10 ways the USD affects world markets


The United States is the strongest and largest economy in the world. The US currency remains dominant over other global currencies in international markets. The behavior of the U.S. dollar significantly affects global markets, culminating in positive and negative consequences in those markets.

Here are 10 ways the USD affects global markets:

  1. A stronger USD slows trade in international markets. A stronger USD weakens other currencies in global markets, making it more expensive to buy dollar-denominated goods.

  2. However, these markets are also excited if they export to the United States. A stronger dollar causes the depreciation of local currencies in these markets, creating inflation of domestic currencies.

  3. When the U.S. dollar gathers against other currencies, demand shifts from the U.S. market to global markets, and thus to increased economic and financial activity in global markets.

  4. A stronger USD also attracts capital inflows into foreign direct investment (FDI) and other U.S. investor investment in these markets. This is mainly experienced in developing countries where markets are new markets with high rates of economic growth.

  5. The inflow of capital in US dollars in these foreign markets stimulates economic activities such as lending, employment and consumption, which stimulates growth in these markets.

  6. Goods like precious metals and oil are quoted in USD on the international market. Therefore, the effect of the USD determines the cost of living in world markets. The consequences of a weaker USD in these markets include lower gas prices, while a stronger USD buys gas more expensively for consumers.

  7. Global financial markets are closely monitoring the USD to determine the spot price of fast-moving commodities. All fluctuations in dollars trigger a series of sales and purchases of these goods in guessing any outcome based on dollar behavior.

  8. An increase in the Federal Reserve rate is causing the dollar to rise in price for investors. This can trigger capital flight from these markets; slowing growth and declining demand for USD-denominated products.

  9. Also, high interest rates can reduce liquidity in USD and consequently reduce investment, resulting in job losses and a global recession such as that recently experienced in the 2007 global recession.

  10. As a reserve currency and a standard international currency in most countries, the USD interest rate determines the cost of financing foreign debt for global markets. The US dollar exchange rate determines the interest paid and the availability of credit in the global financial market, while still affecting the balance of payments based on the US dollar reserves held by the entity.


Sovereign Wealth Funds – India’s view of SWFs


India has realized that SWFs can play an important role in financing its growing economy and has begun to draw attention to Oman, Kuwait and Qatar, the countries with the largest assets of the SWF. India and Oman recently concluded a MoR with a seed capital of $ 100 million which increased to approximately $ 1.5 billion over the next two years. Key sectors such as infrastructure, telecommunications, health, tourism and utilities are expected to benefit from this funding. Currently, a large foreign exchange reserve fund is invested in OECD government bonds and other low-yield deposits.

The Indian government announced at a recent meeting with the Gulf states that it needs about $ 500 billion in investment over the next decade to fund its growing infrastructure needs. This also provides an opportunity for rich and affluent Gulf states looking for better investment routes outside developed countries that are still in recession after the mortgage crisis.

Part of the industry experts, however, believe that, given that India’s reserves do not arise from the export of goods, unlike stockpiles of rich stocks, establishing your own SWF is not a good idea. Since the current account deficit is still around 2% of GDP, it makes more sense to keep as many reserves as possible towards long-term investment through SWFs. While the reserves of Middle Eastern countries originate from oil and commodity exports, India’s reserves originate from foreign investment, foreign commercial loans, and other term loans.

The opening of Islamic banking will allow India to attract a huge amount of SWFs that are diverted to China and other emerging Asian economies. Singapore nurtures Islamic banking to take advantage of its position as a leading financial center.


Here are the 6 best indicators you should know


Every Forex trader knows that you need to supplement the data on your charts with a series of technical indicators. Commonly used indicators include strength indicators, volatility indicators, trend indicators, and cycle indicators. These indicators help us not only to determine in which market it is moving, but also when the trend is ending and we need to either leave the trade or, with a good signal, reverse the trade.

