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  • Asian Undervalued Stocks To Buy

    Asian Undervalued Stocks To Buy

    Asian Undervalued Stocks To Buy
    These Asian undervalued stocks are the companies with good competitive power, with stable balance sheets, low debts, and good cash flows.

    By Guy Avtalyon

    Asian undervalued stocks are the same as any other undervalued stock. It is a stock that is selling at a price below what is expected to be its intrinsic value. For example, if a stock is selling for $20, but it is deserving $50 based on future cash flows, we can say it is an undervalued stock.

    Finding an undervalued stock isn’t easy. Such stock usually isn’t in the public eye. Even if they are, the media reports are too negative.

    But don’t be shy to buy undervalued stock. Yes, the risk can be a bit higher but rarely. Such companies maybe have temporary problems and will recover soon. Most of them are working to solve the business problem and it will grow their prospects in the future.

    With this in mind, here are three Asian undervalued stocks to buy. By holding them your portfolio may gain a big boost when these stocks come into investors’ courtesy again. 

    What are Asian undervalued stocks?

    Japan Tobacco

    Ticker symbol JAPAF
    Market Cap $38.457B
    Current price $21.74

    The first of Asian undervalued stocks is Japan Tobacco, Inc. The company started in 1898 and its headquarter is in Tokyo, Japan.

    Its interests are in the manufacture and sale of tobacco, pharmaceutical, and frozen and ambient temperature processed food. 

    The company spreads its operations through four business segments. Domestic Tobacco’s focus is on the production and sale of tobacco products. International Tobacco covers the production and sale of tobacco products through JT International S.A. The Medical segment’s focus is on the development, research, production, and sale of medical drugs. The Food Processing section has engagements in the manufacture and sale of frozen and ambient temperature processed foods, bakery, seasoning, etc. The Company also works in the leasing of real estate.

    Sinopharm

    Ticker symbol SHTDY
    Market Cap $9.684B
    Current price $16.41

    Sinopharm Group Co. Ltd. was founded in 2003 and is headquartered in Shanghai, China.

    The company’s focus is on the wholesale and retail of pharmaceutical and healthcare products in China. Its Pharmaceutical Distribution section distributes medicines, medical devices, and pharmaceutical products to hospitals, retail drug stores, clinics, other distributors. The company’s Retail Pharmacy section manages and franchises a network of retail drug stores. They have over 5,100 retail pharmacies. Medical Device section distributes medical devices.

    Also, Sinopharm focus is on the production, sale, and financial leasing of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products. Also, it offers information technology development and medical consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, etc.

    CK Infrastructure Holding

    Ticker symbol CKISY
    Market cap $18.2B
    Current price 34.41

    CK Infrastructure Holdings Limited was founded as Cheung Kong Infrastructure Holdings Limited and changed its name to CK Infrastructure Holdings Limited in May 2017. Its headquarters are in Central, Hong Kong.

    It is an infrastructure company. It develops, invests, and operates infrastructure businesses in Hong Kong, Mainland China, but it spreads its operations in the United Kingdom, Continental Europe, Australia, New Zealand, and Canada. The main investing focus is on energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and infrastructure-related businesses. Its focus is on the production and laying of asphalt. It also distributes, and sale of cement. Property investment and financing businesses are in their focus. Also, waste management services, including waste collection, resource recovery, and disposal services.  In fact, the company is a branch of Hutchison Infrastructure Holdings Ltd. Due to its international operations, this can be one of the best Asian undervalued stocks to buy right now.

    Is it good if a stock is undervalued?

    The advantage of investing in undervalued stocks is that investors get a high rate of return expansion. This comes because you are buying undervalued stocks while their P/E ratio is low. That will generate great future returns because the P/E ratio will move back into alignment with fair value. The other advantage is that when the stock price is low you can buy more of them and you will receive more dividends. Also, the yield from investing in undervalued dividend stocks is the highest when the cost is low. Hence, the value of cumulative total dividends will be greater over time.

    Also, they are less risky. This may sound contradictory, but here is the explanation. Let’s say you purchased an overvalued stock and its price drops. It will cause big losses. But if your stock drops from fair to undervalue, the recovery will be more prompt. This is the opposite of traditional thinking that only big risks produce big returns.

    How to trade Asian undervalued stocks?

    Undervalued stocks have noteworthy potential to yield solid returns. It’s up to investors to correctly evaluate and analyze all the different variables related to undervalued stocks. This requires some level of knowledge to recognize if the company is worth investing in.
    For example, value investors will wait for the stock price to reach the value below its intrinsic value. The principle is obvious if they can buy a stock at a discounted price, why should they buy it at its current price or even higher.

    Investors with strong knowledge over the stock market maybe are the only ones who should trade undervalued stock. Trading undervalued stocks can be risky if traders follow the suspicious analysis. The data proved by analysts and experts must be accurate. The other problem both for traders and investors is that undervalued stocks are time-consuming. In other words, they’ll have to wait maybe much longer for important changes in stock price.

