Category: Stock Markets

Stocks
ArticlesMarketsStock Markets

12 Stocks Bought by Freedom Holding CEO, Timur Turlov

Stocks

Timur Turlov, CEO of Freedom Holding Corp., gives investors an inside look into his personal investment portfolio. 

“The stock market correction which has come to pass in recent months is approaching its final phase. This opens up a unique opportunity for investors to buy the stocks that have lost significant value, but retained fundamental reasons for future growth and development”, said Timur Turlov, CEO of Freedom Holding Corp. 

Turlov has gathered a portfolio of 12 companies, each with a potentially interesting investment idea behind it. The expected investment period is between six months and three years with the expected return being 81%. 

 

Companies in Timur Turlov’s portfolio

Snowflake Inc. (SNOW) provides a cloud-based platform that consolidates data in a single source to be able to capture valuable business insights, create applications, and manage and share information. Snowflake remains one of the fastest-growing companies in the market. With a market cap of $45bn (£37bn) and a growth potential of 119%, the target price for one share is $310 (£253). Snowflake has steadily doubled its revenues in recent years and expects revenue growth of 94% to 96% in 2022. 

Crowdstrike Holdings Inc. (CRWD.US) develops information security software and is an industry leader in the $55bn (£45bn) market. Crowdstrike offers cloud-based endpoint security solutions on its Falcon platform. The services are provided on a subscription basis using a SaaS model. Crowdstrike is continuing to perform strongly, exceeding market expectations. In Q4, its revenues rose by 62.7% year-on-year to $431m (£351m) and the average rate of return reached a record $217m (£177m). For FY2023, the company expects revenues of $2.13 to $2.16bn (£1.7 to £1.8bn). Crowdstrike has a market cap of $35bn (£29 bn) with 57% growth potential. The target price for one share is $271 (£221). 

Datadog Inc. (DDOG.US) operates a monitoring and analytics platform for software developers and IT departments. The company had a strong performance in Q1 and is forecasting strong results for 2022. In Q4, Datadog’s revenue grew by 83% year on year to $363m (£296m), aided by the company’s expanding partnership with Amazon Web Services. As of March 31, 2022, Datadog had 2,250 customers with recurring annual revenues of $100,000 (£81,545) or more, up 60% from a year earlier. Datadog has a market cap of $32bn (£26bn) with a growth potential of 72% and a target price of $169 (£138). 

Zscaler Inc. (ZS.US) is a provider of cloud-based information security services with a growth rate above 60%. The company’s Q2 revenue grew by 62.8% year-on-year to $255.56m (£184m), beating expectations of $13.69m (£11.17m). For fiscal 2022, the company forecasts revenue in the range of $1.045 to $1.05bn (£85 to £86m) against expectations of $1.01 billion (£82m) and earnings per share (EPS) in the range of $0.54 to $0.56 (£0.44 to £0.46). Zscaler has a market cap of $21bn (£17bn) with a growth potential of 110% and a target price of $320 (£261). 

Enphase Energy Inc. (ENPH.US) is a supplier of power systems for the solar energy industry. It is a profitable company with high margins and products that outperform competitors. Enphase supplies microinverters that enhance the safety and performance of solar energy systems. The company also has digitally backed home energy storage. Enphase reported Q1 EPS of $0.79 (£0.65), beating market expectations by $0.10 (£0.08), while revenue rose by 46% to a record $441m (£360) for the quarter. The revenue forecast for the current quarter is $490m (£400m) to $520m (£424m). Enphase has a market cap of $20bn (£16bn) with a growth potential of 26% and a target price of $226 (£184). 

ZoomInfo Technologies Inc. (ZI.US) is a developer of an analytics platform for marketing companies. New product launches and geographic expansions are helping ZoomInfo maintain strong revenue growth. In Q1, the company’s revenue grew 57.7% year on year to $242m (£197bn). In February 2022, ZoomInfo launched a new marketing platform, MarketingOS for helping marketers with customer targeting. The company also completed the acquisition of Comparably and Dogpatch Advisors this year. ZoomInfo has a market cap of $17bn (£14bn) with a growth potential of 115% and a target price of $74 (£60). 

MongoDB Inc. (MDB.US) is the leading cloud platform involved in developing and delivering general-purpose databases. MongoDB is strengthening its edge over competitors by expanding its relationship with Amazon Web Services and building applications using a microservices architecture. MongoDB databases are increasingly used for complex transactions, which should increase the company’s overall addressable market.  MongoDB’s revenue grew by 55.8% in Q4, with subscription revenue up by 58%. The company has a market cap of $17m (£14m) with a growth potential of 71% and a target price of $466 (£379). 

Bill.com Holdings Inc. (BILL.US) is a provider of cloud-based software that simplifies and automates complex financial transactions for small and medium-sized businesses. The company continues to show strong growth, up by 179.4% in Q3 FY 2022. By the end of the quarter, the company had 146,600 customers and $55bn (£45bn) in payments processed. For Q4, Bill.com expects revenue in the range of $182.3m to $183.3m (£148m to £149m) versus expectations of $168.77m (£169m). Bill.com has a market cap of $11bn (£9bn) and a growth potential of 113% and a target price of $241 (£196). 

Maravai LifeSiences Inc. (MRVI.US) operates in the natural sciences. The company manufactures products that enable the development of drugs, new vaccines, and diagnostics while supporting medical research in the US and around the world. The company’s key market is expected to show continued growth. The global gene therapy market was valued at $3.8bn (£3bn) in 2019 and is forecast to reach $13bn (£11bn) by 2024. Maravai has a market cap of $8bn (£6.5bn) and a growth potential of 63% and a target price of $44 (£36).  

Avalara Inc. (AVLR.US) offers cloud-based transactional tax compliance solutions worldwide. Although Avalara has achieved annual revenues of nearly $1bn (£81m) the company still manages to grow that figure by more than 30% year on year – a testament to the large size of its market and the newness of its technology. More than 90% of Avalara’s base revenue comes from subscriptions, which provides the company with a very stable income. Avalara Inc. has a market cap of $6bn (£5bn) and a growth potential of 70% and a target price of $124 (£101).

Shockwave Medical Inc. (SWAV.US) develops and supplies technology for the treatment of cardiovascular disease. The company shows triple-digit revenue growth and revises its outlook for the year. In Q1, its revenue grew by 193.4% year-on-year. In February 2021, Shockwave launched a new coronary product, which has become a revenue growth driver. Shockwave Medical Inc. has a market cap of $5bn (£4bn) and a growth potential of 28% and a target price of $189 (£154).

Taskus Inc. (TASK.US) provides outsourced digital business services for fast-growing technology companies to represent, protect and grow their brands. Taskus continues to show rapid revenue growth, rising from 34% in Q2 2020 to 56.8% in Q1 of 2022. The retention rate in 2021 was 141%. Taskus Inc. has a market cap of $2bn (£1.6bn) and a growth potential of 130% and a target price of $39 (£32).

Stock split
ArticlesMarketsStock Markets

Stock Splits: The Perfect Buy for Investors

Stock split

As the market takes a plunge, Maxim Manturov, Head of Investment Advice at Freedom Finance Europe, discusses the benefits and pitfalls of stock splits and explores some past examples.

With shares struggling amid a market downturn, some organisations are looking to split their stock to attract new investors. But why?

The main reasons for splits are to make securities more accessible and attractive to the private investor. The next reason is to increase liquidity, which grows by increasing the number of stocks outstanding. When a split is announced, most stocks show a positive trend, and after the split has taken place, the stock trend can turn into a temporary consolidation, as big players can lock in profits on the stock by selling the stock already at the ‘new price’ to retail investors.

With this in mind, are stock splits a good idea and how should investors react if a company chooses to split?

 

Three recent splits 

 

Tesla 

Tesla held a stock split in August 2020 where it’s stock rose by $223 (80%) in just 20 days. After the split ended, the stock price was adjusted from around $2200 to $440. Thereafter, after a slight consolidation, Tesla stock continued to rise. With the market in decline, Tesla has now announced another split, which will be taking place this summer. Tesla’s Q1 2022 report is looking positive with revenue of $18.75 billion, net income of $3.31 billion, for the same period in 2021 – $438 million, and EPS of $2.86 ($0.93 a year earlier). The company has also announced plans to expand its production capacity in Berlin. Yet still, on June 10, 2022, the company announced a 3:1 split and the stock will be valued at about $230. On Friday, Tesla stocks gained 1.84% to $709 on the NASDAQ post-market but continued to decline further.

The drop has more to do with overall market weakness. And if you compare it to the split in August 2020, when the stock price rose a couple of hundred percent, the market was rising then, but now it’s falling. 

 

NVIDIA 

NVIDIA made its fifth split in July 2021, with a 4:1 ratio, their value dropping from $750 to $187.50. In 2021, by the time of the split, Nvidia’s capitalisation had already increased by 32% due to success in all business lines. The company’s quarterly report revealed its net income was $1.91 billion (same quarter 2020 – $917 million) and revenue reached $5.66 billion (+ 83.8% YoY). From the current situation we can conclude that the continued growth of the company’s stock is further driven by both good quarterly results and external factors, e.g., the mining boom, respectively video card shortage, and growth of the stock.

 

Apple 

The fifth Apple split took place on 31 August 2020. This was a 4:1 split, which resulted in the number of stocks in the company quadrupling. The stock price was adjusted from around $500 to $125 per stock after the split was completed. The stocks then consolidated in the $110-$120 range for a while, after which the rally continued. Looking at the company’s financials, the quarterly report on July 2020 showed revenues at a record $59 billion.

 

How effective are splits?

It’s clear to see how the Tesla, NVIDIA, and Apple splits in 2020-2021 had a major impact on share prices, which continued to rise after some consolidation. However, it’s important to remember that there are numerous factors that affect a split, which include internal factors such as a company’s performance (performance report, company management). There are also external causes that do not depend on the company’s activity that end up having a primary influence, such as global market trends (inflation, production cuts, international restrictions, interest rates, world inflation). When business leaders decide to split a company, it is very important they choose the right time, considering the market trends. The main purpose of a split is to make the company’s stock more attractive to ordinary investors. While the value of each stock decreases, the capitalisation of the company remains at the same level and the securities become more liquid.

E-Health
ArticlesMarketsStock Markets

Here’s Why You Should Invest In eHealth Stocks

E-Health

As the eHealth market continues to soar, Maxim Manturov, Head of Investment Advice at Freedom Finance Europe, sheds light on this trend and three of the top undervalued eHealth stocks to watch.

The global eHealth market only continues to grow, driven by rising awareness throughout the pandemic of the benefits offered by digital solutions. From remote monitoring tools to telemedicine, eHealth has come into sharp focus for healthcare professionals across the globe.

In turn, retail investors looking to maximize their portfolios are jumping on this trend. As an increasing number of investors look towards eHealth as a means to both combat critical health issues and generate high returns, organisations are seeing demand for digital applications soar. 

In light of this, let’s explore the growing popularity of the eHealth market and the trends associated with this growth. More importantly, let’s take a look at how investors can pick eHealth stocks that are right for them, as well as three undervalued eHealth stocks to watch.

 

The continued growth of the eHealth market

Analysts are expecting eHealth to grow at a compound annual growth rate of 16.1% during the forecast period of 2022 to 2027, with the expectation of the eHealth segment generating revenue of £46.7 billion in 2022 alone. China is expected to be the largest eHealth market in 2022 with £13.8 billion in revenue, followed by the US with £7.7 billion in revenue.

The major growth drivers of eHealth include the development of technology and the Internet of Things (IoT), as well as increasing demand for health management. In recent years, the number of Internet applications in healthcare have increased exponentially. Using the Internet, healthcare professionals can deliver medical information to consumers more efficiently. 

In particular, technological advancements in electronic health records (EHR) are driving the adoption of eHealth solutions, thereby contributing to the growth of the overall market.

 

The impact of the pandemic on eHealth

The growth of the eHealth industry accelerated during the pandemic as various technologies were used for remote monitoring and health management, including technologies like artificial intelligence (AI) and big data. The pandemic also forced various governments to quickly shift patient care and records to eHealth, due to long lockdowns and the fear of further spreading of the virus. In turn, this led to a significant market growth. 

This trend is expected to continue as awareness about the benefits of eHealth become more apparent. Even as the pandemic fizzles, digital health is expected to maintain its strength as healthcare providers and patients take advantage of new technologies and innovations.

Telemedicine remains one of the most important drivers of eHealth as it has increased access to healthcare, reduced person-to-person contact, and ensured continuity of care, as well as providing care for non-Covid emergencies.

 

How to pick the right eHealth stock for you

Investors can find the best eHealth stocks by following the standard parameters for selecting high-growth investments. Looking at revenue growth trends is a suitable place to start. It is typically a pretty good indicator that the company is doing something right. Even small, regular improvements over a long period can be a positive indicator. Both earnings growth and value must go hand in hand for the stock to be worth investing in.

You should also look at a company’s financial statements, which are often available on its investor relations website, both quarterly and annually. This will enable you to see whether revenue and / or profits are growing or declining. Companies that show positive profit growth tend to have financial and operational stability.

Ultimately, a stable eHealth company will possess certain characteristics: revenue growth, keeping debt at a low or medium level, competitiveness in its industry, and effective leadership.

 

Three stocks that are undervalued in the eHealth sector

1. Teladoc Health (TDOC) is arguably one of the brightest representatives of eHealth providers and received a solid boost from the pandemic. The company specializes in telemedicine services – providing medical care remotely over the Internet or phone, which was heavily needed during the pandemic. 

The global telemedicine market is expected to grow at an average rate of 32.1%, reaching an expected £486.9 billion in 2028. With the industry’s steady growth, Teladoc Health seems poised to reap the benefits. 

The bullish long-term outlook for Teladoc Health is supported by the fact that it is already a dominant player in the industry. As of January 2022, the company has a customer base of 76.5 million paying members in more than 12,000 companies. Despite Covid’s diminishing impact on the healthcare industry in 2021, Teladoc was able to increase its number of paid memberships by 50% year-on-year.

This is a clear sign of acceptance of the company’s virtual healthcare services. Teladoc Health is also growing through several strategic mergers and acquisitions. These deals boost earnings by helping to maintain engagement and expand the organisation’s geographical presence. 

Between 2021 and 2025, Teladoc is targeting annual revenue growth of 25% to 30%. This will likely be supported by an increase in paid visits from members, combined with growth in average revenue per member. 

