Prospect 2013: Mixed expectations for the markets worldwide

Investors investing in binary options do not absolutely have to rely on increasing exchange rates in order to get returns. But it is important to at least know the analysts’ expectations for the trends that play an essential role when professional traders take their investment decisions. For 2013, with regard to the development of the stock price worldwide there is a mixed prospect. While the exchange rates in emerging markets and especially in the Asian region may develop in a positive way, shares from Japan, Great Britain and the USA are not very popular with many professional investors.

Europe still affected by the debt crisis

In a current study, Baring Asset Management has created an investment barometer. Almost half of the participants take a very positive stance towards investing in emerging markets, with Asian markets- except for Japan- the percentage is at least 38 percent. Shares of investors within the euro zone are also relatively popular: 17 percent of the polled experts also took a very positive stance towards these shares , at least further 57 percent still took a relatively positive stance. Altogether, the development of the debt crisis in Europe seems to turn better.

Especially in Europe, this image should be enjoyed with caution. Precisely in Germany, the most important national economy in the euro zone, many investors are optimistic after the leading index DAX has recently been recording a clear upward trend. But if the worldwide economic cycle cools down within the next few months Germany as an export nation is most likely to suffer from that- thus, the high expectations to the market are not necessarily satisfied. Moreover, for the complete euro zone, there are risks due to the financial situation in Italy and Spain that is still tense.

Expectations strongly differing worldwide

However, for shares and indices in the USA, other aspects matter. In the USA, especially the domestic demand as a driver of the economic cycle is important. This demand should profit from a positive development on the labour market.

But the USA are recovering from a relatively low level. In addition, even after the successful negotiations concerning the fiscal cliff, there are still political difficulties being imminent. In only two months, for example, the debt limit needs to be stepped up. If not, the USA have to face temporary illiquidity once again.

However, there are completely different expectations for shares and indices from the Asian region. Here, the exchange rates appeared very tough towards a flagging global economy within the last months. Especially the growth of the domestic market in many Asian countries evens out the orientation towards export. On the one hand, this applies to China, on the other hand this also applies to many smaller countries in South East Asia such as Thailand, Indonesia or Malaysia. In 2013, according to many analysts’ expectations, the positive development of this region should continue. With regard to binary options there are additional chances since especially indices are likely to consistently experience short term set backs.

A similar prospect also applies to many other emerging markets, for example in the region of South America but also in the Middle East or in Eastern Europe. Here, the trend of many indices is also rather likely to be upwards in the course of the year whereas for a short time, due to very various influences, there can be temporary declines in prices. Those being capable of predicting them correctly are able to get a high return with binary options.