At least that is according to CompTIA, one of the world’s leading tech associations. Below, Jessie Dean of Oakmount Partners Ltd, an investment consultancy firm from the UK, discusses the complex tech-scape in the US.
True, San Francisco in California and the wider Silicon Valley area still provide the greatest number of vacancies and opportunities for Brits looking for career opportunities in the US, but it is North Carolina who CompTIA seems to think is serving expats with the best options. More specifically, the cities of Raleigh and Charlotte — both of which are part of the ‘Research Triangle Region’, an area known for its excellent tech and scholarly institutions.
Great plains instead of great beaches
California is the land of dreams. It’s everywhere, thanks to the success of Hollywood, in popular culture and imagination. Long stretches of golden coast; redwoods a thousand years old, and great cities packed with our favourite celebrities. North Carolina is different. If the average Brit was asked to conjure up images of North Carolina, it would probably represent something like a large red barn, isolated in an expanse of large overgrown agricultural fields.
So what is attracting the attention of CompTIA, and of British tech expats?
The shift back east is largely due to the quality of life that North Carolina can provide, and the greater disposable income that it provides.
True, San Francisco, Silicon Valley (that includes San Jose, Santa Clara, and Sunnyvale) still pay the best wages. The median salary for an IT worker in San Jose is over $122,000 per annum. But the cost of living in this area is a whopping 43 per cent higher than the national average.
The same IT worker might stand to make somewhere between $83,000 and $88,000 in the Research Triangle, but the cost of living in North Carolina is actually below the national US average — for now. What this means is, even with the pay cut, a job in North Carolina will land you more money in your pocket at the end of the month to spend on whatever you want.
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Big Tech and finance investment is soaring in North Carolina
The shift to North Carolina isn’t all about walking away with more money. Big Tech itself is investing in new areas, including IBM, Cisco Systems and even possible Amazon and Apple. There is also an increasing number of companies who are expanding their operations into North Carolina from the finance and consultancy sector. Including a number of big and increasingly digitised firms such as Wells Fargo, Accenture and Bank of America. The allure comes from tax breaks and other regional benefits — such as the wealth of talented students from the increasingly influential universities: powerhouses such as UNC Chapel Hill and Duke University. North Carolina is also a grand place to acquire local cost-conscious start-ups.
Is California’s time in the sun at an end?
San Francisco is one of the most expensive cities in the world. Living space is extremely limited — with the City located on a small peninsula out into San Francisco Bay. The local government won’t even build upwards, in the form of skyscrapers, as they do not want the views to be spoiled by the City’s less lofty residents. It is becoming hard to ignore that many of the positive factors about living in California — the weather, the good colleges — are now counting against it.
Then there is also the massive problem of homelessness. In some of the City’s poorer boroughs, such as Tenderloin, huge gangs of homeless openly inject with needles in broad daylight; take hallucinogens, and make some roads impassable at night. All of these factors, above and more may account for the fact that, according to CompTIA, more residents left San Francisco than any other city in the last quarter of 2017.
The current shift of power also has echoes in the not-too-distant past of America’s history. Boston was once a the ‘traditional tech centre’, and is now the 17th most desirable destination for tech expats, despite the City being within the commuter belt of Harvard, MIT, and other world-famous and prestigious institutions. A typical salary in tech for a Boston employee is a much lower $94,000 than in Silicon Valley, but the costs of living are still 35 per cent above the national average. Other ghosts of the past include Washington DC and Baltimore.
Though it is worth remembering that San Francisco still has plenty of vacancies for engineers willing to pay the high costs of living. So California’s role to play in tech is far from over. The balance will not shift overnight, and it was always inevitable that some other location would come to challenge it in time. For now, it is still wise for British expats to heed the old advice, to “Go west, young man”. Just not as far west as was typically expected.
Saudi Aramco (the Saudi Arabian Oil Company), a state-owned national petroleum and natural gas company in Saudi Arabia, is known for its radical R&D plans and connections with Saudi sovereignty, but is also according to accounts seen and assessed by Bloomberg, the most profitable company in the world.
It recently filed its investment prospectus, including all details, risks and figures, ahead of its grand IPO this year, which is set to change history. You’d think hey let’s invest, sound like win all round, but are the real risks?
