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

Where should the everyday investor start?

One option that is growing in popularity is app investing. With an estimated 3.2 million users across the UK’s top 10 investment apps, it is evident that the number of people looking to invest for their future is only growing. However, still being new territory for many, exactly how accessible are investment apps for beginners? 

What are the risks and what should new investors know before committing their hard-earned money?

Historically, investing has been associated as something for the wealthy, with many believing it requires detailed knowledge about stocks and other investments such as cryptocurrency or precious metals. In fact, the research showed that 50% of people are being put off investing due to a lack of knowledge and confidence. But app investing is challenging that stereotype, with the hope of encouraging more to try it out.

With minimal fees involved and the option to invest small amounts at a time, fintech apps are making investing a viable option for all. Using a well-designed platform, everyday investors can begin to grow their wealth from the touch of a smartphone. In-app discussion creates a sense of community, by allowing fellow users to share their insights, experiences, and opinions with one another, giving beginners vital knowledge about the fundamentals of investing. 

To encourage users to view app investing as a feasible option, many apps are also offering free trials, giving investors the chance to experiment with practice accounts. In addition to providing an insight into how the platforms work, this can offer users a low-risk opportunity to build their confidence by learning how to manage a portfolio and make trades, before involving real money. 

While app investing offers a number of benefits, users must ensure proper research is carried out. An understanding of the service is paramount in mitigating risks. Before involving money, users should look at the credibility of the app they are interested in and other important information such as its founder credentials and app regulations, as well as past reviews, both from users and the industry. This can help provide a clear picture of the positives and negatives of each app, allowing the user to make an informed decision about which platform can best support their financial goals.  

In addition to background information, users should also be aware of any fees and the service included within this price. Being knowledgeable around this is crucial, particularly for beginners investing smaller sums, where fees may eat into any returns. New users should begin by looking at the terms and conditions of the app to understand what they are signing up for. For example, delays between requesting cash and it being received can often be overlooked, which can affect overall return, so users need to know where they stand. 

When starting to invest, people should look to spread their money in multiple smaller amounts rather than one large sum, to help spread the risk. Looking at personal finances and only investing what is affordable is critical to managing money effectively and avoiding any financial difficulties down the line. Individuals must be disciplined and rational; markets can go up and down, so it’s important to avoid reacting quickly to market volatility.

With more people beginning to download and use investment apps, what does the future look like for fintech?

One thing is for certain, it’s showing no signs of stopping. AI is already being used for trading bots, meaning users can expect to see the role of AI increase and diversify across platforms in the future. In addition, apps that round up total spends and invest the difference when online shopping continue to emerge in the market, allowing people to make savings that adapt with their spending habits.

While the future of app investment looks to be a prosperous one, with more users comes tighter regulation. More stringent checks during onboarding are to be expected, to assess individuals’ affordability and investment competence, preventing financial fallout. App investing is an innovative solution that enables users to continue to find new and adventurous ways to manage their money and explore everything from stocks and shares and cryptocurrency, right through to precious metals such as silver and gold.

About the author: Hamzah Almasyabi is  CEO at MintedTM, an investment platform that allows individuals to buy and sell precious metals.

Here’s a representative quote from Mr Tenev’s piece:

“One wonders whether the push to ban payment for order flow and overregulate modern design is about investor protection or really about control.”

Actually, that’s one of the milder quotes. Elsewhere he calls his critics “market gadflies, academics and out-of-touch investors.” 

The OpEd continues Tenev’s long tradition of using obfuscation and deflection to avoid discussing any difficult questions posed by Robinhood’s “free” brokerage model. Indeed, the very title of the piece “Robinhood’s Users Come Under Attack” tells you right out of the gate that Mr Tenev isn’t here to dialogue with critics but rather to belittle them and deflect their criticisms.

This should come as no surprise to those who have followed Robinhood for any length of time. They have been hiding behind their users for years now, including recently paying a $65 million fine to settle charges with the SEC for “Misleading Customers About Revenue Sources and Failing to Satisfy Duty of Best Execution.”

Robinhood is the Facebook of eBrokers today. Like Facebook, they have built a user-as-product revenue model where they provide “free” services to their users while leveraging user data to get paid by their actual customers. In the case of Facebook, the real customers of Facebook are the advertisers. In the case of Robinhood, the real customers are the wholesale market makers that pay Robinhood for the privilege of executing user trades. This practice is known as payment-for-order-flow (PFOF). Like Facebook, Robinhood has a built-in conflict of interest with its users when it comes to its business model.

We’ve all gotten a look behind the curtain at Facebook recently thanks to whistleblower Frances Haugen. We know that Facebook prioritises “engagement” and “stickiness” even at the expense of mental health. Facebook is rewarded when its advertisers make more money selling stuff to Facebook’s users. Facebook does not make more money for improving the mental health of teenage girls. We’ve seen what happens when push comes to shove, and we’ve seen that Facebook knows what is happening and has been unwilling to make needed changes that would impair Facebook’s present and future profits.

Robinhood makes money when its users buy and sell more frequently because it gets paid PFOF by wholesale market makers when its users make a trade. No trades, no pay. Robinhood won’t disclose exactly the terms of how it is paid by wholesale market makers, but they do acknowledge that they earn a “percentage of the bid-ask spread.” So, what exactly does this tell us? It tells us two things:

1. Robinhood makes more money when buying and selling happens more frequently; and
2. It makes more money when the bid-ask spread is bigger, which means that they make more money when the trading happens in illiquid securities.

