Financial markets in times of crisis how to manage strategies and risks

According to the International Monetary Fund’s (IMF) Global Financial Stability report, the deterioration of market liquidity for various asset classes and forecasts of the global economic slowdown have increased the risk of financial instability.

According to IMF estimates, the global economy will grow by 2.7% in 2022, with a reduction of 0.2% compared to the previous forecast and 1.1% compared to the estimate at the beginning of the year. In addition, the Washington-based international institution expects global growth to drop below 2%, a prospect that has alarmed companies and investors.

The advice of experts to traders and investors is to pay close attention to the price trend and to the decisions that will be taken in the coming months by central banks, the Fed and the ECB in particular. Thus, it will be possible to invest in the financial markets in a conscious way.

The last few weeks on Wall Street have been characterized by strong declines, a trend conditioned by the specter of the global recession, but this does not mean not being able to invest anyway, with some precautions.