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Elections and money

Just prior to the upcoming Congress elections, it makes sense to give a little background to the market and how they react. It has also become apparent to me that those maybe slightly less experienced on the markets are starting to read these articles, so at the bottom you will also find links to three very handy articles on trading. I will follow this up next week with some tips for new starters. Knowledge is, as we know, power. But first, the backgroun😛 why do elections present such good investment opportunities?

Periodically, throughout each month, the eWorld is presented with political choices. Country President, Party President, Congress Elections. However, with Congress Elections, the scale ramps up considerably. Anything up to 50+ seats can be contested at any one time. In the UK, as an example, there are 40 Congress members elected. That means 40 separate political races in which Congress hopefuls will put in maximum to get elected. The rewards are quite substantial. The ability to have a say in the political life of the nation of course, getting something over an opponent in a particularly bitter race, experience points, and the possible bonus of 5 GOLD. The price of Moving Tickets double as people ship into regions to vote for a particular favourite. Twice as much, or more, currency moves on the markets on Congress day than on any other day. Whether people are offered direct financial inducements is not the question. People often provide their own expenses to vote for particular friends.

ASIDE: Do not think for a moment that all politicians are therefore bent. Far from it. The vast majority are hard working, giving their time and resources to the betterment of their country. This is an important point to remember...

Money can therefore be made on the money markets at Congress election time. It is a good time to look at using spare funds to make a little bit for yourself. The question, as ever, is what opportunities to grab.

Looking around the markets, the NLG,the NOK, the CHF, the HRK have all spiked soon, reducing their chances as investment possibilities. The FRF is in a long term decline after their failing babyboom. The IDR has just been devalued and backed by their National Bank, while the JPY and NIS spiked last week and have been readjusting. The ITL is awash with local currency. The VEB, and PYG are overvalued and more or less destroyed by predatory investors. With many of the other currencies being stable, are any of them going to jump that point or two to give good profit...

Two alternatives

The first alternative is the safest, in terms of profit. Ereptools.net [url] http://ereptools.net/currencies/local[/url] have just (over the last fortnight) amalgamated a %age tool into their currency charts. Pick a good percentage for a major currency and buy.

The second alternative is far from guaranteed. This relies on buying a currency and looking for a change in the rate by a point or two. If it comes off, it leaves a very satisfying feeling. As stated above it does depend on the race itself. Three possibilities present themselves to me.

For example, Germany will have it’s first proper full elections for three months. That’s a lot of politicians eager for power, who have had to bide their time waiting to stand. The races might be brutal, hard fought, and most of all tight. However, there is a LOT of currency on offer on the market. This is unlikely, but a small possibility.

Peru, now has around 2000 citizens, and returns 40 Congress persons. Elections have been tight. The currency has again solidified recently, but with high oil and iron regions, there is always a demand for currency. Again unlikely, but a possibility.

Finally, Sweden. Wobbling at 0.025, possible that it might just budge. A lot of heavy hitters ahve been tying funds up in other currencies, so it might be easier to get a good GOLD deal. Possible.

articles as promised
http://www.erepublik.com/en/article/investing-in-the-mm-a-few-tips-for-einvestors-804269/1/20. Article from my good friend Enoch Root

http://www.erepublik.com/en/article/trading-an-introduction-to-risk-management-877308/1/20
An article for the ‘guru’ John Sykes

http://www.erepublik.com/en/article/the-daily-guide-playing-the-markets-722482/1/20
Article from the eRep vaults. First principles are best