These are the indisputable financial incentives of Robinhood as a business. These are its profit motives. These are the incentives that drove massive revenues for Robinhood during, for example, the GameStop (1Q21) and Dogecoin (2Q21) trading frenzies. Mr Tenev has attempted to portray Robinhood as a victim in the GameStop frenzy (as he has again done in his WSJ OpEd) but no single event in 2021 did more for Robinhood’s market value than the GameStop trade.

The data strongly suggests that Robinhood is getting paid more per trade than any other broker.

Mr Tenev regularly argues that “brokerage firms have used this practice for decades” and that this is nothing new. That is true as far as it goes, but no brokerage firm has ever used it at the scale and efficiency of Robinhood. Moreover, what Robinhood has not told us is what percentage of the bid-ask spread Robinhood takes. The data strongly suggests that Robinhood is getting paid more per trade than any other broker. Here is how Piper-Sandler Managing Director Richard Repetto, CFA put it in a recent industry note on 2Q 2021 retail PFOF.

“HOOD earned the highest average rate among the large eBrokers on both equities and options in 2Q21. Innovation in charging for PFOF enabled HOOD to earn the highest average rate per share on both equities ($0.0023) and options ($0.0060) in 2Q21. We suspect that the elevated average rate earned is driven by (1) more profitable order flow, (2) execution quality and (3) payment methodology (charging a fixed rate per spread on equities rather than fixed rate per share). HOOD is the only eBroker to charge a fixed rate per spread on equities.”

A cursory glance at Robinhood’s most recent quarterly report (2Q 2021) informs us that 80% of Robinhood’s 2Q21 revenues came from “transaction-based revenues.” Cryptocurrency transactions accounted for 51.6% of these transaction revenues, options made up 36.6%, and equities only 11.5%.

In Mr Tenev’s WSJ OpEd, he decries his critics who “insist that our platform is gamified.” With classic rhetorical deflection, he never answers the question as to whether or not the platform is actually gamified but instead asks: “Investing isn’t a game, but must it be grim and difficult to understand?”

If Mr Tenev truly wants to address the concerns of Robinhood’s critics, then there is a very simple way that he can do so. Show us the data.

Show us how Robinhood chooses which “lists of stocks and exchange-traded funds that help people discover investments and notifications about stock movements that help them to stay informed.” Show us how Robinhood decides what cryptos and options they put in front of users. Show us what percentage of the bid-ask spread Robinhood gets paid for its payment for order flow (PFOF) on equities, options, and crypto.

If Mr Tenev truly wants to address the concerns of Robinhood’s critics, then there is a very simple way that he can do so. Show us the data.

Given what we know about Robinhood’s profit incentives, should we trust Robinhood to decide what “lists” and “notifications” to put in front of us? Should we trust Facebook to decide what content to put in front of our teenage daughters?

The answer is clearly no – and no amount of smooth PR deflection should suffice to keep us from seeking answers to such important questions. Robinhood’s own statements and filings show beyond a shadow of a doubt that Robinhood is driving its users into the most speculative areas of the markets. All we know for a fact is that this is extremely profitable for Robinhood.

It’s often said today that “data is the new oil.” It is true. Companies like Facebook and Robinhood that pursue the user-as-product business model are not what they appear to be. They are, in truth, digital resource extraction businesses. They extract data, refine it, and sell the “digital oil” to their actual paying customers (advertisers and market makers). They use user data to nudge their users towards the behaviours that benefit their paying customers.

In exchange for trusting such companies with massive amounts of our data, we should demand that they be transparent about how they are using this data to nudge customer behaviour.

If they won’t be more transparent, then there is only one other option: stop using their platforms.

The emergence of bitcoin private in the industry has expanded the opportunities among many traders. They are able to have multiple investment options depending on their goals and priorities. But deciding which crypto asset to take is not always an easy choice. There has to be a proper assessment of the pros and cons, taking into account the market stability and potential growth. A good choice for your trading and investment journey is the Bitcoin Evolution app.

As of January 2021, there are more than 4,000 cryptocurrencies in existence. Each one has its own unique advantages from the developer’s perspective. But the truth is, standing in the market would distinguish profitable crypto from a losing one. For investors, it is very crucial to exercise prudence when making such a decision. It’s like any other business venture, and you have to be certain that the risks are manageable and the gains are high. 

Why Can Bitcoin Private Be A Good Choice? 

Essentially, bitcoin private was born out of community-driven initiatives way back in March 2018 from the existing bitcoin and Zclassic hard fork. The developer’s main goal for introducing this new crypto in the market is to combine the inherent privacy features of the Zclassic crypto with the security, flexibility, and popularity of bitcoin. These combined features enhance the network by having transparent and shielded transactions. For instance, the sources and destinations of all funds and amount values are transparently and securely stored on the blockchain. On the other hand, the shielded transactions keep the data into a special section of a block, allowing verification among users but very difficult to decode for any third party. 