The following 6 indicators are most commonly used among Forex traders:

  • Stochastic Oscillator – A stochastic oscillator helps a trader determine the strength or weakness of a currency by comparing the closing price with a price range over a period of time. When a trader identifies high stochastics, the said currency may be overbought and you should be short or bearish. In contrast, low stochastics suggest that the currency could be oversold and you should become bullish or long.

  • Bollinger bands – Bollinger bands contain most of the currency price between the bands it displays. Each range has three lines – the bottom and top lines show price movements, and the middle line shows the average price of the currency. When the market experiences high volatility, the gap between the lower and upper band will increase. In your candlestick or bar chart, the currency is considered overbought if the bar / candlestick touches the upper range, and oversold if the bar / candlestick touches the lower range.

  • Average Directional Movement (ADX) – ADX is used to determine whether a currency is entering a new upward or downward trend. ADX is also used to determine how strong a trend is.

  • Relative Power Indicator (RSI) – RSI uses a scale from 0 to 100 to indicate the highest and lowest prices over a period of time. When currency prices rise above 70, the currency is assumed to be overbought. On the other hand, a price below 30 would most likely indicate that the currency has been oversold.

  • Simple Moving Average (SMA) – SMA is the average price of a currency for a given time period compared to other prices over the same time periods. To illustrate how the SMA works, closing prices over a 7-day period will have the SMA equal to the sum of the previous 7 closing currency prices divided by 7.

  • Moving Average Convergence / Divergence (MACD) – The MACD is another oscillator that shows the momentum of a currency relative to two moving averages. As we discussed in previous articles, when MACD lines cross, this intersection may indicate the beginning of an upward or downward trend.


7 Most Important Things You Should Consider Before You Start Investing


Whether it’s investors, potential investors, or the general public looking to start investing, everyone gets excited as soon as they have excess money in their hands, and one of the common plans is to invest it for quick earnings. People want to start making their money for them, and that is a very understandable and rational thought, but it should definitely be practical in terms of their finances as well. There’s a lot of diligence and foundation going into understanding financial markets before you start investing, and that’s the best part!

A company that makes investments in general will help you get started with the investment and provide you with insight into how to make more money and how to invest money to achieve your financial goals. However, there are a few things that as an investor you need to consider before contacting any asset management company or starting your investment journey.

Here are the top 7 things to consider before you start investing to make more money:

1. Pay previous fees

No investment can start without actually ending the payment of contributions and clearing the loan. Purely for all your debts it is very important to start investing without stress and focus on return.

2. Create an emergency cash fund

Before you start investing, it is very important that you have a separate emergency fund ready. The capriciousness of the market is not in question and you can’t really rely on buying from the market when you desperately need it. If you have an emergency fund, you will be able to start your investment journey with a little more ease.

3. Create financial goals

One of the most important frequently asked questions is how to invest money and make money fast! However, investing is much more than just expecting a return. It is equally important that you set financial goals and invest accordingly. Whether it’s buying a dream home, a car, or retirement savings, an investment firm will know exactly how to help you get started.

4. Understanding financial instruments

There are tons of financial instruments on the market that offer a number of benefits. The bigger question is often what do you want to achieve as an investor, quick earnings, long-term stability, less risk or just savings for the future? It’s not hard to make more money by investing as long as your priorities are already quite clear.

5. Due attention to investment opportunities

Asset management companies have a variety of financial instruments from which an investor can choose and ensure they make more money. If, on the other hand, you want to know how to invest money wisely, then it is best if you carefully do all the financial products on the market and then make an informed decision to make money quickly.

6. Research of market trends

How to invest money wisely is really a question that every investor should ask themselves or an investment firm that helps them build a portfolio. Regular market information, monitoring of news on world markets and knowledge of current business trends makes it easier for investors to choose their financial instruments for investment.