2. American Well Corporation (AMWL) operates as a telemedicine company that provides digital health care. Its application offers emergency care, pediatric care, therapy, population health management, telepsychiatry, pregnancy and postnatal care, and breastfeeding support. 

The company also provides telemedicine equipment, peripherals, TV sets, tablets, and kiosks. There is upside potential to the average target price of £5.97 (about 120% upside).

 

3. 1Life Healthcare, Inc. (ONEM) operates a membership-based primary care platform under the One Medical brand. The company has developed a digital health membership model based on direct consumer enrollment, as well as employer sponsorship. 

Its membership model includes seamless access to digital health services combined with an invitation to in-office health care, which is typically covered by health insurance plans. The company also offers administrative and management services under contracts with physician-owned professional corporations or One Medical Entities. There is upside potential to the average target price of £18.37 (about 172% upside).

Cryptocurrency
ArticlesMarketsStock Markets

Three Promising Crypto ETFs to Watch

Cryptocurrency

With investors persistently looking for new ways to diversify their market portfolio, Maxim Manturov, Head of Investment Advice at Freedom Finance Europe, outlines three promising crypto ETFs to consider over the next few months. 

Cryptocurrency continues to catch the eye of many investors, with the demand for digital currencies growing significantly year on year. Offering greater choice, independence, and opportunity in their finances, cryptocurrency is a great investment for those willing to accept that this type of trading often comes with risk. 

As part of this trend, crypto exchange-traded funds (ETFs) are soaring in popularity amongst investors, by making it as easy to invest in Bitcoin as it is to buy popular stocks. On top of this, rather than attempting to pick a high-earning crypto yourself, an ETF offers exposure to a basket of different cryptos and provides easier access to the world of cryptocurrency.

In light of this, let’s take a look at the benefits of investing in crypto ETFs and three of the most promising crypto ETFs to watch over the coming months.

 

What is a crypto ETF?

An ETF is a pool of shares or assets that are grouped together, then sold on a stock exchange. This effectively allows for a variety of shares or assets to be owned through the ownership of just one share in the ETF.

A crypto ETF is very similar to your standard ETF. However, rather than tracking an index or basket of assets, a crypto ETF tracks the price of one or more digital tokens. This enables you to leverage the price of Bitcoin without having to learn the intricacies of how Bitcoin works.

Many investors are interested in crypto ETFs due to the benefits they bring at relatively low effort. Whether that be flexibility with trading, diversifying your portfolio, or lower cost of ownership, ETFs are a simple and easy way of gaining exposure to Bitcoin. 

 

The top three crypto-ETFs with the highest growth potential

1. The Siren Nasdaq NexGen Economy ETF (BLCN) is one of the first ETFs to focus on blockchain technology. With assets under management (AUM) at £142.5m, the fund tracks an index of global companies committed to blockchain development. Although the index committee is not active, it has broad authority in selecting companies. 

The main criterion used to evaluate a company is the level of material resources it has committed to researching, developing, supporting, and expanding the use of blockchain technology. It appears that distributed ledger technology, the blockchain, will play a central role in the economic transactions of the future. 

Given the recent weakness amid a general market correction, BLCN shares could be an interesting buy after breaking resistance of £27.3, in which case a move towards £34.95 is likely, making the growth potential 28.0%.​

2. ​​​Amplify Transformational Data Sharing ETF (BLOK) is an actively managed portfolio, mainly composed of global blockchain-focused stocks. With assets under management (AUM) at £671.6m, BLOK seeks to invest in companies developing or using what it calls “transformational data sharing technologies”, primarily focusing on blockchain technology. 

Blockchain, the technology that drives Bitcoins, is a distributed peer-to-peer ledger that facilitates transaction recording and asset tracking in the business environment. The growing blockchain ecosystem is a rapidly changing environment that includes many different industries because of the large number of applications. This relatively young market has great growth potential as the number of users increases and developers continue to create the so-called new Internet. 

Should it break resistance at £24.2, a growth of 34.4% is likely, changing the levels towards £32.52.

3. ProShares Bitcoin Strategy ETF (BITO) provides access to Bitcoin (BTC) dynamics in an ETF shell. The fund does not invest directly in Bitcoin but invests in Bitcoin futures, this is worth keeping in mind as there may be some lag in the price of Bitcoin. 

Bitcoin futures are traded in contango, which means that the next month’s price is higher than the previous months. Every time the fund sells futures contracts closer to expiration, it sells the cheaper contract to buy the more expensive one. This process affects the fund’s net asset value (NAV), which causes it to lag slightly behind spot Bitcoin. Nevertheless, this ETF is the most affordable way to have exposure to Bitcoin via stock market instruments. 

Overall, BTC dynamics have been good lately, on the back of rising demand, BITO stock could be interesting to buy after breaking resistance at £18.5, the growth potential of 36.3% is possible, making a new price of £25.22. 

Alternative Investment
ArticlesFinanceStock Markets

6 Alternative Investments to Consider in 2022

Alternative Investment

The investment marketplace is broader now than ever before. Everyday investors aren’t limited to the traditional array of stocks, bonds, and mutual funds. Alternative investments once reserved for the very wealthy are finally accessible to smaller retail investors. And the landscape changes every day.

Which alternative investment strategies are most likely to pop in the coming year? In this article, Yieldstreet takes a look at six of the most promising investment possibilities outside the conventional marketplace. Some are proven sources that continue to pay off year after year. Others are burgeoning industries and practices that may emerge as mainstream investments themselves. 

 

1. Cryptocurrency

Cryptocurrency is arguably the highest-profile alternative investment of the last decade. In 2021, the mania only got louder. Early investors in cryptocurrency enjoyed some great returns last year. Digital currency exchange Coinbase went public in April, a sign of the growing legitimacy of crypto. Bitcoin and Dogecoin hit their highest market caps yet.

But is it too late to hop aboard the cryptocurrency train? We don’t think so. While cryptocurrency is still a volatile commodity, its growing acceptance in traditional marketplaces is a sign that it’s inching toward the mainstream. Still, there’s ample room for cryptocurrency to grow.

You can’t be blamed for hedging your crypto bets until the market relaxes. And you should still be judicious with your investments, especially in “flavor-of-the-week” coins. But if you’ve been on the fence about cryptocurrency, this might be the year to take the plunge. 

 

2. Peer-to-Peer Lending

P2P lending is growing as a viable alternative investment. The concept is simple: investors lend money directly to borrowers without a financial intermediary like a bank. Lenders set their interest rates in line with their risk assessment. It’s a choice for those who need money quickly or have spotty credit records.

There’s an elevated risk in P2P lending. The lender has to factor in the chance that the borrower will default on their payments. But the P2P lending marketplace is accelerating. Some analysts expect it to reach a value of nearly $560 billion in the next five years, with an annual growth rate nearing 30%. Discerning investors may want to take a closer look into P2P lending this year. 

 

3. Fine Art

Fine art is traditionally viewed only as a potential investment for the very wealthy. But that belief is changing. Thanks to the openness of the digital marketplace, retail and smaller investors now buy artwork as long-term investments in more significant numbers than ever.

The COVID-19 pandemic forced many traditional galleries to shift their marketplaces online. As a result, the art market unexpectedly grew by 15.1%, according to Motley Fool. Wealth managers embrace the trend and are increasingly recommending investing in fine art to their clients. 

 

4. Real Estate Investment Trusts

Private REITs let you invest in real estate that generates revenue without you having to do any of the grunt work—management, rent collection, upkeep, and so forth. After taking a hit at the beginning of the pandemic, REITs are starting to gain ground again.

Although the post-pandemic future is still a bit cloudy, investment experts expect an economic rebound. This includes some workers coming back to the physical workplaces after a couple of years of working from home, which bodes well for the prosperity of REITs, at least in terms of generating passive income. 

 

5. Cannabis

Cannabis continues to edge toward the mainstream. The recreational drug is rapidly shedding its stigma as many US states decriminalize marijuana use and possession. The cannabis marketplace is still volatile, as many stocks experienced a rollercoaster ride in 2021.

But the train has left the station. Cannabis industry data provider Headset expects the market to hit $45.8 billion in value by 2025. While the industry may spend the first half of 2022 shaking off last year’s unpredictability, cannabis investors may find the climate more palatable in the second half. 

 

6. Precious Metals

Gold, silver, platinum, and palladium are still considered to be safe bets in times of economic upheaval. In that sense, they’re not entirely “alternative” investments, but they still exist outside the mainstream marketplace. Especially as part of a self-directed IRA, precious metals still hold long-term value.

Investors who don’t like the relative illiquidity of precious metals can still take advantage of their value appreciation with exchange-traded funds (commonly known as ETFs). Gold, silver, and platinum ETFs are bought and sold on the exchange just like traditional stocks. They’re easy to buy into and just as easy to get out of.

Stock Trading
ArticlesMarketsStock Markets

Six Essential Stock Trading Tips for Beginners

Stock Trading

To anybody new to the exciting world of stock trading, there are vital steps to consider before and during the process. These keys provide a solid foundation for your investment strategy and needs. Instilling a basic understanding is a key overlooked attribute to successful trading. Below resides the key basis for building a successful investment strategy. Implementing these fundamental basics is the structure that can make all the difference in the world of stock trade. 

 

Chart Your Purpose

The first and most important step of investing is to determine why you are investing in the first place. Are you looking to make a quick buck or gradually expand your portfolio through day trading? Conversely, are you in it for long-term investment? Establishing the foundational purpose for buying and selling your assets can be a cornerstone to your success in market trade and can also minimize losses.

Going into stock trading aimlessly, on the other hand, is a recipe for disaster. Investing without a purpose is often the precedent for large losses while having a plan often leads to investment gains. Instead, be sure to set yourself for success by trading — whether it’s buying, selling, or holding — with a purpose.

 

Chart Your Target

Charting your targets means determining the type of industry or the type of technology that you wish to invest in. Your investment targets should center around the type of product or business you believe has the best upside. If possible, aim your investment targets around a category that you’re familiar with.

 

Do Your Research

Research your targets by observing expert projections and opinions in addition to visiting company websites. Carefully perform your due diligence by familiarizing yourself with the company you are considering investing in. One overlooked highlight to observe when researching websites of potential investments is company standards and safety procedures. 

Company safety became a necessary study for investors after the BP oil spill caused a monumental sell-off. Any company that poses a safety risk can be volatile and can quickly find itself being shorted. In turn, any negative news regarding company safety issues causes a sell-off that can leave you holding the bag. Any company website that boasts OSHA 10 safety training or higher is a good indicator of high company safety standards.

Most importantly, however, be aware of upcoming products or press releases that may be of significance to the target company. Being up to date with the company you invest in is what helps you determine when to buy or sell. Never invest in a company you haven’t personally researched or have no knowledge of.

 

Never Buy At the Rise

Buying shares after a stock has risen considerably is the worst time to invest. Unfortunately, this is one of the biggest mistakes people make when they first begin investing. If you’ve seen a stock rise, accept that you already missed the boat — at least for this go around.

When you see a significant rise over a short period of time, do not take the bait. There’s always a fall, usually hard, after this initial rise. Wait for the gains to ride out until its inevitable and sudden decline This is called buying at the dip, and you’ll be extremely glad that you waited, rather than buying shares at their peak price and having a too-high cost basis.

 

Proper Diversification

Properly diversifying your investments helps you avoid the potential for large losses during unforeseen instances of market volatility. That’s why it is important to diversify with a purpose and not just for the sake of diversifying. Spread out your investments across different industry types, but also make sure you’ve done your research on those industries.

 

Never Panic Sell

When you see your stocks decline or plummet, unless justified by company-shattering news that initiated that sell-off, do not make the rash decision of selling off your shares. Remember that the market tends to fluctuate. Such as is the case in life, and there’s always a rise after a fall, just as there’s always a fall after a rise.

Ultimately, a loss is never a loss until you actually close out your position. But once you hit that sell button and get rid of your shares, there’s no turning back. Many people who panic sell end up losing much more than those who were patient and didn’t make impulsive decisions. Not being rash on the sell button can be the difference between monumental losses and monumental gains.

 

The Final Word

Utilizing the fundamentals provided above is an exceptional guide for any beginner getting their feet wet in stock trading. Use discretion while trusting your instincts when buying or selling. Bear in mind you haven’t truly lost or gained anything until you sell. Patience is as much a virtue in stocks as it is in life unless you’re day trading. Get a feel for market numbers and volatility, as this changes by the day — and even sometimes by the hour. 

Stocks
ArticlesMarketsStock Markets

Five Explosive Stocks from the Past Year

Stocks


By Dáire Ferguson, CEO at AvaTrade

The traditional rhyme commemorating Bonfire Night begins, “Remember, remember the 5th of November”. This Bonfire night, we remember five explosive stocks from the past year.

 

Tesla

The electric vehicle manufacturer’s shares have exploded so far this year, more than doubling in the last six months alone. Tesla’s market capitalisation has whooshed past $1 trillion, making this figure nearly 1.5 times more than the combined market capitalisation of the next five largest automakers. 2021 has been a strong year for the company, with Tesla putting plans in place for its foray into India, one of the largest emerging car markets in the world, while demands for its cars are booming. For example, the Model 3 is the top-selling premium sedan in the world and it is currently the best-selling vehicle in Europe. Nevertheless, shares are significantly higher than fundamentals suggest they should be. While the company currently has momentum, the bubble could burst at any point – is a crash back down to earth at some point inevitable?

 

Macy’s Inc

The price of Macy’s, the major American department store chain, has skyrocketed this past year. Shares are up considerably over 100% since the start of the year, with the company managing its post-pandemic recovery expertly. Macy’s management team significantly reduced expenses on a permanent basis and increased the emphasis on its digital sales channel. With these moves, it’s apparent that management has acted decisively to ensure the business is in a strong position to ride out the current economic uncertainty, causing Macy’s long-term profit margins to soar like a firework. The burning question on the mind of many traders is whether the trend will continue or fizzle out.

 

Royal Dutch Shell

Royal Dutch Shell has sparkled. The stock plummeted after the initial outbreak of the Covid-19 pandemic, but the oil and gas giant has recovered over the course of the past year, reporting revenue figures of over $200 billion. What’s more, the recent oil and gas shortages around the world caused energy prices to skyrocket, which has also contributed to the increased share price of Royal Dutch Shell. But these shortages are not here to stay forever, so will this stock continue to rise?

