In an attempt to be helpful, many traders point newbies towards forums, such as r/cryptocurrency on Reddit, hoping that they will find answers there. But this can actually make the process even more complicated - there is so much conflicting advice that it can feel impossible to know which advice to trust, and which to ignore. More than anything, it is impossible to know which users are telling the truth, and which users are making up fake wins in order to try and build a following. 

NAGA founder Benjamin Bilski talks about exactly this in his recent interview with Hackernoon, Any Financial Advice You Can Get Online Should be Taken with Caution.

What are the key pitfalls for beginners trying to get involved in crypto?

The key pitfalls for beginner crypto investors are very similar to the pitfalls involved in investing in virtually anything. And one of the main problems with investing is that we often let our emotions control us. There’s even a term for it: emotional investing. 

“One challenge for beginners that applies to any asset class might be not understanding how to control emotions, namely fear and greed, and when it might be wise to take profit/cut losses,” says Bilski. 

For new investors, this can be easier said than done - especially for those who only have a limited amount of money to invest in, and who first got into crypto because they’d read about the huge gains made by other investors. Realising that investing can be difficult and often involves lots of trial and error can be a difficult pill to swallow.

Another big pitfall - as we touched on earlier - is that new investors will often believe anything they hear because they want it to work. The problem with this is that anyone can use platforms like TikTok and YouTube and say they made millions by investing in a certain coin - but there’s no proof, and there’s no accountability. It can be difficult to tell whether influencers are being incentivised by companies to push a particular coin, and by the time large influencers are exposed, it is often already too late. In fact, this has become such a problem that TikTok has cracked down on crypto, share trading, and finance influencer promotions after it was revealed that scammers were using influencers to dupe investors. 

What if you could get investment advice from experts with a proven track record, and even copy their trades?

Crypto moves extremely fast, and there’s a steep learning curve. Ultimately, this means that unfortunately, it is not a very beginner-friendly industry. This is exactly the problem that Bilski is trying to solve - and the reason he built NAGA, the social trading platform that has racked up a global community of over a million users. 

NAGA is a super app for investing, crypto, and payments. It was founded back in 2015 and has since developed a lot of unique technology that is designed to bring more people into crypto trading while rewarding professional traders. 

The key feature of NAGA that has made it so popular is its auto-copy feature - a tool that allows new traders to essentially spy on other professional traders, and to copy from experts. The app is powered by the NAGA Coin, which allows skilled traders to monetise their trading strategies and get payments deposited instantly into their wallets as more copiers follow them. 

NAGA’s protocol can be compared to the industry trading version of Facebook. This means that users can essentially leverage the platform for all of their trading needs, instead of having to continuously hop between different platforms. Creating a single account allows traders to get involved with the vast, growing community, hold stocks, participate in events and educational seminars, win prizes, and pay for anything using their NAGA card. 

By far, the main benefit for new crypto traders is that the NAGA platform is completely transparent. Instead of guessing who to follow based on who is the loudest on forums, or who has paid the most to advertise themselves, users have access to a fully transparent leaderboard that shows the platform’s top traders, along with the amount of profit they have made, the number of auto-copiers they have, and their win ratio. 

How do experienced traders benefit from this?

The benefit for new traders is clear - they get to copy the trades of experienced traders and then carry on their lives as usual. But at this point, you might be wondering: ‘what’s in it for investors? Why should they share their trading strategies with me?’ 

Experienced traders, on the other hand, get to benefit from the NAGA Popular Investor Programme. In exchange for sharing their trading strategies with other users on the platform, traders can get paid up to $100,000 per month from the Popular Investors’ fund. 

In addition, copiers will pay €1 for each copied trade. Approximately 35% of this will be shared with the trader that they are copying from. This will incentivise traders who usually monetise their audience through email lists, Facebook, or YouTube to bring their audience over to NAGA and get paid directly instead.

Social trading platforms like NAGA are helping to reduce the risks associated with investing

Unlike an anonymous platform such as Reddit, an investing super app where everything is combined into a single platform increases accountability between users. Given that the entire premise of NAGA is based around transparency, we can be hopeful that it is a step in the right direction when it comes to reducing the number of crypto scams, which increased significantly throughout 2021. 

“I think increasing the general understanding of cryptocurrencies among the public could be the way to minimise risks - in other words, not let risky scams get attention and let good projects prosper and bring value to people around the world,” Bilski told Hackernoon. 

How has CORDET grown and developed over the past year?

From an investment point of view, we have had a busy 2021 so far, and both added new borrowers to our portfolio as well as supported existing borrowers with additional capital for growth. Overall, we have seen a very high deal flow over the past year, a consequence not only of the ongoing bank retrenchment from the smaller mid-market, which was accelerated by COVID-19, but also of our strong origination efforts with many new relationships built across our key markets.

From an operations point of view, we are continuing to expand the team and have brought several functions in-house, enabling us to further institutionalise as a business and offer our investors a better service at a lower cost.

What key strengths do you believe help CORDET to stand out from its competitors as an alternative credit investor?

At CORDET, we aspire to act as a trusted, long-term partner, and are committed to enabling transformational growth for the companies we invest in. For example, we often provide follow-on capital to support the value-creative growth journeys of our portfolio companies, be it through acquisitions or organic expansion plans. Structure and terms of our financings are tailored to the specific needs and with a flexible approach as the requirements of businesses may change over time. Our partnership-focused approach is facilitated by the fact that we invest exclusively within our circle of competence – that is, in industries which the team understands well.

What is your proudest achievement of the past twelve months and what plans do you have for CORDET and your own career development in the coming year?

I am extremely proud of my steep learning curve over the past twelve months, taking over more and more responsibility across the entire deal cycle, coaching younger team members and actively contributing to our business development. On these aspects I am lucky to have an employer with a progressive and nurturing management style who strongly promotes the development of its staff, providing ample opportunities for personal growth. One example is the recent introduction of a firm-wide ESG training with a half-day workshop every quarter, a result of our increasing focus on Responsible Investment, having been a signatory to the UNPRI since 2014. For the coming year, my plan for CORDET and myself is for us to continue our current growth journey – to look at exciting new deals across different industries and geographies, to further develop our network, to support existing portfolio companies, and to welcome new investors – and all of that as part of our nimble and ambitious team that fosters a supportive culture, which attracted me to CORDET in the first place.