7. Assess your ability to take risks

Each individual has their own capacity to take risks. An investment company will often ask you the level of risk your profile fits into as an investor, as it helps them decide where and how to invest money and make money quickly. How to invest money is often a question that is answered at the expense of how much you are willing to take for the same,

As simple and lucrative an investment and quick earnings may sound, it is true that your investment portfolio will not be solid if you do not have the foundation and thorough research to build.

Asset management companies are there to help investors in their portfolio, from research and investment to managing and reinvesting investor wealth. If you are new to the world of investing, these pointers will make sure it no longer looks scary!


Is private capital right for your company?


If you have a profitable company that has been in business for several years, and you are interested in taking it to the next stage of growth – whether it is injecting money or a complete overhaul – then consider partnering with a private equity investor.

First of all, what is “private capital”? In short, these are the finances provided by investors in exchange for an ownership stake in the company. This type of financing is generally associated with mature companies with growth potential that need regeneration. A wide range of industrial sectors benefit from PE such as technology, industry, healthcare, banking and finance and more.

People are often confused by the difference between private capital and venture capital. Venture capital is actually a form of private capital, but the main difference is that it seeks to finance younger companies such as start-ups and start-ups.

Now that you know a little more, don’t stop there – there are plenty of resources out there that will teach you everything you need to know about private equity financing. This is just the beginning.

Once you do more research, we will walk you through what you should do to gain this type of financing for your business. The first thing you need to do to start the journey is to interview potential investors.

We understand how complex it is to find the right investor, so here are some key questions you should ask when trying to find the right investor to work with in the long run:

  • How much control will management and shareholders have?

  • Will there be further investment? If so, what are the conditions?

  • How experienced are private companies in your sector?

  • Who are the main contact points?

  • What will happen if either side wants to get out of the deal?

  • What costs will the company be responsible for?

  • What is the investment horizon?

  • What does the capital structure look like?

In addition to asking these questions, we recommend that there is always a good lawyer negotiating on your behalf. You will need to look for a law firm with experience not only in private investment, but they must also have commercial experience in order to be brought into the position of management or founder. Choose your lawyers carefully and pay attention to independent references.

Parabellum Investments are specialized medium-sized investors who invest only money acquired from previous successful investments. Our independent investment fund does not include foreign investors such as investment committees or banks. This ensures faster operational processes and direct communication, without the need to consult with all third-party investors, which is typical of a traditional private equity agreement. If you want to find out how we can help your business thrive, visit our website and contact us today.


How to use volume oscillators and trend indicators to make money


You should never trade solely on the basis of trend indicators. A volume oscillator (VO) is another indicator to help you determine if a trend is breaking support or resistance. Basically, the old saying holds true: without volume there is no price movement, and without price movement there is no volume. Use that old saying to your advantage.

Several oscillators such as the Percent Volume Oscillator (PVO) and the Market Volume Oscillator (MVO) are also based on VO.

The VO calculation is based on two moving volume averages (VMA). The basis of the calculation is simple:

VO = [Fast VMA] / [Slow VMA]

A fast MMA is a short-term moving average, and a slow MMA is a long-term moving average.

If we use the VO set (5, 20) as an example, the setting would be Fast VMA at 5 bar and Slow VMA ito 20 bar. With 5 bar, Fast VMA is a shorter period, and with 20 bar, Slow VMA is a longer period.

Basically, VO calculates the difference between 2 MMAs. This calculation reveals volume jumps and possible abnormal volume activities. VO tells us where the current volume is relative to the average volume over a long period of time.

If we look at the VO setting above, it means that when the VO is greater than 1 then the fast MMA is over the Slow MVA and we can conclude that the amount of activity in the market is higher than usual. In other words, we can conclude that there is an unusual volume jump based on the parameters we set (5.20).

Knowing how the basis for calculation works in VO, the indicator becomes a very effective tool in your trading. You should never rely solely on trend-based technical indicators. That way you will only see half of the total picture and this will lead to more losses than wins. When you combine your trend indicators with an oscillator like VO, you will be able to recognize whether trend changes are based on abnormal quantitative activity and make a better decision about whether to enter a trade.