    Traders-Paradise selects these three Asian undervalued stocks based on several criteria mentioned above but you can choose on some others. But remember, ratios under 1 will show you that some stock is undervalued.

     

  • How to profit from The Stock Market Plunging?

    How to profit from The Stock Market Plunging?

    The Stock Market Is Plunging But You Can Profit From It

    By Guy Avtalyon

    The stock market is plunging but will it crash or not is still unknown. It isn’t easy to predict the stock market crash because it occurs suddenly. The point is to be prepared for such a scenario and here are several ways on how to do so.

    I don’t want to frighten you, but we have to talk about the stock market plunging.

    The volatility of the markets is back again. Actually, the market is plunging. That is the data from the first six days in October. The S&P 500 has dropped a total of 83 points. Now it is almost 115 points lower than in September. Having this in mind, the trade war and the inverted yield curve, also, let us know how not to speak about a recession. 

    The stock market is plunging

    These gaps are standard. For the last 70 years, there were 37 corrections in the S&P 500. If our counting is good that is almost every second year. And mentioned drops were about 10%. Now, we have 5% and such were more common in history.

    This is the price we have to pay for long-term wealth making. So, you must understand that long-term investors have an advantage against the short-term since they would infrequently experience continuing damage from stock market corrections. Time and patience, wait for a bull market rally. It will nullify the correction in the stock market. Anyway, the point of long-term investing is to buy and hold. Hold on to your stocks, that is the key to winning in the long run.

    I warned you how difficult this year can be. But when investors’ fears overwhelm the market and the stock market is plunging, there is still something you can do.

    Is a safe-haven stock right move?

    Yes, you can thrive during the stock market correction if you buy safe-haven stocks. For example, buy gold. The gold is a store of value, so it is a safe-haven asset.

    The truth is that you will not gain a lot of profit by holding gold for a long time. It is a physical commodity, there is no dividends. So think about buying a stake of shares in some companies that produce the jewelry or anything of gold instead. Also, a good choice is to buy shares of mining. This is also a suitable alternative when the stock market is plunging and getting lower.

    Stocks with low volatility

    Companies that provide constant profits, pay a dividend, and have low volatility can be very beneficial when the course in the market turns. Some of them will give you yield much bigger than the yield of a 10-year Treasury bond, for example. Find some company with the old fashioned model of business. Yes, it can be boring but in the long run, it is excellent. The point is to survive the market plunging.

    Basic goods and utilities as a safe investment

    Buying stocks of some companies that produce cleanser or hygiene is an excellent choice. People will always need to be clean and they will buy these products no matter how deep the crisis is. Also, stocks of energy companies. They are not low-cost but they are eternal. Even more, these defensive basic-need stock can grow in a volatile market.

    What to do when the stock market is plunging?

    Many things in the markets depend on risk tolerance. Your investment portfolio is based on risk tolerance. The main problem with the stock market plunging and when it crashes is that they are coming suddenly, no one can be sure that the crash will come and when, or the market will recover. Market crashes happen quickly, there is no warning. The problem with investors’ risk tolerance is that is very hard to adjust it depending on circumstances, especially during the bear market. You’ll be emotional, panicked, you will be encompassed by fears. To avoid all of these, take care of your portfolio structure. You should hold liquid assets, such as cash, bonds. When the market crash occurs you need a through-out scenario to avoid losses. Liquide commodities will provide you that. 

    Being an investor means you have to put your feelings away. You have to make your decisions separate from them.
    Investing is magnificent. But life is also.

    During the bear markets, even trivial corrections can be remarkably dangerous.  But at the same time, bear markets will offer you great moments. The point is to know what you want and where are looking for. But Warren Buffett thinks about bear markets as buying opportunities. The trick is that in such market periods the stock prices of large companies are going down. When that moment occurs watch in your favorite stocks. The time will do the rest. You should buy it when others are selling.

     

  • Make money in 5G Stocks – The List of the Best

    Make money in 5G Stocks – The List of the Best

     

     

     

     

     

     

    Make money in 5G Stocks

    What 5G stocks will get an increase?
    What are the telecom companies in the advanced stages of developing 5G wireless networks?
    Faster phone speed isn’t the only benefit, developing a new network is a great opportunity to invest.

    Is it possible to make money in 5G stocks? It’s assumed to help the next surge of technological progress. Some market analysts expect the market for 5G infrastructure to rise to $26 billion in 2022. Estimations from a few years ago foretold that 5G would be 1,000 times as fast as 4G. Anyway, it is something we have never seen before. So many companies are involved in developing 5G and almost all of them are in investors’ focus. The tricky part is that we can not for sure which one will make it. Whatever appears, some 5G stocks to buy will come from the big companies, the leaders in the modern networks. 

    Traders-Paradise opinion is that you should look at several companies if you want to make money in 5G.

    Verizon Communications Inc. (NASDAQ: VZ)

     

    Verizon is a wireless provider company. They stated on its website: “We’re building the most powerful 5G experience in more places around the country right now, so more people can experience it together.”

