3 Investment Risks Every Investor Will Face in 2017
Although there are definitely some investments that are safer than others, none are safe from these three impending investing risks and dangers in 2017.
Although the markets are showing signs of improvement, there are still significant risks that every investor will face in 2017. From military conflicts, to trade wars, and political upheaval, investors must be aware of the global events that can affect the performance of their investment portfolio. Undoubtedly some investments offer more stability and are safer than others, but none are safe from these three impending dangers.
Across the globe, there are military campaigns underway. These can have a profound effect on important aspects of a region’s infrastructure, like the movement of goods and the lines of communication. This, in turn, presents challenges for economic growth; as well as, the performance of existing investments. To address the adversity, investors must turn their attention to industries and investments that have historically performed well during times of war and conflict.
The U.S.’ new stance on trade is seeing the introduction of protectionist measures, such as the renegotiation of trade deals and the levying of tariffs on imports. This is creating unrest among America’s leading trade partners, like Canada, China, and Mexico. Unsubstantiated tariffs can be seen as a sign of aggression, and are likely to result in retaliatory measures. This will begin a trade war that can have a negative effect on industries and investments in both/all of the affected countries.
There are signs of political upheaval all over the world. From the election of Donald Trump in the United States, to the Brexit decision and surprise election in the United Kingdom, as well as sanctions against Russia and North Korea, politics is having a greater effect on the performance of economies and leading industries. The introduction of new administrations and policies can have a serious and profound effect on how a company operates. Aggressive policies like sanctions can cripple an entire sector and devastate investors.
For the moment, economic growth in both developed and emerging markets continues to increase. This positive note is fueling consumer confidence and drive domestic and international investment. So long as economic, military, and political aggression remains in check, the outlook for key industries, like shipping and finance, will be profitable.