 

American Express

American Express has seen its shares light up the sky with an increase of over 40% since the start of the calendar year. In terms of its quarterly performances, the credit card services company beat analysts’ forecasts by 70% and 68% respectively in the first and second quarters of 2021, and once again exceeded predictions in the third quarter. AmEx putting a greater focus on new and younger customers that may use their products for years to come has also contributed to its stock dazzling and whizzing into the top of the charts. Traders are asking themselves if this trend is sustainable.

 

Citrix Systems

For Cirtix Systems in 2021, its share price has fizzled, falling with a bang and a puff of smoke. There are a number of factors which have contributed to this fall. This includes the Software-as-a-Service (SaaS) provider’s CEO, David Henshall, surprisingly stepping down with immediate effect last month, as well as poor financial results for all three quarters so far this year, leading to a sharp decline in the company’s profits. Will the company be able to halt this drop off, or will this downward spiral continue?

Business man using a laptop to trade stocks
ArticlesMarketsStock Markets

3 Strategies That Could Help Improve Your Day Trading Profits

Business man using a laptop to trade stocks

Utilising day trading strategies can be a great help to those looking for ways to capitalise on small, frequent price movements.

Whilst trading in financial markets, you will notice various popular trading strategies many use. However, you will also notice that the success you have using one strategy, may differ from the success someone else had. Meaning, that you have to trial and choose which trading strategy is the best one for you.

These are a selection of techniques for you to trial and decide which one is the best trading strategy for you.

 

Invest In Learning About Algorithmic Trading

As artificial intelligence and machine learning continue to rise, so has the advancement in algorithmic trading. This innovative tactic uses computer programs to automatically place buy and sell orders following a specified set of rules. In doing so, the trade should generate profits at a speed that is impossible to achieve by a human trader.

Understanding the rules of algorithmic trading and how it works can be challenging without support. Similar to the rise in artificial intelligence courses becoming available, there are algorithmic trading programmes designed to provide you with the tools to discover market efficiencies and make a higher volume of frequent trades. For instance, this algorithmic trading programme is aimed at those working in the trading space as well as those wanting to gain a deeper understanding of algorithmic trading and the potential it has. The course focuses on developing your ability to successfully implement your trading strategies.

 

Avoid Over And Under Trading

A common trait shared by most traders is being ambitious. Unfortunately, there is a time where they are too ambitious. With a feeling that they must always be doing something, many traders often forget the importance of patience and the quality of the trades. Both of which place higher importance over the number of trades.

Aside from overtrading, under-trading is also a common issue. Traders will find the right setup but fail to conduct the trade, whether it is due to analysis paralysis or lack of self-confidence, or another reason.

 

Put Plans In Place In Case Weakness Strikes

Every trader has their strengths and weaknesses, which over time become more noticeable to them. For instance, their weakness could be not taking a loss when they should. Instead, the loss gradually becomes bigger. Another weakness could be taking trades that do not align with their trading plan, which means the trades are based on an unproven strategy, potentially causing greater losses.

Identify your weaknesses and create a personal plan for how you will respond in the event you notice yourself making one of these errors. There are various tactics you can implement to help you eradicate or prevent causing yourself greater losses. Included in your plan could be closing trades immediately and taking a mandatory break after. This will prevent you from losing more than you already have, as well as allow you time to refocus your attention back to trading.

 

Finding the right trading strategy for you will take time and experience. It is a case of seeing which tactics do not work and avoid using them and instead, find ones that do work or that need adjusting slightly to see an improvement in your daily trading profits. Whilst the concept of trial and error sounds time-consuming it’s certainly worthwhile.

Stocks
ArticlesCapital Markets (stocks and bonds)MarketsStock Markets

Quick Tips to Help You Start Buying and Selling Stocks on a Busy Schedule

Stocks

Very few of us are blessed with a lot of spare time at the moment. The pandemic has hit us all extremely hard, and if we’re not worrying about our health or our jobs, we’re looking for ways that we can shore up our finances with some good investments in case there are more rainy days to come. Now, you might think that the only way to make any real money on the stock market is to treat it essentially as a full-time job. But buying and selling stocks and shares has never been easier, and if you know what you’re doing, it is a great way to improve your investment portfolio.

If you want to get started trading quickly, then there are a few simple steps that you need to take. Some are about making you more confident and capable to make the kinds of moves that you need to be making to actually see a return on your investment. Some are about keeping you safe in both in terms of potential losses and from cybersecurity threats. Let’s break down the most important things that you need to know before you dive in.

 

Research Which Trading Platform You Want to Be Using

The easiest way to get trading quickly and to make sure that you’re comfortable doing so is by finding the right trading platform. There are many different platforms out there and most of them are aimed at different kinds of traders with different kinds of needs. For example, people in high finance who have been trading for years would not be using the kind of platform aimed at a nervous first timer who wants to keep things as low-stakes as possible.

One of the most common things that both veterans and rookies look for is an ETF platform. ETF stands for exchange-traded funds, which means that you can make one investment which translates into investing in hundreds of different funds. You can create a diversified portfolio with a single click. There are several different platforms that provide this, but you will need to be keeping an eye out for fees, the range of assets, markets and economies you can invest in, customer support and the regulation it is subject to. Instead of scrolling results for best ETF trading platform UK, read this guide to the pros and cons of each of the major platforms. BuyShares offers detailed breakdowns to trading and investing for every experience level.

 

Know How Much You Have to Spend

If you want to get started trading as soon as possible, then you need to make sure that you have the funds to do so. Most platforms will offer you a few different payment options, whether that’s through your credit or debit card, PayPal and so on, but the important thing is that you absolutely must know how much you have to work with.

Having a crystal-clear idea will allow you to sell and buy with confidence, and it will also help you to avoid spending more than you can afford. It is important to remember that there are no guarantees on the stock market, and that even a “sure thing” is vulnerable to fluctuations. Do your budgeting before you get started so you don’t make any mistakes you can’t fix.

 

Keep Your Finger on the Pulse

Some investors are what’s known as “passive.” That means that they are perfectly happy to buy their shares and leave them to (hopefully) appreciate in value with as little involvement from them as possible. Everyone else is described as “active”, meaning that they are constantly checking on their stock performance to see if now is the time to check out or double down on their investment.

If you’re going to be the latter and you want to get started right away, then you should make sure that you have the tools and the time. Choosing the right trading platform will give you a great head start, and many will have a mobile app to help you keep tabs on your investments wherever you are. Online trading has seen a real boom during the pandemic so you won’t be short on options.

 

Get Your Security In Place Now

It probably won’t have escaped your notice that online scams and cybercrime rose to deeply worrying levels over the course of the pandemic. These scams aren’t just about people getting text messages about missed deliveries, vaccine appointments or people lying about their COVID status. We’ve seen everyone from major corporations to small businesses face issues with their finances and data. If you’re looking at getting into trading, then security is not a step that you can afford to miss, no matter how much of a hurry you’re in. Check out your platform’s security measures and don’t be afraid to ask questions if you have any particular causes for concern. Set up a different email address for trading, take greater care with your passwords and be as careful as you can.

Cryptocurrency
ArticlesCommoditiesMarketsStock Markets

How To Get Your Hands On Cryptocurrency

Cryptocurrency

All you have to do is check out the news to realise that cryptocurrency is growing in popularity. As it continues its ascent, it’ll only become more and more in demand, meaning that those who want to get their hands on it may face an increasingly uphill battle.

Fortunately, you don’t have to fight anyone off to get yourself involved with the cryptocurrency market. There are tons of ways to jump into the market and make your mark with something like Bitcoin or Ethereum.

For a list of the best avenues to explore, you’ll want to check out the five suggestions outlined below.

 

Buying

The first thing you might think to do when trying to get hold of cryptocurrency is to buy it. However, how good of an idea this is generally depends on what a currency is worth at the time.

It’s not uncommon for them to be incredibly expensive nowadays, especially when talking about Bitcoin. Given the growing presence of cryptocurrency, the prices keep reaching new heights, which isn’t ideal for someone looking to get involved with this for the first time.

If you are going to buy, you’ll probably want to start by getting cheaper currencies through a crypto exchange. Anything that’s not Bitcoin ought to be relatively easy to acquire, although depending on the exchange service you use, it might take a few weeks for the purchase to be verified.

 

Airdrops

As cryptocurrency continues to amass interest, more and more projects are surfacing that expand and enhance the market. Getting involved with these projects in the early days is an excellent way for you to start building up your online wallet, as you earn tokens for doing some of the simplest tasks.

Merely downloading an app or following certain social media accounts can net you this reward because you’re helping the project gain notoriety. You’re ensuring that there’s a community around it before it hits the market, which is essential for its success. So, by doing your part, you can earn tokens that can later be traded or sold.

Microtasks, or bounties, are similar to this, although the tasks required of you are a little more advanced. Here, you might be expected to write a testimonial or film a review before earning a reward.

 

Competitions

For a more interesting way to get your hands on cryptocurrency, you can always give competitions a try. These generally involve you playing games for the chance to win something like Bitcoin while also having fun in the process.

Although this might seem too good to be true, it’s a legit and straightforward way of getting free cryptocurrency. If you play with Traders Of Crypto you don’t have to worry about giving away any personal information that may put you at risk. All you’ve gotta do is provide an email address, and then you can start competing.

The games range from trying to be the best trader each month to identifying bugs in code, and they’re sure to make the hunt for cryptocurrency that extra bit more interesting.

 

Crypto Payments

If you have an e-commerce business, one opportunity that’s open to you is accepting cryptocurrency payments when someone makes a purchase. In addition to options like credit card and Paypal, you can also allow users to buy your stock using a variety of cryptocurrency options.

What currency you can accept will largely depend on the platform your e-commerce business uses. Some sites, like Shopify, are incredibly flexible and allow for payments using several hundred different types of cryptocurrency. So, if you’re not fussy about what you get your hands on, this can be a good place to set yourself up.

 

Mining

To those not in the know about cryptocurrency, mining for an online currency might not make a lot of sense. However, what this actually means is that you use your computer to solve complex equations that validate what you’re mining for.

Again, this is an area where Bitcoin can be problematic for a first-timer, as the equipment required to mine this currency is incredibly expensive. You need a lot of high-end tech to be successful with this endeavour, something that you may not be willing to purchase.

Fortunately, other currencies like Ethereum and Monexo don’t have such demands and can easily be done through a more standard computer. Just be aware that mining can use up a lot of power, so the costs to you will differ depending on the price of electricity in your area, as well as the efficiency of your equipment.

It might not always be stable, but it’s clear that cryptocurrency is definitely going to play a significant role in the future. If you want to have a part in that, getting your hands on some of it now through one of these varied ways could prove advantageous.

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ArticlesMarketsStock Markets

Bitcoin to Hit Fresh Highs – But Standby for Regulator-Triggered Price Swings

Bitcoin

The Bitcoin price nears $50,000 and will continue to reach new highs in this first quarter of 2021 – but investors should also expect volatility due to increasing regulatory scrutiny.

This is the warning from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organisations. 

It comes after the cryptocurrency hit more than $49,700 for the first time in history on Sunday the 14th of February.

Mr Green says: “Last week was a massive one for Bitcoin, reaching new all-time highs amid soaring interest from institutional investors.

“Morgan Stanley, the U.S. investment giant is reported to be considering investing in Bitcoin through its $150 billion investment arm; Elon Musk’s Tesla announced it had invested $1.5 billion in the digital currency and was getting ready to accept it as payment; BNY Mellon confirmed that it had created a digital assets unit to build a custody and admin platform for crypto assets; and Mastercard said it would give its merchants the option to accept cryptocurrencies later this year.

“In addition, Miami confirms it is considering paying workers and collecting taxes in cryptocurrency and the mayor of the city wants to hold Bitcoin in the city’s treasury.

“This all follows the likes of PayPal’s decision last year to allow customers to buy, sell and hold Bitcoin and as Wall Street giants like Goldman Sachs and JP Morgan issue RFIs (request for information) to explore Bitcoin and crypto asset custody.”

He continues: “There is a clear direction of travel: institutional investors are taking Bitcoin more and more seriously as a financial asset and a medium of exchange. They are increasing their exposure to it at a faster rate than ever before.

“This is pushing cryptocurrencies ever more into the mainstream financial system and, subsequently, driving the price skywards.”

The deVere chief goes on to say: “With the growing institutional demand combined with ultra-low interest rates, we can expect Bitcoin – which has already given a 55% return so far year to date after the 300% gain in 2020 – to reach new highs in this first quarter of 2021.

“However, with increasing dominance and value, comes increasing regulatory scrutiny. 

“Bitcoin and other cryptocurrencies will come under the spotlight from watchdogs like never before and this can be expected to create volatility in the market.”

His warning comes as central banks and governments around the world ramp up their focus on digital currencies. 

In the U.S. in recent days, Treasury Secretary Janet Yellen raised again the prospect of future cryptocurrency regulation and as the Securities and Exchange Commission (SEC) could reportedly investigate Elon Musk over Tesla’s $1.5 billion Bitcoin purchase.

Nigel Green concludes: “Institutional investors are increasingly appreciating that in this tech-driven, ultra low interest rate, low growth world, and where there is diminishing trust in traditional currencies, digital and borderless cryptocurrencies may be becoming a better fit.

“We can expect the price of Bitcoin to surge to fresh highs as a result.  But investors must be aware that regulatory pressures will cause price turbulence.”

Dogecoin, bitcoin crypto currency
ArticlesMarketsStock Markets

Bitcoin, Dogecoin Hit All-time Highs Driven By Elon Musk – But How To Choose An Exchange?

Dogecoin, bitcoin crypto currency

Bitcoin was driven to new record highs on Tuesday morning – trading above $48,000 – as investors continue to pile in on the news that Tesla bought $1.5bn worth of the cryptocurrency.

A filing with the U.S. financial regulator on Monday reveals that the electric car company run by the world’s richest person, Elon Musk, has made the massive purchase of the digital asset which has jumped more than 300% in a year.

The surge in the price of Bitcoin and other cryptocurrencies, including Dogecoin – which was also fuelled by an endorsement by Musk on Twitter over the weekend – comes as digital currencies become mainstream due to soaring interest from both retail and institutional investors, increasing levels of mass adoption, and as global interest rates remain at historic lows.

But how does a new crypto investor choose a platform on which to buy, sell, hold and exchange?

Nigel Green, an influential cryptocurrency expert and CEO of deVere Group, one of the world’s largest independent financial advisory and fintech organisations, says there are five fundamentals.

