The stock market has been incredibly interesting to follow as of late, and for good reason. At the end of the day, there’s a lot going on with regard to the global economy, and it’s all centered in three regions, the United States, the UK, and the European Union. Today, we’ll talk about what’s going on with these areas, why it’s shaping up to turn into a wild ride in the market, and what you should be watching for ahead.
What’s Going On With The Big 3
As mentioned above, there’s quite a bit going on surrounding 3 of the world’s largest economies at the moment. First and foremost, it starts with the Brexit. We’ve heard the term quite a bit over the past few months, and the truth is that what we’ve heard thus far is just the tip of the iceberg.
For those of you who aren’t caught up on the situation, the Brexit is a term that means British Exit. Essentially, months ago, the British people voted to leave the European Union. While the vote has been cast, and plans have been made, the action hasn’t happened just yet, but that doesn’t mean that it’s not affecting the market.
The truth is that with the UK leaving the EU comes incredible economic implications. In particular, cuts to trade between the two economic regions could be damning to both, as well as other regions around the world. Nonetheless, the story continues to evolve, and things seem to be looking worse by the minute as a hard Brexit is becoming more of a probable reality.
That’s Not The End Of It
On top of what’s going on with the Brexit, we have a bit of an interesting situation coming out of the United States as well. For the first time in the history of the country, the US consumers have voted for a business man for president. The ultimate hope is that this business man will use his business skills to strengthen the United States economy.
President-elect, Donald Trump, has already made several promises with regard to what he plans to do to improve conditions in the United States. One of the biggest parts of his plan is to re-arrange trade agreements with various countries to improve conditions in the United States. In fact, most recently, Trump brought the United States agreement with Germany into question surrounding the difference in sales between German vehicles in the United States and American vehicles in Germany.
At the end of the day, Donald Trump has big plans. However, if he follows through with these plans, it could change the economic landscape around the world. After all, if the world’s largest economy is going to start changing trade agreements, the global economy is going to feel the change.
Why This Equates To Market Movement
At the end of the day, the market moves based on corporate developments, and there’s nothing that corporations are more susceptible to than the economy. Economic conditions dictate how consumers spend money. Naturally, anything that has an affect on the global economy is going to move the market, and with all of the news that’s coming out having to do with changes that could re-shape how the global economy works, the market is going to react.
What Investors Should Be Watching Ahead
Moving forward, things are likely to get incredibly interesting in the market. This means that we’re going to see several opportunities. In order to stay on top of these opportunities, investors should make sure to stay on top of the news. In particular, watch anything and everything that breaks surrounding Donald Trump’s early moves as President of the United States as well as the Brexit. Both of these stories have the potential to send the market on a wild ride.
What Do You Think?
How do you think geopolitical stories will shape the market in the year 2017? Join the discussion in the comments below!