For users who value privacy and anonymity, bitcoin private can be the best choice. It has specific technology that guarantees better security and quicker processing than other cryptos like bitcoin. Despite this tight protection, the coin’s database remains open-source, allowing viewing and verification among participants. There are also no intermediaries during transactions between users, given the decentralised system where it operates. 

What Makes Bitcoin Private Different? 

Enhanced security and privacy is what bitcoin private offers among crypto traders. It gained much prominence in the middle of the 2010s, but eventually, some technical issues led to the decline of transactions. Problems on speed, cost, and energy consumption have arisen as higher transaction volume resulted in backlogs. Some analysts have considered this dilemma as evidence that bitcoin cannot still stand to become a unit of exchange in its current state. Like bitcoin, the total coin supply for bitcoin private is also set at 21 million. While its platform maintains anonymity, all transactions can still be traced in actual scenarios. Likewise, despite keeping all the data private, it is possible to identify users with their public keys. To address this matter, bitcoin private worked on merging bitcoin’s protocol with the privacy features of Zclassic. Presently, users can generate either public or private addresses, allowing redemption of transactions to either address type. 

Examining The Status Of Bitcoin Private

During its initial year in the industry, bitcoin private was widely welcomed due to its privacy and security features. It ranked 46th when it was launched and had a market share of around $550 million. Eventually, it struggled to make progress for several factors, such as pre-mining of 96.6% of its total amount of tokens with only 3.4% remaining for miners. 

The present status of bitcoin private on smaller exchanges is not as good as it was then. In fact, just a year after its launching, it already faced struggles to survive in the industry. According to recent reports, the crypto was given an “F” rating on the industry’s asset score. However, it confronts uncertainty with several delistings from its remaining exchanges. 

Important Note

Bitcoin private is one of the thousands of cryptocurrencies in circulation today. Like other virtual assets, it confronts issues affecting its stability and growth in the market. Investors have to acknowledge that the crypto industry is highly speculative and unpredictable. Meaning that the value of digital currencies may spike or plunge over time depending on several factors. Exercising prudence in crypto investment is always a good idea.

It comes down to personal choice, but as life becomes harder for most people nowadays, they need to invest even in small capitals is an ideal way of earning an extra on the side. Today, when people talk about small investments, cryptocurrency is a viable option. It does not require a huge sum of money to get started, but it’s an advantage if enough budget is allocated to achieve financial targets. On the one hand, real estate is often associated with large investments. This type of investment has also been generating more profits among investors because the demand is constant. Both of these investment types can be included in your portfolio; that’s what diversification is all about. But if you’re stuck between choosing only one, the following facts may be of help to make the right decision. To start an investment one should use a regulated crypto trading platform such as the Bitcoin System.

Overview Of The Cryptocurrency Industry

Cryptocurrency started way back in 2009, with bitcoin as the first coin ever introduced to the market. It aimed to simplify payment transactions and served as a better alternative to the existing financial system. But its platform has a wide-ranging use to facilitate other transactions such as trading with other types of currencies. Many investors were attracted to the opportunities that it offers, and it proved to be a good decision when some of them were able to acquire more profits. There were investors who even became millionaires in a short span of years. Presently, there are over 4,000 cryptocurrencies that cater to the needs of millions of users worldwide. Most people see this trading platform as a practical way to secure and grow their assets. 

Analysing The Real Estate Market

Some financial experts believe that investing in real estate is one of the best ways to save for retirement and build wealth. It has been a steady market that has already stood the time as an investable asset. There are multiple ways that you could invest your money in this industry. You may invest with developers, house flipping, wholesaling, and Real Estate Investment Trusts, among others. This is a popular type of investment, and it offers promising advantages that other assets may not be able to provide. 

So, Which Is Better Between The Two? 

To answer the question, you have to look at the pros and cons of each investment type. They are both good investments, but depending on your priorities, you can judge based on their potential to grow your assets. 

Fact #1: Cryptocurrency has a low barrier to entry because investors can purchase coins with smaller capital. On the other hand, real estate is costly to own and maintain. You may have to allocate thousands to millions of funds to make an investment. There are also responsibilities that real estate owners have to comply with, unlike the case of cryptocurrency, which is decentralised, and users can make trading transactions on a peer-to-peer basis. 

Fact #2: Real estate can bring a steady source of income through sales and monthly rentals. It can also provide tax breaks and deductions that could reduce operational costs. On the other hand, cryptocurrency can have long-term gains, just like what happened to successful bitcoin investors. Other coins also have the potential to grow small investments, especially when the market is performing well.

Fact #3: Cryptocurrency is not a tangible asset, meaning you cannot hold a bitcoin in your hand because it’s a digital currency. It can expose your asset to cyberattacks, and the lack of transparency may make it hard to determine the exact value of a coin. On the other hand, real estate is a tangible asset that has intrinsic value. It is also a necessity as people will always need a place to live, work, and do other things. 

Fact #4: Real estate is not as liquid as other investment types, meaning it cannot be traded quickly. It may take several months or years to find a buyer for a property. On the other hand, cryptocurrency is highly volatile, meaning the prices of coins may be highly unpredictable due to factors at play. Investors may need to study the market properly in order to make sound trading decisions. 

Conclusion

Cryptocurrency and real estate are both good investment options. Whether which one is better would primarily depend on your criteria. You have to weigh the pros and cons and decide whether you can handle the risks and requirements for your chosen investment. Likewise, you may consider investing in both vehicles because it’s always possible as long as you have enough capital. 