He says: “More and more people are wanting to invest into cryptocurrencies, knowing that they are the future of money.

“But many, even those who have extensive knowledge of the stock market, have concerns about selecting the right cryptocurrency exchange.

“The total capitalisation of the cryptocurrency market is now an estimated $1.2 trillion, but it is still lightly regulated. This means that it’s vital that investors know what to look for in an exchange.”

He continues: “There are five fundamentals for your checklist.

“First, security. The system of a private exchange for saving consumer documents as well as funds should be as decentralised as possible as if it’s all on a couple of web servers, that makes them easy hacking targets.

“Investors should also look for a system that utilises two-step verification throughout login, such as a password, and also quick-expiring codes received through the app.

“Avoid exchanges which offer cheap trade costs or services but are based in areas around the world where investor security is weak.

“In addition, investors ought to assess exchanges as well as the businesses behind them as they would certainly do with any other organisation that they would depend on to protect their money.”

“Second, costs. Some exchanges are proficient at addressing costs in advance, while others hide them. Go for the exchanges that are upfront and transparent.

“Third, simplicity and ease of use. Take into account that you’re not always going to trade from your desktop. In fact, finding an exchange that focuses on ‘on-the-move’ trading via a secure app is often a better option.

“Fourth, dependability. Does the exchange run efficiently when trading quantity is high, or when the currencies rate is see-sawing? Some exchanges are notorious for their system accidents and trading stops.

Fifth, client service. Make sure an exchange has a chat or fast communication service integrated.”

Mr Green concludes: “Whilst Elon Musk’s Tesla, and other institutional investors, including PayPal amongst others, will have teams of crypto experts behind them, retail investors can also get involved.

“Investing in cryptocurrencies remains highly speculative and it is not for everyone – but one of the keys to success would be selecting the right crypto exchange.”

Covid stock investors
ArticlesBankingMarketsStock MarketsTransactional and Investment Banking

What Has Covid Taught Investors

Covid stock investors
  • 44% of investors are now looking to back UK-based companies rather than global firms –  9,629,000

  • 45% of investors feel their ‘risk-appetite’ has increased due to Covid-19, as traditionally safe investments in big companies are no longer viable – 6,942,000

  • 27% of investors are looking to invest in sectors created by the Covid-19 pandemic, such as PPE, social distancing equipment and virtual solutions – 5,674,000

  • 19% of investors believe the coronavirus pandemic has opened more investment opportunities than it has closed – 6,278,000

Investing was one of the most unpredictable aspects of 2020 for anyone concerned with the market, whether that be a sophisticated portfolio or just a workplace pension. The stock market crash at the start of the lockdown and continued economic disruption has left many wondering what the future will hold, while soaring tech stocks have added further complexity to an ever changing market. But what has the Covid pandemic taught investors? 

The overall effect of this period has led investors to reconsider what they are doing with their investable assets. To understand this shift, SME investment specialist IW Capital has conducted nationally representative research to uncover the sentiments of the UK’s investors.

 

Look beyond the panic

Each period of disruption, like that felt last year, offers opportunity for companies to adapt quickly to the changing times and although there has been a lot of worry and negativity surrounding the new lockdown restrictions, we have to look to the positives with one of them being the roll out of the Covid vaccines. Working with both entrepreneurs and investors, there is a clear desire from the small business community for growth investment and to take a big step growth-wise this year. With a 12% increase in new businesses starting up during 2020 compared to 2019, 2021 is set to create some exciting investment opportunities for investors throughout the country.

 

The unexpected happens 

This year has taught us that the unexpected does happen. Investors need to look to the future and prepare for the unexpected to improve financial resilience. This could be by having liquid assets or a rainy-day fund you can use if investment values fall, which is particularly important if you’re drawing an income from investments. Having options for when the unexpected does occur should be part of any investors financial plan and is something that has been brought to the forefront for many as a result of the pandemic. 

 

Maintain a diverse portfolio

The Covid pandemic has had a far-reaching impact across a variety of sectors, however some industries have been affected far more than others, with travel and hospitality being forced to close for months at a time and unable to trade. In contrast, the pandemic has created opportunities for some sectors too, such as manufacturing and biotech. While a diverse portfolio will still have suffered volatility, it can help lessen the impact. Investing in a range of assets, industries and locations can help spread the risk. When one investment falls, another may perform better helping to create balance.

 

Don’t overreact to market volatility

When the pandemic first hit and the stock market plummeted, many investors began to panic and looked to sell shares in order to avoid potential future losses, but when investing, a long-term time frame and goal is so important. Short-term volatility is often smoothed out once you look at investment performance over a longer time frame. It can be frustrating to see that investment values fell in 2020, but when you look at performance over the last five years, for example, you’ll probably still see an upward trend.

 

Luke Davis, CEO of IW Capital:

“Investing and investing wisely has never been easy by any stretch but this year has been particularly difficult for investors at every level. 2020 demonstrated the value of long term investing and future planning. The stock market crash in March triggered a real halt in investment, and although the market hasn’t fully recovered, there has been strong growth since November and in places in the US share indexes are actually higher than the last year. 

“There have been winners and losers from each stage of the pandemic with sectors like travel feeling the true impact of the pandemic and others like online solutions seeing growth and opportunity in a time of financial turmoil. But, this is true of any world event and has forced investors to look to be more future facing.”

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MarketsStock Markets

7 Things People Get Terribly Wrong About Stocks and the Stock Market

stocks

7 Things People Get Terribly Wrong About Stocks and the Stock Market

To the perfect layman, stocks can seem intimidating. The market is so diverse, and financial news can seem like they’re in a completely different language. This also leads to people making their own misinformed opinions about the market. The sad part is that these beliefs are often fueled by a bias people have about business in general.

Some think it’s a scam. Others think that it’s impossible to make steady earnings, or that only big players do so. On the other end of the spectrum, you have those who look at historic figures for the Dow Jones and think that you can’t lose with the stock market and others that think that they can just listen to the news and make trades based on announcements and events. Both of these are wrong and being overly optimistic is just as bad as being overly skeptical. Let’s take a look at some of the things people get wrong about stocks and the stock market.

 

You can Never Lose with Stocks

This is probably one of the strangest myths about stocks. Some people think that they can just hold some stock and that it’ll always bounce back. These people think that selling is an automatic loss and that stocks are meant to be held forever.

What they don’t realize is that they may be losing money in more than one way when doing this. First, they may end up with stocks that are not bouncing back or becoming almost useless due to disruption in the industry or market conditions. But there’s another area where they may be losing and not realizing it.

Let’s say that you invest $2,000 on stock “A” while failing to invest in stock “B”. If the first stock goes from $20 to $15 you might want to hold on to it until it bounces back. And maybe it does and hovers at around the $22 mark. You’re feeling pretty good about yourself.

But what if I told you that stock “B” went from $15 to $30 during that same period? This is indeed a loss, and it’s referred to as an opportunity cost. This is the amount of money you’re losing for having your money tied up in stagnant or underperforming assets while being unable to capitalize on winners. This is why you need to be somewhat fluid and forget the notion that all stocks always bounce back. We have plenty of historical evidence to back that up also.

 

It’s Easy to Tell Winners and Losers Apart

One of the biggest myths about stock market investing is that you can easily tell a winning and losing company apart. But that’s simply not true. Two companies might look completely the same, even issue the same type of press releases, and have similar market valuations. But you can’t try to just judge market sentiment based on price movements. You have to dig deeper.

It is often when an industry is going through a rough period that you will truly be able to separate the two. You can expect to see consolidation, and this is when you might find out that a company is running low on reserves, or that it has really bad debt. This is the type of stuff you’ll need to start worrying about if you’re intending to play the long game. This will also help traders in addition to understanding chart patterns and using technical indicators to understand the truth behind those price fluctuations.

You have to come with the mindset that it’s hard to tell winners from losers. This will push you to do more research and not go based on a false sense of confidence thinking you’ve identified a pattern after seeing a sudden uptick in price.

 

You can Only Make Money when Stocks go Up

This is another myth, and people are often surprised when they learn that you can actually bet against a stock and still make money. This is called selling short, and one of the most important tactics you’ll need to learn when trading.

Selling short is when you agree to borrow stocks from a broker in the expectation that it will be lower at a later time. Let’s say that you decide to sell a few shares of Johnson & Johnson short. You agree to borrow 100 shares at $145. That’s a $14,500 investment. The stock then falls to around $130 3 weeks later. You then can pay back the 100 shares which now cost you $13,000. This means that you made a $1,500 profit minus commission.

While this can be a very powerful strategy, you also have to know that it can go both ways. What this means is that you could end up owing more money if the stock goes in the other direction. What this also means is that the stock market isn’t strictly about “buying low and selling high” as they say. You can make money in any direction the stock market is going.

 

Getting Started is Difficult and Demands a Lot of Money

A lot of people also have the idea that you can only invest in the stock exchange if you have tens of thousands of dollars, but it’s not entirely true. As a matter of fact, it’s possible to start with as little as $500 to $1,000, though some advocate that you start with at least $2,000.

It really depends on what sort of trading you were thinking of doing. If you fell in love with the idea of day trading, then you might be surprised to find out that you need to have at least $25,000 at all times in your account if you intend to do more than 4 trades per day over a 5 day period. However, there’s nothing that stops you from starting with a minimal investment if you intend to buy stocks and hold.

Getting started is also not as difficult as you think. It might seem daunting at first, but once you get a hold of the basics, you realize that the stock market is much simpler than you may think. If you want to get a solid foundation on how to buy stocks, we strongly recommend you check out WealthSimple. They have a piece where they run down how to pick a broker and trading platform and a few strategic tips as well. You’ll learn what you need to look at in a stock when to invest, and a few basic stock market terms.

 

You Gotta Go with Blue Chips

There is also this group that believes that blue chips are the only way to go. We’re not saying you should not invest in them. As a matter, they can be great.

They can be a good source of passive income through dividends, tend to hold their value during tough times, and are great stores of value. However, when market conditions bounce back, these stocks stay right in the middle.

While you want to always have a few blue chips in your portfolio, you also have to invest in stocks that have growth potential. Again, this is where you need to think about opportunity cost. By having all your capital on blue chips, you are missing opportunities on fast-growing stock when you could easily hedge your bets by diversifying.

 

You Should Hold You Money During a Crash

This is somewhat related to the point we made earlier about stocks making money in any direction. The worst times for traders are times of stability, believe or not.

A stock market that has a lot of movement in any direction is what they actually look for. This is where the real opportunities are, whether the market is going up or down. That’s why you have to always pay caution to the wind and not be afraid of major financial downturns. This doesn’t mean that money is lost, it is only changing hands.

This also means that you can also start looking at sectors and stocks that are moving in the other direction. Financial crashes are usually the manifestation of a much deeper problem, and that’s when you need to start looking at who’s providing the solutions.

 

Risky Stocks are Automatically Bad Stocks

It really depends on your strategy again. If your goal is to hold for the long term, then maybe you want to go with safe stocks with moderate potential for growth and loss. This also means that you’ll get moderate returns if any. Some people might prefer to invest based on value, while others prefer to bet on short term movement. Both are very valid strategies and might suit a different type of investor.

With risky stocks, there is so much potential. Yes, you could lose, but there are always ways to mitigate it. The greatest risk comes with greater rewards, so instead of focusing on whether a certain stock is too risky, look at short term price movement armed with the right knowledge and tools to make informed and calculated bets.

These are just some of the things people get wrong about stocks in general. Once you dispel those myths, you can start truly understanding what the stock market is all about and form a realistic idea of it.

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ArticlesFundsStock Markets

How Clued Up Are You On The FTSE 100?

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How Clued Up Are You On The FTSE 100?

Brits incorrectly believe household favourites Tesco and Sainsburys are in the top 10 biggest companies of the FTSE 100, according to a new poll by IG Markets.

The trader polled 2,000 adults, alongside the launch of its Decade of Trade tool, to discover how clued up the general population are on the FTSE 100. The results show that as a nation we are fairly savvy when it comes to our knowledge of the stock market and over two-thirds (77%) are knowledgeable on the definition of shares.

Online trading platform, IG Markets, created the Decade of Trade tool to help Brits gain an understanding of the FTSE 100 and to allow traders to view not only how companies in the markets are performing now, but how they have performed over the last ten years. The tool covers twelve world markets including the FTSE 100, DAX40, ASX200 and HANG SENG.

When asked to name which companies are in the top ten of the FTSE 100 from a list, Brits identified eight out of ten businesses correctly. The mistakes came from thinking the supermarkets had a bigger presence than they do, with Brits believing Tesco (23rd in the FTSE 100) and Sainsburys (100th in the FTSE 100) to be in the top 10 market share.

 

Perceived top 10 of FTSE 100

Actual top 10 of FTSE 100

BP (+3)

HSBC

HSBC (-1)

Royal Dutch Shell A

GlaxoSmithKline (+4)

BP

Unilever (+6)

Royal Dutch Shell B

Tesco (+18)

AstraZeneca

British American Tobacco (+2)

Diageo

Royal Dutch Shell A (-4)

GlaxoSmithKline

Royal Dutch Shell B (-4)

British American Tobacco

Sainsbury (+91)

Rio Tinto

AstraZeneca (-5)

Unilever

 

Brits failed to identify beverage company, Diageo, whose brands include Smirnoff, Baileys and Guinness and mining corporation, Rio Tinto, as top 10 FTSE 100 companies.

Brits were also tested on their knowledge of the FTSE’s sector market share. The results showed there is a perception that Oil and Gas, Chemicals and Banks and Persona are the three largest sectors of the FTSE 100 when it is actually Oil and Gas, Banks and Persona and Household Goods.

Respondents were also asked what they perceive to have the biggest impact on the FTSE 100, and just over a quarter (27%) thought the Brexit referendum would have the biggest impact on the stock market.

 

Top five things Brits think have impacted the FTSE 100

  1. Interest rates (43%)
  2. Economic releases about earnings reports (35%)
  3. The Bank of England quarterly inflation report (27%)
  4. Brexit referendum (27%)
  5. Eurozone politics (26%)

 

Almost four in ten (39%) correctly thought all of the above factors have an impact on the FTSE 100.

To view the Decade of Trade tool, click here: https://www.ig.com/uk/special-reports/decade-of-trade

Commodities
Capital Markets (stocks and bonds)CommoditiesFX and PaymentStock Markets

Top five things you need to know about commodities

Commodities

Top five things you need to know about commodities

 

Commodities are the lifeblood of commerce and economic growth. Daily FX, the leading portal for forex trading news, has built an interactive tool showing global commodity imports and exports over the last decade.