The last thought is that a break in support combined with unusual volume activity should be considered a panic sale, and vice versa with a break in resistance with an unusual volume jump which should be considered a greedy purchase.


Analysis of Porter’s five forces


If you’ve ever listened to Warren Buffett talk about investing, you’ve heard him mention the idea of ​​a company trench. A ditch is an easy way to describe a company’s competitive advantages. Companies with a strong competitive advantage have large trenches and thus higher profit margins. And investors should always worry about profit margins.

This article deals with a methodology called Porter’s analysis of five forces. In his book Competitive Strategy, Harvard professor Michael Porter describes five forces that affect a company’s profitability. Here are five forces he noticed:

  1. Intensity of rivalry among existing competitors
  2. The threat of entry of new competitors
  3. Pressure of substitute products
  4. Bargaining power of customers (customers)
  5. Vendor bargaining power

These five forces, together, give us an insight into the company’s competitive position and its profitability.


Rivals are competitors in the industry. The rivalry in the industry can be weak, with few competitors not competing very aggressively. Or it can be intense, as many competitors struggle in a cut environment.

Factors that affect the intensity of rivalry are:

  • Number of companies – more companies will lead to increased competition.
  • Fixed costs – with high fixed costs as a percentage of total costs, companies have to sell more products to cover these costs, increasing market competition.
  • Product Differentiation – Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.

New participants

One of the defining characteristics of competitive advantage is the entry industry. Industries with high barriers to entry are usually too expensive for new companies to enter. Industries with low entry barriers are relatively cheap for new companies to enter.

The threat of new entrants is growing as the market barrier to entry is reduced. As more companies enter the market, you will see rivalry increase and profitability fall (theoretically) to the point where there is no incentive for new businesses to enter the industry.

Here are some common barriers to entry:

  • Patents – Patented technology can be a huge barrier that prevents other companies from joining the market.
  • High cost of entry – the more it will cost to start working in the industry, the greater the barrier to entry.
  • Brand Loyalty – When brand loyalty is strong within an industry, it can be difficult and expensive to enter the market with a new product.

Replacement products

This is probably the most overlooked and thus the most harmful element of strategic decision making. It is imperative that business owners (we) look not only at what the company’s direct competitors do, but also what other types of products people could buy instead.

When replacement costs (costs incurred by the customer due to switching to a new product) are low, the threat of replacements is high. As is the case when working with new entrants, companies can aggressively set the prices of their products to prevent people from switching. When the threat to substitute products is high, profit margins will tend to be low.

Customer power

There are two types of purchasing power. The first is related to the sensitivity of the customer to the price. If each brand of product is similar to all the others, then the buyer will base the purchase decision mainly on price. This will increase competitive rivalry, resulting in lower prices and lower profitability.

The second type of customer power refers to bargaining power. Larger customers tend to have more influence with the company and can negotiate lower prices. When there are many small customers of a product and all other things remain the same, the company delivering the product will have higher prices and higher margins. Conversely, if a company sells several large customers, those customers will have a significant impact in negotiating better prices.

Some factors that affect purchasing power are:

  • Customer size – larger customers will have more power over suppliers.
  • Number of customers – when the number of customers is small, they will have more power over suppliers. The Ministry of Defense is an example of one customer who has a lot of power over suppliers.
  • Purchase – When a customer buys a large quantity of a supplier’s product, he will have more power over the supplier.

Supplier strength

Customer power looks at the relative strength that a company’s customers have. When multiple suppliers produce a commodified product, the company will make the purchase decision mainly based on a price that tends to reduce costs. On the other hand, if an individual supplier produces something that a company must have, the company will have little leverage to negotiate a better price.

Size plays a factor here too. If a company is much larger than its suppliers and buys in large quantities, then the supplier will have very little negotiating power. Using Wal-Mart as an example, we discover that suppliers have no power because Wal-Mart buys in such large quantities.

