Sunday, 29 March 2020

There are news and events that affect Forex and the stock market

It is not only valid for the stock market and forex, but no matter what investment you make, some news is valuable for your investments and indirectly or directly affects your investments.

While some news is of value for our investments, some of the news are not of value to us. In other words, not every news is valuable for investors .

It is important to follow news that is valuable. News tracking allows us to take some precautionary measures for the final decision taken before investing and sudden changes during investment if necessary.

In this article, I will talk about valuable news that affect your investments. Generally, economic news will come to your mind, but not only valuable news is limited to economic news, I will explain this with various examples.

Current events affecting our investments
Each of the news that is important enough to cover the first pages of the newspapers has a great impact on the society. With little exceptions, each of these news is important for our investments and affects our investments.

It would be appropriate to cite these up-to-date news such as natural disasters, strikes, riots, war and terrorism as examples.

Effect of Natural Disasters on Investments
Let's go back a little bit to get a better understanding.
Year, 17 August 1999 … I am sure each of us remembers this dark day. After the earthquake, which cost the lives of many people, the stock market experienced one of its historical decreases with 10.3 percent , and the interest rates went up to 115 percent during the earthquake.

After the 99 Earthquake, most of the stocks also lost value. Since it is not possible to predict natural disasters in advance, it is not possible for investors to take precautions. However, taking steps and taking decisions after a natural disaster is of great importance and this is possible. Namely, although the majority of stocks lost value after the earthquake, the number of winners or new decision makers was not very low. The 11.66 percent rise in the Cement Sector Index after the earthquake is the most important evidence for this.

Although the earthquake cost was less than expected, the stock market and interest rates recovered relatively quickly, but a natural disaster where the cost could be higher could sustain the bad results with greater effects.

The impact of social events
Let me continue with an example from the more recent past.

You remember Gezi Park. The sequence of events that initially started as the environmental movement turned into a social event in a short time and undeniably turned the public balance upside down. The events that took place were reflected directly on the economic indicators. Increased unemployment, exports to a halt, inflation problems, and economic growth have stopped, resulting in grave consequences that can directly affect investments.

Again , if I give an example from the stock market data, the events spread across the country increased the uncertainties against the markets. There have been declines not seen in Borsa Istanbul for many years. While the losses exceeded 10 percent, the market value of companies has decreased by approximately 63 billion TL.

This and similar up-to-date news will have a high value that will necessitate you to examine and emphasize if they can find a place on the first page of newspapers .

Political events and news affecting investments
Political events have an immediate impact on economic data, especially if they bring about developments that threaten stability or the current state. Therefore, these news are valuable for your investments.

who are more fragile about politics or political events in developing countries such as Turkey, these developments amount to much more important. In political crises that erupt in a country where their investments take place, investors generally go to sell immediately and try to understand the situation for the next steps.

Political issues, not only for developing countries. For example, political crises in developed countries such as the USA, the UK and Japan may also pose serious problems.

The Japanese Minister of Finance, who attended the G7 summit in Italy in 2009, was dismissed after the reactions after the images. By the way, his video is still available on the Internet.

Although it sounds like ridiculous news, let's look at how it affects forex traders and the stock market:

The news released after the minister, who was removed from his post after the images and later decided to resign, caused the Japanese Nikkei index to close at the lowest level compared to the last three months of that period . On the front of the traders , it caused a rapid disposal of the Japanese yen against the US dollar for several days .

Let me continue the political events with different examples.

As a result of the political tension experienced after the news of corruption in our country, the stock market suffered losses in value. Again, before the elections, there was a withdrawal in the stock market due to 'uncertainty'. Elections , possible government changes, etc. developments directly concern investors. These news, including the stock market and the currency, always have a big impact.

Economic news and data that concern investors
Whichever country you are investing in, all the economic data, news and political developments of that country concern you. But that doesn't mean that developments in the world won't affect you and you don't care.

The developments in the world affect you whether you are in the stock market or in the forex market. It is absolutely necessary to follow the developments in the forex market in the world. For example, if you only buy stocks in Borsa Istanbul; It will be a savior to follow the political and economic developments in the country. In addition, we can add industry news for your industry investments and related company developments for company shares.

BUT , Turkey can be influenced by external developments and emerging quite fast from a country, you are therefore not only your business but chose to become aware of the domestic situation is relatively left to chance. Just as important political developments worldwide that creates a shock not only in Turkey also affects many countries. For example, Russia's entry into Crimea created a global tension. BIST 100 lost 2.18% value. He was affected by the incident in Germany and England; DAX fell 3%, FTSE fell 1.4%.

For example, you should definitely follow global developments in any case .

If I summarize the items, which economic data and what news you should follow:
Overall unemployment level figures
Non-agricultural employment data
Purchasing managers report
Weekly unemployment application numbers
Inflation figures
Consumer confidence indices
Personal income and expenses
Industrial production data
Trade deficits and data on the real estate sector
Government changes
Decisions taken by government officials
Economic crises
Interventions by central banks
Strikes, riots, protests
Natural disasters
Drunken finance ministers who attended important summits :)

This and many similar news is extremely important and valuable for investors. Understanding quickly and quickly which news can have what effect; it will allow you to leave your place early and with less damage or make more accurate decisions when necessary.

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