Firstly, the prospectus itself does not mention a valuation, though Crown Prince Mohammed bin Salman has previously estimated Aramco should be valued at $2 trillion, but estimating value is not always so straight-forward.
One of the many risks mentioned is armed conflict, with the company being state-owned, in the middle of a drone attack zone. Recent attacks resulted in a 20% jump in oil's price per barrel. In future, further attacks involving Aramco facilities "could have a material adverse effect.”
Second on the prospectus’ list is climate change, which of course with it being a natural gas company, makes sense. Global protests, environmental protection and carbon footprint are all elements that may or may not affect the overall efficacy of Aramco’s operations moving forward, meaning the company would have to “incur costs or invest additional capital."
Peak oil demand has always been on the horizon for Aramco and similar companies. The adoption of renewable energy and a shift away from fossil fuels is a future many see as confirmed, and this could also pose some risk to the overall profitability of Saudi Aramco 2020 onward.
Political and social instability are also big risks due to the significance of the company’s location globally. The Middle East and North Africa region are heavily influenced by surrounding political agendas and uncertainties, meaning future figures for Saudi Aramco could be just as uncertain given that even the prospectus mentions the vital importance of the Suez Canal and the Straight of Hormuz as critical shipping routes in its operations.
5th on the list is government ties. Simply put, being a state-owned company Saudi Aramco plays a key role in the nation’s GDP, overall growth and economic health. Any shift form either side can affect the other, and if the Saudi government suddenly needs to change tax policies, it may have to pocket more of Aramco’s revenue, thus affecting future potential for investment.
Finally, the prospectus lists its actual offering as a risk in itself. "An initial public offering in the Kingdom of this kind and size is unprecedented," it reads. "Any disruption in trading of the Shares could impact their market price and delay the ability to conduct transactions."
What are your thoughts on this huge opportunity? Let us know in the comments below.
Any business wanting to join them faces a complex assessment process. More than 10 years after Bitcoin was created, there is still a widespread absence of regulation around cryptocurrencies.
A good starting point is to recognise that money is not what it was, quite literally. Cryptos such as Bitcoin, Ethereum, Bitcoin Cash and Gemini Dollar are quickly changing the paradigm for payment. They are also now on a pathway to mainstream use. This process is being driven by the development of apps and platforms to make it easy for people to pay instantly in digital currencies.
So how far should a business go in what is still an evolving, volatile world where valuations fluctuate and conversion processes are tricky? It seems wise to set boundaries: not to invoice in crypto or manage conversion into fiat currency, for example. This means finding a reputable intermediary.
Money is not what it was, quite literally.
Despite the lack of regulation, some benchmarking is possible, such as discovering what regulations different potential intermediaries submit themselves to. There is regulation in New York, for instance.
There are also wider questions, given the digital nature of cryptos. How do those handling transactions protect data? What volumes of money do they move and where? How does their cost model fit into your own system for payments?
It is also important to assess potential partners for their own stability and standing, including their relationships with banks and institutions that are in that world.
This is all necessary because cryptos remain created, held and traded without any underpinning by governments. They exist without the regulation and transparency typical of a state-backed fiat currency.
There are also tax issues. Although cryptos can be a currency, they are treated by most tax authorities as securities and should be declared accordingly. This means potential capital gains liabilities for those who hold and trade in them, and VAT issues if the crypto token is attached to an underlying service.
Beyond that broad definition, there is regulatory fog. Rather than wait for that fog to clear, it makes sense to apply some common-sense standards now, including anti-money laundering and customer ID requirements, to help avoid problems later.
Is it worth getting involved with cryptos at all at this stage? The answer to that will depend on what the business does. For example, the instant, borderless payments enabled by cryptocurrency can be an advantage for businesses that trade globally, particularly those with an e-commerce platform.
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Cryptos are also not bound by a single country’s exchange rate or even location, making it easier for companies entering a global market to accept payments from anywhere in the world. They also avoid banking transaction charges.
It is perfectly possible to set up digital wallets and accept crypto payments directly. But that means also accepting all the associated risk and technical know-how required. Few businesses will want to get that involved in the infrastructure associated with holding the coins, let alone working out what they are worth at the crucial moment an invoice is raised.