Several factors that determine the strength of a supplier include:

  • Supplier Concentration – The fewer suppliers for a particular product, the more power it will have over the company.
  • Shifting Costs – Vendors are becoming more powerful as the cost of changing another vendor increases.
  • Product uniqueness – suppliers who produce products specifically for the company will have more power than suppliers of goods.

It is important to analyze these five forces and their impact on the companies we want to invest in. The Porter Five Forces analysis will give you a good explanation of the profitability of the industry and the companies in it. If you want to know why a company may or may not make decent money, this is the first analysis you should do.


Trade bitcoins and get the most out of it


This digital influx of money that is engulfing global investors is becoming not only easier, but also everyday. Although initially a simple peer-to-peer system for small transactions, it is now used for large investments and overseas luxury purchases, which has introduced newer strategies and uses. How does it really work?

Bitcoin is a currency just like any other. It can not only be used to buy and sell, but it can also be used to invest and share, and it can also be stolen. Although the original introduction of the technology came with a desktop software program, it can now be managed directly through a smartphone app, which allows you to instantly buy, sell, trade or even cash your bitcoins for dollars.

Investing with bitcoins has become very popular, and large sums of money are being invested every day. As a new investor, the rules remain the same as for real money investments. Don’t invest more than you can afford to lose and don’t invest aimlessly. For each store, keep in mind certain milestones. The “buy low and sell high” strategy is not as easy to implement as said. A great way to succeed faster when you decide to trade bitcoins is to learn the technical details. Like cash investments, there are several bitcoin charting tools that record marketing trends and provide predictions to help you make investment decisions. Even as a beginner, learning to use drawing tools and reading ladders can be very helpful. The usual chart usually includes the opening price, closing price, highest price, lowest price and range of trading, which are the basic things you need before making any sale or purchase. Other components will provide you with different market information. For example, the ‘order book’ contains a list of prices and quantities that bitcoin traders are willing to buy and sell.

Moreover, new investors will often quickly open unprofitable positions. But with that in mind, keep in mind that you have to pay an interest rate every 24 hours to keep the position open, except for the first 24 hours which are free. Therefore, unless you have enough balance to cover a high interest rate, do not keep any unprofitable position open for more than 24 hours.

Although bitcoin trading still has its drawbacks, such as transactions that take too long to complete and there is no possibility of reversal, investing can benefit you greatly, provided you take small steps in the right direction.


Mastering short-term trading


Short-term trading techniques involve a combination of a trader’s skill, intuition and experience. Traders make money by taking short-term positions in securities after recognizing opportunities in the bull and bear markets.

Mastering short-term trading requires certain attributes of the trader.

The following factors are fundamental to a short-term trading strategy to ensure that your losses are minimized and gains maximized.

  • Risk control

The risk involved in short-term trading is proportional to the returns, ie high risk and high reward. However, prudent risk management strategies should also be applied to short-term trading in order for the trader to control the risk and achieve the goal of trading in the form of capital gains.

Some of the risk control measures that short-term traders must master include a limit order or a stop order.

A limited order is an instruction given in advance on the prices at which securities can be traded (bought / sold). It is used to maximize a trader’s portfolio by ensuring that the trader takes advantage of securities price points whether the price falls or rises by triggering a purchase order or a sale restriction.

On the other hand, a stop order is an instruction given to a broker to the extent that an investor may suffer losses on a particular portfolio. Therefore, a stop order reduces investor risk by reducing losses before or at a certain price point.

  • Technical skills

Markets are characterized by repeated conditions after certain periods or during certain events. A detailed analysis of the data collected in the market extensively shows the patterns in the market that are becoming predictable. Mastering short-term trading requires the ability to identify the exact time of occurrence and the conditions / events that lead to the occurrence of the intended cycle for exploitation by the trader.