    Verizon stock is interesting for investors seeking income. Verizon 5G  stocks could have much greater demand in the future. Last month was very good for Verizon, it climbed strongly above its 50-day moving average. Moreover, this telecom titan was on the top growth stocks. The broadband companies are investing in Verizon’s 5G.

    In the top 50 markets, Verizon controls the ownership of key 5G spectrum bands. VZ is one of the best stocks to buy for 5G mainly for its spectrum holdings. Dividends paid at 4.2%.

    Xilinx (XLNX)

    Make money in 5G Stocks

    Xilinx is a chipmaker worth $29 billion. It was one of the pioneer companies to invest in the new generation of wireless networks. So it honestly gains a place as one of the best 5G stocks to buy. While the new 5G network is developing more and more, along with that infrastructure demands will rise. There will be Xilinx to sell its chips. Their chips are used as components for 5G.

    The revenue in XLNX’s communications division rose 74% year over year. 

    According to our estimation Xilinx stock is a good long-term investment since it can be a good and profitable investment. Some analysts predict that Xilinx’s stock price could reach $213.528 in the next 4 years. The revenue for a 5-years investment could be about +122% If you invest $1,000 today after 5 years it is possible for your investment to rise up to $2200,00.

    Apple (AAPL)

    The newest version of the iPhone did not offer 5G abilities but Apple will be one of the more notable 5G stocks in the coming years. We believe that Apple will not lose the race in this field and it will have a solid appearance in this industry. Apple is one of the initial innovators in the wireless market.

    Its stock trades at a P/E ratio of 20 and gives a firm record of dividends. The current yield 1,34% maybe isn’t so attractive for investors, but its dividend is higher and higher every year. Apple stocks are good for long-term holding. When Apple enter the 5G market with the new iPhone offering 5G facilities, its 5G stocks will increase. Remember this, you can make money in 5G stocks.

    Qualcomm (QCOM)

    Whoever wants to produce millimeter-wave network equipment will likely to buy their chips. At the moment they are the only producer of network chips that use radio spectrum of 30GHz and above, which is the main advantage of 5G over the other technologies.

    The list of 5G stocks is inadequate without Qualcomm. This chipmaker has an amazingly powerful portfolio of property related to 5G tech. A worth contract with Apple enables Qualcomm to provide chips for the iPhone for the next 6 years. So, there are no barriers for Apple to launch the new 5G compatible iPhone. 

    Qualcomm spreads its 5G patents, royalties should be important to shareholders in the coming years. Qualcomm offers a 3,34% dividend.

    Ericsson (ERIC)

    This Swedish communications equipment company is a pivotal actor in the global rollout of 5G technology.

    It provides telecom companies to upgrade their networks to the new higher-speeds. Ericsson provides software and radio network hardware. Recently gained a licensing agreement with Chinese smartphone maker Oppo. Ericsson could have benefited from banning Huawei due to US national concerns.

    In June this year, Ericsson estimate global 5G subscriptions to be 1.9 billion by 2024. Much more than it estimated last year.

    Bottom line

    The coming change from 4G to 5G cellular networks is supposed to promote the next stage of technological development and innovation. That is a great opportunity for investors in the high-tech industry. The new wireless network will be something incredible. Something with great potential for further technological developments. So, if you ask can you make money in 5G stocks, the short answer is – yes!

     

  • Will Marijuana Stocks Go Up In Smoke?

    Will Marijuana Stocks Go Up In Smoke?

    Marijuana stocks go up in smoke
    Shares of Aphria (NYSE: APHA), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) dropped by 13.8%, 9.9%, and 12.6%, on Thursday. 

    By Guy Avtalyon

    It was a bad day, will marijuana stocks go up in smoke. All three stocks felt after HEXO declared discouraging preliminary fiscal 2019 last quarter revenue. Its outlook for fiscal 2020 is going to be very bad. How HEXO bad news influenced Aphria, Canopy Growth, and Tilray to big declines?

    HEXO expected to report net revenue between 14.5 million and 16.5 million Canadian dollars on October 24. This result is considerably under the company’s expectations. Moreover, HEXO stated that “uncertainties in the marketplace” caused such bad results and that they expect their expectations for the next fiscal year has to be lessened. That caused investors’ concerns about Canopy Growth, Tilray, and Aphria pot stocks, also.

    The main problem for HEXO is the insufficiency of retail cannabis stores, also the chances of restrictions for some types of cannabis derivative products are the problem. And there are, according to the company’s statement “signs of pricing pressure.” And the other cannabis producers share their worries and have the same problems.

    Almost all of them reported delays in Canadian provinces launching retail cannabis stores. Canopy, Aphria, and Tilray are expecting to Cannabis 2.0 market to make an increase to sales. But those delays may crash their expectations. 

    Aphria is, let’s say that, probably in the best situation because the majority of its revenue comes from Europe, in fact from Germany.