Fortunately, there are now a number of well-regarded exchanges. These largely absorb the risk of accepting digital payments and make the necessary transfers, including translating the crypto into the fiat amount billed.
BitPay, for example, is a payment processing provider that converts a traditional fiat currency fee into a bitcoin equivalent as soon as it is issued. The bitcoin price is then fixed for 15 minutes before being automatically renewed using the same process, something necessary because of value fluctuations.
The invoicing firm then receives its payment electronically through BitPay, but as fiat money.
The advantages for the invoicing business from using a reputable provider are reduced risk and the likelihood of prompt payments as clients respond to the 15-minute conversion windows.
Is it all worth the trouble? Just as the way we transact money is changing rapidly, so is the nature of it. For some firms it just makes sense to engage with the future of money now, building knowledge and expertise carefully and organically through experience. My firm is proud to be among them.
Authored by Jon Wedge, Financial Services Partner at BKL.
In particular, limited-edition trainers have a huge appeal across the world, with people willing to camp outside of stores to pick up a particularly lucrative pair.
This highlights that despite the stereotype of the younger generation being frivolous with their money, it seems they are actually one of the savviest generations when it comes to turning a profit on their own. While they are hesitant to invest in stocks, millennials and generation Z are tapping into the hyper-short-term investment of fashion and beauty.
1. Clothes
Although the initial purchase is an investment, with many resellers spending hundreds of pounds or more on such a venture, but the resale of these goods can certainly turn a profit. It also taps effectively into the Instagram world we’re living in too. Sellers often combine their shop platforms with their social media accounts to merge both modelling and selling the items.
There are so many stories about how entrepreneurial millennials are sniffing out limited edition items from the most popular brands, such as Supreme, during their famous limited edition ‘drops’, then rapidly reselling them. Perhaps one of the reasons why the younger generations are turning more to side-hustles and reselling as forms of investment is that the turnover is incredibly fast thanks to apps like Depop.
2. Shoes
Arguably the biggest market in reselling is that of sneakers and trainers. Much like clothing, the main draw here is in limited edition shoes — but the sneakerhead culture is not anything new. In fact, it began nearly 30 years ago, though it’s enjoyed a huge resurgence in the last few years.
The most sought-after trainers tend to be either limited edition silver trainers or classic men’s white trainers for that much-loved vintage style. People are willing to set up camp outside a store before a particularly hyped drop of limited-edition trainers, in order to grab them at retail price, then sell it on for much higher prices.
Some might seek to resell the items quickly, but there’s certainly a case to be made for popping a brand new pair of limited edition trainers away for a few years before reselling in hopes that their much-hyped status will only increase that price tag as the years roll on.
3. Art flipping
According to Business Insider, rich millennials are snapping up art as financial assets rather than as part of a potential collection — 85 per cent of millennials purchasing artworks say they are aiming to sell in the next year.
Buying art with the intention of selling it on quickly is known as art flipping, and it’s something of a controversial subject in the art world. However, there are some who consider the process of art flipping as a potentially devaluing practice that harms the artist and their work highlighting that this investment isn’t perhaps for everyone.
The process can also seem more logical than artistic too, as many such purchases are made purely on the work’s monetary value. But, just like with clothing and trainers, the piece’s social media hype can also spur rich millennials to part with their cash in a hopes of a quick resale profit — Instagram has been highlighted by Adweek as a viable platform for creating social media adoration for artists.
Sources:
https://www.sofi.com/blog/millennial-investing-trends/
https://www.adweek.com/digital/influencing-the-art-market-millennial-collectors-social-media-and-ecommerce/
https://www.businessinsider.com/rich-millennials-investing-art-flipping-build-wealth-2019-4?r=US&IR=T
https://www.standard.co.uk/fashion/should-you-be-investing-in-sneakers-a4014486.html
https://www.theguardian.com/fashion/2017/oct/23/teens-selling-online-depop-ebay
Part of the reason for this is a series of falsehoods which have taken root in the collective conscience of investors, including the belief that responsible investing somehow underperforms compared to alternative investment styles. Another popular one is that there is simply no place for being responsible when it comes to investing.
However, the rise of companies such as Beyond Meat, which are displaying clear signs of success, are helping to change some of these ingrained biases, according to Ryan Smith, head of ESG research at Kames Capital.