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About Rebecca Fels Larsson

My name is Rebecca Fels Larsson, and I am part of the Investment Team at CORDET, an alternative credit investor that provides bespoke and scalable financing solutions to smaller mid-market companies in Northern Europe. I am based in our Stockholm office, and in my role as Investment Professional, I focus primarily on the origination, analysis, execution and subsequent monitoring of debt investment opportunities across the Nordics and DACH. Prior to joining CORDET in early 2019, I worked in EY’s Strategy and Transactions team where I started my career after graduating with a Master’s in Accounting and Finance from the University of St. Gallen in 2016.

At CORDET, we are currently investing from our second fund, and for both funds combined we have to date completed approximately 70 separate financing transactions across 30 different companies. Our primary investment focus is on resilient businesses that generate up to €20 million in EBITDA and are based in the UK, Ireland, the Nordics, DACH, or Benelux. Our portfolio companies are often leaders in their respective market niches and benefit from mega trends, such as technological change, climate change, or the ageing population.

With offices in London, Luxembourg, and Stockholm, we are a team of 23 professionals and senior advisors across different sub-teams, drawing from on average 20 years of specialist experience.

Often referred to as the ‘gender investment gap’, this issue really matters because many women are likely to face a significant financial shortfall in the longer term, particularly when it comes to retirement. Of course, the gender pay gap compounds the problem which is something not to be ignored. So, being careful not to gender stereotypes, what is it that is holding women back? What are the common barriers that women face and, more importantly, how can we address these?

Let’s start with confidence, or lack thereof

Research points to women lacking confidence when it comes to investing and investment decision-making. Many women tend to err on the side of caution when it comes to investment proactivity – which of course is a self-fulfilling prophecy as it is that very experience that builds confidence.

Lack of confidence is compounded by self-perception

Believe it or not, many women hold the self-perception that ‘investing is not for them’ and,  as a consequence, avoid becoming active investors, in some instances outsourcing to partners to make the investment decisions.

Language can put women off

Yes, conversations about money can be intimidating, and sometimes this is made worse by the language and terminology used by investment professionals. In the past, the investment industry has also done little to build levels of financial literacy with their female customers and avoided resolving the problem.

We are failing women by the way we communicate about money

It’s not just the language and terminology used. It is also the core message we communicate to women when it comes to money assumptions and expectations. Linguistic research highlights that the media and advertising industries encourage men to ‘dare to invest’, subtly implying that financial success makes you ‘more of a man’. Whereas they tend to depict women as needing to limit, restrict and take better control of splurges. What can we do to turn this around? What steps can we take to support women to invest more, for their financial futures?

Start by focusing on improving levels of financial literacy for women

The investment industry itself can play a constructive role in this, so can schools and universities by teaching young women the investing fundamentals and building investor confidence. The good news is that there are more and more female-focused investment networks and solutions available now – we need more so let’s actively support these.

We need more women working in the investment industry to design and deliver better products and services for female clients

A better gender balance is critical because diversity of thought, experience, and action are core components of what the industry needs to be fit for the future. In addition, more women working in the industry will help to build trust with female customers, and will support the design of products and services better suited to women’s financial needs.

Back to communication

Let’s change the way we communicate with women on money matters. This is really important – we simply must change how we communicate with women about personal finance. This should start with stopping the portrayal of women as excessive spenders, in need of guidance to help them save and restrict. We can also highlight female role models who are making their way in the investment world in order to send the right messages.

Looking for new channels of delivery, we can leverage tech to democratise the way that women invest

Developments in tech offer us a pathway to connect and communicate with women in different ways from the past. To do that we must employ a female lens when designing tech-based investment solutions for women. In addition, we can customise investment products and services that fit best for what women are looking for today. 

What do women really want?

It is time for us to think more deeply about women’s financial needs and deliver on these. Simply rebranding products for a female audience will not achieve the fundamental change we are looking for. The industry also needs to think more deeply about the kind of products and services that women want. For example, increasingly women are seeking out sustainable and impact investing products and services to include in their personal portfolios. More and more women are prioritising environmental and social impact when considering their investment choices. It is time the industry recognised this shift and started addressing it.

Jessica Robinson

The COVID pandemic has been financially tough on many women – often disproportionately so. This makes the call for addressing the gender investment gap even louder – but small steps can be taken, with potentially huge benefits to be reaped. 

About the author: Jessica Robinson is a leading expert on sustainable finance and responsible investing, and author of Financial Feminism: A Woman's Guide to Investing for a Sustainable Future. Find out more at moxiefuture.com

In June 1919, two daring British aviators guided a modified Vickers WW1 bomber across the Atlantic to complete the first non-stop transatlantic flight in just under 72 hours. Fifty years later, in March 1969, André Turcat piloted the supersonic Concorde’s maiden Toulouse flight which lasted only 27 minutes— barely enough time for dear André to finish his Orangina.

While perhaps romanticising these two feats, they underscore a notable dynamic.

Increased levels of innovation during difficult times create an amplified economic impact and opportunity in the ensuing years. This impact may not be entirely appreciated, most especially as it relates to today.

Innovating the Tech and the Business Model too

Furthermore, an unprecedented level of tech innovation, coupled with a maniacal focus on business model innovation/rationalisation, should deliver an amplified economic, earnings and productivity impact for years to come.

A recent McKinsey report stated three out of four executives believe changes brought about from the pandemic will be a significant growth opportunity. And all executives agreed, Dolly Parton’s “Jingle Bells” rendition was “one of the greatest holiday songs ever.” Thanks for that, McKinsey!

While more efficient business models are lovely, for publicly-traded equities, some of this is already baked in, as equity valuations are pricier than a fully-refundable Concorde ticket from CDG to Rio.

Although this double scoop of innovation provides ample opportunity broadly, there is also an avalanche of irrationality and noise, especially within the uncharted crypto and NFT worlds.

To quote universally-cherished Laura Dern in genius David Lynch’s Wild at Heart: “This whole world is wild at heart and weird on top.”

So, we try to retain a soberish Warren Buffet/Cathie Woods style view on fundamentals, tangibles and execution.

Innovation to Mitigate the Flurry of 2022 Risks

As we look to deploy capital in 2022, we think this innovation-led and justified business model framework provides a grounded and reassuring logic for navigating the uncertain days ahead.