A gold IRA refers to a specialised individual retirement account. You’re enabling investors to acquire gold and other precious metals in the form of bars, bullions, and coins to be part of their retirement investments. When you invest in gold through a gold IRA, you can have peace of mind knowing your precious metals are safe from the start. This is because gold serves as a protection against inflation and other market crashes. However, setting up this retirement account can be complicated when you don’t know where and how to start. Read on to learn how to invest in a gold IRA with these five easy steps. 

1. Understand How The Account Works  

Before you can officially set up your gold IRA, it's best to know if this retirement account can work for you and your financial situation. To get started, below are a few things you need to know: 

• Type of account: You can choose between the traditional IRAs or Roth IRAs. Opening a traditional account can be a good option if you want to pay the taxes after withdrawing the money. However, it will be best to have a Roth account if you're going to settle your tax obligation before putting money into your account.
• Fees: When you open an account, you may be required to pay some fees. These include set-up fees, storage fees, management fees, and many more. You may save some money on fees and other charges depending on what type of account you choose. 
• Contribution limits: Your age will be the basis for how much you can contribute to your gold IRA. For example, your contribution limit would be up to $7,000 if you're over 50 years old and $6,000 if you're under 50. 

There are many things to keep in mind when opening a gold IRA. As such, you should check out a number of resources before committing.

2. Pick A Gold IRA Company  

Now that you're familiar with the essentials of a gold IRA, the next step is to choose a company that can help you open an account, along with other tasks such as transferring funds and purchasing precious metals. A gold IRA company may also serve as your account custodian since they can also assist with the necessary paperwork and comply with the Internal Revenue Service (IRS).  

Picking a gold IRA company should be done thoroughly if you want to achieve the best possible outcome. For instance, it will be best to consider the following factors when making a selection: 

• Reputation: Check how long has the company been in the business of helping and managing retirement accounts efficiently and in a timely fashion. Remember, knowing the reputation of your prospect is crucial since you'll be closely working with them for your gold investments,  
• Account fees and policies: Find out whether your prospect is charging various fees. The standard fees in a gold IRA can include flat-rate and scaled fees. If they provide a flat-rate fee, you may be paying a fixed amount of costs for your account. However, if the only option is the scaled fees, you may be paying more depending on the negotiations between you and the company.  
• Customer service: Make sure the IRA gold company you choose has excellent customer service. If you have concerns about your account, they should have convenient and efficient ways to contact you. That way, you can rest knowing your account custodian is available whenever the need arises.  

 3. Fund Your Account 

Now that you’ve found the right company for your investment, the next step is to fund your account.  By doing so, you can start investing. Typically, funding your gold IRA can be done in the following ways: 

• Cash: This is the common method of allocating your account with funds for investing purposes. Whether you want cash, check, or wire transfer, the options are endless when it comes to this funding option.  
• Transfer: This refers to the process of transferring funds from your existing retirement account to your gold IRA. With this method, your current IRA custodian will send funds to your gold IRA custodian without taking any additional cash. 
• Rollover: This refers to the process of rolling over part of your retirement account into a gold IRA without spending any additional cash. Under this method, your IRA custodian will grant the money you want to take away. You'll be given 60 days to transfer it to your new gold IRA.  

 4. Choose Your Precious Metals 

Once you have the funds in your account, you can start selecting the precious metals you want to invest in for your retirement. You can also invest in other precious metals like palladium and platinum for your gold IRA.

Seeking assistance from a precious metal specialist can be an excellent idea in knowing which metal to include in your investment portfolio. With them at your side, you can make sure the metals you choose adhere to specific IRS rules and regulations to avoid mistakes. For example, if you're investing in gold bars, bullions, and coins, you need to ensure the gold is at least 99.5% pure for an IRA.  

5. Purchase Your Desired Metals  

After choosing your gold and other precious metals, the next step is to buy them. You may work with your gold IRA company to keep it safe and secure. However, when it comes to purchasing your desired metals, the process usually varies. This will depend on the account custodian you'll be working with. Some custodians allow you to buy your investments directly from them. While others would require you to purchase your metals from a separate dealer and let the custodian facilitate the buying process on your behalf.  

Takeaway 

Retirement is one of the essential stages of life. As you withdraw from your active working life soon, it's important to become more financially stable to ensure comfortable retirement years. Therefore, if you're looking to set up a gold IRA account, keep these steps in mind to jumpstart your investment efforts as soon as possible.  

That’s why people are drawn to invest in silver IRAs, not only because it’s a nice safe-haven asset, but silver is also an asset that can be added to the retirement plan that doesn’t require paying higher premiums, unlike with other precious metals. As an investment, silver is often overlooked; investors usually opt for the more popular gold when investing in precious metals. However, 2021 could be a good year for a silver IRA (individual retirement account). 

What’s An IRA?

An IRA (individual retirement account) is a savings account similar to 401K. IRAs have certain tax advantages, which account holders can use for savings and long-term investments. There are several types of IRAs, and all have tax benefits that act as incentives for people who save for retirement. 

Withdrawals to an IRA account could be tax-free, or contributions could be tax-deductible. Anyone who has an earned income can open an account at investment companies, brokers, robo-advisors (automated investing services), and banks. 