    Aphria had completed its acquisition of CC Pharma GmbH in January this year. CC Pharma GmbH is a leading distributor of pharmaceutical products. That includes medical cannabis. They have more than 13,000 drugstores in Germany and throughout Europe.

    Canopy Growth and Tilray, and HEXO, still rely on Canadian marijuana sales.

    Will marijuana stocks go up in smoke?

    Despite the fact that some of these companies brought profits in some periods, the whole picture is different. Marijuana stocks aren’t profitable yet. It is still hard to estimate which of them will be winners in long-term meaning. So, the best way to handle these stocks is understanding that they are fast-growing, but still, they are not making the money. Pot stocks will not disappear but every investor should know that they are extremely volatile right now. If you want to buy pot stocks you must have a very high-risk tolerance. 

    The greatest risk of buying marijuana stocks is valuations. Share prices more reflect the stocks’ growth hopes. Since marijuana stocks aren’t yet profitable, evaluating the stock price and possible profit is more challenging.

    The risks connected to marijuana stocks are genuine and can’t be neglected. But as we already know, the risks should be compared with the possible profit that marijuana stocks give. 

    The cannabis industry is fast-growing. So, what we can expect is holding these stocks over time, investors will have gains and losses. But isn’t it the same with all stocks?

    Is investing in cannabis stocks risky?

    Investing in marijuana stocks is naturally risky, but some stocks are riskier than others. To avoid losses invest in a company with a wide range of operations, one that sells products in various countries which can be a competitive advantage, for example.

    On the other hand, it isn’t always smart to buy the stock with the lowest volatility today. They can be less volatile today but after a few months, they can be extremely volatile. Negative relationships over some periods can balance positive relationships over some other periods. That will make the overall volatility lower.

    Investors have to be focused on the business prospects of the company like they do it with stocks in any industry. So,  will marijuana stocks go up in smoke? No!

  • Female Entrepreneurs Enjoy More Trust Than Male

    Female Entrepreneurs Enjoy More Trust Than Male

    Female entrepreneurs enjoy more trust than males in later stages
    Female entrepreneurs are faced with rude questions about private life, family, marital status, or children. At the initial stage, investors implied they are a greater risk of loss. 

    By Gorica Gligorijevic

    According to a new report from the Female Founders Forum, female founders are bringing more venture capital funding. More than male founders.
    Startups led by female founders raised extra rounds in the percentage of 52, while the male result is 51%. This is data from the UK. It isn’t a big difference but we can learn something from this data.

    First of all, female entrepreneurs are faced with investors skepticism when starting the business. But as time goes by they gain more trust. So, we can say that the biggest difficulty for female entrepreneurs happens in the beginning stages of setting up a business. Later, when they break that wall, it becomes easier.

    To illustrate how difficult is for females in the early stage of their businesses there is an additional statistical result. The numbers in funding in the early stage are horrible for female-led startups. Only 21% of them have access to any investment. But when they succeed to get it, their startups raise cash faster than males’. 

    The stats show: after 4 or 5 years from the first raise round, 66% of female-led startups are winning second funding round. On the side without a female founder, the result is 62,8%. 

    Female entrepreneurs success

    Female entrepreneurs have long been underrepresented in entrepreneurship. Male entrepreneurs had an advantage but that bias is changing now. Actually, since 2007, for example, in the US the number of female entrepreneurs has grown over 30%. In the moment of the census 2012, females were on the head of 36% overall US businesses. 

    If we take a look at the global entrepreneur scene, according to the Global Entrepreneurship Monitor, entrepreneurship amid women grew bt 13%. In the same period, male entrepreneurship grew by 5%.

    The fact is that females are starting their businesses harder and with more barriers, but when they jump over them they show better results. Some studies revealed that if there could be more gender parity in entrepreneurship, US GDP might grow by $28 trillion by 2025.

    And the picture is almost the same all over the world.

    The worst places for female entrepreneurs

    A study by HSBC Private Banking has exposed that over 30% of female entrepreneurs felt gender bias while seeking investors. Also, females get about 5% less funding than males while trying capital funding. The survey titled ‘She’s the Business’, studied 1200 female and male entrepreneurs in 8 distinct markets. The focus was on the entrepreneurs who have gained a minimum of ÂŁ100,000 worth of funding. The study titled ‘She’s the Business’, taken by the HSBC Private Banking pointed: “Our research identifies the particular hurdles faced by women in the start-up community at critical points along the way, and explores the underlying, often subtle reasons why female entrepreneurs feel negatively impacted”

    Gender bias

    The scary fact is that some female entrepreneurs were questioned about marital status, children, suggesting them they are a bigger risk for investors. This study reveals that the UK is probably the worst place for female entrepreneurs to try to raise funding. More than half of them said they felt gender bias. The next worst country is the US. The interesting thing, in China, only 17% of female entrepreneurs said they faced similar bias. 

    Women entrepreneurs have made changes that can lessen gender inequality. First is an expansion in business networks for women. That should help them to make connections. 

