With the constant uncertainty of the global economy, financial experts monitor the safest investment alternatives
With the continuous clouding of the economic landscape and the impossibility of predicting the future of investments in the short and medium term, all investment funds and high net worth investors are resorting to the search for the safest risk-free investment alternatives, to focus all eyes on a number of reliable investment channels to achieve the highest returns and maintain Value their investments is to curb inflation, which is the biggest burden for the economies of all countries.
The U.S. central bank raised its interest rate forecast to 5.1% by the end of 2023, compared with previous estimates of 4.6%, adding that interest rates will be recorded at 4.1% by the end of 2024, compared with previous estimates. expectations of 3.9%. .
The US central bank’s Open Market Committee said it will continue to assess the appropriate stance of monetary policy by monitoring the implications of incoming data on economic expectations, noting that it will be prepared to adjust the stance of monetary policy appropriately if risks emerge that could prevent the achievement of the committee’s objectives.
The board said in a statement: “Recent indicators point to modest growth in consumption and production.” “In recent months, there has been strong job creation, and the unemployment rate has remained low. Inflation remains high, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.
“Russia’s war against Ukraine is causing enormous human and economic hardship,” the statement continued. War and related events increase inflationary pressures and affect global economic activity. The board is very careful to reduce the risk of inflation.
Yesterday, Wednesday, the US Federal Reserve’s Open Market Committee decided to raise interest rates by 50 basis points to a range of 4.25% to 4.5%, the highest level since December 2007, easing the approach of tightening policy that the US central bank adopts to deal with high inflation rates.
The U.S. Federal Reserve’s decision came at its final meeting of 2022, meeting market expectations for a 50-basis-point hike, and investors expect the bank to continue slowing its pace before ending its rate-hike cycle next March.
This is the seventh increase since the Fed began a string of tightening last March, as the US central bank raised interest rates last March to (0.25%: 0.50%), in May to (0.75%: 1.00% ), and last June to (1.50).%: 1.75%, and to (2.25:2.50) in July, then to (2.50%:3.25%) in November, which is the highest interest rate since 2008 in September (at 3.75%:4%), as for the latest increase for the current year, it raised interest rates from (4.25%:4.5%), the highest level since December in 2007
Notably, the rise in the inflation rate in the United States slowed for the second month in a row to 7.1 during the month of November, on an annual basis, from 7.7% in October, and the reading was better than expected, which was 7.3 percent.
Financial and investment experts followed the most prominent investment alternatives that are leading the rankings of most financial institutions and investment funds, represented in the search for investment opportunities in shares listed on the Egyptian Stock Exchange, especially in light of the current decline in their market value. compared to their fair value.
Experts have cited bank certificates as one of the most profitable risk-free investment alternatives at the moment, while some views are focused on channeling liquidity into real estate assets, whose market value has increased significantly in the recent period, in addition to investing in gold, especially in the record amount it has achieved since outbreak of the crisis. The global economy and its negative repercussions, which directly affected the investment map in all countries, especially in emerging markets, and emphasized the need to diversify investment portfolios as a way to achieve the highest returns while distributing risks.
Experts pointed to Egypt’s ability to increase its share of foreign investment, whether direct or indirect, and emphasized that it should not rely entirely on sources of hard currency from Suez Canal and tourism revenues alone, but rather work to increase exports in the interest of agriculture and own export.
And they followed the most important requirements necessary to maximize the scope of these foreign investments, first of all the need to exploit information technology and turn Egypt into a regional center for companies working in this area, while working to overcome and facilitate the procedure for establishing companies, and overcoming and facilitating residence and work permits for foreigners in companies with foreign capital, and opening the way for all foreign investors in many sectors.
