The financial market has been on a positive trajectory in 2024, which shows how interconnected these systems are. With crypto assets on the rise, cryptocurrency company stocks are rallying and taking an upward trajectory. Looking further, the S&P 500 has experienced some extension after crossing the 4,800 peak in 2022. Today, the market is in the 5,000-5,030 vicinity, and expert analysis indicates that the current rally could bode well for the rest of 2024.
In recent news, Sam Stovall, the Chief Investment Strategist of CFRA Research, reveals that the asset class has set six new all-time highs in January 2024, and with this could come additional records of 74 per cent higher in February. Following recent market news, here’s a look at wise investment opportunities in the Australian market today.
Currency exchange
The foreign exchange market could be an excellent place to invest your funds, from CFD trading to currency pairs and indices. Trading currency pairs could be the way to go. Currencies to look at today are AUD/USD, USD/JPY, GBP/USD, and USD/CAD. Analysis on TradingView, a leading analysis platform, shows that the Australian dollar weakened last week due to rising inflation rates.
The best trades on AUD for the coming weeks might be short and could be less of a good bet to other currencies. The US dollar, on the other hand, has shown short-term bullish momentum, which could strengthen even more over the coming weeks. The Euro shows some currency strength today, and the JPY holds firm support at 148.25. If the price heights exceed this, it could be a good sign to go long on JPY.
Stocks
The stock market is an open investment opportunity actively explored by retail and institutional investors. It is a financial institution in which shares of publicly owned companies are sold and bought by individuals or groups. Leading stock exchanges today are Nasdaq and New York Stock Exchange (NYSE). The NASDAQ 100 index rose last week with signs of a bullish candlestick on TradingView. Although the S&P 500 index made better bullish momentum, both markets indicate a positive long-term profit potential that could be an excellent addition to your portfolio.
In addition, Forbes Advisors revealed that the Federal Reserve recently made tremendous progress on inflation drawbacks in the past years, and this could mean there is a possibility of a reduction in interest rates this year. December’s year-over-year increase in the consumer price index was about 3.4 per cent, which is less than the inflation levels of 9.1 per cent seen in 2022. These few improvements are possible indicators of better performances for the stock market.
Investing in the stock market works like any other currency market. You start by choosing a reputable broker and setting up your account on a secure trading platform.
Commodities
Commodities are worth including in investments as they are investment options topping the chart today. Any savvy investor would know that embracing asset diversification is a reasonable risk management plan. Leading commodities in the market today are gold, oil, silver, futures, and crude oil.
Cocoa futures are commodities topping the conversations today, with a solid bullish trend since 2023. The price of these assets touched a new multi-year high of around 5,000 last week. Price charts for cocoa futures on TradingView show a rising demand, which could be a potential long-term opportunity. Commodities also help investors hedge against losses since some assets in this class increase in value when inflation rises.
Cash or term deposits
If you lack faith in foreign exchange investments, look into term deposits. This investment option covers depositing your money into an account and with a financial institution for interest. It comes with short-term and long-term maturity options and is more flexible than other investments.
There are also no risks attached here, and you do not have to worry about losing your assets – common examples of certificates of deposits (CDs) and time deposits. CDs offer the best interest rates compared to money market accounts and other relevant alternatives.
Best trading opportunities in February 2024
Following the latest news and developments in the financial market, the assets listed above are top performers on the radar for major investors in 2024.
The crypto market is another asset class in the conversation presently. At the time of writing, market volume had seen an 11.09 per cent increase in the previous 24 hours, amounting to $62.27 billion, according to CoinMarketCap. The following day the DeFi market was 7.57 per cent higher at $4.72 billion, and stablecoins were at $58.03 billion in volume.
Recent developments with the SEC, spots for ETF approval, and the upcoming Bitcoin halving are some factors pushing a bullish narrative for the market. These developments are good indicators of what is to come in 2024.
This information is of a general nature only and should not be regarded as specific to any particular situation. Readers are encouraged to seek appropriate professional advice based on their personal circumstances.