With a Royal Flush of risk (political + market + COVID + inflationary + interest rate), we are biased to deploying capital to private companies over public equities, early-stage businesses over mature, and innovators over brands. Our favourite sectors remain healthcare and technology with an affinity for companies that include unique and agile models, strong and bold operators, and underlying proprietary tech with clearly-defined adoption paths.

Last year, after investing in and later assuming the CFO role at Los Angeles-based startup Binj, a new platform that solves the “what to watch next problem”, these themes helped frame the way we operated and communicated. In telling our story and in preparing to launch the platform, we beefed up messaging around tangible strengths—a novel TV and movie discovery tool powered by a proprietary AI engine and new emotional-driven rating language—and how we would execute on thoughtfully building a community to navigate streaming content overload.

Going sector by sector, within the below, we’ve outlined our thoughts on some disjointed topics du jour and investment areas we like.

Economic Growth and Labour Reshuffle: We expect overall economic growth will be stronger than predicted with innovation’s fruit and the most dramatic reshuffling of the job market seen in a century fuelling new activity. We’re not putting a lot of weight on 2021’s final GDP % growth number though, given 2020 was oh so weak and there is a lot of noise in the numbers. Nonetheless, 2022 growth should continue at a similar cadence.

Interest Rates & Inflation: With almost every single holiday party and central bank meeting behind us, it is clear that inflation is even more serious than we previously thought. The Fed policy pivot and The Bank of England’s more dramatic and unexpected rate increase from 0.1% to 0.25% (the first increase in over three years) underscored this.

Global Equity Markets: With valuation multiples rich, equity markets will remain choppy and range-bound, especially with higher interest rates.

Deep Tech: Some of the greatest technologies have always existed courtesy of Mother Nature and some entrepreneurs are well-positioned to harness, mimic and unleash that which has always been present. Companies such as Silicon Valley-based Koniku blend the right ingredients of healthcare, technology, and biosecurity. A Shazaam for smells, the company’s central tech elegantly takes what already works amazingly well in the natural world (a dog’s sensory apparatus) and packages it into a small device that can seamlessly detect explosives, narcotics, and COVD in real-time.

Our favourite sectors remain healthcare and technology with an affinity for companies that include unique and agile models, strong and bold operators, and underlying proprietary tech with clearly-defined adoption paths.

Africa: An emerging middle class, swift mobile adoption, and green pastures for innovation and leapfrogging, yield tailwinds. We like founders who courageously collaborate with various stakeholders (employees, partners, regulators), genuinely feel the pulse of the customer and utilise tech to magnify opportunities on the ground. In particular, Nigeria-based Lifestores Healthcare (a rapidly expanding network of tech-enabled pharmacies), and Kenya-based Koa (an innovative, community FinTech platform), are well-positioned.

Preventative Health Services: The pandemic has enabled consumers to access healthcare more broadly than ever before and raised awareness on preventive care. We think companies that are empowering users with enhanced access and new types of information such as Phosphorus (a preventive genomics testing company that enables customers to optimally map their health journey based on their DNA), and Freenome (an early-stage cancer detection platform), are ahead of the curve.

FinTech: Growth will remain hot with fewer brick and mortar banks of yesteryear, increased consumer comfort around mobile banking, and new one-stop platforms that go beyond full-service legacy bank offerings. One such innovator is Pallo (an all-in-one platform designed specifically for freelancers, which helps users manage all personal and business finances, from money management to taxes).

2022 Should Be Better

Whilst history is obviously not always the best predictor of future success (Google Glass, Apple Maps, Speed II: Cruise Control) this innovation factor is objectively real and potentially more potent than in 1919 or 1969.

While in this piece, we have pointedly omitted some dramatical forces at play that are above our predictive pay grade (China’s muscle and Russia’s flex, crypto and NFT chaos, the painful $USD demise, omicron, Kristin Stewart’s portrayal of Diana in Spencer), on the simplest level we think 2022 should be markedly better than 2021 for most things but most certainly not for air travel.

About the Author

Steven Barrow Barlow serves as the CFO of BINJ and co-runs Andon Okapi Holdings, an investment firm providing financial, operational and strategic support to founders with big ideas & unique tech. After a decade as an equity analyst on Wall Street covering the consumer and healthcare sectors, he co-founded Kallpod in 2014, a tech solutions provider for the hospitality & healthcare industries.

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No Investment Advice

The content in this article is for informational purposes only and should not be construed as financial advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Steven Barrow Barlow, BINJ, Finance Monthly or any third-party service provider to buy or sell any securities or other financial instruments.

If you're still having doubts, there's an evident growth among several popular metals in the market. The increase in the demand for precious metals might have something to do with several current trends. Among the precious metals, gold is the most popular and recognised as the most secure when it comes to value. An advantage of gold is that any fluctuations in the supply and demand of other assets won’t affect its value, making it the ideal option during trying times. Additionally, it has a variety of practical uses in various industries. If you're eager to know more about precious metals, it might be time to find out more about these metals to help you make the right choice if you're going to invest someday. 

If you're going to add precious metals to your investment portfolio, it can bring about several benefits in the long run.

Here are several top reasons you should consider investing in precious metals.

1. Easily Accessible

Some of the favourite precious metals like gold and silver are widely available via market dealers, banks, and bullion brokers. Aside from the accessibility, you don't have to worry about not acquiring enough due to the abundant supply in the market. You may consider adding several to your investment portfolio as long as you have the funds.Additionally, you'll enjoy the variety of options. Silver might be worth checking out if you want to try out other metals aside from gold at an affordable price range.

2. Immunity To Inflation

If inflation occurs, you don't have to worry about your precious metals. If you're about to add gold to your investment portfolio, it'll not shift in value and you can turn to it during times of uncertainty. When you have a supply of gold on hand, it's an advantage if an inflationary spike occurs in which everybody is eager to buy the metal. In such scenarios, you can readily sell your gold at a good value and gain a good return on your investment. If you want to avoid the inconvenience due to inflation, consider investing in precious metals so you'll have an investment you can later gain a good profit from.

3. High Liquidity

When investing in something, you need to consider whether you'll get a good return on your investment. Sadly, depending on the assets you have, it might be hard to sell at some point, especially when you have several properties on your portfolio. One of the main advantages of investing in precious metals such as gold and silver is the high liquidity. Unlike with other forms of investment that can take time to sell, there are always eager buyers when it comes to precious metals. Additionally, you can get a reasonable price from metals these days.

