Political unrest is something that is completely unavoidable. Not only can it present a number of problems for businesses in that country, but it can also widely affect the amount of international investment that may be received. With the stock market being highly versatile, any sign of political unrest can lead to a number of people withdrawing their investment or cashing in which is not beneficial for the business. In this article, we are going to look at a number of ways that you can maintain your international investments despite political unrest in 2019.
Choose Your Investments Wisely
When looking to maintain your international investments when working internationally, it is important to choose your investments wisely. Though this may be difficult at first, it is important to look at the investments that are much more likely to make you money in the long term. With the technology sector being a safe bet for an investment, this is one of the best sectors to invest in as the industry is always growing. With companies such as Samsung and Amazon having both seen an increase in stock value over the years this is an investment that can be easily maintained. However, this has still led to a vast number of people to wonder, why should I buy Amazon Shares? Well, the answer is simple. This well-known business is world renowned and is a popular investment for people all over the world. Because of this increased interest, there are several people opting for large corporations to invest their money into as the stock prices are less likely to fluctuate.
The Effects Of Brexit
Though choosing your investments wisely will help you to maintain them, there is still the problem of political unrest that can affect the stock prices. The most recent and on-going case of this is the effects that Brexit is having on trading and the international stock surrounding the UK. With the recent resignation from Theresa May as Prime Minister, there is a vast amount of political unrest in the race to become the new UK Prime Minister on June 7th 2019. This alongside the ongoing political debate surrounding the end result of the Brexit process is causing lasting fluctuations in international stock as well as the value of the pound and international trade links between the UK and the rest of the world. As it stands the current value of the pound is at 1.13% when compared to the Euro which is a significant drop from a previous 1.18% high.
Though the political unrest is a significant reason behind the drop in the value of the pound, it is important to note that there are also a number of other political factors that can contribute to the drop in the value of the pound as well as the drop in investments such as trade links or even ongoing political negotiations.
The Effects Of The Trump Administration
In addition to Brexit, there is also political unrest with some of the other world’s superpowers of both America and China. Though there has been unrest for a little while, this on-going trade war between the two superpowers has created a vast amount of tension as well as an effect on international stock prices. This is most noticeably with the company Huawei. With the US pulling their funding from the company due to privacy issues and the UK following suit the stock for the company have dropped by 0.27%. This, as well as the other sanctions that are being placed on a number of other companies by the US, have all lead to a number of countries from both the US and China see a drop in international investment. Though this is only short term, this is significant as this can have a short-term effect on the brand as a whole.
How Does This Affect Investments
As political unrest can have a significant effect on the value of your investment, it is important to be on top of the value and trade in when you can. This will not only help you to make the most from your investments, but it will allow you to then invest when the state of the market improves. Though this is a risky option for you, this is the perfect way to ensure that you are maintaining a healthy level of profit from your investments and continue to work at a profit rather than a loss.
With all this in mind, there are a number of ways that you can maintain a healthy level of investment, as long as you are aware of current affairs and ensure that you are aware of the profit that you are making at every point.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!