This unique tool allows traders to spot developments in the flow of commodities and the growth of both supply and demand while comparing the changes to critical economic indicators.

‘Global Commodities’ takes the form of a re-imagined 3D globe where the heights of countries rise and fall to show the import and export levels of a range of commodities over the last decade. The data visualisation allows users to switch views from a single commodity or market and show information relevant to that commodity or market’s performance.

John Kicklighter, Chief Currency Strategist at DailyFX, has used the tool to put together his top five things you need to know about commodities:

1. Will the US-China trade war lead to trade peace and synchronous growth to help commodities?

The US-China trade war is seen globally as a hindrance to growth, and as such, a hindrance to the demand for commodities. The International Monetary Fund warned governments to be  “very careful” and that the global economy remains vulnerable, and presumably, so do commodities until the issue is sorted out.

2. Will the US dollar strength continue and continue to suppress commodity price gains?

Since commodities are priced in US Dollars, a stronger USD as evidenced by the 6% gain in the US Dollar Index since the start of 2018 has had a positive impact on commodity price gains.

3. Will inflation pop up to increase the demand for commodities as a value store?

The lack of inflation has baffled central bankers and kept speculative buyers of commodities at bay.

4. Could a renewed China stimulus plan give industrial metals like copper the price boost and reverse weak sentiment?

Chinese stimulus via credit growth and top-down building projects have helped commodities in recent years find renewed demand, and the hope among commodity buyers is that there is more stimulus left in the tank.

5. Will US manufacturing turn around after falling at the start of 2019 to also lift commodities’ outlook?

A significant reading of the US Manufacturing Sector, the Institute of Supply Management recently touched the weakest levels since 2016 alongside Chinese Manufacturing weakness that has heavily weighed on commodities in general and especially metals like copper.

To learn more about Global Commodities visit: https://www.dailyfx.com/research/global-commodities

stocks
ArticlesStock Markets

What should a business on the world’s first stock exchange focused exclusively on impact investment look like?

stocks

What should a business on the world’s first stock exchange focused exclusively on impact investment look like?

 

• Project Heather launches consultation at UN Climate Action Week
• Consultation on a new proposed ‘public markets impact issuer model’ is welcomed by Jamison Ervin of the UN Development Programme as “a significant step towards achieving the Global Goals”
• Truly collaborative approach to consultation appeals to the global community of impact experts to solve how business can achieve UN Sustainable Development Goals within a new systemic framework
• The proposed Scottish-based, global facing, impact-focused stock exchange would be the first recognised investment exchange in the world to mandate the annual reporting by issuers of the social and environmental impact of their business

Project Heather has announced the opening of a consultation, presenting its suggested elements for what an ideal issuer on its exchange might look like, including the core pillars required to support impact reporting by its issuers. The consultation will feed into the Impact Reporting Requirements for the proposed Scottish-based stock exchange. Speaking ahead of the UN’s Climate Action Summit at the UNDP’s Climate Hub, Project Heather CEO and Founder Tomás Carruthers declared the consultation open, in an impassioned call to action to the impact and sustainability communities.

Tomás Carruthers, CEO and Founder of Project Heather, said: “It is an honour to launch this consultation at the United Nations Development Programme’s Climate Hub as the world’s nations come together for Climate Week.

“Our mission at Project Heather is to make the Sustainable Development Goals, and beyond, feasible and achievable. Project Heather integrates the routes most likely to move capital at the greatest speed and scale to the kinds of projects that most urgently address risks to stakeholders captured in the SDGs. As a Project we have spent considerable time working on what a potential issuer on our proposed new Scottish stock exchange might look like, but now it is time to call on the global impact community to help. We invite them to join our consultation and hold us to account. This is a call to act now – we don’t have much time left to achieve the SDGs.”

Jamison Ervin, Global Manager on Nature for Development, UNDP, said: “It is now widely acknowledged that the Global Goals cannot be achieved without private sector support, and while impact investing is growing in some sectors, it is yet to penetrate capital markets. In seeking to change how capital markets value natural capital, we see Project Heather’s goals for an impact-focused stock exchange as a game-changer for our planet.”

The proposed Scottish-based, global facing, impact-focused stock exchange will be a stock exchange built specifically for impact investments, defined by the Global Impact Investing Network as those “made into companies, organisations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.” The proposed new exchange, being built by Project Heather, is designed to make a positive impact on society and our global home. This will be achieved by managing, measuring and reporting the impact of the issuers on it against the targets of the Global Goals.

About the consultation

The proposed Scottish-based stock exchange will require impact reporting for every issuer on admission and annually thereafter. In building the operating model and frameworks for the new exchange, Project Heather has identified the Sustainable Development Goals as the destination framework, with every issuer required to report against the goals, and critically, the goals’ targets. The consultation seeks opinion on this chosen destination.

In addition, the consultation will also gather input on seven key elements it believes underpins the impact reporting requirements of an issuer:

1. The issuer’s board declares that its organisation’s core purpose is to make a positive impact, as defined by the Principles for Impact Finance to provide a definition of value which goes beyond profit, to include social and environmental well-being. This defined purpose is contextualised to align with global goals for sustainable development.

2. This declared purpose is clearly articulated through a theory of change.

3. This declared purpose is realised through the material core of the issuer’s activities, and the issuer commits to a proactive journey towards value creation within the entire system it operates.

4. Impact is measured using widely accepted frameworks and tools and must include measurement against the SDGs.

5. Impact is reported publicly and annually, with a commitment to ongoing improvement.

6. The organisation or issuer is committed to transparency.

7. The organisation or issuer is committedly against impact-washing.

Project Heather neither seeks to create a new impact tool or impact reporting framework, nor will it prefer any one existing impact measurement or management tool or framework. As part of the consultation process, Project Heather hopes to engage with the ecosystem of recognised and respected frameworks that exist for measuring, managing and reporting on social and environmental impact, both established and emerging.

In addition, Project Heather will seek to understand what the global impact community believes a business on the exchange should constitute and what segments should be avoided, if any. As transparency of information, both at listing and thereafter, is a reason Project Heather believes capital markets can transform impact investing, the consultation will seek opinion on what that transparency should look like.

Those wishing to respond to the consultation should go to www.projectheather.scot and complete the form. The consultation will be open until Monday, October 21st, 2019. The draft reporting requirements will be published following consideration of the consultation responses.

Corporate Finance and M&A/DealsForeign Direct InvestmentStock Markets

US and Asian brands dominate rankings of world’s most valuable technology brands

  • US tech giants take top 5 spots, Amazon is world’s most valuable technology brand with monumental US$187.9billion brand value
  • Apple, Google and Microsoft defend spots as brand values continue to surge
  • China’s WeChat breaks into top 10 as world’s strongest tech brand, more Chinese brands rising through ranks
  • New entrants from digital space: Twitter and Instagram gaining traction, as online shopping portal Taobao is most valuable new entrant
  • Baidu owned iQiyi fastest-growing, rising 326% to impressive brand value of US$4.3 billion
  • Facebook losing brand strength, recording Brand Strength Index (BSI) score of 82.9 out of 100 and AAA rating
  • IT Services brands log growth: TCS, Accenture, Capgemini, Wipro and IBM all see growth in brand value

Amazon leads tech titans

Amazon strengthens and maintains its position as the world’s most valuable technology brand. Brand value surges 25% to a record US$187.9 billion, over US$30 billion more than 2nd place Apple. Notoriously strong for service, last year, Amazon recorded its most successful Prime Day to date, with consumers purchasing more than 100 million products. This was shortly followed by the brand crossing the US$1 trillion threshold on Wall Street for the first time in its history. And due to an ever-diversifying portfolio, it seems no industry is safe from the threat and power of Amazon.

The Amazon brand is well-positioned for further growth but the presence of Chinese brands this year is most impressive and certainly not to be ignored.

David Haigh, CEO of Brand Finance, commented:

“Amazon is leaving no stone unturned as it relentlessly extends into new sectors, however its technological might still overshadows rivals to retain the status of the world’s most valuable tech brand.

The Amazon brand is well-positioned for further growth but the presence of Chinese brands this year is most impressive and certainly not to be ignored.”

Chinese brands flex muscle

While the top 5 most valuable tech brands are dominated by brands from the USA, the remaining 5 within the top 10 are from China and South Korea, asserting the dominance and competitiveness of the Asian players.

New entrant Taobao (brand value US$46.6 billion) is the most valuable, breaking into the top 10 for the first time. The Chinese online shopping website is headquartered in Hangzhou and owned by Alibaba. It is one of the world’s biggest e-commerce websites, offering its almost 620 million monthly active users a marketplace to facilitate consumer-to-consumer (C2C) retail by providing a platform for small businesses and individual entrepreneurs to open online stores

At US$50.7 billion, China’s WeChat is a rising star, having lifted its brand value 126% over the previous year. Its influence is reflected in the impressive way in which the brand has successfully created a digital ecosystem for its 1 billion Chinese users who use the platform every day to instant message, read, shop, hire cabs, and more

WeChat has broken into the top 10 for the first time, making it worthy of its strongest brand accolade, improving on last year with an upgrade to the elite AAA+ brand strength rating and a corresponding 90.4 out of 100 Brand Strength Index (BSI) score. Whilst China’s burgeoning middle class makes it attractive to continue strengthening the brand domestically, the massive growth experienced by brands as they pursue international business is also appealing

Another tech brand relying on the domestic customer base has made the most of the immense growth in demand for streaming content within the country. iQiyi is not just China’s but the world’s fastest-growing brand this year, up 326% to US$4.3 billion. The Baidu-owned online video platform is China’s answer to Netflix and hosts over 500 million monthly active users.

More likes for digital and social media brands

Netflix is rising through the ranks, with its brand value growing by a whopping 105% over the past year to $21.2 billion, Netflix is set to play the lead role in home entertainment, building a disruptive business as a universally accessible narrowcaster and in this way effectively challenging traditional broadcasting brands.

YouTube (brand value up 46% to $37.8 billion), another rapidly growing digital media brand, retains its spot in 11th place. Like Netflix, YouTube is building a broad platform for video content, in an effort to leverage its brand from merely peer-to-peer video creation and sharing to also include a growing premium and professional video library.

Similarly, Twitter (brand value up 66% to $3.2 billion) jumps almost 100 ranks to become the 258th most valuable brand in America. Another successful social media platform, Instagram is the most valuable new entrant to the ranking this year, claiming 47th spot with a brand value of $16.7 billion.

New entrant Instagram, the photo and video sharing social networking platform owned by Facebook, recorded a brand value of US$16.8 billion. The service has over 1 billion active monthly users and with the rising popularity of Instagram influencers, is also becoming the most attractive portal for digital marketing spends and bringing in impressive advertising engagement revenue.

Although rising up from sixth to fifth place, social networking site Facebook (brand value up 8.7% to US$83.2 billion) has recorded a drop in its brand strength, its AAA+ status from last year slipping down to AAA in 2019. Facebook’s corresponding Brand Strength Index (BSI) score has decreased to 82.9 out of 100.

IT Services brands log growth

Not to be ignored are the notable performances in the technology rankings clocked in by IT Services brands TCS, Accenture, Capgemini, Wipro and IBM who have all seen growth in brand value since last year.

Valued at US$26.3 billion, Accenture has grown rapidly by 56.5% since last year, a testament to its continued innovation across AI, advanced analytics and growing cybersecurity practice. The professional services and IT Services brand has made waves in the industry for its pioneering work on how companies can best achieve a smooth blockchain transformation.

Growing in brand value by 23% to US$12.8billion is India’s largest IT services conglomerate, Tata Consultancy Services (TCS), bolstered by a disciplined focus on the market’s increased demand for digital services. TCS has positioned itself as a leader in providing a superior all-round customer experience, leveraging artificial intelligence and robotic automation across its transformation programs. TCS is also to be commended as the first Indian IT services brand to achieve success in the Japanese market; the Mumbai-based brand has expanded its operations in Japan and overseen a merger of three brands to create Tata Consultancy Services Japan. 

Wipro (up 25% to US$4.0 billion) is to be commended for its significant investments in digital transformation capabilities, niche acquisitions, and a recent brand refresh, which have propelled it up the rankings to 81st most valuable technology brand this year.

Stock MarketsTransactional and Investment Banking

Duncan Kreeger launches prop tech business TAB APP

West One loans founder and CEO of TAB Duncan Kreeger has launched a fractional ownership proposition, TAB APP. Investors, once the app is fully launched, will be able to invest in commercial and residential property in three clicks.

Duncan has created a simple explainer video to make the complicated world of fractional ownership, rental yields and investing simple for potential users. Visit app.tabldn.com for more information

Watch the video below

Duncan Kreeger said: “Having worked within the property and financial services industry all my life I’ve long thought about how I can make a serious change to make people’s lives easier and allow the general public to have access to rental returns without the heavy investment of a BTL purchase. That’s why I bring you TAB APP, we’ll give users long term sustainable returns on commercial and residential property from investing from £1,000. I’m delighted with what we’re creating with my app developers Elemental Concept.”

The TAB APP is not yet ready for users to download and invest, this will be coming within the next month as the APP is currently going through the first batch of user testing. Users can register to test the app by emailing [email protected]

Stock Markets

How digital is disrupting the world of early stage investing

 By Oliver Woolley, CEO, Envestors

 

The landscape we have today is the same landscape we had fifty years ago. We’ve got investment networks, clubs, incubators and accelerators, all of whom actively help investors to find opportunities and scale-ups to secure funding – but they are all closed and separate. Our vision for the future is one in which all these groups connect to one another, without sacrificing control or independence. We’ve built a software platform to do just that. Using an aggregated approach, we can bring the world of early-stage investing together in a way that benefits all of those involved.

 

For scale ups, it means working with one party and gaining wide exposure rather than promoting a deal through a number of disparate networks. For investors, it means having access to a near unlimited number of deals, all filtered according to interest and managed in a single location – regardless of network of origin. For investment facilitators, it means a greatly improved experience for their investors and decreased operational overheads.

 

 

Results – immediately!

 

We live in an age of instant gratification. This spans across all areas of our lives – from instantaneous validation on Twitter and one-hour Amazon delivery, to 24-hour news at our fingertips. So why should the investment experience be any different? If I can find out about anything in the world from wherever I happen to be, why should I – as an investor – wait for a pitch session to find out about investment opportunities?