4. Safe Form Of Investment

If you prefer to maintain a low-risk investment portfolio, precious metals such as gold and silver are worth considering. Over the years, both metals have been suitable choices as safe-haven investments. The term refers to precious metals that offer investors stability when an economic crisis occurs. Even when the economy plunges into an undesirable state, the value of gold stays the same or even rises on certain occasions. Additionally, gold and silver aren't subject to any government influence, allowing these precious metals to hold their value.

5. Universal Use

Among the precious metals, gold and silver are present in various products, including jewellery, electronics, batteries, phones, silverware, and cars. These metals are highly valuable in large-scale industries and manufacturers, ranging from solar panels and even products with medical applications. With the essential nature of both gold and silver, there’ll always be a continuous demand in the market. Both alternatives are worth examining if you intend to invest in precious metals.

6. Changing Prices

If you wish to invest in precious metals, especially gold, you should be aware that the price fluctuates frequently, but this shouldn’t be a hindrance if you want to diversify your portfolio. Generally, the value of gold tends to vary depending on who's selling it on the market. Similar to a stock market investment, you're likely to find the metal at affordable prices, and you can sell it later at a reasonable price. The only difference with precious metals is it's something you can hold. Even if the stock market crashes, you still have gold in your possession, which will hold a certain degree of value. Remember that although the price of gold and other metals constantly fluctuates, they're suitable investments to consider.

Final Thoughts

If you're planning on diversifying your investment portfolio, you have several notable options worth considering when it comes to precious metals. When you're ready to boost your assets, it might be time to consider investing in gold, silver, and platinum. Aside from the versatility of precious metals, they can help you gain extra income and function as a safety net you can turn to when times get tough.

As the world watched on, global leaders, scientists and academics convened at the COP26 Summit in Glasgow just weeks ago, as Prime Minister Boris Johnson warned that the “doomsday clock is still ticking” in the effort against climate change. While this enormous undertaking has truly only just begun, traders and investors have no doubt been pricing new commitments into their portfolio management strategies.

All things considered, the path to a greener future is paved with investment opportunities, but this has not necessarily translated immediately to the stock market. Although the first day of trading on the London Stock Exchange following the summit saw some global mining giants take a hit, the FTSE 100 still managed to close the day out up 3.95 points, or 0.05%, at 7351.86. Typically, the markets struggle to account for any long-term view, and this remains the case post-COP26. This is especially the case considering that world leaders have mostly been speaking in terms of “phasing down”, rather than “phasing out” coal. 

For this reason, it is not exactly surprising that research* commissioned on behalf of HYCM has shown that only 45% of investors consider sustainable investing to be important to them. Without concrete and robust action to tackle climate change, it is perhaps even less surprising that caution still prevails among investors, with just 19% considering ESG investment to be a savvy investment strategy at present. 

So, what exactly is driving this mindset, and what should investors be watching as we transition to a zero-carbon economy?

‘Too much hype’ around ESG?

One potential answer to this question could be that concerns surrounding ‘greenwashing’ are deterring traders and investors from upping their investment in ESG assets. According to that same HYCM survey*, more than a third (38%) said that there is “too much hype” surrounding ESG investing at present. 

The question, then, is whether these trepidations are substantiated. The answer is yes and no; while investors are quite right to be sceptical of companies hopping on the green bandwagon with re-branding and lofty environmental claims, they should make themselves aware of genuinely green initiatives.

In the months and years to come, there will be many opportunities for traders and investors in the race to net-zero across many areas. From a growth perspective, in the capital goods area, there is a huge amount of potential in the supply chain for climate solutions. Likewise, the technology field will be a crucial enabler for climate solutions in the long-term, so investors should monitor these opportunities closely. 

At the moment, just one third (33%) of the investors surveyed* by HYCM plan to invest (or increase their investment) in green energy such as wind power, water stocks and solar energy in the next 12 months. That said, we can expect these figures to grow in line with changing environmental policy, such as a global carbon tax which would shock the stock market in the future. Green metals, such as copper, aluminium, nickel and lithium could also see gains over the medium term as their demand is expected to increase. Likewise, it is also important to note the fact that alternatives to traditional energy, such as oil, are already proving popular with traders and investors – right now, oil is one of the top traded commodities at HYCM.

Young investors will lead the charge

Another trend to be aware of is the fact that younger investors appear to be at the forefront of the shift towards net-zero. Compared with the smaller number (45%) of investors who said that sustainable investing was important to them, comparatively, the majority (60%) of younger investors aged 18-34 said that these investments were a priority, indicating a more values-driven approach towards investment.

When compared with other bodies of research, these figures stand up; research from MSCI has also shown that millennials have spurred the growth of sustainable investing throughout the 2010s – specifically, investors contributed $51.1 billion in sustainable funds in 2020, compared to the figure five years ago, which came in at $5 billion.

Traders and investors should expect these trends to stick, and this sunnier outlook will no doubt feed into the corporate mentality, as industry titans like Microsoft and Nike will be keen to establish their ESG credentials. All told, although COP26 may have failed to have an immediate impact on the stock market, the summit has likely set the tone for change over the medium to long-term, and traders and investors should ensure that they are kept in the loop with any policy changes and developments in this area.

HYCM recognises this trend and offers traders exposure to the renewable space through commodities and ESG stocks such as Tesla, and copper, which is expected to be more in demand as we build a greener future.

High Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information, please refer to HYCM’s Risk Disclosure.  

About the author: Giles Coghlan is Chief Currency Analyst, HYCM – an online provider of forex and Contracts for Difference (CFDs) trading services for both retail and institutional traders. HYCM is regulated by the internationally recognized financial regulator FCA. HYCM is backed by the Henyep Capital Markets Group established in 1977 with investments in property, financial services, charity, and education. The Group via its relevant subsidiaries have representations in Hong Kong, the United Kingdom, Dubai, and Cyprus. 