    The gender inequality can decrease when more women make their wealth. Female entrepreneurs are inviting investors to take effort by making the fundraising process more transparent, incorporating at least one women in the panels, presenting precise criteria, and complete feedback after. 

    The gender disparity between entrepreneurs will not bring progress.

  • How Long to Hold Penny Stocks?

    How Long to Hold Penny Stocks?

    How long to hold penny stocks

    by G. Gligorijevic

    Trading penny stocks is one of the most hazardous investments in the market. They are extremely cheap, and this makes them volatile.

    Do you want to make money with these cheap stocks? Well, you have to know the basics. And one of the basics is to know how long to hold penny stocks. Like with many other assets in the market, you have to know when is the right time to buy penny stocks and when it is to sell. 

    But why the penny stocks are so special?

    As a difference from most blue-chip stocks, penny stocks ordinarily don’t match cyclical trends in the market. It may be more challenging to recognize how long to hold penny stocks. In reality, penny stocks will follow the general market trends in the sector they belong to.

    If a positive event happens, most stocks in the given sector will follow the trend. 

    When we are talking about penny stocks, as you can guess, a minimum change in price will cause a great gain in percentages. To understand this, take a look at this company’s stock chart.

     

    BroadVision, Inc. is an international software vendor of self-service web apps for business social software, automated commerce, business portals, etc.

    The stock price of BVSN was yesterday $2.84 which is $0.16 up or +5.97% from the previous trading day.

    But here is the tricky part. Penny stocks, no matter which company you are looking at, will always hit the peak. But what is following after the peak is what matters. Apps are booming nowadays. And typically for the penny stocks is that when the whole sector is rising most sector stocks will jump. When it comes to high-tech penny stocks, the volatility joined with positive feelings has produced some serious breakouts. What happens after those breakouts is more important. The stocks may collapse or to consolidate. 

    The consolidation can be difficult

    The stock will surely pull back but to a level lower than the peak and almost every time, that new level will be above previous highs.
    What you as an investor or trader has to do is watch the indicators. Pay attention to indicators that display overbought or oversold. Use the RSI indicator. Yes, it is a simple tool but can help you to determine what to do with your penny stocks.
    Never expect from penny stocks to give you a huge gain by holding them for a long time. Holding them too long is an extremely risky strategy. It is always better to set small goals. For example, 20-25% profit.  Also, you can use some other stock-trading indicators or combine them. But you have to know that indicators will not show you everything.

    Some traders don’t even use them, they believe they have a good hunch.
    When it gets to buying penny stocks or selling them it is all up to you. Of course, there are plenty of tools you can use to be surer if it is time to buy or sell. But even they are not sure-fire. This is particularly true when it comes to how long to hold penny stocks. The problem with the period of holding penny stocks is that despite all indicators and your confidence some bad news like the company’s annual report may ruin everything. So, watch your penny stocks carefully, and when you see they are rising, and indicators show they could rise more, don’t wait too long. Take profit. That is what matters at the end of the day. 

    You can hold penny stocks 5 minutes or 5 months but never more than 6 months. That’s the answer.

  • Getting Started Investing is the Hardest Part

    Getting Started Investing is the Hardest Part

    Getting Started Investing is the Hardest Part
    Getting started investing can be very easy and smooth since you need a little money to start. Investing is better than savings accounts because it can shorten the period of earning.

    By Gorica Gligorijevic

    Getting started investing isn’t a big deal, it shouldn’t fright you. Honestly, it’s so easy.

    You know what, when I was just a little girl (my grandma used to sing this) my parents gave a lot of effort to teach me how to save money. Grandparents would like to give me money for some holidays with advice to keep it for rainy days. I had my savings account. From time to time, they would put some money there but most of the time they insisted I have to put. And I did it. Not frequently, I have to admit, but still. With time that habit got strong roots. Every month I’d put 10% of my earnings on my savings account. I am still doing the same. That first savings account is my 10%-account. 

    No matter how big or small portion is. 10% would every time end there. 

    I can only speak from personal experience but I am sure that other people could easily find themselves in the same situation. 

    I am not going to give you advice because I know that is almost impossible to put anything on your savings when you are living paycheck to paycheck. Yes, the amount of money that the majority have available to spend every month is insufficient to put something aside. Despite the old saying about money: If you save me today, I’ll save you tomorrow.

    But we all know how important is to have something aside. And it is possible. Let me show you how.

    How getting started investing

    Okay, do you know the rule “pay yourself first”? Yes, starting this is hard. But do you understand the meaning of this rule? Of course, you do but why not tell it again. This means you have to put on your savings every month some amount of money. It doesn’t matter how much it is. A few dollars, or other currency you have. Just when you get your salary, put aside several coins. Every month. And you will see, that amount will grow with time. Try this. I am not going to tell you how should you spend this money. You may have enough for exotic travel, or to buy a car, or after some time you may have enough for house buying deposit. Just start.

    No, I will never tell you to live below your means. 

