B. Varchev on Bloomberg TV: What to invest in 2016 – video

Varchev: Oil will be an attractive investment, if it falls below $20 a barrel

At the moment there are a lot of opportunities for investment as everything is cheap, said the founder of Varchev Finance Ltd

At the moment many new opportunities are arising as everything is cheap. In 2016 we expect lower prices for oil, wheat, cocoa and sugar. Oil will be an attractive investment if it falls below $20 a barrel announced the CEO and founder of Varchev Finance Ltd, Biser Varchev in an interview for the tv program ”In development” on Bloomberg TV Bulgaria.

According to him, the beginning of 2016 has turned out to be an obstacle for the investors mainly due to the consumers low confidence towards the USA market, as well as the easing of the Yuan. So in the next two weeks it will become clear if what we are observing right now is a correction or the beginning of the bursting of the balloon.

The technical analysis shows that if there is no panic and there aren’t any negative releases next week, this should be a healthy correction in the range of 10 to 15%, thinks the financial adviser.

In relation to the Chinese GDP releases that are in line for tomorrow, Varchev comments that from a trader’s point of view it doesn’t matter what they are going to be. The important factor is the difference between expectations and real releases.

At the moment, China plays a key role in defining the global sentiment. Even USA and UK are not so significant. I do not believe that the Chinese economy and government are slowing down. I think that the Chinese economists control the whole process very expertly.

For the smaller investors, right now, the best thing to do is to shorten the distance with their brokers and to follow closely what it is happening worldwide. Right now, the money is in shares and indeces, says the expert.