The world stock market declined a whooping 20.4%1 this year. So what is a tried and proven way to ensure that fortune favours you through this extremely tumultuous investment storm? The often-heard D.C.A. Or Dollar Cost Averaging has proven itself to be a stellar recipe for times like this. What happened? As COVID-19 receded from the headlines, the Russia-Ukraine war took over. And what COVID-19 surfaced as weak links in the global supply chain, the war exacerbated them. This war
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The US inflation rose from 7.4% (in February) to a record 40-year high of 8.5% (in March) year-on-year. Causes for inflation, such as the Russia-Ukraine War, are persisting (see here for the effects of a prolonged war). Inflation is also rising globally. Following the first interest rate hike in March 2022, the US Federal Reserve (Fed) is poised to increase rates to 1.9% by end-2022, followed by 3 more hikes in 20232. What is the impact of interest rate hikes?
The US Federal Reserve (Fed) started the ball rolling on interest rate hikes in March after inflation reared its ugly head by clocking a 7.9% rise year-on-year in February. Another 6 more interest rate hikes are to come this year, and possibly another 4 hikes next year. The war is also causing prices to climb. Why is the war causing prices to rise? Besides supplying about a quarter of all wheat and barley shipments to the world1, the Russian-Ukraine crisis
Russia’s ongoing invasion of Ukraine has dominated the headlines, with more and more sanctions being announced as the assault continued. Russia had taken offence at Ukraine’s bid to be part of the European Union (EU) and the North Atlantic Treaty Organization (NATO) and moved to stop it. Even though a full-scale invasion was the least cost-effective method to get their requests heard, Unicorn Financial Solutions believe Russia was clear of the risks and rewards of their strategy and are prepared
Unicorn believes that in 2022, the market would probably take 1 step back first before it takes 3 steps forward – and the first “half” will be marked by lots of rain while the second will probably bring more sunshine. Inflation had turned out to be the game changer, which was what Unicorn Financial Solutions had been sharing since last January when Unicorn suggested that inflation might not be as “transitory” as Fed said it was. Of course – inflation
With rivalry rife between China and the US, here’s how Unicorn Financial Solutions are investing in them considering their strengths. Why China? China’s investibility relies on their growing influence and wealth redistribution. 1. Growing clout China has been expanding rapidly, especially in the last 2 decades. As it was the only major economy to have positive growth last year, China may overtake US sooner as the largest economy1. Besides GDP growth, China’s influence has also been growing. Comparing each country’s