The Pessimist Trader’s Guide to 2018

Many economists would agree that 2017 was the year of bitcoin. But let’s not forget about other instruments that made a massive impact in 2017, such as US indices DOW, S&P 500 and the Nasdaq. It was also the year of major acquisitions such as Amazon’s $13.4 billion purchase of Whole Foods and ChemChina’s $43 billion takeover of Syngenta. These unexpected success stories beg the question: What can possibly go wrong in 2018? Actually, a lot if you are a pessimist. So we’ve compiled a list of instruments to look out for this year that could confirm your bearish sentiment. The following are several assets you may want to keep an eye on when your New Year’s Eve hangover wears off. But before you begin reading, remember, these are all hypothetical scenarios that should not be considered as any type of advice.

  • Bitcoin Up over 400% in 2017, many wonder what can be in store for the world’s most talked about unit of money? Could this be the year the bitcoin bubble bursts? If late December is any indication, it just might be with other cryptocurrencies like Bitcoin cash, Ethereum, Ripple or Litecoin dethroning Satoshi Nakamoto’s claim to anonymous fame. Either way, the bitcoin saga seems to be far from over. We should expect a lot more head-turning news in 2018.
  • Apple, Steve Job’s brain child, was valued at $700 billion less than only three years ago back in 2015. This was a world record for an American company. But will its success last? While no one knows for sure, what we do know is that the inventors of the Mac, iPad and Apple Watch recently admitted that they intentionally program their devices to slow down after two years’ time. If this development convinces Apple’s cult members to convert to Android, it can put a serious dent in their share price. Either way, they are certainly a company to iWatch out for.
  • Disney is readying to buy 21st Century Fox assets in a deal worth more than $52 billion in stock. The deal has a total value of approximately $66.1 billion, with Disney assuming $13.7 billion of Fox’s net debt. However, according to the New York Times, president Trump called Fox owner Rupert Murdoch to demand assurances that Fox news, the only news outlet the US president doesn’t call ‘fake news’, will remain unaffected by the takeover. In a pessimistic scenario, left-leaning Disney CEO Bob Iger could see the president meddling in his acquisition as a conflict of interest and cancel the deal altogether, dashing high hopes for 21st Century Fox’s 2018 share prices.
  • USD Every year the Forex bears wonder if this will be the year the US dollar crashes. Although it hasn’t happened yet, it’s still a highly possible scenario. That’s because the USD is extremely overleveraged. Additionally, America’s national debt is teetering around $20 trillion and the US borrows around $1 million a minute. Making matters worse, the Fed is essentially paying back its creditors by simply printing more dollars. The only reason America’s creditors haven’t downgraded the dollar to junk is because the USD is currently considered the world reserve currency. This means that all countries looking to import or export goods internationally must first convert their currency to USD. This process adds tremendous value to the dollar. But if that changes in 2018, there’s a good chance that the USD won’t worth the fabric it’s made with.
  • GBP With the Brexit deal looming, it’s hard to say how the final status talks, which are expected to be completed by 2018, will fare for the British economy. A pessimistic scenario could see the EU’s ego getting the best of them. This may result in Europe economically ‘punishing’ the UK. They can take this measure to set an example to any other member state who dares to even think about leaving like England did. If that happened, the GBP could be adversely affected making it hard for the Brits to justify their vote.

So there you have it. Although no one can tell what will really happen in 2018, if nothing else, it may be worth your while to simply pay a little more attention to the above mentioned assets. And if you do decide to trade, iFOREX offers a wide array of hundreds of CFD instruments on its user-friendly, online platform.

 

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