Planning and investing for the future is very important and can help to ensure that you are able to reach your financial goals. Over the past year, the markets across the globe have been very volatile, which has caused some concern. One financial expert, Konstantin Lichtenwald of Vancouver, discussed the recent trends in the stock market that have led to the volatility in the markets.
COVID-19 Has Major Impact on Markets
In March 2020, the stock markets across the globe experienced one of their most significant downturns ever. This was largely due to the onset of the COVID-19 pandemic, which put a lot of stress on various businesses and industries. While this looked like a very risky time, it also presented a lot of opportunity to Konstantin Lichtenwald of Vancouver and others that were willing to take the risk. Since that time, the markets have more than recovered and many stocks continue to trade near their all-time high marks.
Konstantin Lichtenwald of Vancouver Discusses Volatility in GameStop and Other Stocks
One of the largest stories in the investment world has been the rapid increase in the price of GameStop, which started low and rapidly increased to more than $300 per share. This led to some significant turmoil in the market as major investment firms were required to cover their short positions, which caused a liquidity crunch. Konstantin Lichtenwald of Vancouver discussed that this showed how well retail investors could succeed and the power that they have. This allowed many investors to make a considerable return on their investment.
Digital Currencies Provide Opportunity
Konstantin Lichtenwald of Vancouver and other investors will also continue to look at cryptocurrencies as a great place to invest. These coins have gone up considerably in value over the past few years and have much more room for growth. Placing some of your personal capital into these coins could help you receive a good overall return.
Understanding and Managing Taxes is Important
In the economy today, there will always be a lot of opportunities to make money in the stock market. However, it is important that you understand the tax implications that will come with your investment decisions. When you are going to make an investment and sell it, you will be taxed on the gains. Konstantin Lichtenwald of Vancouver has given tax management tips including selling after a year, which can reduce your tax liability. There are also many tax credits and deductions that you can take advantage of.
Investing in the markets will always come with some risk. To help manage this risk, understanding how to invest and choosing the right strategy is very important. Konstantin Lichtenwald of Vancouver has provided insight into what has led to the recent volatility in the markets, which could help people identify volatility risks and investment opportunities in the future.