“There have been many theories over the last few decades about responsible investing and how it fails to offer as good an opportunity broadly to investors,” he said. “However, the facts are very different. Companies which do not give any consideration to their responsibilities to everyone beyond their shareholders are increasingly in the spotlight for the wrong reasons.
“Nonetheless, many myths still abound about responsible investing which must be dispelled.”
Below Smith looks at some of the most common myths around responsible investing, and reveals the reality of the situation behind them.
Myth 1: There is no place for ethics in investment
"Gordon Gekko didn’t do lunch and wasn’t strong on ethics."
Gordon (as they say) would sell his granny. In contrast, we think there is value in judging a company on the sustainability of its products or services. Industries or companies that perform no social function are inherently unsustainable. They impose costs on society and ultimately, it is highly probable that such activity will simply be regulated out of existence. The sustainability of a company’s products or services is therefore vital to its long-term strategic success. Strategic positioning and vision can be a long-term tailwind or headwind. An unsustainable product (e.g. coal) is a huge strategic headache for any management team, just as a sustainable one should create a tailwind of opportunities.
Myth 2: Thinking sustainably is a downside risk tool only
"It’s all about avoiding controversies and disasters."
True. Thinking about sustainability, combined with other risk metrics can provide investors with powerful downside protection. However, risk is a backward-looking measure. Thinking sustainably promotes a longterm focus, helps us to avoid short-term distractions and can also be useful for identifying sources of competitive advantage. In the Kames ethical and sustainable strategies, we look for growth stock investment opportunities and typically find that these disruptive, innovative growth companies are more likely to provide responsive investment opportunities and be willing to engage and improve.
Myth 3: Just invest in the best
"There are an increasing number of ESG products being launched, many of which use off-the-shelf third-party ESG ratings to construct their portfolios, or indices."
In most instances, they adopt a ‘best-in-class’ approach; because the best ESG companies must be the best investment right? Maybe, but in our experience, it’s often a bit more nuanced. ‘Best-in-class stocks’ according to these ratings also tend to be large-cap, well-known and well researched, and hence provide less opportunity for mispricing opportunity to capture alpha. Which is fine, because our focus is on the small and mid-cap space, where we believe better investment opportunities often occur. And to provide our clients with the breadth of negative screens that they seek, our ethical funds are always actively managed. Then, once invested, we take our stewardship responsibilities very seriously; meeting with management, challenging them and if we need to, selling our position.
Myth 4: Profits vs. principles
"Investing responsibly means giving up returns."
Actually, academic studies increasingly disprove this. Empirical evidence supports the premise that thinking carefully about sustainability as part of an investment process can enhance investment returns. Ultimately, investing is about employing an effective set of tools consistently in order to tip the odds in your favour. Sustainability analysis is one of these tools and it fills a key role in our toolbox, but it’s one which many investors still don’t consciously utilise.
Options trading is a sector of the stock market that is fairly easy for most newbies to investing. If you've never heard of options trading or you just want to learn more about how to make money with this method, we're going to go over all of this below.
What Is Options Trading?
Options trading is purchasing the ability to buy or sell a specified number of stock for a set price in the future. With options trading, you're not actually purchasing ownership or stock in a company. Rather, you're purchasing the opportunity to buy or sell ownership or stock of a company in the future. Let's look at some common terms involved in an options agreement so you can better understand what it's all about.
Expiration Date
Options contracts come with a few key terms that you'll need to understand. First, each options contract has an expiration date. You can exercise your options contract up through the expiration date. After the option has expired, you no longer have the ability to exercise the agreement.
Stock
Each option contract is for a particular stock. When looking at options online, you'll see the ticker symbol of the company that the options contract is regarding. When you purchase your options contract, you don't get ownership of the stock. Rather, only when you exercise your option do you get to actually buy ownership via the stock.
Strike Price
The strike price is a very important number to understand as it determines how and when you exercise your options agreement. The strike price is the price at which you can buy or sell stocks that were included in your options agreement. For example, if the strike price is four dollars for a call option, then you could exercise your contract by purchasing the identified stock at the strike price.