*About the research: The market research was carried out between 5th and 10th November 2021 among 2,000 UK adults via an online survey by independent market research agency Opinium. Opinium is a member of the Market Research Society (MRS) Company Partner Service, whose code of conduct and quality commitment it strictly adheres to. Its MRS membership means that it adheres to strict guidelines regarding all phases of research, including research design and data collection; communicating with respondents; conducting fieldwork; analysis and reporting; data storage. The data sample of 2,000 UK adults is fully nationally representative. This means the sample is weighted to ONS criteria so that the gender, age, social grade, region and city of the respondents corresponds to the UK population as a whole. Within this sample, 857 respondents had investment portfolios worth in excess of £10,000 – this includes all assets from bonds and currencies to commodities and stocks and shares but excludes any savings, pensions or property that is used as their primary residency.

While it has been praised for its ability to foster creativity and experimentation for both work and learning, concerns have been flagged around its riskiness. These anxieties are particularly apparent in the world of stock market trading.

Companies such as Robinhood have been celebrated in some quarters for democratising the stock market. But regulatory bodies have accused the people behind certain trading apps of manipulating users’ actions in trading. Established investors and regulatory bodies continue to reel from other tectonic shifts in market trading practices, such as the emergence of “meme stocks”, as in the case of the GameStop saga in early 2021.

To refashion a well-worn comparison, instead of likening Wall Street to a casino, is gamification truly turning it into one? Or is the influence of trading apps being overplayed, when the biggest seismic shifts to market trading are driven by social media? This article takes a closer look at these two practices to find out.

Trading has never been more fun

In principle, to ‘gamify’ means to map the mechanics of video game playing onto non-gaming scenarios. As The Conversation writes, game playing influences creativity and learning because it can “lower the barriers of established behavioural norms and routines by offering new rules and sometimes even new realities”.

However, the increasing accessibility of trading due to this added fun factor is being blamed for its destabilising influence. A new generation of young traders has emerged, riding the exciting riptide of market volatility in the same way they would from playing Call of Duty, only with little capital investment. Digital trading platform Robinhood Markets, for instance, popularised stock market trading through in-built reward systems.

Critics of gamification allege that it nurtures an addiction to trading the markets, while simultaneously minimising the dangers and hence distorting the reality of market trading. Robinhood has consequently removed some of its game-like interface features, such as confetti and lottery-like scratchcards, which allegedly incited inexperienced investors to trade the markets in a trivial way that encourages excessive risk-taking. However, these features were defended by Robinhood as a way to “cheer on customers through the milestones in their financial journeys”. By August 2021, the US Securities and Exchange Commission (SEC) began an inquiry into these practices, claiming that they were being used by online brokerages and advisers to encourage people into trading more stock and other securities thereby overtrading their accounts.

Critics of gamification allege that it nurtures an addiction to trading the markets, while simultaneously minimising the dangers and hence distorting the reality of market trading.

A social dilemma

Encouraging younger investors into the market with game-like features is not limited to trading apps. For those with even the most cursory understanding of the stock market, the impact of social media on investor trading has not gone unnoticed, as the GameStop saga highlighted. Dubbed ‘the Reddit revolt’, amateur investors used social media to influence the share price of GameStop, a bricks-and-mortar video game retailer. Members of a forum, named WallStreetBets, clubbed together to collectively buy shares in this faltering company, pushing up prices astronomically and forcing short sellers to buy back their positions in an attempt to limit their losses.

Social media was used to intensify trends and information exchanges, and the companies targeted were subsequently referred to as “meme stocks”. In one stroke, these Redditors sent a message to the hedge funds that were short-selling undervalued underdog businesses. What’s more, by codifying market rules in a David vs. Goliath, game-like battle, much of the complicated jargon around trading was stripped away.

Who holds the key to the future?

The distinction between social media’s influence and gamification is not so clear-cut. Robinhood was the app used by many of these savvy, Average Joes to upend the elite world of trading. But in the end, Robinhood stood accused of siding with Wall Street when it instigated trading halts and limited the amount of shares in GameStop that its users could purchase. As Milton Ezrati of Forbes writes, with GameStop, “there was no good or bad involved, unless stupidly taking excessive risk is somehow immoral”.

A confidence game

Following the GameStop saga, the SEC intervened to ban trading for six company names who were suspected of being “targets of apparent social media attempts to artificially inflate their stock price”. In a similar vein, Bloomberg has argued that Robinhood has made trading “so easy, and maybe even too hard to resist”. Reconfigured, gamified app trading is at odds with serious, long-term investment. It might also blunt the reality of material consequences for parties with professional investments, such as pensions and mortgages, and not just fat-cats.

However, in a recent study, Chief Economist at NASDAQ, Phil Mackintosh, downplayed the long-term influence of trading apps, citing home-working and lockdowns as reasons for the surge in the use of these platforms. In the same report, Sapna Patel, Head of Market Research at Morgan Stanley, also dismissed concerns that gamification is increasing overall risk levels. While increased accessibility may help users navigate the market, the content is what rules the roost: “the what to trade, the when to trade and how often to trade, is driven by social media influencers, whether it's the Elon Musks of the world tweeting about GameStop, or it's the Reddit-like platforms where they're making recommendations. That's what's driving retail to trade more so”. Academic reports have similarly reinforced this view. 

Balancing the scales?

There’s a case to be made for levelling the playing field. And markets are, and always have been, risky places in which to dabble, for professionals and the retail crowd. Gamified platforms do not explicitly encourage this volatility, but they can intensify it. There’s a danger that participants can lose large amounts of money on these platforms, perhaps because certain behaviours are encouraged by design.

Looking back to the events surrounding GameStop in early 2021, we can see how social media sparked an unpredictable contagion. Given the difficulty of regulating social media, this is a broader and more fraught conversation in its own right. After all, it wasn’t until Elon Musk sent one of his infamous tweets that GameStop’s stock price soared like a SpaceX rocket.

Cult Wine Investment’s view is that alternative asset classes not only diversify an investment portfolio but de-link it from the ups and downs of the economic cycle. Fine wine in particular has seen incredible stability during some of the most economically turbulent times of our recent past.

Whether it is fine art, wine, vintage cars, scotch, or even a Hermes handbag, a new breed of deep-pocketed and blue-chip investors have the ability to transform personal hobbies and interests into financially beneficial investments. As with any investment, this new asset class comes with challenges, being naturally harder to sell and more subject to personal preferences of the owner. However alternative assets often deliver higher returns than shares in stock market-listed companies.