    Sacrificing isn’t a good way to save anything except life. If you try this method, living below your means, you will be unhappy and you will always have the feeling that something was taken from you. It can be a trigger for something more serious. But, anyway, try not to purchase the famous brands, too expensive things. Do it occasionally if it makes you happy. But don’t let it be your goal. Life is a lot more than brands.

    Create a budget

    What you can do is to make a budget frame. It is a smart idea to write down the amount of money you have every month. You can do that in some excel spreadsheet, or just in some memo. Also, there is a lot of money management apps you can use. OK, that’s the first step. The next is to subtract all the costs you have, for example, taxes, debts, loans if you have (don’t worry, we all have), etc. What you have in your hands after these deductions is your net income. This is the amount you have to use as a base for creating your budget. So, track your spending to be able to make some adjustments if it is necessary and possible, of course. You should review your budget from time to time to be sure you are on a good track.

    Getting started investing 

    Do you know that your money can work for you? Yes. Let’s assume that after one year of saving you have enough for exotic travel. Why do you need to make it right now? Go somewhere else and save e.g. $1.000 on your trip. That amount is more than enough for getting started off investing. You can do that with less money, here you will find how. You can choose to invest in some mutual funds (it is probably the best for starting), or stocks, or real estate. By investing you will generate a greater return than your money sleeping in your savings account. If you invest in something you will let your money work for you. The whole process may be done with your banker’s help. Your bank has financial advisors, investment advisors, they will tell you where to invest. Or you can engage some brokers.  

    What are the advantages of investing

    One of the main advantages of investment is that you can have your money work for you to earn more. Let’s say this way. You don’t need to work more to earn more. Your investment will that for you. Investing could bring you a higher living standard, for example.

    Further, you can apply investment plans for saving and growing money. The best part of investing is that you can be a long-term investor and money earned from investments can be spent to cover future expenses, for example, for your retirement, or buying a house, new car, your children’s higher education costs, or just you want to have more.

    It is important for you to understand that investing isn’t gambling.

    You can make a profit on investment due to research and careful choice of a suitable investment vehicle. It isn’t betting. The truth is that you can make losses in the market. That’s the reason to make less risky investments. Never mind if they have lower returns. Stay on them until you find yourselves capable to play riskier. That time may never come. You can stay in safe investments for your whole life. It is OK. 

    In that way, you will protect your property in the long run. 

    So, you can see that getting started investing isn’t always the hardest part. It can be very easy and smooth. You just need a little money to start. At least if you have some targeted amount you have to save in some period, investing will short that period. You’ll be able to gain it sooner. Sounds good, don’t you think?

  • Bull Market – What Everyone Should Know?

    Bull Market – What Everyone Should Know?

     

    stock bull market
    A stock bull market means that investment’s price rises over a long period. Investors’ faith in stock prices lead the prices themselves in a self-fulfilling prediction.  A bull market means profits for investors who own stocks.

    What exactly is a bull market? If you are like me several years ago, you are confused with all these terms, conditions, maths, evaluations, or estimations of the stock market.

    May I be honest with you?

    The truth is that I know nothing about the stock market when I entered. I was foolish, I know. But my desire to earn, to be investor was something I never have had before. It was like this…

    A personal story

    A friend of mine had a grandfather. Extremely interesting figure. He came from Italy to the US as a kid. OMG, he was just 12 when he bought a ticket and came with nothing except dreams about fortune. To shorten this story, after several years of struggling he made his first success. He became a clerk in the office of some broker. Step by step, that wonderful man became very rich. People, listen. Very rich! 

    I wanted the same. ASAP! I asked him for the recipe. Oh, how I would like I never did such a thing! The first lesson was: You know nothing, have to learn a lot. C’mon, man! Give me something else to start. I thought I know everything. I have just finished university. With a diploma in the hands, I thought I know everything possible about anything. Of course, I was wrong.

    That blessed man told me I had to learn. How to, where to go? I spoke with some friends. No help. So, I decided to start. I found a broker, put some money (not a lot) on my trading account, and started to find a stock. That was a nightmare! My first trade was totally a disaster! I placed another trade. The result was the same. In two trades I lost everything. 

    Ok, at least I tried. Then I went back to my friend’s grandfather and asked him to teach me. 

    “You get your first lesson, my son.” 

    OK, I understand. I have to go for basic. And I started to learn. You must learn to have a chance to earn.

    The bull market was the point where I started. I can’t explain why, but I felt I needed to know what it is.

    The term “bull market” indicates a stock market is rising. Of course, every single investor supposes the market to rise. Better say, has a hope it will rise. But having only hope means to stand in the mud. You can slide in a moment and fall. Having my previous experience in the mind, I needed more facts. 

    Nice from this zoological term

    So, I learned that the bull market occurs when the prices rise for 20% or more.  

    Further, I learned that a bull market systematically produces higher highs and higher lows. A stock bull market happens in a strong economy. Nice again, thanks bulls. But what can drive a stock bull market, that I wanted to know?