Call or Put
Every options contract will be either a call or a put. In the stock market, a call is when you buy a stock. A put is when you sell a stock. Therefore, you can purchase an options contract that gives you the ability to buy or sell a stock at the agreed-upon strike price before the expiration date.
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How Can You Make Money With Options Trading?
If you're thinking about making money trading options, there are various ways you can do so. By understanding the basics of call and put options, you can start to formulate your own method for making money. Let's go over a few examples of basic options to get you started.
A Call Option
A call option is ideal to purchase when you know that a company's stock price is likely to rise in the near future. For example purposes, let's say that you buy a call option for 100 shares of stock ABC that has a strike price of $50 and an expiration 30 days from now. Fast forward 20 days and you notice that the stock price of ABC has increased to $60 per share.
You'll want to exercise your call option. This means that you can purchase 100 shares of ABC for $50 per share. Then, you can turn right around and sell those stocks at the current market rate of $60 per share. That's a $10 per share profit from your call option.
A Put Option
The other common type of options contract is a put option. This option agreement gives you the ability to sell stocks in the future at a set price. You'll want to use this type of option when you know that a company's stock is likely to decrease in the near future.
For this example, let's say you're looking at an options contract for company XYZ. The options contract is for 30 days, 100 shares of stock, and sports a strike price of $30 per share. The day before your options agreement expires, the stock price of XYZ drops down to an all-time low of $10 per share. You can exercise your options contract.
You'll start by purchasing 100 shares of stock XYZ on the market for $10 a share. Then, you'll go ahead and sell those shares according to your options contract sale price of $30 per share. You'll be able to profit $20 per share with this method.
As you can see, there are various ways to make money with options trading. Understanding the basics above can give you a great foundation to which you can build upon to create your own unique methods for options trading.
When it comes to property investment in the United Kingdom, Simon Nosworthy of Osbornes Law Firm believes that the housing market has already pre-adjusted for Brexit, according to The Sun. Investors who decide to pick up properties before, during or after Brexit may be grabbing bargains that they can sell for big profits when the market recovers.
While property investment in the UK is currently subject to a lot of uncertainty and has its pros and cons, there will be investors who read the property investment landscape perfectly and then make a mint.
Look at the bright side
Buying property has many advantages (capital growth over time and/or rental income), provided quality properties in good locations are chosen. The UK real estate market shifts, but savvy investors know when to get into the market and when to get out. Since prices have dipped a bit due to Brexit uncertainty, there are valuable properties available which are cheaper than they normally would be. These properties may increase in value once Brexit issues are finally resolved. Whether you’re interested in buying a home or flat and renting it out to make cash, or investing in commercial real estate, the silver lining in Brexit uncertainty is that deals are out there. If you’re interested in buying, know the risks and choose a property or properties with the utmost care.
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Know the risks and choose carefully
To boost the odds of a successful property investment, you should examine prospective properties with a fine-tooth comb. Properties should be in locations that are in demand or growing more popular. Properties should be in good condition, and tests will be needed, as visually inspecting a property on your own isn’t enough. It’s wise to pay for surface and air inspections that determine whether mold is present. You should also pay inspectors to determine whether homes or commercial properties have other issues, such as structural defects or water damage. Mold remediation is possible and should not break the bank, but issues with structural integrity and water damage may cost a lot to fix and cut into profits when you resell.
Prepare to be patient
Short-term flips are always an option, but current real estate market conditions point to playing the long-term property investment game. Buy undervalued properties on the cheap and hang onto them, so you can make good money when you sell them once the Brexit dust settles. Rent a property while the UK adjusts to a new reality, and prepare for the future: when the market rebounds and you’ll be able to sell with great results.
The pros of UK property investment in the age of Brexit, such as lower real estate prices and the possibility of big profits in the future, are balanced by the uncertainty and risk that Brexit brings. Weigh the pros and cons before making a play in the real estate market.
For many small enterprises an injection of cash is required at some point - either at the start-up stage, in preparation for growth, or simply to stay in the game.
However, many small business owners set out with blind optimism and underestimate the level of funds required to keep a business afloat. Oliver Spevack, Chartered Accountant and co-founder of OS Accounting specialises in supporting start-ups and SMES.
He says: “Poor financial planning can cripple a small business and lack of funds is one of the common reasons why new businesses run into problems and fail.
