Interest rates are expected to go up in the next few years.
Belgium’s central bank is committed to stopping printing money, which causes inflation. The government will have to find other ways of funding its expenses. One of these is by increasing taxes.
Increasing taxes reduces the number of transactions because people with limited resources tend to spend less when they have fewer funds available.
As a result, unemployment rises, and so does poverty resulting in ill health and eventually death.
On the other hand, more people retire early due to poor health, resulting in low pensions for those who retire dutifully at their designated time.
Many Belgian citizens believe this affects their overall standard of living.
Meanwhile, interest rates continue rising as oil prices rise, which is expected to pressure the US dollar.
The buying low and selling high principle
The basic principle of buying low and selling high will always remain valid. (Link to Saxo if you’re interested in buying shares.)
It becomes much harder to predict how prices will move in the next few years due to technological advancements like robots taking over industrial jobs, increasing automation or e-commerce.
As a result, people tend to invest in building homes because land price increases with economic growth, thus resulting in inflationary pressures that the central bank tries to control through monetary policy.
However, inflation directly affects interest rates and the exchange rate between countries.
Therefore, citizens have different ways of hedging against these trends by investing their money overseas, for example, where they can get higher interest rates compared to Europe, where interest rates are already at an all-time low.
Meanwhile, the central bank continues to raise interest rates that can be expected to affect stock trading in Belgium and small business loans.
In addition, inflation will likely increase once more real estate prices soar with growing demand from people who want a place to live.
People start selling their stocks at very high price points because they see an opportunity for a quick return on investment, which means other investors may buy and sell them even higher than the first person.
However, this strategy doesn’t work all the time since the market changes constantly. There are no sure ways of knowing whether or not it’ll continue rising indefinitely due to many factors like availability of resources, national security etc.
Therefore, buying low utilizing stop loss and selling high using a take profit strategy remains an exemplary method for stock trading in Belgium.
Furthermore, it is essential to be aware of the price point you bought your assets at so that you can sell them if they continue going up or have a clear exit plan if they start going down.
In addition, attractive financing deals from other countries may force Belgian investors to liquidate their investments because these deals are too good to refuse.
Increasing interest rates
As the interest rates continue going up, people try to pull out money from their bank accounts before inflation eats into their savings.
As a result, banks become reluctant to lend money resulting in many companies having difficulties paying back loans which makes it harder to obtain new ones since banks start believing that these companies will not be able to pay them back.
Furthermore, people tend to buy low and sell high as much as possible, anticipating a general financial crisis.
This results in the value of the euro going down as more foreign currencies are traded, which adversely affects stock trading in Belgium and other European countries since they use the euro for trading purposes.
However, despite all these changes, it is unlikely that stock trading in Belgium will become obsolete since there will always be people who want to invest their money into businesses that promise a good return on investment compared to bank deposits or even gold that doesn’t promise much growth or return at all.
Forex traders have been utilizing foreign exchanges because it allows investors from different parts of the world with low-interest rates to buy stocks from investors with high-interest rates.
This is also an excellent way of hedging against inflation, economic crises or even a war since it allows you to transfer your money out of the country relatively fast compared to other methods.