In 2024, the market has been defined thus far by high volatility that is shaping traders’ strategies. Finance Magnates spoke to Nour Hammoury, Chief Market Analyst at SquaredFinancial for his perspective in a full-length interview.
Markets are witnessing high fluctuations and constant changes. What are the factors causing these changes? And for how long will volatility last?
Today, the economic climate is marked by uncertainty surrounding inflation and the world’s biggest central bank monetary policies and decisions, as well as geopolitical tension. Economic data releases have a more significant impact than ever before, particularly if the data comes in unexpected. This uncertainty is likely to persist until there is clear evidence that inflation is moving in the right direction, and we have a better understanding of central bank policies.
Another major factor is technology, which is advancing rapidly and bringing about changes across all industries and sectors, none more than finance. New technologies, such as blockchain and artificial intelligence are transforming the way transactions are processed and data is analyzed.
Similarly, innovation is reshaping manufacturing processes and consumer interactions in other sectors as well. Moreover, for the past 3 years, the COVID-19 pandemic has drastically changed consumer behavior, resulting in an increased demand for digital shopping, digital payments, and faster, more transparent services.
What are the most trending assets that traders should watch?
Portfolio diversification is key. It is a crucial part of risk management, which is why investors should never focus on one asset or instrument, never put all their eggs in one basket. An interesting asset class to invest in is Metals. Gold and Silver seem to have been recently among the best instruments to store value, regardless of market uncertainty. These precious metals can be used as a hedge against inflation, economic crises and geopolitical tensions. Another asset class to watch is Cryptocurrencies.
They have made a strong recovery in recent months as the global economy continues to adapt to this technology. The introduction of the first Bitcoin ETF has seen a massive inflow of investment improving investor trust and validating cryptocurrencies as a legitimate investment option.
SquaredFinancial recently launched its Trading Talk Show. Can you tell us a bit about it?
We launched the Trading Talk Show earlier this year. It is an interactive live podcast where we engage with clients, traders, and investors in a spontaneous, genuine, and unique way, which means we answer market-related questions without any editing.
We have had two successful episodes so far, and the third is scheduled at the end of May, and we’re keeping it going due to high demand. We select topics based on the latest trends and recent updates that are influencing the markets. Then we discuss these events, explain how markets are reacting, and what it could mean in the short, medium, and long terms. During the podcast, we listen to our clients' needs and feedback which helps us provide better research, analysis, and trading tools.
Emerging markets, MENA and GCC: How is the market becoming competitive for brokers and is there interest and potential in online investment?
These markets are witnessing a growing interest in online investments, driven by a young generation that is drawn to technology. Mobile and digital transactions are taking central stage in these regions, which makes online trading even more appealing. Regulators are also helping and paving the way by setting frameworks that boost online trading platforms and encourage digital investment. This regulated environment is attracting both local and international brokers to have a presence and a share in these markets.
Competition, however, is growing, and brokers are using the newest technologies to attract and retain clients. Their main focus is to offer investors the best educational resources, the most innovative trading platforms, as well as excellent customer service, and the most competitive conditions to further root their loyalty.
As such, it is safe to say that there’s high potential for investment growth in this new market, because, unlike western markets, it’s still far from being saturated, and people’s interest in and awareness of online trading is rising.