Precious Metal IRAs

Precious metal IRAs are a type of self-directed IRAs. Self-directed IRAs let account holders invest in a wide variety of assets, such as art, real estate, and other unconventional assets that may not be available for investors holding regular IRAs. Regular IRAs focus on paper assets, like stocks and bonds. 

Many investors use precious metal IRAs as opportunities to put their money on precious metals, like silver, because they typically retain and increase in value over time. They’re an ideal long-term investment. However, if you’re thinking of getting a silver IRA, you should invest in eligible silver bars and coins. For starters, the silver should be 99.9% pure bullion. 

Reasons For Investing In A Silver IRA In 2021

Silver will always be among the most in-demand precious metals. The past few years have shown that although silver hasn’t had a substantial price increase, it hasn’t had a substantial price depreciation, either. An asset like this is especially valuable during economic turmoil. When people lose their trust in paper money, that’s when they turn to tangible assets, like silver. Other reasons why you should invest in a silver IRA are discussed below. 

Great For Portfolio Diversification

A silver IRA isn’t subject to the vagaries of an uncertain market. It holds its value over time, which makes it an excellent safe-haven asset. However, it isn’t advisable to put all your eggs in one basket. Ideally, you should diversify your portfolio. Most financial advisers will tell you that your investments shouldn’t rely on the performance of just one type of asset. 

The consensus among financial advisers is that if you want to invest your retirement funds in silver, you should invest only a portion of your funds. Having a part of your funds in a stable asset means you’re protected when the economy is in a tailspin. That part can serve as an anchor to your entire portfolio, while the rest can be invested in other assets that could give you high returns. That way, your portfolio will be flexible enough to absorb a few hits, if ever.    

Demand For Silver Remains High

Silver isn’t just used as an investment; it’s also widely used in different industries. It’s a critical component in solar panels, water treatment, electric vehicles, and others. Investment in this precious metal will likely increase this 2021. Manufacturing might have taken a hit last year, but with batteries and solar panels’ demands expected to rise this 2021, all indications point to an increase in industrial use this year. 

As technology advances, demand for this metal will increase even more. The world’s supply of silver will likely be unable to keep up. Demand could exceed supply. If that happens, silver will be more valuable than ever. 

It Can Protect Your Capital From Inflation

The value of paper currencies can depreciate and lose their value over time. With silver, your investment is protected against economic recessions and inflation. Historically, silver’s value has been going up; for example, the silver dollar’s value has increased tenfold over the years, while the paper dollar, in the same period, has lost its value by as much as 90%. 

A silver IRA investment could protect your nest egg. Inflation wouldn’t erode too much of your capital, and your purchasing power is stabilised. Besides, even in the direst economic prognosis, silver’s value won’t reach zero. Silver will always be worth something.      

Control In Times Of Uncertainties

The world may be seeing the light at the end of the tunnel, but until the tunnel has been left behind, these are, still, uncertain times. That’s why it’s essential that you have a degree of control over your investment funds. A traditional retirement account is limited to mutual funds, treasury notes, and stocks and bonds, all publicly traded. 

With a self-directed silver IRA, you can control your asset mix. You’ll have more flexibility when it comes to your gains or the degree of risk you’re willing to take. If you’re one of the investors who like to take a more active role in your retirement portfolio, then holding a silver IRA is ideal for you. You can plan for your long-term strategy with such an account.  

Final Thoughts

Investing in a silver IRA can protect your nest egg from economic turmoil, like what happened in 2020. This year, because of the expected increase in manufacturing, silver’s price is predicted to rise. A silver IRA is also a great way to diversify your holdings. Keep in mind that it’s not advisable to put all your eggs in one basket. Diversifying is always a preferred strategy in managing an individual’s investment. 

Spreading your funds to stocks, bonds, mutual funds, treasury notes, and precious metals, like silver, is a sound and safe strategy. Your portfolio won’t be dependent on the performance of one type of asset. With a precious metal like silver as your portfolio’s anchor, your investment won’t be at the stock market’s mercy.

 In this article, we’re going to take a close look at the rise of Canadian trading apps and see how they can help you grow your portfolio and free yourself from wage tyranny.

Paychecks? 

I’ll let you in on a life-changing secret, the kind that they never teach you at school. No matter what job you get (with very few exceptions), you will never get rich whilst working for a paycheck. No never. Seriously, I know high profile corporate lawyers who were quickly left ruined and living in basements after a nasty divorce or simply after losing a lucrative job. If you really want to get out of the rat race, be comfortable and never worry about paying the gas bill again, then you absolutely need to diversify your income streams.

The more sources of money you have coming in, the safer you are. Without a doubt, the best way to do this is by trading stocks and shares. But it all sounds a bit complicated, right? It can be, but thanks to technological innovations and a whole plethora of cutting edge trading apps, it's getting easier than ever.

Buy! Buy! Sell! Sell!

When most of us visualise the stock market, we think of frenzied trading floors, giant screens showing who is up and who is down, ringing telephones and cries of “buy, buy! Sell! Sell!”.  If it sounds stressful, it's because it is. Corporate burnout in the Wall Street stock exchange is at pandemic levels. But it does not need to be like this. Remember that the whole point of the stock market is that it is open to everybody including you. Whether you are Warren Buffet looking to invest $10 million of loose change, or a humble bartender looking for someplace to invest $100 in tips, you can now get a piece of the stock market from the comfort of your own pocket.