“So many small businesses that come to us have no business plan and no idea how to raise capital. They are completely unaware of the grants and tax relief schemes available to them.”
Funding can make or break a small business. Let’s take a look at the options available.
Family and friends
The cheapest way to borrow money is by getting an interest-free loan from family or friends. You may be able to negotiate a longer-term payment plan than you would get with a traditional loan through a bank, or agree to pay the money back in a lump sum once your company reaches a certain profit or turnover target. You probably won’t have to give a share of your business away either.
Social media crowdfunding
Crowdfunding has become an increasingly popular option for funding a small business in recent years. It does, however, require a strong promotional strategy, increased transparency, and the possibility of giving up a stake in your business. See more on the different types of crowdfunding and the best crowdfunding sites to launch on here.
Business loans
A wide range of lenders offer loans to small businesses, from traditional banks to online specialists. Small business loans are also available from the government. The British Business Bank (the government’s publicly owned development bank) was set up to help small businesses in the UK access funding. The bank offers start-up loans from between £500 to £25,000 and helps small enterprises understand and access funding options.
See some frequently asked questions on small business loans here.
Angel investors
Not a suitable option for businesses that want to retain 100 per cent control over their business, but angel investors do offer funding opportunities and can often bring some expertise to small businesses.
Essentially, an angel investor is a person, or group of people, who provide funding in exchange for a part of the business. They can be silent (i.e. just provide a capital injection) or can be active and offer advice and expertise to help grow the business.
BBC2’s Dragons’ Den has become the template for what happens when a small business needs investment from an angel investor.
Read more on the pros and cons of angel investors here.
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Venture capitalists
Venture capital is similar in its concept to an angel investment – there are, however, differences. Essentially both offer funding in exchange for a share of the business. The main difference is that angel investors work on their own, whereas venture capitalists are a division of an organisation or an organisation in their own right.
Venture capitalists are only interested in businesses that are likely to make a high return. They look for small businesses that have the potential to grow into large companies.
Research and development grants
Small business grants are one of the best sources of funding available to start-ups, developing and established small businesses. There are many private and government schemes available. The qualifying criteria varies hugely, but there are literally hundreds of schemes from Princes Trust Grants to global investor, Unltd Social Enterprise Funding.
Many of the grant schemes available to small businesses are industry or location-related, such as the Energy Entrepreneurs Fund which supports the advancement of energy technology or council-run business development grants, which may also have industry-related criteria.
Tax relief schemes
Not strictly funding, but tax relief schemes are another underused resource that can provide a considerable boost to a small business’s funding pot. The tax breaks commonly overlooked by small businesses include:
- Research and development (R&D) tax credits
- The Annual Investment Allowance (AIA)
- The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS)
- Enhanced Capital Allowance (ECA)
- The Employment Allowance
Let’s take a brief look at each of these.
R&D Tax Credits – a government scheme designed to reward and encourage greater innovation across the UK business sector, which can amount to tens, even hundreds of thousands of pounds, every year. See more about the government scheme here.
Annual Investment Allowance – a government scheme offering tax relief to British businesses on qualifying capital expenditure, specifically on the purchase of business equipment.
EIS and SEIS – these are government backed investment schemes that encourage investment in small and medium-sized companies.
Enhanced Capital Allowance – the government ECA scheme was introduced in 2001 to encourage businesses to invest in energy-saving equipment. Businesses can claim 100% first year tax relief on qualifying equipment.
Employment Allowance - The government’s EA scheme was introduced in April 2014 to incentivise recruitment in smaller businesses - this is worth up to £3,000 per year to set against an employer’s Class 1 NIC bill. Single director companies without employees do not qualify.
INSPHERE was founded in 2013 by CEO Ben Adeline and CTO Oliver Martin, originally providing metrology consultancy, sub-contract management and training to manufacturing businesses including Rolls-Royce, Airbus and Jaguar Land Rover.
Industries such as aerospace, automotive and defence all employ highly automated manufacturing processes which rely on production lines of robots performing precise and repeatable actions.