A source of stability

Historically, investors have seen the price of fine wine display relative stability during periods of wider economic volatility. The most recent example of this was during the COVID-19 pandemic which hit in early 2020. Fine wine’s downturn was both shorter and less severe than most mainstream financial investments, including government bonds that saw huge volatility during this time. At its 2020 low, the global marketplace for fine wine trade, Liv-ex 1000, had only declined by 4% compared with double-digit losses in most equity markets. Even assets that are traditionally considered ‘low-risk’ such as gold, saw greater price swings over these periods. Fine wine also tends to recover quickly and deliver positive real returns even during periods of higher inflation, such as we’ve seen in 2021.

The reason for such stability is due to a number of factors including supply constraints. Only specific vineyards that can produce top quality wines, creating a market of product scarcity. This means that the fine wine market cannot be oversaturated with supply, as with other asset classes such as cars and watches.

This demand-supply balance is aided additionally by the fact that leading producers only make a finite quantity of each vintage each year, with volumes strictly controlled by various authoritative bodies. Consequently, supply of fine wine cannot change by sudden shifts in policy the same way government and central bank policies can influence financial markets. With supply constricted, this can help keep price performance consistent and above the rate of inflation in different economic backdrops.

Fine wine is an antidote to inflation

In more recent times, fine wine can provide a substantial long-term hedge against an uncertain inflation outlook.  As the global economy recovers from the COVID-19 downturn, ongoing government spending and high savings rates are unleashing pent up consumer demand, causing inflation to accelerate. For example, the US Consumer Price Index (CPI) hit 6.2% year-on-year in October, a 31-year high. UK inflation hit a 10-year high in October. Inflation surprises have triggered bouts of equity volatility as investors gauge possible shifts in monetary and government fiscal policies. Should a sustained rise in inflation take hold, major central banks could tighten policies quicker than expected, leading to a more volatile backdrop in mainstream financial indices.

This is where real assets, such as fine wine, can shine. It has a sustained track record of delivering positive, real returns over the long term that have outperformed the IMF’s worldwide CPI inflation rate.

The unique benefits of fine wine investing

Beyond the pure financial benefits, fine wine has a lot to offer.  Investors’ personal passion in such investments, and indeed Cult Wines itself, goes beyond a physical financial transaction. Investing in fine wine allows access to, simply put, more opportunity: elite experiences; like-minded wine enthusiasts; the exploration of new grape varieties, producers and products. Investments at this asset class level are therefore both a personal and financial choice.

In more recent times, fine wine can provide a substantial long-term hedge against an uncertain inflation outlook.

Investors with Cult Wine Investments can gain access to fine wine markets from a lower base, slowly increasing their portfolio size over time, rather than buying big on their first investment. Fine wine investments can also bring flexibility, easily sold in variable sizes at different times, as and when needed.

Wine is also unique as an asset class in the way that it can be consumed. The more fine wine that is consumed, the less supply of fine wine in the market, the higher prices rise. This trait distinguishes fine wine from traditional assets as well as many other alternatives and enhances its stability over long time periods. In addition to supply limitations, demand for fine wine goes beyond its benefit as a financial instrument. This does not mean fine wine is immune to downturns, however, as there is a significant continuous demand for the product itself, rather than just as an investment, wine can temper most negative price fluctuations. This analysis, paired with the former standpoint regarding wine investment as more than simply a financial exchange further demonstrates how fine wine investment really is surging ahead in investment potential.

Technology driving ongoing expansion

As demonstrated in the results of the Knight Frank’s Luxury Report, wine has seen impressive returns in recent months, rising 15% in the past year. Helped by improving technology, new producers and regions are gaining the attention of global buyers, driving the overall growth of fine wine investments. In 2020, the best performing regions within the Liv-ex 1000 were Italy, Rhone and Champagne rather than Bordeaux or Burgundy, which you’d imagine to be the traditional heavyweights in the market. What this indicates is that, much like a new entrant to the exchange, many corners of the global fine wine market have yet to be fully discovered by a global audience, creating opportunities for alpha generation.

These positive trends are set to continue as investors can expect to see returns on fine wine steadily rise as economic recovery continues and economies reopen. It’s ultimately a really exciting time for the wine investment market and a great time for those who are looking to begin investing in wine as an asset class, either to diversify their portfolio or simply because they love wine. It can provide great price stability against current inflation and is a ‘low-risk’ option for those who are unsure about alternative asset classes.

“Over time, I hope that we are seen as a metaverse company and I want to anchor our work and our identity on what we’re building towards,” Zuckerberg told a virtual conference. “We’re now looking at and reporting on our business as two different segments, one for our family of apps, and one for our work on future platforms. And as part of this, it is time for us to adopt a new company brand to encompass everything that we do, to reflect who we are and what we hope to build.”

Following Zuckerberg’s announcement, “metaverse” has become an even bigger buzzword in tech, with plenty of investors now wanting a slice of it. But what exactly is the metaverse? And should you also consider investing in it?

What Is The Metaverse?

The metaverse is far from being a new concept. The term “metaverse” was coined by science fiction author Neal Stephenson in his 1992 novel Snow Crash. Stephenson used the term to mean a computer-generated universe, which is now understood as an immersive virtual world where people come together to play games and socialise but also to work. 

In a founder’s letter, Zuckerberg explained that the metaverse will be defined by “the feeling of presence.”

“In this future, you will be able to teleport instantly as a hologram to be at the office without a commute, at a concert with friends, or in your parents’ living room to catch up,” Zuckerberg said. “This will open up more opportunity no matter where you live. You’ll be able to spend more time on what matters to you, cut down time in traffic, and reduce your carbon footprint.” 

Metaverse users will be able to create avatars that resemble their real-world appearance, with Zuckerberg insisting that avatars will become as common as profile pictures on social media. As technology improves, people will be able to join the metaverse with increasing ease, simultaneously engaging with the physical and virtual in mixed reality. 

Metaverse Use Cases

While the use cases for the metaverse are essentially only limited by human creativity, some ideas make more business sense than others. Here are three common examples: 

Games: Gaming is held in close association with the metaverse and understandably so, with games such as Minecraft and Fortnite, as well as platforms such as Roblox, already offering a taste of the metaverse. However, in the coming years, games are set to become increasingly immersive, increasingly social, and increasingly interactive. 

