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How you can profit from Russia's grave mistake

by , 25 April 2014

By now the story about the tensions in the Ukraine is old news.

But what's changing is the level of tension between Russia and the western world. You see, Russia's decision to ignore the US and Europe and occupy Crimea has seen these world superpowers bumping heads. Just last week, U.S. Secretary of State John Kerry said Russia will be making a “grave mistake” if it doesn't halt provocations in Ukraine.

And although no one wants to see a conflict escalate, these tensions do create some very specific and potentially profitable trading opportunities… If you know where to look.
 
To find the conflict trading opportunities you need to look at what Russia produces

That’s right.

If you want to know what to trade to profit from the conflict developing between Russia and the western world, then you need to focus on what Russia produces.

The reason for this is, as tensions escalate, Russia is being threatened with sanctions.

Now sanctions simply mean that the Western world will refuse to trade with Russia. The idea is that instead of having an actual physical war, these countries can fight Russia economically.

So the US and Europe are considering cutting their imports from Russia.

Now today, I don’t want to discuss whether or not sanctions will be successful in getting Russia to bend to the will of the western world.

Rather I want to look at the trading opportunities that will arise.

If the western world cuts imports from Russia, it’ll have to source commodities like palladium, potash and oil from elsewhere. And that means there’ll be more demand for these commodities from suppliers other than Russia.

The effect of this is, the price of these commodities will head higher.

You can already see this trading opportunity forming

Russia and the Ukraine are two of the world’s largest wheat producers. And as the tensions rise, speculators are anticipating that this will be one of the commodities whose supply will be disrupted.

And already the wheat price has been rising for the last week.

Simply put, if the world stops using Russian wheat, the excess demand on the rest of the world’s wheat will be massive. Already wheat consumers are stockpiling the grain and adding even more pressure to drive the price higher.

That’s why, right now, you have a great opportunity to buy wheat futures and profit as tensions increase.

In fact, in a recent trading webinar, my colleague Timon Rossolimos revealed what he expects could be one of the biggest and most profitable trades to arise on the back of the Russian conflict.

To learn more about this and how you can get Timon’s tips to profiting from the markets, simply click here.

Until next time,

Here’s to staying ahead of the game.
 
 


How you can profit from Russia's grave mistake
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