Measurement technologies have traditionally been used to verify parts at the end of the production line. Faults or defective parts found at this stage are either scrapped or require expensive re-work. These faults can be caused when a robot is not set up correctly or drifts even slightly out of position. It can be problematic and laborious to determine the root causes in the production line resulting in costly downtime or poor-quality parts if problems are unresolved.
The Fund’s investment will be used to develop and accelerate the commercialisation of INSPHERE’s new products, build sales and scale the business.
RW Blears, with Partner Adam Lawrence and Associate Chris Spencer, acted as legal adviser to the Foresight Williams Technology EIS Fund.
While some are interested in obtaining a bit of extra liquidity for personal use, others are motivated due to the fact that such funds can be used to become partnered with a trusted B2B ecommerce platform.
The main question involves whether or not virtual trading represents a sound fiscal strategy or an unnecessary risk. Let us take a look at this subject from a decidedly objective point of view in order to better appreciate the big picture.
Valid Promises or Smoke and Mirrors?
Countless virtual trading platforms claim that financial freedom is only moments away when using their utilities and tools. However, the fine print tells another story. It stresses the fact that online trading involves a fair share of risk and such a strategy should only be undertaken by those who are capable of absorbing substantial losses within a short period of time. The main question therefore involves whether or not both of these claims are justified.
The first main takeaway point is that each trader will have to define his or her own levels of acceptable risk. As opposed to trading for fun or as a side project, those who are looking to obtain extra liquidity for a business venture need to be very careful in regards to what strategies are adopted. In other words, is the ultimate risk worth the expected reward?
It should be mentioned that any online investment portal is only as useful and lucrative as the experience of the trader in question. This is why some individuals will enjoy substantial returns while others will inevitably falter. So, what approaches should be taken in order to mitigate the chances of incurring a fiscal loss?
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Safe Investment Strategies to Adopt
Anyone who is contemplating an investment for business purposes should adopt a conservative approach. High-risk assets such as Forex pairs and initial public offerings (IPOs) are best to avoid, as losses can occur within a very short period of time. It is better to focus upon areas such as:
- Precious metals
- Commodities
- Blue-chip holdings
- Contracts for difference
- Bonds and treasuries
The main point to stress here is that longitudinal returns tend to be much more predictable when compared to short-term "punts". This is also the very same reason why some of the most successful online investors are always looking towards the horizon as opposed to remaining focused on any single trade.
Is online investing the right option for you? This is a very subjective question. The answer will normally involve how much liquidity you wish to obtain as well as the level of risk you are willing to accept at any given time. If performed correctly, such a strategy can offer up amazing results. However, always remember that the inherent dangers associated with any type of investment will need to be balanced with the potential rewards
If it was possible to rewind back to 1999, we’d all invest in Apple stock instead of that VHS Recorder. In a new study by SmallBusinessPrices.co.uk, we analyse the priciest stocks of 2019 and what you could have bought with $100 over the decade.
Amazon is the most expensive stock, with the average stock price calculating to a whopping $1,752 - meaning $100 couldn’t buy you any stock, whilst in the year 2000 you’d be able to afford just two.
As one of the top e-commerce platforms in the world, Amazon gets more than 197 million visitors each month, and in 2018 the company’s share of the US e-commerce market hit 49%.
Based on the average stock price of Apple in 2000, $100 could have bought you around 35 stocks, whilst this same value wouldn’t buy a single stock based on 2019’s average stock price.
Steve Job’s innovative and visionary approach led to Apple becoming one of the biggest tech giants in the world. The launch of the iPod revolutionised the portable media player market, eventually launching iTunes which essentially changed the world’s understanding of digital media and the music industry.
Who’s worth more?
Microsoft top the leaderboard this 2019, with the company’s net worth being valued at $1 trillion - one of the only three companies to pass this figure, with Apple and Amazon being the other two in recent years.
Amazon takes second place for net worth, being worth around $928.5 billion, whilst Apple follows behind on $892.1 billion.
Despite Apple taking third place for net worth, the brand still remains champion for yearly revenue. In 2018, the giant made over $265.6 million - higher than both Amazon and Microsoft who made $232.9 and $110.4 million respectively.
What are unicorns?
A unicorn business is a startup with a valuation of $1 billion, they are privately held and rely on venture capital. The name ‘unicorn’ comes from the rarity of businesses gaining such success.
Which sector is taking the lead?
