Make Money with Contrarian Investment Options
Everybody wants it. Everybody needs it. Not everybody has it. Money. The age-old challenge of maximizing your financial resources given your available opportunities, skills and talents is the subject of countless research papers, articles, books, guides, and discussions. It doesn’t matter how smart you are, where you attended school, who your connections are, or what field of work you’re involved in – anyone can increase their earning capacity with the right mindset.
Money is a byproduct of doing something well. Professional sportsmen, actors, business people, waiters, barmen, traders, casual workers, and other highly qualified people can command a high salary by dint of their expertise, attention to detail, and affability.
Many of us mistakenly believe that regardless of how hard we work, we will always be within a certain earning bracket. Nothing could be further from the truth. We are limited only by our minds. Nobody is born with an education of the financial markets – that is something that is learned through experience, understanding and practice.
While many folks tend towards traditional investments as a way to boost their net worth, there are nontraditional investment options available to you in the form of derivative trading, and new age markets that were considered sci-fi fantasy just a few years ago. Before we get into these contrarian investment options, it’s important to understand that education is the key. By understanding the nature of these dynamic markets, you can position yourself for success.
What is cryptocurrency and how can you profit off it
The rise of Bitcoin (BTC) came from the demise of the global financial markets in 2009. That age-old expression: ‘When one door closes, another opens’ is so true. Traders and investors were so disenchanted with central banks, stock markets, and the existing framework of the financial system, that they looked elsewhere for their financial well-being.
To this day, many investors consider the global financial system rigged by the big market players on Wall Street and elsewhere. There is some truth to this. The demise of Lehman Brothers and the housing bubble that precipitated the biggest recession since 1929 led to a rethinking in the markets.
Fiat currency is governed by central banks, gold bullion and the actions of governments. Cryptocurrency on the other hand such as Bitcoin, Litecoin and Dogecoin is not. These digital currencies are the product of complex algorithms and open source software that nobody controls.
It is transparent, anonymous, and independent of a regulatory framework, or any central bank. In recent years, we have seen a dramatic shift away from conventional investments towards nontraditional currency trading. Traditional transactions are characterized by central exchanges which must verify all details. With cryptocurrency, these ‘middlemen’ are removed and transactions are processed with lower costs, lower risk and virtual anonymity.
Peer-to-peer transfers are commonplace nowadays. Demand for virtual currency is not only growing for transactions and trading purposes, but also for investment purposes. Investors clearly see the strategic value in digital currency and are incorporating it as part of their financial portfolios. It is entirely possible to forego the volatility of day trading activity and instead opt to buy and hold Ethereum for long-term capital appreciation. That way, the whipsaw movements in prices will be ironed out by the strong uptrend in digital currencies.
The rapid rise of blockchain technology and its widespread adoption by banks and financial institutions has sparked increased interest in this decentralized digital currency. This is to be expected given the meteoric rise of cryptocurrency such as BTC. Consider that when it was released to the world, 1 BTC was worth fractions of a penny in fiat currency. Today, you will pay thousands of dollars for 1 BTC. Had you invested just $200 in BTC at inception, you would be worth millions of dollars today.
What trends are we seeing in financial markets?
In recent weeks, we have seen the USD strengthening against a basket of currencies. This is evident in the US dollar index which is now trading at 96.30 (July 5, 2017), for a 5-day gain of 0.26%. Over 1 year, the dollar index has appreciated by 0.20%. This means that major currencies trading against the dollar have lost ground in recent days. This has also decreased demand for gold bullion, as a risk-on approach to equities markets has kicked in. Stern Options expert Reginald Johnson attributes the shift in sentiment to the bullish data we are seeing from Europe and the US.
While the UK appears to be headed towards a cash crunch, Europe is flourishing, and US economic indicators are equally encouraging. The 1-year performance of major bourses on both sides of the Atlantic is strongly bullish and this has shifted capital from gold to equities. For now, there is still upside potential to equities, but hedging in gold is always a good idea.