 

ROBO: a behavioural change

 

Borrowing a term from the retail industry, ROBO (Research Online, Buy Offline) reflects a broad behavioural change. People no longer head to a shopping centre to browse for an item, they go online and find what they want and then go down to the store to get it. In many cases, they opt not to go to the store, satisfied with the information they have found online, and make an immediate purchase. This behaviour isn’t particular to consumers: a study, by Forrester Research, found that 68% of business to business buyers researched online independently and a further 62% say they go as far as developing a selection criteria and vendor list based on digital content.

 

So, why is it different with investing? When people prefer to get information instantaneously and independently, why do we ask them to wait for a pitch event? Using digital, information on potential investment opportunities and any relevant details can be ready for investors to read at their leisure. Further to that, information can be interactive. Potential investors can ask management teams questions – using online channels – and get answers in real time.

 

Achieving diversity

Digitisation has fuelled the unprecedented growth of start-ups in the UK.  This has produced a vast – and occasionally overwhelming – array of opportunities, resulting in a trend showing networks are becoming more niche and sector specific. While regional investment networks have long been part of the landscape, they are joined by networks specialising in – for example – Greentech, MedTech or women-owned businesses.  This is not a bad thing, but it has caused further fragmentation.

 

Experienced investors know, that if they are to get the best chance of a return on their investments, a diverse portfolio is a must. However, such specificity throws diversity out the window, leaving investors only one option – joining multiple networks and doing a lot of leg work to build and manage their portfolios.

 

Digital to the rescue. With an aggregated platform, regional and niche networks can connect to one another and share deals at the click of a button. This allows networks to protect their greatest asset – their investors – while offering them a broader array of investment opportunities without doing all of the vetting and admin.

 

Responding to uncertainty

 

By mid-2018, the impact of a looming Brexit was already starting to be felt across the industry.  With predictions of economic troubles in the UK in the short term, many investors tightened their purse strings, becoming increasingly selective over which investments to make. Yet, at the same time, reports show that foreign investment is at an all-time high: in 2017, a whopping £6bn was invested over the course of the year, with 396 of these deals involving at least one investor from abroad.

 

This is another opportunity that could be capitalised by digital. With a digital platform, deals can flow across borders – giving investors the ability to further diversify their portfolios, while giving businesses a better opportunity to find investment.

 

The benefits of using digital are clear so it is time for the investment sector to make changes. Some key players are already on board (for example, The SetSquared Partnership and Britbots).  I’m sure that more will be following and gaining the benefits.

Private BankingPrivate ClientStock MarketsWealth Management

Ashfords LLP Launch Digital Legacy Service

The death of a loved one is a traumatic and difficult time. Dealing with an estate can often result in unnecessary cost, time and upset when trying to trace assets and meet the wishes of the deceased. Assets can be misplaced, forgotten about or even diminished in value before you get the chance to deal with them. Law firm, Ashfords LLP, has developed and launched a new and innovative digital legacy platform for private individuals to make executor’s lives easier.

Digital legacy enables users to keep a secure record of their accounts and assets (whether it is a bank account, shares or even the existence of social media accounts), leave messages for loved ones, set out funeral plans and wishes and help ensure that the process of dealing with their estate following their death is as easy and as cost effective as possible.

On the death of the individual the system is unlocked for executors in a read-only format to ensure that a clear audit trail between the wishes of an individual and the administration of the estate is maintained. The primary purpose of the system is to facilitate executors to know what exists so they can ensure all assets are accounted for and all accounts are closed.

Executors also have the option to open up a memorial book where friends and family can send in memories of the individual which can then be used at the funeral, executors can also send details of funeral plans through the Digital Legacy system if they wish to.

Michael Alden, Head of Private Wealth at Ashfords said: “We want to help individuals keep track of their estate and in turn help ensure that following a bereavement, families are able to close down any online accounts quickly and efficiently making the process less stressful, and potentially reducing the cost of administering estates. We are excited to launch our Digital Legacy service and hope this will be a real benefit to its users and their families.”

Garry Mackay, CEO of Ashfords commented: “Digital legacy is a further example of the firm adapting to the ever-changing needs of our clients. As lawyers, we have a responsibility to constantly look at innovative ways in which we can make things easier and more cost effective for our clients whilst continuing to provide the highest level of advice. Digital legacy is just one of a number of products we have in development for our private and business clients.”

MarketsStock Markets

Navigating challenging markets in the investment industry

By Wael Al-Nahedh, CEO at Spearvest

The global economy has been experiencing unprecedented uncertainty in recent years. Political, economic and social challenges have meant that businesses and individuals are incredibly cautious about where they place their money, particularly for long-term investments.

The overall concerns in the US market topped with the UK’s difficult political situation around its planned departure from the European Union is making investors sit tight and hold back on plans until the future is clearer. With market uncertainty, it is crucial that investors realise it can bring with it great opportunities that only those who are forward thinking will be able to capitalise upon and improve their returns.

The US is a very complicated market for investors. For a fourth straight quarter, CEOs say they are less optimistic about the market which is highlighting a broader trend of concern around corporations at their peak time of profitability. As well as this, the inverted yield curve is producing warning signs of a recession and recent data shows a clear weakness from housing and retail sales and customer sentiment.

The UK market is producing quite negative predictions for business investment. A recent poll from the British Chambers of Commerce has predicted that UK business investment is set to decline in 2019 by 1 per cent – making it the worst year since the financial crash of 2008. Economic growth reports have also predicted that 2019 will be at 1.2 per cent, the lowest in a decade. This is a concerning position for the UK to be in and its certainly clear that the estimations are corresponding together with the uncertainty around Brexit. However, we must make it clear that these are only forecasts for now and they are likely to change, either negatively or positively to reflect the developments. Once the final outcome of Britain leaving the European Union is made, the market should steady itself and these predictions may be updated.

Interestingly, China’s growth has set to be lower this year too due to trade tensions. It is also set to have slower growth in consumer spending and a tighter hold on global liquidity. Despite this prediction, China’s government are attempting to stimulate the economy through fiscal, monetary and regulatory measures to help growth levels match targets.

Thanks to the challenging markets, it has never been more vital for an investor to monitor their current portfolio and look at where investment is needed. For businesses, they must insist on having a clear view of the market before committing to long-term and costly investments. Despite the need for clarity, it should be noted that with uncertainty, brings fantastic opportunity for investors to get ahead when many are being overly cautious. There is often an opportunity to strike a better deal, provided it is the right investment for the individual or business that will give long-term success.

Although volatile markets can be incredibly successful for some, one must be able to withstand the rapid change in market values and the associated possibility of loss. This means advice given to investors is extremely important to get right, particularly on the topic of what they should be holding onto throughout a dip in the market versus what should be simply let go of.

To stay ahead of the curve, investors should look at diversifying their wealth on a global scale and turn their heads towards value-focussed funds which is ultimately investing in unpopular stocks that have seen some significant growth in the past but not as popular as the higher growing stocks.

It is apparent that economic uncertainty, driven by current political circumstances in the US and UK, is a real concern for investors. When political uncertainty is prominent, we often see emerging markets profit from the situation and I think this is what we will end up seeing here. Investors should look at markets that would not usually have their attention and look at potential commodities that have previously taken a backseat.

To have a better view of how a portfolio is performing, technology can be implemented. It is becoming increasingly important for each custodian of wealth to be digitally connected, and to feed live data into a secure platform. This helps to provide investors with a full view of their whole portfolio in real-time – an important insight for uncertain markets. This type of technology will rely on independent market pricing and the reporting process must be objective and accurate in order to give the necessary and correct data. By having this, an investor can properly assess their portfolio performance and make smarter and better-informed decisions. Although, it’s not all about performance. Obtaining a fully consolidated view of wealth means it is easier to mitigate risk, allowing an investor to recognise potential issues and take action before they become a bigger problem.

Whilst political uncertainty remains a concern for all investors, it should not equate to an end of an investment portfolio. When looking to invest in difficult times, it is important that those looking to distribute their wealth are given advice that is well-informed, unbiased and profound from those who are closely watching the markets and can provide strategic and tactical guidance. As we see more individuals shying away from making investments, this is when fantastic opportunities open up for those looking to take more of a risk for a higher return down the line.

Capital Markets (stocks and bonds)MarketsStock Markets

What Game of Thrones stocks and shares do you hold?

By Alister Sneddon, Genuine Impact

 

 

It is hard to believe that the Game of Thrones (GoT) saga is coming to a close and we’ll soon find out who’ll win and take the Iron Throne.

 

Finding a winner relates to the quest to pick stocks and shares too.  Just as we’ve analysed the characters in GoT, and made our assessment of their strengths and weaknesses, we can assess a stock by looking at its Quality, Value, and Momentum.

 

Based on these three criteria, here are some stock picks for three favourite GoT characters:

 

Jon Snow

Jon has a lot of backing and support from the public. He has also proven he can withstand even the most unexpected of events. There is a spark of innovation to be found: joining forces with the enemy of my enemy turned out to be an excellent move against the Night King’s army, but is it a cursed alliance joining forces with Daenerys?

 

Paddy Power Betfair PLC

Paddy Power and Betfair now operate as a single company having joined forces in 2015. Coming together brought them back from infighting to concentrate on ruling.

 

Paddy Power Betfair is an excellent Quality stock. The company has a strong balance sheet and plenty of cash. Jon isn’t cash rich, but he has resources: endless people to call upon when required. Paddy Power Betfair’s cash reserves, make them resilient to any new gambling regulations or other changes.

 

A company’s value is based on today’s price per share, versus how much money the company generates. The higher the value the cheaper it is to buy this company now compared to how much money it’s bringing in i.e. the money being generated will grow into bigger profits (and returns) in the future. Paddy Power Betfair scores highly for Value. They bring in a lot of revenue compared to the stock price today. If they can convert this money into bigger profits there’ll be higher returns for investors. If you’d invested in Jon before you knew about his true heritage, you’d be collecting rewards now!  Investing in Paddy Power Betfair has potential for more to come.

 

Finally, a company’s Momentum. Momentum takes views from industry experts, e.g. big banks and financial institutions, and aggregates them. Do the experts believe this company will barely beat expectations or perhaps completely exceed everyone’s wildest dreams? Paddy Power Betfair is very average in terms of future Momentum. They’re hitting or beating their targets. The industry feels positive, without expecting anything amazing soon.

 

Assessment

Quality Score: High

Value Score: High

Momentum Score: Low

 

 

Arya Stark

Arya is a force to reckoned with, she is still human and makes mistakes, but there is no doubt she will keep on going.  While Arya might not want the Iron Throne, she is capable of taking it. Thankfully she is happy with her own path and continues to influence the world around her.

 

Taylor Wimpey PLC

One of the largest house building companies in the UK, Taylor Wimpey is often used as a barometer for the Brexit impact. Like Arya, Taylor Wimpey is a force unlike anything else.

 

Taylor Wimpey is no stranger to scandals or scraps. Unlike Arya however, Taylor Wimpey has the cashflow to make its problems and challenges negligible. Regarding the Quality score Taylor Wimpey has a lot of purchasing power, but housing market regulation is prone to change and Brexit has shaken us, so they are keeping an eye on their war chest.

 

What about Value – the future potential based on what you pay today? Taylor Wimpey scores extremely well for Value; the company generates a lot of income compared to its current share price. If it can convert the incoming revenue into higher margins the results will be impressive.

 

For Momentum, the industry experts seem to agree. There is plenty of potential upside in the future. Once the Brexit air clears it will be business as usual, and like Arya, Taylor Wimpey will show up ready to fight.

 

It’s a promising outlook across the board, however starting from such a strong position means it’s tough to exceed expectations.

 

Assessment

Quality Score: High

Value Score: High

Momentum Score: High

 

Night King

Terrifying, unyielding, and never-ending. There has never been a threat as serious and all-consuming as the Night King and his army of the undead. It doesn’t matter how many you kill or how far you run, he will always be there.

 

Sports Direct International PLC

Very much like the Night King, Sports Direct picks up dying companies and recruits them into the Sports Direct family, giving them new life

Buying up assets and companies on the cheap is still expensive. So, Sports Direct doesn’t have the happiest of balance sheets. The Quality score is very low, cash in the bank is not the strategy here. It’s spending money to make money.

In terms of Value there is potential. Sports Direct’s current share price is lower than expected when compared to the amount of revenue and income they generate. The Value is lower than expected, but not enough for this company to be labelled a deep value long term buy and hold.

With worse than expected accounts, even with the company being offered “at a discount” (medium Value) experts don’t have high hopes for the future.

However, Sports Direct has proven they’re experts at navigating the unknown. The ratings are more a reflection of the feeling that there will be hardships for the time being.

Like the Night King, Sports Direct hasn’t given us an incredible show yet but hopefully, unlike the Night King, it’ll be part of our lives for many years to come.

Assessment

Quality Score: Low

Value Score: Medium

Momentum Score: Low

 

Disclosure, Alister does not hold positions in any of the stocks mentioned.

Corporate GovernanceMarketsStock Markets

Sectigo Delivers Record Quarter of Growth Underpinned by More Than 35% YoY Enterprise Sales Increase in Q1 2019

Addition of Top Brands, Along with New Email Encryption and Digital Signing Product, Drive Sales for World’s Largest Commercial SSL Provider

Sectigo (formerly Comodo CA), the world’s largest commercial Certificate Authority and a leader in web security solutions, today announced a larger than 35% year-over-year (YoY) increase in enterprise sales during the first quarter of 2019, fueled by the adoption of the company’s Certificate Manager, Private CA, S/MIME, and IoT Manager enterprise solutions. Sectigo also kicked off 2019 with an expanded partner program, the release of its Zero-Touch Deployment S/MIME product, a new strategic IoT alliance, and receipt of numerous awards.

Sectigo’s record quarter follows a breakthrough year and a complete corporate rebrand in November of 2018. The company has experienced rapid growth since expanding beyond TLS/SSL certificates to offer solutions that protect enterprises of all sizes from increasingly sophisticated web-based threats across websites, IoT devices, internal infrastructure, and cloud services.

“After delivering a strong 2018 where Sectigo’s growth was more than twice as fast as the overall market, we have accelerated our efforts by doubling down on addressing the enterprise’s most pressing needs through product innovation,” said Bill Holtz, CEO, Sectigo.

