On Velotrade blog we use the angle of International Trade Finance to discuss economic topics. The articles talk about Import & Export, Supply Chain, Cash Flow Management in Business, Financial Risks for Corporates, Alternative Assets like Trade Receivables. Our topics are always fresh and up-to-date.
One of the most glamorous and successful alternative trade finance companies has filed for insolvency and is facing possible bankruptcy. It looked too good to be true: A lack of transparent risk assessment and intense risk concentration, coupled with obvious conflicts of interest, sealed the company’s fate.
The potential for further unpredictable interventions by retail investors has added another layer of risk to the investment landscape but it has also positively highlighted how open financial markets are becoming today.
As base rates have moved closer to zero, the likelihood of widespread negative interest rates has increased. Already the Eurozone, Switzerland and Japan have entered negative territory. The US Federal Reserve and the Bank of England are showing signs of a similar move.
Some business functions are easier to automate than others. However, experienced management staff still retain an essential decision-making role today. In fact, any area of activity that depends on human interaction is inevitably more challenging to automate.
In recent months, the flow of goods across international borders has slowed significantly and many SME manufacturers are facing severe difficulties in staying afloat. Governments have already introduced incentives in many countries to kickstart the economy. New funding can be used to activate international trade in a relatively straightforward manner. Market-based solutions already exist.
Following hot market trends can be a profitable pastime for investors, but the risks of Covid-19, rising geo-politics and economic fundamentals should never be over-looked. Facing multiple threats in today’s mis-matched market – make sure that you avoid the Iceberg Illusion and consider Alternative Assets to balance your portfolio.
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