Milton Friedman was wrong: There is such a thing as a free breakfast

 
Philip Salter
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IN ASSOCIATION with GFT, next Thursday City A.M. is hosting a free workshop on contracts for difference (CFD) and currency trading. The speakers will be the regular City A.M. columnists David Morrison, GFT’s market strategist, and Boris Schlossberg, GFT’s director of currency research. It is taking place on Thursday 19 May at The Grange St Pauls Hotel. Doors open at 7.40am, with proceedings kicking off at 8am, including a free breakfast.

Morrison will talk on the growing popularity of CFDs and their unique attributes. Also, with doubts remaining over the true state of the global economy, Morrison will look at the outlook for equities, precious metals and oil, dealing with the questions of whether we have “already seen the peaks for precious metals, how oil can continue to rise without undermining the recovery, and how this plays into the future for further stock market gains.” With financial markets more politicised than ever before, this can complicate trading decisions, says Morrison. He doesn’t claim to have a crystal ball, but will “look at some of the barometers that can help you make sense of the markets – and a simple, effective tool that can help you identify and trade the trend.”

Schlossberg will speak on actionable FX strategies for the individual trader. “Currencies are the most liquid and continuous market in the world, allowing traders to participate 24 hours, five and a half days per week, from Sunday night to Friday evening.” With “only eight major currencies to follow,” traders can “focus with much greater precision on the news that affects trade,” says Schlossberg. He will demo GFT’s new platform at the seminar as well as sharing with the audience tricks of the trade that make it easier to accept losses, plan trades and approach trading in a professional manner. Schlossberg also promises to impart “one critical economic variable that matters more than any other in the currency market,” claiming “once you understand its power you will understand most of the movements behind FX trading.” In addition, he will talk about “the logical rules- driven strategies that are customised for long-term, intermediate term and short-term trading, allowing almost anyone to participate in the market on the time frame of their choice.”

Whether you are coming to CFD trading as a novice, or are looking for ways to cement your knowledge base to improve your performance, Morrison’s specific insights on asset classes and investment themes will open up new horizons. While Schlossberg’s actionable trading strategies will give you new insights into currency markets.

Readers interested in attending this free workshop can register at www.gftuk.com/cityam.

"Always believe in... Gold"

The bullish line above is adapted from the lyrics of Spandau Ballet's hit single, Gold.

GFT’s market strategist, David Morrison, will look at precious metals as part of the free workshop on 19 May (see article left). You will have to come along to hear his thoughts on this timely topic.

Although silver has been grabbing most of the headlines, gold’s direction is still hotly debated. Predictions vary from a precipitous crash to stratospheric rises. Opposing factors could push it either way.

If the Fed’s second dose of Quantitative Easing (QE2) is the last stimulus from the world’s largest economy, gold will likely fall. In addition, monetary authorities are coming under increasing pressure to tighten up and raise rates. Working against this trend, Mexico is the latest central bank to increase holdings in gold, buying 100 tonnes of bullion. If the developing world matches the developed world in holding gold, the price could rocket. Also, despite inflation pressures, governments across the world have yet to tighten their monetary policy – Japanese deflation could become the norm.

In 1983 the new romantic band Spandau Ballet released the single Gold. The lyrics draw attention to its two most important assets: it is indestructible and its value is rooted in belief. This incorruptibility means people have the most faith in it when governments are acting most corruptly with money.

For the last ten years, those with more faith in gold than governments have been right. Ironically, if gold is going to maintain its position, those betting against the ability of governments to tackle the devaluation of their currencies will have to have faith that their politicians and central bankers defend their country’s wealth by buying more gold.