“Enterprises are embracing automated certificate management to facilitate discovery, installation, and renewal for their vast inventories of private and public certificates across diverse use cases and operating systems. These capabilities are essential to securing our complex enterprise environments and their increasing use of virtualization, containerization, mobile devices, IoT, and DevOps. Certificate automation enables strong identity in these complex environments and protects against costly outages caused by unexpected certificate expirations,” Holtz added.

Sectigo highlights in Q1 2019 include:

Enterprise growth – Dozens of marquee brands, spanning retail to technology sectors, enlisted Sectigo as their trusted partner for certificate management. Sectigo Certificate Manager provides enterprises with complete visibility and lifecycle control over any public and private certificate in its environment all from a single portal.

Product innovation – In February, Sectigo introduced the industry’s first Zero-Touch S/MIME solution to combat business email compromise (BEC) and other spear phishing attacks and increase compliance with regulations like HIPAA/HITECH, GDPR, and the U.S. Department of Defense’s DFARS. The innovation modernizes email security and encryption by using automation to deploy digital certificates across every desktop, tablet, and mobile device in an enterprise.

Expanded IoT ecosystem – Sectigo and Kyrio, a subsidiary of CableLabs, formed a strategic alliance to provide the expertise needed for IoT projects to be designed, architected, built, and deployed with security in mind from day one. Multi-vendor ecosystems, including the Open Connectivity Foundation (OCF), CBRS WInnForum, and SunSpec Alliance, have already chosen Kyrio and Sectigo to manage their global PKI deployments.

Industry awards – Sectigo won five company awards and received three executive honors in Q1.
Cyber Defense Magazine’s InfoSec Awards – CEO Bill Holtz was named the Most Innovative Chief Executive of the Year, Sectigo Certificate Manager earned the Hot Company Identity Management Award, IoT Manager was selected for Publisher’s Choice IoT Security, and Zero-Touch S/MIME won the Next-Gen Deep Sea Phishing Award.
2019 Info Security PG’s Global Excellence Awards® – Sectigo IoT Manager was awarded bronze in the New Product or Service of the Year category, and CMO Jonathan Skinner won gold for Marketing Professional of the Year.
2019 Cybersecurity Excellence Awards – Sectigo won silver for Most Innovative Cybersecurity Company, and gold for Cybersecurity Marketer of the Year (for CMO, Skinner).

Channel expansion – Sectigo unveiled a revamped Channel Partner Program, enabling partners to grow into new cybersecurity market segments. By teaming up with Sectigo, resellers develop their product portfolios and learn best practices for optimizing the customer experience. After collaborating with Sectigo, ICANN-accredited registrar Uniregistry, saw 53% of users who expressed interest in their UniSSL products complete purchases.

Thought leadership – Sectigo launched Root Causes: A PKI and Security Podcast to frame public conversations and discuss key issues, breaking news, and major trends in digital certificates and PKI. Co-hosted by Sectigo industry veterans Jason Soroko and Tim Callan, Root Causes is now live on iTunes, Spotify, Google Play, SoundCloud, Blubrry, and Stitcher.

Cash ManagementForeign Direct InvestmentPrivate FundsStock MarketsTransactional and Investment Banking

Can You Predict The Future Price of Bitcoin?

You can’t spend five minutes reading about cryptocurrencies without stumbling across at least one prediction for the future price of Bitcoin.

Across forums, social media, newsletters, blogs, news sites and every other corner of the internet — financial analysts, expert investors, bankers, tech icons, and new enthusiasts offer up their views.

Some cite careful analysis, some base it on past trends. While others are guessing or acting on their ‘intuition.’ Their predictions are varied, ranging from a plummet to zero, to millions.

With all this noise surrounding the Bitcoin price, you might be wondering whom to believe. Or if you should believe anyone at all. Is it possible to predict the future?

Investing begins with education, not buying. So it’s important to think about the information you base your buying decisions on.

How do people make price predictions?

There are two types of analysis used for predictions: fundamental and technical.

They’re used for everything from the stock market to Bitcoin. While other types of analysis do exist, these are the main ones.

Fundamental analysis

Fundamental analysis is all about intrinsic value. You look at the factors that give something value, then decide if it’s under or overvalued. Publicly traded companies release lots of information to help with this. So, for a stock you might look at a company’s:

  • Revenue (how much money it’s making)
  • Profit margins (how much of the revenue is profit)
  • Growth potential (how much money it could make in the future)
  • Management (how competent the people in charge are)

Some of these factors can be defined in numbers. Others come down to the judgement of the analyst.

For a cryptocurrency, you might look at its:

  • Price growth (how the price has grown over time)
  • Scalability (if it has the potential to keep growing)
  • Security (if the network is secure and safe from attacks

​Technical analysis

Technical analysis is different as it focuses on an asset’s price, not the asset itself. Maybe you’ve heard the phrase ‘past performance is not an indicator of future performance.’ But technical analysis bases future predictions on the past. This can be based on a short time frame (hours or even minutes) or long (months or years.)

To do this, you look for patterns and trends in price charts, such as:

  • The average price over a chosen time span
  • The price at which a lot of investors start buying
  • The price at which a lot of investors start selling
  • The overall price trend

Do fundamental and technical analyses work?

There’s no straightforward answer to that question. Both techniques can be useful, but they also have their limitations for cryptocurrencies.

Fundamental analysis works when investors base their decisions on fundamentals. This isn’t always the case for Bitcoin. Many investors base their decisions on the decisions they expect others to make.

Technical analysis assumes that a market follows rational rules and patterns. It’s less useful for cryptocurrencies because the market is still young. There isn’t as much past data to analyse. Cryptocurrencies also have less liquidity than something like stocks.

Self-defeating and self-fulfilling prophecies

When we talk about price predictions, we run into an important concept: self-defeating and self-fulfilling prophecies.

Making a prediction about the future can end up changing what actually happens.

The prediction about the future creates the future.

This isn’t the case when we talk about a system like the weather because we can’t change it.

But when you make predictions for a system involving people, it’s different.

Hearing predictions can cause people to change their behaviour.

Sometimes this happens in a way that prevents the prediction from coming true — a self-defeating prophecy — or it can cause the prediction to come true — a self-fulfilling prophecy.

Predictions about cryptocurrency prices have the power to influence how investors act. If it’s predicted the Bitcoin price will increase, this encourages more people to buy. This can drive up the price, and vice versa.

That brings us to incentives.

The issue of intentions

Incentives are what motivate people to do what they do. It’s an important concept in investing. Financial gain is a powerful driving force.

Most investors understandably want to do whatever will make them the most money. This can include making predictions that benefit them.

Let’s say you come across an article where the author claims Bitcoin will be worth $100,000 by December 1st 2019. Rather than taking that at face value, it’s important to ask: why are they saying this? If they know for certain, why don’t they put all their money into Bitcoin, and make a huge profit? Why are they sharing that information?

Likewise, if someone claims Bitcoin will drop, you might wonder why they’re saying that. If they know for certain, why don’t they keep quiet, short it, and make a big profit?

In both cases, we need to consider the underlying incentives.

If someone stands to profit from the Bitcoin price increasing, it’s natural they’ll predict it’s going to do that. They’re hoping this will turn into a self-fulfilling prophecy. If someone stands to benefit from it decreasing or to suffer if it increases, it’s not unexpected that they’ll predict it’s going to decrease.

Luck and probability

But if no one can predict the future, how come some people do make correct predictions?

Maybe you heard that your brother’s roommate’s cousin’s coworker’s uncle correctly predicted the price of Bitcoin. Or you’ve seen someone on Youtube who seems to always get it right.

The fact that no one can predict the future doesn’t mean no one can make correct predictions.

It comes down to luck, probabilities, and information asymmetries.

First, luck. Every day, thousands of people make predictions about Bitcoin prices. It’s inevitable that some of them will be correct by luck.

As they say, even a stopped clock is right twice a day. With so many people making predictions, it’s likely a percentage of them will be correct.

When professional forecasters make predictions, they usually base them on probabilities. What’s the most likely outcome? A weather forecaster might say it’s going to rain tomorrow because there’s a 62% probability. They don’t know it for sure. It’s just more likely than not.

Then there’s insider information. If you know something most investors don’t, you have a big advantage. For example, if you have insider information that Apple is about to release a new product, it’s reasonable to expect the stock will go up. But other investors buying Apple stock aren’t aware of that information, so they can’t predict it.

Insider information is less meaningful for cryptocurrencies. There’s a less direct link between fundamentals and prices. Events that seem like they should cause an increase or decrease can do the opposite or nothing.

Conclusion

The next time you look at a cryptocurrency price chart, imagine a crowd of people in a stadium, all moving at different times but appearing to create an organised rippling motion. Because that’s what you’re seeing: the combined actions of many people.

There’s no mystical, secret order to it. There’s just lots of people making decisions based on the information they receive.

ArticlesCash ManagementFX and PaymentLegalStock Markets

Keeping your Payment options open, by Anderson Zaks

EPOS, MobilePOS, Pin on Glass, Pin on Mobile – there’s a lot to choose from for today’s merchant. Adina Ahmed, Chief Technology Officer at Anderson Zaks explains some of the latest options.

“In many emerging economies, people are by-passing traditional bank and card accounts altogether and adopting mobile payments”

Mobile phones have revolutionalised the way we live today. The way we communicate, watch TV and other online entertainment, and, the way we shop. The next obvious step, is the way that we manage our money and pay for goods and services. But these days, it isn’t just settling the bill in a restaurant, or buying something enticing in the sales, with contactless people are paying for their morning coffee, and with PSD2 and the associated deregulation, they will soon be able to make direct payments to each other. In many emerging economies, people are by-passing traditional bank and card accounts altogether and adopting mobile payments in much the same way that they have missed out broadband landlines – it’s a whole layer of infrastructure that they simply don’t need. 

The payment market in China is a prime example where most people don’t have a credit or debit card, or plastic of any kind. They have leapfrogged straight to mobile apps and user friendly ecosystems that seamlessly blend social media, ecommerce, payment and other finance functions. Consumers in China now rarely carry a wallet or cash, and even buskers display a QR code so that people can leave tips. 

Consumers in the UK, particularly younger people that are now coming into the workplace (millennials) expect to pay for everything contactless, many don’t carry cash. This presents a problem for the smaller retailer or merchant. How do they take payments without a full blown EPOS system? There are a whole range of options now opening up to merchants in the UK, and as evidenced in China, they don’t need a heavy IT implementation with all its associated costs, nor are they tied into long contracts with banks or card providers. 

PIN on Glass (POG) solutions are already available in the UK. As the name suggests, PIN on Glass has evolved from the traditional PIN pad so that merchants can now use a touchscreen device to capture the PIN. There are a range of versatile devices, referred to as SmartPOS, that have been designed for this very purpose. Typically run on Android, they have additional security features baked in, a scanner for bar codes and QR codes, and can print receipts. The beauty of these devices is that they can run with a user-friendly app, enabling smaller merchants to operate using the device as a standalone solution, without the need to have a full blown EPOS solution.

These purpose built POG terminals connect directly to a bank, to accept payment. They are sleek and modern, and the apps that run on them are intuitive and easy to use for both staff and the consumer. The devices run with all current card technologies including swipe and contactless, providing an all in one solution so that the merchant doesn’t need a computer in the shop or at whatever location they need to take payments. 

For independent software vendors (ISV), POG devices enable them to migrate their existing POS solutions to a smaller, portable device, opening up the market to much smaller merchants than they might have otherwise targeted. 

At Anderson Zaks we are already working with several ISVs to incorporate our payment platform into their PIN on Glass solution. 

The Next Generation of Traders
Capital Markets (stocks and bonds)Stock Markets

The Next Generation of Traders

This new generation of traders is smart. Find out how traders have evolved with technology

James Mathews, CEO of Learn to Trade

The reality of trading taking place on the floor of the stock exchange, with traders shouting down telephones and punching in orders is long gone. As are the days of having to call your stockbroker and place an order. This perception might continue on TV, but the reality is that the modern trader is equipped with a mobile phone.

This new generation of traders is smart. Empowered by hyper-connectivity’s offer of unprecedented volumes of knowledge and 24/7 access to the market, they are tearing down societal constructs and preconceptions. This generation wants to be its own boss. Social media has become a platform to learn from, emulate and showcase success. Wealth creation has gone mainstream. With the millennial and Gen Z traders being some of the most enterprising members of our society, it’s little surprise that an entirely new generation of traders is now emerging. Characteristically, they are entrepreneurial and in many cases self-starters ready to follow their own paths. But, how has technology made trading and finance more mainstream to these generations?

Crypto as catalyst
The appeal of trading has in recent years been catalysed by the public’s fixation on cryptocurrency. With the allure of quick money, Bitcoin epitomised this fascination. Sage traders sceptically watched as this strange decentralised network of digital tokens became mainstream, while novices made their millions. Yet what goes up must come down, and once its value was done exploding, it started spectacularly falling. But with media hype and fabled success stories, the concept of crypto began to tempt casual observers. The ensuing rush to develop user friendly trading apps made the concept even more accessible to the everyday person.

Contributing to this has been the residual sour attitude toward the financial crisis. People have become more suspicious of and disillusioned with the “so called experts” entrusted with handling their hard-earned money. ‘They’ had nearly brought the global economy to its knees. Further backlash was also brought about from charging a lot of money to trade, whether it be pension funds or otherwise. This combination of discontent and new accessibility drove this new wave of do it yourself trading. 

Celebrity of social
Trading is complex. There’s jargon, complicated explanations, and understanding the thinking that went into a certain trading position can be almost impossible at times. Social media has changed all this too. Now there is an active, always online, accessible community of people to simplify, explain and advise. It’s easy to find out what’s going on in the market in seconds. And what’s more there is the celebrity, a new wave of Twitter traders, amateur and professional alike, who have established themselves as trading gurus to be followed, mimicked and aspired to.

The concept of “piggy backing” on other people’s trading is age old, but never before has it been so prolific. It’s proved to be extremely popular, both as a way of profiting from others’ expertise and as a way of learning. But new traders need to remember that sometimes you might be following a loser, and that making correct trades doesn’t always mean you’re being profitable overall.

Good bye 9 to 5
Trading’s popularity has risen along with the ‘side-hustle’, freelance, and sharing economy. Technology has without question been an enabling force behind all of these, as people strive for more reward and flexibility in their working lives. Indeed, there has been a concerted effort to break away from the traditional construct of 9 to 5. How trading maps to this is clear but it is not without risks. It can be seen to promise a lot, with some traders claiming to live off of one trade a day. However the reality the modern trader is facing is that it is just like any other employment in that it takes persistence, patience and grit. What it does offer though is autonomy and flexibility.

