The Strategist

Five best investment opportunities in September

09/15/2017 - 15:08

Historically, September is the ideal time for those who want to make money in financial markets, suggest biographies of well-known traders. The summer of 2017 was quite volatile, and activities will increase as major market participants are returning from vacation. Here are the five most interesting trading opportunities that will bring you profit before the end of this month.

1. Sell bitcoin

At first glance it seems strange to sell Bitcoin in conditions of an uptrend. However, it is justified in the short term. The market of crypto currency is now mired in negative news. First, China banned the ICO, and there are rumors that the country's authorities will tighten control over the crypto-currency areas. Against this background, China's leading crypto exchange BTCC said that it will stop trading on September 30. The other day Head of JP Morgan Chase Jamie Dimon called bitcoin a deception and promised to fire traders who trade crypto-currencies.

If the situation stabilizes, it will be easy to open a deal, but it is much more important to make a profit now. Speaking about long-term prospect, bitcoin still should update a maximum, but only after falling, on which you can earn in September.

2. Buy oil

Against the backdrop of the lack of concerted action by OPEC countries, oil prices have fallen slightly. However, as the heating season approaches, the quotations are rising. Three out of the five most recent reports on oil products stocks were positive, indicating a change in the balance of supply and demand for the better. Do not discard the natural disasters in the coastal zone of many oil-producing countries. Perhaps, this is the main argument of the bulls at the moment: the expensive infrastructure of the extracting companies has been under threat, and if it fails, the supply of oil may decrease.

3. Sell the dollar

The American currency is under strong pressure, so you need to use this opportunity, for example, by buying currency pairs EUR/USD and GBP/USD.

The Fed may refuse to increase the rate in in December, and this event was partially pawned in the price at the beginning of the year. The disappointing macro statistics of recent months and disagreements among members of the organization are increasing the pressure. Now that the situation in the euro area is improving (growth of expectations regarding GDP and hints on the rapid curtailment of the quantitative easing program), it can be expected that EUR/USD will grow to 1.22 within a couple of weeks.

4. Invest in the S&P 500 index

Despite the effects of hurricanes, the main index of the US market looks very stable. The season of publication of financial statements for the first half of the year was rather calm: at least, most companies did not lose profit. The dollar will also contribute to the growth of the index. The main argument in favor of investments in the S&P 500 is the next update of historic highs. In the past, the stock market grew in similar situations, and there is no reason to believe that the scenario will change this time.

5. Buy gold

The fact that the dollar will weaken suggests that gold will take a leading position as a traditional defensive asset. Also, the increasing tensions between the US and North Korea, as well as natural disasters, have already contributed to its growth.

Now the troy ounce is worth about $ 1,330. In the coming weeks its value will increase to $ 1370, and consolidation above $ 1,400 will require more serious reasons.