Stock Trading Apps

Stock Trading Apps are smart/iPhone apps that allow you to watch, monitor, study and take part in the Stock Trade market in real-time. You simply install the app on your phone, set up your account, fund it, and off you go. You can buy and sell stocks and shares, you can trade and you can cash out at any time you like.

The rise in Stock Trading Mobile apps has been both meteoric and absolutely inevitable. The appeal of a stock trading phone app is obvious. Whereas once upon a time you needed a desk, multiple computer screens, a set of braces and possibly a casual cocaine habit to get on the stock market, now all you need is a phone - the stock market is now accessible for everybody. This means participants can trade in an environment, and in a way in which they feel comfortable. Best of all, they can do it in their spare time whether that's sitting on the train home from work, waiting for a coffee, or sneaking a quick toilet break (imagine coming back from the bathroom $100k richer than when you went in eh?).

A lot of apps have also aimed themselves as user friendly such as allowing “practice runs”  where basically you can play the real stock market using “monopoly” money until you get a feel for it. Other investment apps like e-Toro, allows you to simply “mimic” top traders - if they make a trade, so do you (albeit with a smaller amount) so you don’t have to do any of the hard work or thinking yourself.

But what are the implications of this?

Well, the opening up of the stock market to the masses has caused some notable consequences. Some commentators have even suggested that the 2020 Wall Market bubble that seemed to ignore the financial crisis caused by the COVID pandemic, was partially a result of furloughed workers sitting at home spending their time and money investing in the stock market! Cynics (and dare I say snobs) have even alleged that these “amateur” participants are dangerously meddling in the sanctity of the market.

A high profile consequence was the Gamestop debacle which made global headlines. To recall, a Reddit based community of DIY stock app aficionados using the Robinhood Trading App collectively decided to invest in the (previously underperforming) Gamestop Company sending the share price skyrocketing in a bubble that was sure to burst. This prompted the Wall Street regulator to step in and sanction the Robinhood platform on the grounds that it had facilitated market manipulation and forced Robinhood to apologise and revisit its business model. Of course, the counterargument is that this kind of “manipulation” is exactly what professional Wall Street traders have been doing every day for the last 100 years with no reprimand.

Apps like Robinhood, have also seriously dented the earnings of Stock Brokers and Financial Advisors as more and more of their clients realise that they no longer need to pay a middleman. This is serious business. According to the Financial Times, retail trading including mobile trading (that's ordinary folk with extraordinary phones) now accounts for as much stock market trading as mutual funds and hedge funds combined.

Regulatory Realities

In theory, the internet exists outside of geography and cyberspace knows no borders. But in practice, financial markets around the world are tightly regulated. Every platform has to be registered in somebody's jurisdiction and abide by their market rules and every user, (wherever they are based) is also subject to the financial regulations of whichever country their bank account or credit is registered in. For this reason, DIY investors in Iran will find they are locked out of trading apps as their country is totally and completely financially blacklisted. On the other hand, citizens of the US, the EU and the UK will find that their financial services friendly governments have made it insanely easy for them to get involved with few questions asked. As long as you can prove how you are funding your account, and personally undertake to declare any earnings for tax purposes, you can get trading on investing apps in minutes. Whilst the Canadian financial services authority is not quite as open as those in the UK and the US, they are still liberal enough to allow pretty much anybody to get involved with minimal hassle.

The Best Trading Apps In Canada

As promised, we are going to take a quick look at some of the best trading apps in Canada.

 Wealthsimple Trade

Wealtsimple trade has proven itself as Canada’s favourite trading app. You can open an account with $0 (though you will need to fund it to trade) and they charge a $0 commission on trades. Typically users can expect to save $9.99 per trade compared to brokerages and the app interface is quite easy to use once you have gotten to grips with it.

Questrade

Questrade bills itself as being for the “experienced and the beginner alike” but the $1000 minimum deposit says otherwise. Still, their commissions range from $4.99 - $9.99 so they are competitive and they do offer a range to a whole load of corporate stocks.

Qtrade

Qtrade is popular with credit unions. They are not quite as established as Wealthsimpe and their fees are a bit higher. They also sting you with a $25 quarterly “maintenance” fee (i.e. account rent) which is a big deal for small, dime and nickel traders. So why use them? Well, their customer support is excellent.

How to secure your pension using cryptocurrency?

The idea of retirement is changing quickly. People are no longer content with working for the same company for decades and then living on a modest pension. Many invest their money, so they can retire early and ensure their retirement funds are much more substantial. If you are up for this, you need to have a good understanding of how to get good returns, and why cryptocurrency as a type of investment is becoming popular. 

Inflation is a silent killer

Bank savings accounts don't work anymore. Interest rates around the world are approaching 0% as banks try to stimulate the economy. That means you earn almost nothing for placing money on deposit. It gets much worse than that. The financial crisis in 2008 and the coronavirus pandemic are only some of the events that make governments print more money than ever. 40% of US dollars in existence were printed in just 18 months in 2020/2021, which inevitably leads to inflation. Prices of goods and services will increase over time, effectively making your money decrease in value. 