Travel: There is huge potential for the metaverse to someday allow users to visit tourist destinations in multiplayer mode via telepresence, potentially making world travel more accessible for millions of people. 

Commerce: The metaverse would allow retailers to release products into games alongside their real-world product launches. Vice versa, metaverse users will likely design their own brands and products, which may then come to exist in the real world too. 

Metaverse Industry Outlook

Many believe that companies and investors alike cannot ignore the emerging online marketplace that is the metaverse, arguing that it would be a repeat of companies dismissing the emergence of the World Wide Web. Just like the World Wide Web, which now plays a monumental role in day-to-day life, the metaverse will create new marketplaces that mirror those of the physical world. 

The potential in this space is huge, with platforms such as Roblox already seeing significant success. However, the market is expected to double with ease over the next few years. According to ARK Invest, revenue from virtual worlds will compound 17% annually to $390 billion by 2025. Meanwhile, Bloomberg Intelligence predicts that the market opportunity for the metaverse could reach $800 billion by 2025.

Investing In Companies Engaged In The Metaverse

Investors may look to gain exposure by investing in companies that are actively working on metaverse applications, such as Meta Platforms (Facebook), Microsoft, and Roblox. 

• Meta Platforms: As Zuckerberg has made the world well-aware, Facebook is in full metaverse mode. Prior to their rebranding announcement, in mid-October, Facebook said it planned to hire 10,000 employees in Europe to build the “metaverse”, stating its construction would take place over five years. The company called its work in Europe an “exciting time” for European tech.
• Microsoft:  Microsoft CEO Satya Nadella has spoken about the concept of an “enterprise metaverse” which would enable the company to expand its dominance in the professional software market. 
• Roblox: As a global platform that brings people together through games, Roblox already embraces many metaverse aspects today with its own digital currency and the virtual social experiences that it enables. 

Metaverse ETFs

For investors who are struggling to decide which metaverse stock is best to invest in, an option worth considering is investing in the Round Ball Metaverse ETF (META). Launched in June 2021, META is the first index globally designed to track the metaverse’s performance and has already amassed $176 million in assets. The fund tracks the Ball Metaverse Index and invests in global public companies actively involved in the metaverse. 

The vast majority of META’s holdings are US equities (80%), with the rest spread between Asian countries such as China, Singapore, Japan, Taiwan. The three top holdings are NVIDIA (8.99%), Microsoft (7.26%), and Roblox (6.79%). Since starting out in June, META has risen by almost 3%.  

Summary

While the metaverse is by no means a new concept, Facebook’s recent push will spur further investments into the space. In the coming years, society is almost certain to dive deeper into a digital economy and virtual world, significantly altering life as we currently know it.  

This article does not constitute financial advice. The author and Universal Media Ltd. are not qualified financial advisers. All investments are made at the reader’s own risk.

What Are Stablecoins?

Stablecoins are a digital currency pegged to a “stable” reserve asset such as the US dollar or gold, designed to reduce volatility relative to unpegged cryptocurrencies such as bitcoin. Because the price of stablecoins is pegged to a reserve asset, they bridge the worlds of crypto and fiat currency, such as the pound sterling, the euro, or the US dollar, significantly lowering the volatility of stablecoin when compared to a cryptocurrency such as bitcoin. Consequently, some consider stablecoins to be better suited to almost everything, including everyday commerce and making transfers between exchanges. 

How do stablecoins work?

As the name suggests, stablecoins are designed to function with stability. Multiple sources back stablecoins, including fiat currency, but also other cryptocurrencies, precious metals and algorithmic functions. However, a crypto’s backing source can influence its risk level. For example, a fiat-backed stablecoin may have greater stability because it is linked to a centralised financial system that has an authority figure, such as a central bank, that can control prices when valuations become volatile. However, a stablecoin that isn’t linked to a centralised financial system, such as a bitcoin-backed stablecoin, may change dramatically because, in part, there isn’t a regulating body to control what the coin is pegged to. 

Fiat-backed stablecoins: Investors use their fiat currency, whether it be US dollars or euros, to buy stablecoins that they are later able to redeem for their original currency. Unlike other cryptocurrencies that can fluctuate dramatically, fiat-backed stablecoins aim to have limited price fluctuations. However, this does not mean that there is no risk involved. It’s important to note that they are still relatively new and have a limited track record. 

Crypto-backed stablecoins: This type of stablecoin is backed by other crypto assets, and because this backing asset can be volatile, crypto-backed stablecoins are overcollateralized to ensure the coin’s value. These assets are more volatile than fiat-backed stablecoins. Consequently, as an investor, it’s wise to keep an eye on how the coin’s underlying crypto asset is performing.  

Precious metal-backed stablecoins: These coins use precious metals, such as gold, to help maintain their value. They are centralised, which may be considered a disadvantage by some. However, this also protects the coins from crypto volatility. 

Algorithmic stablecoins: Algorithmic stablecoins are often considered to be the most difficult to understand as they aren’t backed by any asset. Instead, they use a computer algorithm to prevent the coins’ value from over-fluctuating. For example, if the price of an algorithmic stablecoin is pegged to $1 but the stablecoin becomes higher, then the algorithm would release more tokens automatically to bring the price back down.  Similarly, if the value drops below $1, then the algorithm would reduce the supply to bring the price up again. 

The benefits of stablecoin

As well as reduced volatility, there are several benefits to stablecoins:

• Earn interest: Users can earn more interest on a stablecoin investment than what most traditional banks would offer. 
• Trade and save assets: A bank account isn’t required to hold stablecoins and they’re typically easy to transfer. Stablecoins’ value can be sent around the world, even to places where the local currency may be unstable. 
• Affordable money transfers: The transfer fees for stablecoins are typically very affordable. 
• Transfer internationally: Thanks to the low transaction fees and fast processing, stablecoins can be a great choice for transferring money to different countries. 

What are the risks of stablecoin?

Despite the benefits of stablecoin, there are nonetheless several risks to be aware of:

• Counterparty risk: With stablecoins, there is the risk that a bank run could lead to the price of the coin dropping substantially. This is because, by trusting a third party to print money and keep a cryptocurrency stable, there’s the possibility that the dollars could be fractionally reserved rather than being fully backed. 

• Centralisation risk: A second major risk is that accounts can be blocked, embezzled, or accessed by an unauthorised third party. Centralisation risks also apply to fiat currencies — when a central authority can print money without oversight, a potential consequence is hyperinflation. 