With the ever-increasing interest in the viability of pursuing a career in trading for the millennial and Z generations, an onus of responsibility has formed. We expect that in the next few years we will start to see the wider education focus shift, to start to cover money management and investment too. For far too many who missed out on this knowledge it seems like too little too late. Baby boomers now coming into retirement are left considering whether they have enough to see them through, or how they can manage their own account without having to pay people to do it for them. Increasingly, there will be more of a push from all demographics to have an entry point to the market. But with enough knowledge, experience and foresight to understand market volatility and risk anyone can trade with the technology out there and available to them.

UK Investors Chase Tech Stocks While Tech Founders Shun Aim for Exits
MarketsStock Markets

UK Investors Chase Tech Stocks While Tech Founders Shun Aim for Exits

The performance of tech companies on the AIM market is historically strong, with analysis from Nabarro demonstrating that technology stocks held their own during the last downturn and have since outperformed the market, with particularly strong results over the last three to four years.

However, although 82% of tech entrepreneurs agreed or strongly agreed that the AIM market is the natural home for fast-growing UK technology companies, listing on other markets is a much more popular ambition (48%) and a trade sale to a bigger tech company (21%) is almost as popular as going for an AIM listing (23%). This reluctance to list on AIM may signal that founders are holding out for a bigger, more ambitious exit further down the line.

The main reasons the entrepreneurs cited for potentially selecting AIM as their exit strategy include realising value for some of their stock (38%); access to capital markets (31%); and being able to grow more quickly (14%). Their two biggest fears were more regulation (56%) and loss of control (22%).

Alasdair Steele, Corporate partner at Nabarro, said:

“Our research shows there is an appetite for investment across the tech industry, but lack of awareness of the benefits of an IPO on AIM could be stunting growth in the sector. Businesses need to consider floating on AIM as a stepping stone to raise capital and profile, rather than focusing solely on the London Stock Exchange’s main market, or pinning their hopes on a trade sale to one of the ‘Big Five’ technology brands.”

Nabarro also surveyed current AIM investors to assess their appetite for technology stocks coming to the market. 59% of investors had up to a third of their current AIM investments in tech, while another 25% of investors had one-third to 50% of their current AIM investments in tech. Just under half of AIM investors (49%) expect an increase in the number of AIM IPOs in 2016. Over half (53%) of investors are set to increase their own exposure to AIM tech stocks, while 35% plan to keep their current weighting in the sector. So, overall investor sentiment about AIM’s prospects and the prospects for tech stocks in particular is positive.

The report also looked specifically at Fintech and Medtech as potentially vibrant areas of the UK technology market. 37% of investors see Medtech as the most attractive AIM investment opportunity over the next 12-18 months with Fintech/insurance tech favoured by 27%.

Guy Heath, partner and head of Technology at Nabarro, commented:

“Investor demand for AIM technology stocks is high, and set to increase over the next five years. If the ambitions of founders meet the increasing appetite of investors for tech stocks, then AIM could become a breeding ground for a new generation of UK and European unicorns.”

China Slowdown Hitting Business Growth Prospects
MarketsStock Markets

China Slowdown Hitting Business Growth Prospects

New research from Grant Thornton’s International Business Report (IBR), a quarterly survey of 2,500+ business leaders in 36 economies, reveals the extent to which contagion caused by China’s economic slowdown is spreading to businesses around the world.

In China, optimism slipped 20 percentage points to net 26% in Q3-2015. The falls recorded in other economies are equally as striking. Many of China’s top trading partners including Germany (down 46pp to 46%), Japan (down 36pp to -28%), Australia (down 15pp to 39%) and the ASEAN nations (down 22pp to 18%) all report sharp dips in optimism. The global figure dropped 7pp to net 38%.

Francesca Lagerberg, global leader for tax services at Grant Thornton, said:
“The slowdown in China is a major concern for the global economy at a time of stuttering growth and heightened uncertainty. The past three months have shown how reliant global growth has become on China – 20 years ago it was the top export destination for just two countries. Today that figure is 43.

The IBR reveals that business growth prospects in major trading partners have also been hit. The proportion of ASEAN businesses expecting to increase revenues over in the next 12 months has fallen 21pp to 31%. And expectations for increasing exports have dropped to 0%.

In Germany, where China accounts for 6.5% of exports, both revenue (down 42pp) and exports (down 7pp) have been hit sharply as orders – particularly of machinery – have slowed this year. Australia, which counts on China for a third of export earnings, has seen export expectations slide further to just 5%, down 9pp from Q2. Japan and Brazil have also seen revenue prospects contract.

The depreciation of the yuan does seem to have improved export hopes of Chinese businesses (up 5pp to 14%). However this has also made imports to China more expensive with businesses in Brazil (up 9pp to 47%) and Russia (up 9% to 83%) increasingly concerned about the impact of exchange rate fluctuations on their ability to grow.

PayPal to Trade on Nasdaq
MarketsStock Markets

PayPal to Trade on Nasdaq

Founded in 1998, PayPal continues to be at the forefront of the digital payments revolution. The company’s products give people better ways to connect to their money and to each other. With 169 million active customer accounts, PayPal has created an open and secure payments ecosystem people and businesses choose to securely transact with each
other online, in stores and on mobile devices. PayPal is a truly global payments platform that is available to people in 203 markets, allowing customers to get paid in more than 100 currencies, withdraw funds to their bank accounts in 57 currencies and hold balances in their PayPal accounts in 26 currencies.

“For almost two decades, PayPal has been a visionary and a leader in online payments,” said Nelson Griggs, Executive
Vice President, Listing Services at Nasdaq. “We are thrilled to welcome PayPal back to the Nasdaq family – under their original ticker symbol – and look forward to supporting the company as it continues to grow and provide digital payment solutions to their loyal customers worldwide.”

By listing on Nasdaq, PayPal joins many of the world’s largest and most revolutionary companies. Nasdaq is the exchange of choice for over 72 percent of technology companies listed on the U.S. markets and 71 percent of all public technology companies based in Silicon Valley.

 

 

 

 

 

 

TIER REIT to List on NY Stock Exchange
MarketsStock Markets

TIER REIT to List on NY Stock Exchange

Trading of TIER REIT’s shares of common stock began on 22nd July under the ticker symbol “TIER.”

In connection with the listing of its shares of common stock, members of TIER REIT’s management team rang The NYSE Opening Bell at 9:30 a.m. that morning to celebrate the first day of trading in TIER REIT’s shares of common stock on the NYSE.

In conjunction with the listing on the NYSE, TIER REIT has also commenced a modified “Dutch Auction” tender offer to purchase up to $50 million of its shares of common stock. In accordance with, and subject to, the terms of the tender offer, TIER REIT will select the lowest price, not greater than $21.00 nor less than $19.00 per share, net to the seller in cash, less any applicable withholding taxes and without interest, that will enable TIER REIT to purchase the maximum number of shares of common stock having an aggregate purchase price not exceeding $50 million (or such lesser number if less than $50 million of shares of common stock are tendered after giving effect to the any shares of common stock withdrawn). TIER REIT expects to fund the tender offer with available cash and/or borrowings available under its
existing credit facility.

The tender offer will expire at 11:59 p.m. EDT on August 19, 2015, unless the tender offer is extended or withdrawn. Stockholders may tender all or a portion of their shares of common stock (and may choose not to tender any of their shares of common stock) by following the procedures, including choosing the price or prices at which they wish to tender their shares of common stock, described in the Offer to Purchase, Letter of Transmittal, and other documents related to the tender offer.

Scott Fordham, Chief Executive Officer and President of TIER REIT, made it clear that the new offering of stock for sale was to part of the firm’s growth strategy.

‘This is a major milestone for our company. We would like to thank the many team members and stockholders that have supported us in reaching this goal. As a publicly listed company, we are better positioned to execute on our growth strategy, and we look forward to utilizing this platform to deliver greater total return potential to our stockholders.’

Saudi Stock Exchange Open to Foreign Investments
MarketsStock Markets

Saudi Stock Exchange Open to Foreign Investments

Increased participation from international financial institutions is primarily designed to help to enhance the sophistication and stability of the market.

The additional reforms to open the Exchange to QFIs aim to enhance corporate governance among firms by enabling international institutions to have an active voice as shareholders in listed businesses.

These investors are also expected to enhance research coverage and improve local knowledge and expertise, bringing benefits to all market stakeholders, listed companies, investors and financial intermediaries.

The introduction of direct investment by foreign institutions is predicted to improve stability in the market. This will come
alongside moves to encourage a rebalancing of current stock market participants from individual investors – who account for approximately 34% of market ownership and 90% of monthly trading activity – to institutional investors.

Since the introduction of the swap framework in 2008, non-resident foreign investors have been net buyers in the market, providing greater stability to prices at a time when local individual investors have been net sellers.

It is notable that the correlation in investment behaviour between these two investor classes has been negative over the last five years and nearly inverse over the last 3 months as local individual investors sold nearly SAR14bn worth of shares in the market whilst foreign investors did the reverse, buying SAR1.7bn of shares through the swap framework over the same period.

The impact of these foreign investors on the diversity and stability of the Saudi stock market is expected to grow as a consequence of the new QFI framework, which increases the degree of openness of the market to foreign investors.

The new rules ensure that only the largest and most experienced foreign investors are allowed to enter the stock market, with foreign institutional investors being forced to prove they have a recognized investment track record and assets under management of at least $5bn, amongst other conditions which will inhibit smaller investors. This reduces the risk of poor decisions being made by inexperienced foreign investors.

This was a big step forward for the Saudi shares market, according to Adel Al-Ghamdi, CEO of the Saudi Stock Exchange.

‘This is an important first step in a longer journey. Over the medium to long term, this journey will benefit all our stakeholders, from investors and listed companies, to authorized persons and qualified foreign investors. As the market landscape improves, not only can the Saudi Stock Exchange look to take its rightful position in global markets but also
act as a means to develop, promote and fuel the vibrant Saudi economy and its future prospects as a whole. Saudi is home to some world-leading businesses and many that have the potential to become world leading – the participation of
experienced international investors can play a role in helping these businesses reach their full potential.’

Toshiba Stocks Drop 17% After Accounting Probe - $2.5 Billion
MarketsStock Markets

Toshiba Stocks Drop 17% After Accounting Probe – $2.5 Billion

The stock closed 16.6 percent lower at 403.30 yen in Tokyo on Monday, giving the company an overall market value of about 1.7 trillion, close to 300 billion lower than Friday’s close.

In April Toshiba warned that it could have underestimated costs of their infrastructure prohects throughout 2012-2013. They reported that an internal probe found more irregularities, which includes a failure to records losses related to construction work. 

Investors Urged to Reviews Portfolios After Global Bond Market Sell-off
MarketsStock Markets

Investors Urged to Reviews Portfolios After Global Bond Market Sell-off

The message from Nigel Green, deVere Group’s founder and chief executive, comes as the woes surrounding government bonds prompt wider market volatility.

He says “It is still too soon to say if this is the start of the bear market in bonds that some analysts have been forecasting for the last couple of years.

“Unsure if this is a blip or not, now is not the time for hasty decisions. Now is the time for investors to review their portfolios, to be vigilant, and to seek out the potential opportunities with a good adviser.

“Whenever there is a fall-out, or periods of heightened market turmoil, there will always be opportunities for investors and it’s up to financial advisers to seek out the right ones for their clients.”

He continues: “Bonds have had an overdue correction in some countries, whilst other countries appear to have had a more knee-jerk reaction.

“We could indeed have reached a turning point for the bond market, but investors shouldn’t react with haste at this point.”

Keurig Green Mountain Earnings Stock Fall
MarketsStock Markets

Keurig Green Mountain Earnings Stock Fall


The company had a number of excuses for the reasons why. However it is mainly due to the fact that there is just too much of it’s stock sitting in stores – unsold. Especially the new Keurig 2.0 Model. 

“We do have some headwinds,” said Chief Financial Officer Fran Rathke on a call with analysts.

Investors are withdrawing substantially. Stocks in Keurig (GMCR) fell 10% on thursday after the markets opened for trade. Overall this year their stocks are down by 25%. This must have come as a big shock for the company as it was previously one of the most desirable stocks in 2013 and 2014 with over $1 billion in sales. 

Brian Kelley, CEO, assures consumers that he is listening and promises that the changes will be made. One of the biggest problems consumers have is that the 2.0 model only allows branded coffee from Keurig to be brewed. He also said “Quite honestly, we were wrong. We underestimated the passion the consumer had for this,” on a call with analysts on Wednesday. 

For the future Keurig plans to bring back the ‘My K-Cup’ accessory that allows other brands to be brewed in the machine. It is also working to launch the Keurig KOLD system in the fall, which it hopes will drastically change how people consume cold beverages in the home. Still, the company lowered its financial projections for 2015, citing the challenges of the “complex product transition.”

Will China Become a Net Exporter of Sulphuric Acid?
MarketsStock Markets

Will China Become a Net Exporter of Sulphuric Acid?


Over the past four years, sulphuric acid production from smelters alone in China has ballooned by 6 million tonnes, while total supply from all forms of production is up by 16 million tonnes.

Despite the growth in domestic acid production, China remains a key market for global sulphuric acid trade. Imports total around 1 million tonnes of sulphuric acid each year for the fertilizer and industrial chemicals sectors, to meet growing domestic demand. Smelter acid from South Korea and Japan are the key sources of imports. Throughout the research for Integer Research’s new Sulphuric Acid Market Service, we delved into the impact of the future supply/demand acid balance in China on global trade.

Only around 7% of global sulphuric acid production is currently traded on an annual basis, with prices in the merchant market often fluctuating significantly based on smelter acid availability. Any drop in Chinese imports as a result of increased domestic supply and without an equivalent increase in demand could have a dramatic impact on the flow of trade to and from the country. At the same time, with the risk of Chinese acid imports of acid potentially reducing, we expect the same outlook for Chile, an even larger importer of acid. The potential drop in imports in these two countries begs the question over sulphuric acid pricing in the future, and what markets will absorb any diverted trade or trade reversals. Brazil had earlier been expected to increase its consumption of acid, but with key phosphate fertilizer projects shelved, the outlook is also stagnant in the coming years.