The combination of 0% interest rates and huge money printing means that the old retirement playbook no longer works. If you want to grow your wealth with compound interest over time, you need to invest in other assets. One asset that is immune to inflation is cryptocurrency. 

Benefits of cryptocurrencies as an asset

Cryptocurrency has caught the attention of retirees because of its immense returns over the last few years. Investing $1,000 in Bitcoin in October 2016 would have got you a 1.57 BTC, which now amounts to almost $79,000. If you invested the same amount in Ethereum in 2016, it would now be worth about $300,000. These returns on investment are ridiculous. It's why there are so many Bitcoin millionaires in the world. So, what is driving such insane growth in the value of cryptocurrencies? The first reason is the growth of the crypto market. It is expanding quickly, and those that invest early reap the rewards. Crypto still likely has a long way to go in this regard, as the technology has not made it to the mass adoption point yet. 

However, there's something else going on. Bitcoin and many other cryptocurrencies have a tightly controlled supply. There are only 21 million BTC that can ever exist. This is written into the Bitcoin protocol and will never be changed. Because of this limited supply, the coin is immune to inflation from money printing as we discussed earlier. In fact, Bitcoin is deflationary in nature, meaning when you hold it, prices will seem to deflate relatively to your currency. This is a great thing for you as an investor. 

Another benefit of investing in cryptocurrency is that crypto assets are weakly correlated with other traditional assets. Price changes in the stock market or currency markets don’t automatically bring cryptocurrency prices with them. This means cryptocurrency is a great way to diversify your investment portfolio. It works as a defensive asset to hedge against crashes in other areas of the economy. 

Your retirement plan

If you want to add digital assets to your retirement investment portfolio, you’ll need a plan to do it successfully. The first step is to get started. Cryptocurrency is still growing in value quickly, and the earlier you can get in, the better. The market may go up and down after you buy, but remember: this is a long-term investment. Try not to get too caught up in the ups and downs of the market. 

If you're new to cryptocurrency, you'll also need to educate yourself. Investing in crypto is a little different from other assets. There are some technological and legal hurdles to overcome. These may be very easy or difficult, depending on where you live. You can follow many crypto influencers to learn more about cryptocurrency. Or, you can also take some of the many online courses to get familiar with specific cryptocurrencies. 

The most important thing when investing for retirement is to diversify. When you're going for the long term, anything can happen in the markets. Having all your eggs in one basket is a terrible idea when looking for good returns over decades. So, don't put all of your pension in Bitcoin. This means diversifying beyond crypto (have traditional assets like stocks, gold, etc. in your portfolio) and also diversifying within crypto (having multiple cryptocurrencies in your crypto portfolio). 

Risks of long-term investments in cryptocurrencies

Keep in mind that cryptocurrency is a risky asset. Many people have made a ton of money in cryptocurrency, but just as many have lost considerable sums of crypto, too. Cryptocurrency is volatile and can suddenly crash in value. This happened many times in the past. Cryptocurrency is also vulnerable to hacks and theft if you don't look after it properly. Then, there's a simple risk you might 'lose' your cryptocurrency by losing your “keys” (like your crypto password). If this happens, it's gone forever. Many governments haven't yet officially decided on the legal status of cryptocurrency, so the legal risk also exists. If you want to invest in crypto for retirement, you're going to be a pioneer. No generation has done this before. The risks are real, but the rewards can be very large. 

Cryptocurrencies on a retirement account

In some countries like the USA, you can already save cryptocurrency on your self-directed Individual Retirement Account (IRA). They work just like regular IRAs, except a self-directed IRA allows you to hold alternative asset classes like cryptocurrency and real estate.

One of the biggest advantages of having crypto as a retirement investment is the diversification of your portfolio. The more diverse it is, the more protected your account will be in case of any market downturns. With the crypto market growing in popularity each year, there is also a high chance that it will bring you large financial benefits if you invest in it now. Amongst the main disadvantage of having cryptocurrency as your retirement investment is its high price volatility. Take Bitcoin as an example: in December 2017, its price dropped to $14,000. Although the price increased and reached new heights in 2021, many might pick a more stable alternative to crypto.

Conclusion

Investing for retirement is getting trickier with time. Gone are the days when you can just leave your savings in a bank account and earn high interest from the bank. Now, inflation is silently eating away at the savings of those that aren't aware of it. Cryptocurrencies are a new inflation-proof asset class that provides extremely high returns for long-term investors. Just be prepared for a wilder investment ride than other long-term assets. 

For companies, stocks are a great way to raise money to grow funds and capital or other products and initiatives. When you buy a stock of a company you are effectively buying a part of ownership or share in the company. It does not exactly mean you will sit next to Mark Zuckerberg in a meeting at Facebook if you buy a stock from Facebook. It means you get the right to vote in meetings when chosen to exercise it. Primarily, the reason to invest in the stock is to earn a return on the investment, and the return generally comes in two ways.

1. Price appreciation

This means when the stock goes up, you can sell it for a profit if you like.

2. Dividend

This exactly means payments made to the shareholder out of the company's revenue, and typically they are paid quarterly but just remember not all stocks pay a dividend.