• Algorithm manipulations: Another major risk to consider is algorithm manipulations. Most decentralised stablecoins live within smart contracts in protocols such as Ethereum. As such, there’s the risk that the algorithm that keeps the currency stable could fail or even be manipulated by a third party. 

While there are many great benefits to stablecoin, there are also significant risks that need to be thoroughly researched and considered. Additionally, there are also many different issuers of stablecoins, with each offering its own policy and varying degrees of transparency. Stablecoin may be highly appealing, but it’s important to tread as carefully as you would with any other type of investment. 

This article does not constitute financial advice. The author and Universal Media Ltd. are not qualified financial advisers. All investments are made at the reader’s own risk.

Most financial advisors tell their customers the best thing they can do to grow their wealth after getting rid of debt and preparing for the future is to invest. Of course, there are various ways to grow your money through investing, and countless vehicles to use for your trading strategy. Finding the right solution for you can take some significant time and investigation.

For the majority of people, the most common areas to explore will be either share and stock trading, or forex trading. With shares and stocks, you pay for portions of a company, which you can trade or sell at a later stage. With forex, or FX, you’re making money by buying foreign currency and exchanging it from one currency to another. Let’s explore whether FX could be right for you.

What is Forex Trading?

FX or foreign exchange trading is one of the most actively traded environments in the world. Companies, banks, and individuals alike all carry out huge transactions on a regular basis. While much of the foreign exchange that happens every day is done for practical reasons, most currency conversion occurs as a result of forex trading. The amount of currency big investors choose to convert in a day can even lead to price movements for some currencies, making the market more volatile. Although FX might seem quite complicated, it’s much simpler than you’d think. The process starts with choosing a pair, or two types of currency that you can trade against each other, like EUR/USD.

Unlike other forms of investment, forex is usually quite fast-paced, as it requires users to act on slight changes in the value of a currency to make the biggest profits. You’re constantly working finding the most valuable lots for your portfolio. For beginners, it can be a little tricky to get started, which is why it’s so valuable to read guides that explains the considerations involved when investing in foreign currency in Australia when first getting started.

Is FX Trading Profitable?

For those looking to grow their wealth, the right forex trading strategy can be extremely beneficial. There are plenty of people out there who have made money by trading regularly in the foreign exchange market – but not everyone is suited to this task. If you’re looking for a more long-term solution where you can invest in something and leave your money to grow over time, this probably isn’t the environment for you.

Forex is all about speed and timing. You need to ensure you’re acting as quickly as possible when little changes happen in the market, or you could risk losing a lot of cash. However, if you have the time and skills to focus a decent amount of attention on this type of trading, it could be a powerful tool. As with most forms of wealth building, it will be up to you to determine how much risk you can take on as a trader, and whether the forex environment is a good place for you to begin exploring. There are always plenty of other options if you decide forex is too confusing.

If you go to the doctor complaining of severe joint pain in the knees, the doctor will likely take you through diagnostic screening questions to see if your symptoms meet the criteria for various diseases, such as rheumatoid arthritis.

A stock screener is just like a diagnostic screener. As the investor, you answer questions based on your unique goals and portfolio, and the screener software spits back stocks that fit those criteria.

Just like with diagnostic screeners in medicine, screening stocks in this fashion is just one step in the process of finding the right stocks. You should always confirm your results by evaluating each stock’s fitness for your portfolio through your own research.

It’s also important to assess your financial situation and define your goals. As you can probably guess, this should happen before the screening stage, because your circumstances and goals will define your criteria.

To recap, here are the steps you should follow when screening for and selecting stocks:

1. Examine your circumstances and define your goals
2. Find stocks using a basic or advanced stock screener
3. Confirm findings through your own research

Choosing a stock screener

As you can see above, you have choices when it comes to how comprehensive you want your stock screener to be. Some screeners offer both basic and advanced versions – typically with tiered pricing or by subscription – while others are either free/basic or advanced/customizable only.

In this article, we’ll cover the benefits of advanced stock screeners, how to use them, and what kinds of investors they’re best suited for.

What is an advanced stock screener?

Think of the difference between how Macs and PC computers are marketed:

• Mac: Ease of use, good for beginners who don’t want or know how to make decisions about their computer’s operations and interfaces
• PC: Operations and interfaces are highly customizable, giving you more control, but this requires more experience and knowledge. With great power comes great responsibility!

Basic stock screeners are the Macs here. They’re great for when you’re first getting started investing, because they offer standard, simple metrics, such as market cap, P/E ratio, gains/losses by time period, share volume, etc. The key takeaway is that both basic and advanced stock screeners are useful, but for different types of investors.

Why should I use an advanced stock screener?

If you’ve been in the stock game for a while, you might be ready to get more hands-on with your stock screening process. Because advanced stock screeners offer a wider range of customizable metrics, they give you the chance to apply all that knowledge you’ve been gathering in ways that are more tailored to your unique portfolio.

In other words, they give you more control.

Are there downsides to advanced stock screeners?

Think back to the Mac vs. PC example. If you don’t know a lot about computers, using a PC with highly customizable operations isn’t very useful to you, because you don’t know what any of the options mean. In fact, it will probably make it harder for you to use the computer!

If you’re new to stocks, get your feet wet with the Mac of stock screening: basic stock screeners. As you get more familiar with stock trading through experience, you’ll finetune your portfolio and financial goals, and you can decide at any time to get your hands a little dirtier with advanced stock screeners.

Recap: Primary cons of advanced stock screeners

• Not good for beginners who know little about the different criteria
• Typically focus only on quantitative data, so you’ll need to consider qualitative factors separately
• Industry-specific blindspots

How to get started with stock screeners

TheBalance provides a great starter list of free and freemium (that is, free/basic and subscription/advanced options) screening software. Starting with free basic versions can be a great way to try out different screeners and find which one you like best, even if your goal is to eventually use an advanced screener.

Summary & takeaways

Remember, while stock screening is a crucial part of building your portfolio, it’s only one part of many. Follow the steps below to get the most out of both basic and advanced stock screeners:

1. Define financial goals and criteria
2. Use a basic stock screener (beginners) or advanced stock screener (veteran investors)
3. Finetune portfolio through separate research, looking out for industry blindspots and considering qualitative factors not included in the screener