World Markets

World markets are so intertwined these days — what happens in one region of the financial markets can affect another halfway around the world.

New markets in the global space are emerging all the time. And the key to growing your wealth is looking outside the box. The world is truly your oyster.

Here’s how the world market is looking at the moment…

US wanting to lead

Donald Trump’s material tariffs are making key allies upset, including the EU, Canada and Mexico.

Moreover, these tariffs may increase inflation, leading American consumers into more debt — a key sign of economic failure…

This could trigger a global chain reaction.

But there’s an upside as well.

Despite climbing interest and an unavoidable slowing of GDP growth, a high employment rate is looking promising for the US’ future, hovering around 96%.

Higher employment means higher spending…which means higher demand…for more goods and services…

Which means promising investment.

That’s definitely good news from a global economic perspective.

And the country is definitely on the investment pursuit, chasing more unique opportunities and industries, including ‘pot-stocks’ and new technology start-ups.

European struggle

We saw drastic failures in Europe not too long ago.

Greece’s blowout from the 2008 Global Financial Crisis is hard to erase from our memories.

It scared the entire European Union.

And it was all because of the euro.

It’s a chink in the European Armour that is all too visible: their unified form of currency.

Because, like computers, if one user opens a virus, the rest can be infected.

So, if the euro creates struggle in one country, it can instantly lead to widespread economic woes wherever else it is used.

China’s uncertain future

Estimates see China overtaking the United states as the world’s largest economy by 2030.

But there are definitely weak spots in their economy.

Take their housing market, for instance.

Without property tax, housing prices have been all over the place. Hungry investors are itching to grab a piece of the action in the hope of a future real estate boom.

But this can mean extreme disruption to an integral part of the Chinese economy — and cause a ripple effect across the world.

Watching the globe

With trade agreements coming into force and relationships constantly shifting, so too is the global share market.

Of course, this means we must be constantly wary of economic risks that arise, in all parts of the world.

Learn how world market events could potentially affect your investments here in Australia and how you could prosper by being ahead of the game…

Here at Money Morning, we’ll provide daily articles covering the latest across the global economy.

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