Despite unicorn companies being private and not being publicly traded, if you’re hot on investment and want to keep an eye on which sectors seem to tip the edge, we’ve taken a look at the sectors which are most likely to become unicorns.
With over 360 companies being valued at $1 billion this year, the e-commerce sector took the lead, with 42 companies being declared as unicorns. This was closely followed by Fintech, which saw 39 companies join the leaderboard, whilst Internet Software & Services took third place with 32 companies.
Ian Wright from SmallBusinessPrices.co.uk stated: “Unfortunately we can’t go back in time and invest that $100 we spent on junk, in Apple or Amazon! However, this research reveals just how quickly some of these brands have grown in the last few years, and how privately held start-up companies are also experiencing huge valuations from investors taking big risks to be successful.”
Investments of the 2000s
To see how much $100 could have bought you in the 2000s, or find out more about unicorn start-ups in more detail, you can take a look at SmallBusinessPrices.co.uk’s tool here.
A good credit score provides you with so many benefits, such as reasonable interest rates, faster loan approvals, and suitable insurance policies. Nearly 70 million Americans are suffering from bad credit because repairing your credit requires a lot of time and self-control. So, what is the best way to improve your credit score in no time? The answer is simple – buy a tradeline.
But, in order to understand how to improve your credit score by using a tradeline, you need to understand the term “tradeline” first.
What are tradelines?
A tradeline is basically any account appearing on your credit report. A tradeline keeps a record of creditor’s information to calculate his credit report. You can mutually benefit from someone with positive credit history and improve your credit score if he adds you as an authorized user (AU).
Most people ask their family and friends to add them as their AU, but if you want a quick improvement to your credit score, you can add users with exceptional credit history as an authorized user. These AU provide positive data regarding:
- Payment History
- Amount owed
- Length of history
Fair Isaac Corporation (FICO) places a credit score in 5 different grades.
- 720-850 Excellent
- 660-719 Good
- 620-659 Average
- 580-619 Below Average
- 350-579 Poor
Buying 2-3 seasoned tradeline can help you jump to a 720-850 credit score in a month.
What will a tradeline help you achieve?
A tradeline helps you improve your credit score so it will reap all the benefits a good credit score enables you to achieve. Without a good credit score, you will have limited access and services of your credit card, loan plan, and a higher rate of mortgages. In short, you will have to end up paying more money than usual.
But good tradelines on your account will help you achieve a credit score of 750 or higher in no time. When you buy an authorized tradeline from someone like Personal Tradelines, you are added as an AU to one of their credit card accounts, and it takes only 25-30 days to get your credit up to a good score.
Common mistakes people make when buying Tradelines
· Having no idea of how tradelines work
The most common mistake people do is buy a tradeline without having the slightest idea of how it works. I recommend that you read all about tradelines and their types before actually committing to buying one. You can also get help and information from tradelines vendors.
· Buying tradelines in hopes that it will unfreeze their accounts
Tradelines work by adding positive information to your account. If you have fraud alerts or credit freezes on your account, buying a tradeline will not work as new information can’t be posted on your credit report.
· Understanding the age factor of tradelines
The effectiveness of a tradeline is always going to be relative to how old your own account is and what is in your credit file. For example, if you have a 10-year-old account, an 8-year-old tradeline would not have much impact on it. However, if the account is only 1-2 years old, an 8-year-old tradeline would do wonders in increasing your credit score.
· Not having an idea of how credit score works
Before buying tradelines, it is vital to know how a credit score impacts your general lifestyle. Because even if you are successful at getting a good credit score after buying tradelines; you will have to follow a particular set of rules to maintain it.
· Going cheap
Some people go for 4-5 cheap tradelines instead of buying 2-3 seasoned tradelines. It ends up costing you more money, and you are better off buying seasoned or authorized tradelines rather than a lot of cheap tradelines.
Also, a cheap tradeline will not have that much positive effect on your credit report as they don’t have good age. This works against the goal of improving your credit score exponentially.
· Buying tradelines for shady companies
Unfortunately, there are a lot of companies that are selling tradelines, and it is tough to trust someone random. It is essential to do a background check on a company which includes customer reviews, their ratings, and some money-back guarantee to make that you are getting the best service possible.