The technical analysis should also be meticulous enough to identify trends in the performance of the monitored security over a very short period, including a day or a week. Having such an ability puts you in a better position to be a successful trader. The identified trends it relies on in making decisions should have a clear bottom line and breakthrough as a sign of proper technical analysis.

Another technical tool that a trader must master is the ability to read different market data presented in different formats. For example, a short-term trader may use the moving average of a particular security to determine the best time at which the price falls to make a call.

  • Time / experience / intuition

Short-term trading is characterized by holding a position for a very short time, sometimes seconds, and releasing the position to make a capital gain. This requires mastery in recognizing market opportunities driven by prevailing market conditions, especially market sentiment. Exploiting market volatility, however, is a risky strategy because unforeseen events can disrupt the expected outcome of an established market opportunity.

Basically, trading is a strategy for making quick capital gains in the securities market.


One of the rarest baseball cards: Finding the Black Swamp


When Karl Kissner’s aunt died in Defiance, Ohio in 2011, she inherited her 100-year-old family home to Karl and his relatives. The exterior of the house was in ruins, and the clutter filled the rooms as if it had never been cleaned in a century. However, the dilapidated house could not prevent Karl and Karl, another family member, from searching it because his aunt left him a message that he would “find things they (did not know) existed.” (Fox TV Business Network, “Strange Inheritance”).

After cleaning most of the interior, the attic was the last area that Karl and Karla had to search. But this attic was different from the rest of the house because it contained most of the old family heirlooms and keys to potential family secrets. It was only when they cleared some objects piled on top of each other to the horns that they discovered a small, dust-covered box lying against the back wall. When they opened it, they discovered over 700 small pictures of about 30 famous baseball players from the beginning of the twentieth century tied with strings. These pictures included such great players as Ty Cobb, Cy Young, Honus Wagner, Christy Mathewson and Connie Mack, just to name a few. Among the giant chord, each player had approximately 12 to 16 identical cards. Although Karl believed that none of them were real baseball cards, because none of them resembled modern cards that include player statistics, dates, and the name of the company that produced them. Karl set the collection aside until they were done going through the rest of the attic.

Karl’s aunt, Jeanne Hench was the daughter of Carl Hench who emigrated from Germany and lived the American dream as a successful meat seller and shop owner. He died in the 1940s and left most of his belongings in the attic of the family home, including a mysterious box of strange mint cards. Mr. Hench’s grandson believed he received the cards as promotional items from a candy store.

Later, Karl opened the box and inspected each one. He went online and researched each of the 30 players represented in the collection. The more he asked, the more he imagined the huge dollar signs flying into his bank account. Karl knew that the next logical step was to get all 700 professionally certified. He called Peter Calderon, a baseball card expert in Dallas, Texas, and sent him samples from the collection.

After reviewing each map, Calderon nearly hit the ceiling when he realized that these were extremely rare antique original books in pristine condition. Each was identified as a series of “E98” tickets from 1910. Karl told him there were many more and sent them to Calderon.

Calderon immediately informed Karl that his cards were authentic and extremely valuable. After much rejoicing, Calderon founded them with Heritage Auction to sell a fraction of the tickets instead of the entire plot, as selling 700 of them would flood the market for old baseball card collectors, potentially reducing the value of multimillion-dollar industry baseball cards. Over a period of time, Heritage Auction House sold a partial plot for a total of more than $ 1,800,000. The rest were divided equally among Karl’s twenty cousins, so that they could work as they wished. Needless to say, Karl and each of his cousins ​​could have easily gone to the auction with the rest of the cards, and they will do so exactly, but gradually so as not to harm the baseball card industry.

It is estimated that the rest of the collection will sell for $ 3 million. The collection Karl discovered earned the title “Finding the Black Swamp” to connect the geographical and historical area of ​​northwest Ohio, adding notoriety to a large collection of some of the oldest and rarest collections of baseball cards.