    And I found (with a little help from my friend) that great revenue, profit, and P/E ratio are the most important.

    The revenue should be in line with the economy, meaning revenue should grow by the speed of economic growth. Here is some interesting part. As consumers spend more on goods and services rise the economy will rise. Super!

    And I came to the companies profit.

    The revenue must generate profit. 

    But some knowledge defeated me. I thought that great profit is a wonderful thing and it is good when the company can generate more profit from the same revenue money. But it is not so simple. 

    And the P/E ratio! The stock price is just the amount of money it will cost to buy a share of a company. But stock prices can vary. If the demand for the stock rise, its price will rise too. The P/E ratio estimates the relationship between a stock price and its earnings per share. 

    I was confused just as you are now, I believe.

    In a bull market

    In a bull market, you’ll notice powerful demand and limited supply for securities. This means that more investors want to buy securities and less want to sell. What will happen? The stock price will rise, right. Let’s go further! Let’s observe investors’ psychology.

    In the stock bull market condition, investors have the hope of earning a profit. They are positive and optimistic. Oh, how I wanted to have that experience. Instead, I was scared to death. I needed more knowledge to sure what I am doing. My first trade was so stressful and, by the way, I wanted to show my older friend that I can learn.

    In the periods of the bull market, people have more money.

    And they are spending. In turn, it stimulates the economy to grow. My old friend told me something important and let me share that with you.

    When it is the bull market, you should buy stocks in the early stage, while they are not too expensive. As the price goes up, just wait for its peaks and sell your stocks. And don’t worry if there are some losses in price. It is temporary. Just invest in more stocks with a higher chance of getting a bigger return.
    I am grateful to him for this lesson. But there was one piece of advice that sounded the most important to me: “Play the market like toreador plays his wonderful performance in the arena. Peaceful, with confidence, elegant. Tickling the bull. You have to know where the limits are, don’t get surprised.” 

    I’ll not. Thank you, my dear mentor. 

     

     

  • How to Defeat the Bear Market?

    How to Defeat the Bear Market?

    How to defeat the bear market
    If you want to know how to defeat the bear market read this post to the end.

    By Guy Avtalyon

    Who wants to know how to defeat the bear market? Are you scared about the bear market? Yes, you should be scared. A bear market is one of the cruelest events that can happen to investors.
    Let’s make clear what the bear market is. A bear market is when the price of stocks falls at least 20% or more from its 52-week high.
    It is essential to understand the order of stock market returns, actually the range of return. Investors who do not understand the order may experience lingering effects that will reduce their profits for a lot.

    Where the bear market may occur?

    In short everywhere. Stocks, bonds, currencies, gold, oil. Literally everywhere where the trade occurs. Of course, when the prices of computers drop we can’t speak about the bear market. We will rather speak about deflation in such a case.

    The bear market is brutal and dangerous. It can blot out everything you made in the bull market. The main goal for every investor during the bear market is to keep as much as it is possible the earning and investment. 

    I hope you know how to survive a bear attack. Do you really know? Did anyone tell this before to you? Well, the best way to survive a bear attack is to pretend you are dead. Just lay down, don’t breathe, don’t move, keep your eyes open to know what is the next bear’s move, but don’t move them. Clear?

    Do it all but without panic. 

    The same comes when the stock market is down during the bear period. Stay calm and don’t panic. 

    How not to panic when the stock prices are going down?

    Just keep in mind that it is the period. Yes, it is a period when the prices are dropping. A slump in investor confidence will indicate the attack of a bear market. You will see them running away as if chased by a pride of hungry lions. They are selling stocks with the speed of light. Oh, how wrong they are! Where they are going when the bear market is full of investing opportunities. 

    People, there is no need to get panicked.

    That’s the natural condition of the market. To paraphrase a famous investor Peter Lynch, if you don’t understand that recessions can occur or the stock market may drop, you are not ready to enter the market, or at least, you will not do well there. 

    But we’re all on the same ship. There is no reason to panic. You have to know one thing. The market isn’t the Titanic. It will not crash so easily. This boat will correct itself. It will not happen overnight. So you have to be patient and stay calm. Remember how to survive a bear attack? That is exactly how to defeat the bear market.

    During the bear market, most stocks will fall. How to stay in stocks in such circumstances? Just count!

    Will it be better to have money in a savings account with a zero interest rate? Nope! Even when the price decline, your stocks will give you a better return. 

    The secret strategy on how to defeat the bear market is to buy and hold. Investing shouldn’t be the last trump card in your hand. You must have more options in your overall financial situation. You can’t defeat the bunch of enemies with one shot.

    Except, of course, if you’re Luke Skywalker on the bombing run against the air vent of the Death Star.

    How to defeat the bear market?

    Buy now! Notice, be greedy when others are afraid. You should buy the stock when everyone else is selling. Evaluate the companies, their historical data, don’t read the news for a while (trust me, I know how journalists can produce breaking news, and highlight the headlines). Just be calm and let it appear. Let the right decision to come to you. The doors will be opened. Enter! Take your position! Ignore the jerks! Don’t listen to them, find your sweet spot. And don’t panic, again!

