Five of the Best Trades of 2016 (So Far)
November 25, 2016 4:50 amVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
The year 2016 has been a trying one for the global financial markets. Geopolitical tensions, volatile oil prices, Brexit and the US presidential elections have all had a major impact on traders’ portfolios. But amid the drama has emerged some clear winners. The following article looks at five of the best trades of 2016 (so far).
Utilities
Utilities are easily Wall Street’s best performing sector so far this year. The S&P 500’s utilities index is up more than 9% for the year. By comparison, the large-cap S&P 500 Index is down around 1%, reversing earlier gains as US election jitters weighed on the markets. Utilities encompass a broad range of companies operating in the electric, gas and water utilities industries. Since they provide necessities, utilities might typically be much more recession-resistant than other sectors of the financial markets. This partly explains their strong performance this year.
Japanese Yen
The yen has defied the odds this year despite repeated efforts by the Bank of Japan (BOJ) to boost export competitiveness. The yen has gained roughly 17% against the US dollar since the start of 2016, and at one point reached its highest level since 2013. The Japanese currency is one of Asia’s preferred safe havens, that might make it an important play for investors looking to escape volatile markets. In fact, the yen has been so strong this year that it has triggered intervention warnings from the Japanese government.[1]
Gold
Despite having a volatile month, gold is one of this year’s strongest performers. The yellow metal is up around 22% in 2016. Bullion spiked in the immediate aftermath of Brexit to reach its highest level since early 2014. Since then its path has been choppy, but analysts forecast steady progress for bullion well into next year. This means that gold’s recent slump may have been a good opportunity to enter the market.
Silver
Like gold, silver has benefited from risk aversion. However, the grey metal has also had other major catalysts, including heavier industrial demand than its yellow counterpart. Silver is mined primarily as a by-product of base metal extraction. This has made it more susceptible to supply shortages in the wake of a broader mining slowdown. And unlike gold, silver was considered significantly oversold through the beginning of the year. Silver prices have skyrocketed more than 30% this year, reaching multi-year highs on several occasions.
Gasoline
Gasoline prices have benefited from the general uptrend in the energy markets since the start of the year, but have also benefited from temporary closures at refineries. A fatal pipeline blast in Alabama last month resulted in the biggest gain in gasoline prices in eight years.[2] Gasoline futures are up more than 2% and in October reached their highest level since late 2014.
[1] Netty Idayu Ismail and Anooka Debnath (February 9, 2016). “Yen Advance Is So Strong It’s Triggering Intervention Warnings.” Bloomberg.
[2] Dan Murtaugh and Laura Blewitt (October 31, 2016). “U.S. Gasoline Jumps Most Since 2008 After Pipeline Blast.” Bloomberg.
The post Five of the Best Trades of 2016 (So Far) appeared first on Forex.Info.
Source: Easy Forex Forex.Info
Related Posts: