The fixed-income asset class is probably the most important asset class for investors. While there are plenty of bond and fixed-income securities and instruments to invest in,
this asset class is crucial to watch because it is a window through which we can see the direction of interest rates.
Nothing creates big capital fluctuations quite like interest-rate moves. If you want an early warning system to safeguard your investments, or if you're looking for new investment opportunities, Simurgh will guide your portfolio accordingly for the direction of interest rates. The Fed intends to keep rates at historically low levels, at all costs since October 8 2008. Eventually, interest rates will start to rise. Getting the timing right will enable you to realize some handsome profits. Movement in interest rates directly affects the biggest asset class of all - Currencies ...
Investors, whatever they do, regardless of their business, must keep an eye on currency movements. Buying a new house at a cheap price may not necessarily be cheap if the required currency is expensive or buying an emerging market bond might be expensive if the invested currency is overvalued etc.
World currencies float against each other. If money needs to be converted to a different currency to make an investment, any change in the exchange rate between that currency and yours can increase or reduce your investment return.
There is a rising volatility in currency markets caused by looming debt problems in the U.S. and Europe and signs of slowing U.S. growth. That volatility has been especially magnified in currency trading. If you are an investor looking for diversification, FX offers a great opportunity if properly managed. The key word is "risk concept"
