It’s no secret that global finance is in constant flux due to the many new factors that constantly reshape it. New competition, technology-inspired disruptions, and economic uncertainties are critical factors that significantly impact the global economy.
Currently, the coronavirus pandemic has altered global finance in diverse ways, and as a result, the economic prospects of many nations will depend on COVID-19’s trajectory. With that in mind, here are some critical insights into the present state of global finance.
China may be the newest financial superpower.
The Chinese economy has been one of the fastest-growing fastest-growing economies since 1979, and this reality has only intensified over the last year. In fact, many experts, like The Centre for Economics and Business Research (CEBR), predict that the Chinese economy will overtake the American economy by 2028. China’s predicted overtake of the U.S. is attributed mainly to its successful response to the pandemic and the minor economic damage it experienced compared to the United States. Still, both countries remain prime investment hubs for many people, so it isn’t surprising to see many Chinese investors expanding to America and vice-versa. Reputable accounting and consulting firms such as Marcum Bernstein & Pinchuk LLP (Marcum BP) are good examples of organizations that make this cross-border trade between the U.S and China possible.
These leading auditors are headquartered in New York, and they provide audit, international tax, and assurance services to Chinese companies listed on the U.S markets. Also, they offer financial due diligence services and forensic accounting services to foreign investors and firms looking to invest in China. Additionally, they assist Chinese individuals and companies with global tax, EB-5 investment services, capital verification, and other aspects of overseas expansion. What’s more, their cross-border services cater to public companies and private companies alike, and they have offices in Guangzhou, Hangzhou, Shanghai, Hong Kong, and other major Chinese cities.
Digital currencies continue to grow, although the dollar’s value against the Euro and Pound has decreased since April 2020. Therefore, cryptocurrency trading is now widespread, as many people view cryptocurrencies as a worthy investment worth making. Also, Tesla’s purchase of about $1.5 billion Bitcoin in February facilitated an exponential growth that took Bitcoin’s value to about $50,000 per coin. As such, many people widely consider cryptocurrency as the new trend and future of finance and a great investment avenue since crypto could be safer than most official government currencies. However, many investors still prefer tried and tested investment strategies like options trading to put their monies to good use. Informative financial websites such as Wealth Rocket can offer great advice on trading options.
Wealth Rocket is a personal finance website that offers advice on budgeting, taxes, investment, insurance, credit card usage, and savings for people of all ages and financial backgrounds. Their article on the best options trading platform in Canada offers insights into some great options trading tools and how to use them. Many people consider options trading best for professional traders and not for new traders or those who have only acquired mutual funds. Online brokerages operate options trading platforms similar to stock trading platforms, except that they’re exclusively for trading options.
Online brokers offer trading tools to regular and active traders who may be involved in day trading. Also, some brokers offer better customer services depending on the number of assets you have or the trading platform you use. Some even offer free trading for stocks and fewer commissions on options and stock trades. Some of the best trading platforms you can use include Questrade, Qtrade, and CIBC Investor’s Edge.
COVID’s Financial Fallout
The pandemic undoubtedly affected the global economy significantly. It disrupted production cycles, made markets more volatile, shocked global supply chains, and worsened existing financial difficulties. Therefore, many industries—like the travel and hospitality sectors as well as economies worldwide—continue bearing the pandemic’s financial stress, although the global economy is recovering faster than expected.
To conclude, global finance keeps changing due to new factors that constantly reshape it. The points above are some critical insights worth knowing concerning global finance’s current state.
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