BLOG- Include Bonds in your Investment Portfolio to Generate Impressive Income

Impressive Performance of Economies - Allowing Investors to Reap Profits

A long-lasting crisis often disturbs the economy. With the passage of time and after embracing a series of relief measures, now the U.S. economy is on the verge of complete recovery. The doubt about the recession has vanished. The economies are coming back as the vaccines are rolling out, and the rate of hospitalization is falling. Any fluctuation with the US economy is felt all over the world. Hence, the government is allowing market forces to work at their own pace. Many investors are turning their attention to bond auctions.

Central banks in many nations are continuously pouring aid and giving a boost to the economy. Luckily, there are no signs of any unwanted inflation pressures. Yes, bullion acts as a hedge against inflation. The S&P 500 managed to gain 4% this year. The recently elected US president has passed a coronavirus relief plan worth $1.9 trillion. It is acting as a fuel for the economy and stock market.

Condition of the emerging markets

The emerging markets are also on the path to complete recovery. The Euro and the Australian Dollar have gained in the last few days. The index of the Australian Dollar is also steady. There is a new wave of optimism as all the sectors are operating with near full strength. A new appetite for stocks is being seen in the investors as the economies have recovered. The stocks of technology and communication services are registering good growth.

Demand for oil is on new heights

The global oil demand is now going up. Some governments are changing their climate goals, but this is not likely to affect global oil demand. In fact, the demand for oil is set to increase each year till 2026 according to experts. As new sectors are opening, more and more people are travelling for business. All this is generating excessive demand for fuel. Most of the surge in oil demand is likely to come from Asia and not from more advanced Western economies. As the international airports are operational, corporate activities are resuming and leisure travelling has also begun, the demand for aviation fuel is touching new heights. Investors are counting on commodities such as oil with an expectation that by the second half of 2021, the global economy will function at its normal pace.

Investors have many options to consider and gold is one among them

In the international market, the cost of precious yellow metal is around $1,650 per ounce to $1,730 per ounce. According to experts, there can be a sharp rise in the price of yellow metal because oil prices are rising simultaneously. So, according to the bullion experts, it is now the ideal time to purchase gold and proceed forward with any investment plans.

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