Forget traditional hedge funds says Bloomberg writer Matthew Lynn. The next megatrend in international markets will be foreign exchange, and currency traders are set to be the new kings of the financial world.
Lynn points out that rising sovereign-debt crises, such as in Greece and Portugal, along with the gradual weakening of the US dollar and the search for a new safe-haven reserve currency, will all put currency traders in the driver’s seat.
Every decade has its financial hero. In the 80’s it was mergers and acquisitions deal makers. In the 90’s it was the venture capitalists, who backed promising tech start-ups, with help from bankers who arranged the IPOs. In the 2000’s, it was clearly hedge funds and derivative traders and engineers.
But in the two-thousand and teens, it’s going to be currency traders. Already, a big spike in activity on London’s global currency-trading hub, along with a 28 percent rise in foreign-exchange trading volumes in the U.S., adds further fuel to the fire.
“Great financial reputations and fortunes will be made in foreign exchange in the coming years,” Lynn writes, suggesting that any smart, ambitious grad finishing university this year, or anyone planning to move up a rung on the hedge fund job ladder would be wise to enter the sector.
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Have you seen or heard of increased interest in currency trading? (reply by clicking comments below)
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The strongest of the reasons is that the currency trading demonstrates lots of innovation and volatility, so it could be the dominant sector of the financial market. Also, the advent of new reserve currencies would give a better chance for currency trader to make his fortune out of foreign exchange trading.
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