    In the worst-case scenario, which is the most extreme, you can sell all your stocks and put cash to the bank account (to be honest, I don’t think it is smart, but still) or reinvest the money in more stable assets such as short-term bonds. But you have to know, if you sell all your stocks it is capitulation. It is the official term not my opinion about your investing. But if you do so, how will you come back, how will you rebound? You will be lost out. And it will be very hard for you to enter the stock market again.

    The best way is to take a defensive strategy. This means to buy the stocks of big, stable companies. They are strong enough to defend your portfolio from the bear market. Their share prices are less sensitive to a bigger decline. For example, food businesses. 

    A bear market is a feeling about a particular market mood. 

    The bear market received its name for the behavior by which bears attack their victims. So, just pretend you are dead when the bear market occurs.

  • Millennials’ Fears to Invest in the Stock Market

    Millennials’ Fears to Invest in the Stock Market

    Millennials' Fears to Invest in the Stock Market
    One of four millennials doesn’t think investing is a good idea.
    Holding on to cash is financial hara-kiri.
    The stock market isn’t out-of-reach and with a little amount, you can start investing.

     By G. Gligorijevic

    Millennials’ fears to invest in the stock market are shown in statistical data. Millennials are skeptical of the stock market at a great percentage. Yes, people! I can understand that. It isn’t easy to understand the stock market and when you don’t understand something, you are getting afraid. Moreover, you have heard a lot of scary stories. But take a look at your peers. Almost 1/4 think that a stock market is a great place to put their money. Are they braver than you? 

    Investing in the stock market has nothing to do with bravery it is all about common sense. 

    I know what you want to say: There are a lot of other ways of saving. Yes, that’s true. But is the return so great as with stock investing? Take a look at baby boomers! They stole cryptocurrencies from you, for example, not to mention other assets. Digital money should be yours. While you are hesitating to invest in the stock market, baby boomers and Gen X have an advantage. 

    Some of you may say: Yes, but they don’t have loans, they have homes, etc. 

    Sorry guys, but I have to disappoint you. They also have debts, mortgages, loans but don’t think the best way to earn more is to put cash in the savings account. 

    I’ll show you how wrong you are if you prefer to keep your cash in the savings account and how much you can lose over the years. Actually, I would like to show you how much you can earn if you invest in the stock market. So let’s make some comparisons. 

    Which are Millennials’ fears to invest?

    Do you really think you need a million dollars to retire? You’re going to be very discouraged. That amount isn’t even close to cover the cost of your bag of groceries. Inflation is what will make it tricky.

    To put it simpler, your parents needed much less money to cover the cost of their bag of groceries when you were born. The costs increased by about 300% over the past 30 years. Scary! But you can’t destroy the inflation. Inflation is good for some things but it is another subject. Let’s stay stick with this one. Having this on your mind, are you still convinced that one million dollars is enough for your retirement? I am not sure. It is more like you will need more. By keeping your extra money on your savings account you will never earn enough to beat inflation. 

    Holding on to cash is financial hara-kiri.

    If you don’t mind, I want to show you something.

    Over the last 90 years, the returns of the S&P 500 was 10%. This is one example but the same is with other stock markets. How much your savings accounts pay you? Let’s say it is a high-saving one so you may have 1,5% per year.

    Assume you have $50.000. If you put that amount on the savings account after 30 years you will have, without correcting for inflation, almost $80.000. This means your savings account could generate only $1.000 per year. But what would be your income if you invest your $50.000 in the stock market? After 30 years of investing in a nice portfolio, you could have almost one million dollars. 

    Can you notice the difference? Millennials’ fears to invest come from lack of knowledge about finances. 

    Why Millennials are afraid to put their money in the stock market?

    Investing has never been easier, but millennials are still afraid to start investing.
    You don’t need the fortune to get involved in the stock market. You are investing to make a fortune. Today we have online brokerages and robo-advisors. That makes investing pretty much easier than ever.

    Further, data is easy to access. You don’t need to read newspapers to gather the info about some stock. Yes, sometimes it can be fun and may bring a lot of entertainment, who likes it. But you have plenty of other ways out there to find the stock. Data is now easy to access and usually totally free.
    You can start at less than $1.000. No one will think you are a loser if you start with less than $1.000 or with just little as $100.

    Take profit of this, and take command of your future. 

    Investing has never been easier

    The stock market isn’t out-of-reach and with a little amount of, let’s say $500 you can start investing. That is an optimal amount that may provide you decently returns. Start with this, try your hand. Of course, for the first investment, you can use some robo-advisor. 

    Ask your bank advisor to create an investment portfolio for you. There is no need to do it yourself alone. 

    Millennials’ fears to invest are without a real reason. The money is like sand. If you squeeze it in your hand, it will go through your fingers. 

    Don’t do that. You can play better and become a real wealthy. Grab your chance to win!Â