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Football (soccer) and currencies

The football besides being the most popular sport in the world has become one of the new options for earning foreign exchange.

No doubt many will be thinking that the number of hours men spend in front of the television watching football are in vain, however this activity can generate foreign exchange earnings if viewers want to apply the knowledge in the financial market.

What is happening is that in the first few months of a year, which is shaping complicated for all major markets of the world, the effects of the crisis delete, the roles of the European football clubs have become a refuge since been accumulating very good foreign exchange earnings.
The Lazio of Italy has passed the last two months listed on the Milan Stock Exchange and has won 26% in euros, while the turkish team Fenerbahce increase no less than 50.7%. As we can see the profitability of football clubs are now an option but to invest in foreign exchange and thus increase their profits.

The Dow Jones Stoxx Index Football, which brings together 27 shares of companies related to the business of European football was a gain of 1%, quite an achievement if one have in mind that the market share of the world accumulate losses of up to 16% Thus far in 2008.
Unlike what happens in Latin America, be on the stock exchange are a tradition among football clubs in Europe. Mainly in Britain, where some 15 institutions are paying contributions to the FTSE 100 index in London. In England the first team to open its account in the stock exchange was the Tottenham Hotspur in 1983 and then did Manchester United in 1991.

Many investors bet the football to protect its currency from the global crisis facing the economy. Investing their money through the most beautiful sport in the world can be the perfect complement where two opposing activities such as work and pleasure come together to form something homogenous.


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How the experts see forex in the future?

The possibility of a recession in the most powerful countries of the world is closer, so with this scenario many wonder how the experts expect the forex to be in the future? The projections vary and there is no uniformity of opinion among the experts at the time of describe the possible scenario for the future.
How the experts see the forex´s future? One of the first issues to be analyzed is the issue of inflation. This is a problem that has come to affect up the less susceptible economies to an increase in the cost of living, but the reality suggests that the inflation came to stay at least for a long time.

The inflation remains one of the most important current issues in an economy in full deceleration, and this worries forex experts, who see how its earnings are diluted in its hands as a result of the loss of value of the currency.
The down in interest rates is the only exit that has been found so far by the authorities, but it seems that so far has not helped a lot to regain markets and economic activity. Against this background a continuous wondering, how the experts see the forex´s future? Hans Nilsson, a specialist in the foreign exchange market said, “forex is not an island that is isolated from what is happening in the global economy, any movement that takes place definitely affect this market. Investors must be vigilant and follow closely the decisions which will be taken by the authorities to know how to act”.

At present, as are given the market conditions, investing in currencies or stocks, is an activity that contains a high level of risk. Investors have turned to seek alternatives where protect their money until the storm passes. Emerging markets have been benefiting from this situation because its production is based mainly on raw materials, and at this moment commodities are one of the few investment options listed on the rise.
The Arab markets have a big benefit from the crisis in western markets. The price of oil has been steadily climbing since the countries that make up OPEC (Organization of petroleum exporting countries), announced that its production doesn´t increase and this produce the offer, the demand and prices to explode.
This picture tells us that while inflation continued to roam by these latitudes, the currencies will continue lose strength against the sustained and steady increase of goods and services. Meanwhile you still wondering, how the experts see the forex´s future?


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Tags: currecnies, market
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