and scaring off risk-averse investors. The biggest contributing factors to this increase in instability are the war in Ukraine, the energy crisis caused by this, and the resulting actions of investors who are pulling out of the market to reduce risk.

The war in Ukraine seems to be not improving as recently Putin has requested 300,000 additional troops to fight in the war and is now threatening to use nuclear weapons. Russia has been experiencing losses on the front line and has had to retreat in a few areas. This however has prompted Putin to invest further in the invasion which signals that the war is still set to continue. The rest of Europe was dependent on Russia and Ukraine for resources such as oil and gas. However, the war has caused a disruption in those supply chains and as the war is set to continue these disruptions are set to make a greater impact on these European Economies

Europe and the rest of the world have been facing record-breaking levels of inflation due to the massive disruption in the oil supply. This is set to become even worse as limited gas and oil supplies are lightly not going to suffice to supply all of Europe in the coming winter months which is sure to have an impact on the Euro and the global economy at large.

This grim outlook is said to be worse off for emerging economies as the IMF expects that the rocky economic outlook including the additional various risks these countries have accumulated such as debt is sure to hamper the growth of these markets.

This is where traders step in. You can still make money during an economic downturn as a trader you just have to be on the short side of the markets. We should expect emerging marketing such as Mexico and South Africa to experience weakening currencies so we should look for long-term shorting opportunities for these currencies. We should also expect volatility in assets such as Oil, Gold, Bitcoin and etc. so you are encouraged to trade carefully when looking at these assets during these volatile times.