All the stocks are not the same though. US stocks, for example, are so far the most diverse in the world. They come from a market of around 500 of the biggest companies in the world and not every single stock of these companies is the same. Each stock has a varied feature and different characteristics, which give the shareholders different kinds of benefits. A shareholder chooses his stock based on his capital, what kind of returns he expects, and on what tenure. So it is wise to know what kind of stocks are out in the market.

Domestic And International Stocks

You can categorise the stock based on the location. To distinguish them from each other most investors look at the location of the company and its official headquarters. It is important to understand that the stocks Geography category does not correspond to where the sales happen. For instance, a stock that you buy can have the company headquarter in the US but sell this product exclusively out of the country. You can see this in large multinational companies.

Growth And Value Stocks

A growth stock is a stock that has a high-risk level but at the same time a very attractive return. Growth stocks rise in demand among customers and the environment and are more interlinked with the long-term trend. And competition for this growth stock is highly intense in the market, and several times rivals disrupt the business. Investors who invest in growth stocks look for companies that have sales and profits rise tremendously quickly.

Value stocks, on the other hand, are a more conservative investment. They often show stocks already in the growth phase of the industry and take the leading space. There is not much room left to expand for them, and no new inventions are coming up. Yet, the risk involved in this stock is comparatively lesser than a growth stock. They are good choices for people who look for more price stability while setting some of the positives of exposure to stocks. Value investors search for companies whose shares are inexpensive. Value share is comparatively lower in price.

IPO stocks

IPO stocks are the companies that have recently gone public. They usually generate a lot of excitement among the investors who look to get to the bottom of a promising business concept. They are also highly volatile, especially when there is disagreement within the investment community about growth and profit. It remains private for a minimum of a year or as long as 2 to 4 years after it becomes public.

Dividend stocks

Dividend stocks or income stocks are the stocks that pay out forms of dividends. They are also referred to as shares of companies that are more mature businesses and have relatively few long-term opportunities for growth. An ideal conservative investor who needs to draw cash from an investment portfolio right away would be strongly choosing a dividend stock. An investor who would choose this stock would be and investors who have a low-risk tolerance or someone who is nearing their retirement phase and are looking out for a safe keeps out

Safe Stocks

These stock prices do not move fast or in a big amount. They are not affected by the overall market, and they come from Industries that do not get affected by the economic conditions. They offer paid dividends, and by that income can be set even during falling share prices during tough times. They are also known as low volatility stocks and operate in industries that are comparatively safer than the others.

Blue-chip stocks

These stocks come from the most reputed companies in the market. They come from companies that lead the industries. They do not provide a higher return but are known for their stability in the market. This feature makes them a favourite kind of stock for many investors. They have a high reputation in the market and hold a low-risk possibility. 

Penny stocks 

Penny stocks are contradictory to Blue chip stocks. They are highly inexpensive, of low quality, and come from companies whose stock prices are extremely low, typically less than a dollar per share. At the same time, they are highly dangerous in speculative Business models and prone to a scheme that can drain your entire investment. They are dangerous, but the benefit is that they are highly inexpensive, and you can easily afford them.

Conclusion

Portfolio diversification is a necessity if you want to be a good player in the stock market. You probably heard of portfolio diversification, it is very important to develop strong and stable investments. All of these stock classifications can plan for your diversity and investments across companies of different markets, geographies, and styles. You can have a well-balanced portfolio across various diversification and simultaneously raise money. Each stock has a different feature, and you have a wide choice to know which would best suit you.

Do Your Research 

Research the company to find out how many employees they have, what their revenue is, and whether or not it's profitable. Investing in a company that has too much debt can be detrimental to your portfolio because their assets may become worth less than what you paid for them. On the other hand, investing in companies with better liquidity also means better protection against volatility.

Evaluate the company's management team and make sure that they are competent in their field of expertise. If you're investing in a technology-based company then you might want to research whether or not they have patents on their products. It will also be better if they have patent licensing agreements because it means that other companies will distribute their products. 

Don't invest in a company if you don't understand the industry or its competitors better than they do themselves. No matter how tempting it is to invest in stocks with high potential, make sure that your investment portfolio has a good balance of risk and reward so that you're diversified across different sectors. Not only will your risk be better spread out, but you will also have a better chance at higher returns.

You should also explore online sources for you to have a good idea of whether the platform you are interested in will foster revenue. This is where you may come across Capitalist Exploits reviews that will allow you to assess its viability as well as reviews of other broker platforms that you can also potentially use. Investing in the market can be a profitable venture, but only if you know what you are doing.

Be Patient - The Market Will Go Up And Down

You should also be patient, as the market will go up and down. This means that even if you are sure that the market will go down, don't sell your investments right away. Wait for a better opportunity to do so. This could prevent losses and make it easier to collect profits later on. Remember that it's better to be patient and take advantage of opportunities than it is to get caught up in any kind of market hype. This approach will help you make better decisions for your investments that have better overall results.

You should keep an eye on trends as they happen, but you should never blindly follow them. If an investment looks better than the others to you, then it might make sense to invest in it for that reason alone - don't give in to any kind of hype from other investors or influencers.

After you've made a trade, don't dwell on it - instead focus on the next one and think about how to do better next time. You should also work out your strategy so that you know what moves to make in every situation. Also, be sure not to take any unnecessary risks with your money.

Create Goals For Yourself 

You should know what you are investing for or how much risk you can take for you to be able to create goals for yourself. You should also take the time to better understand the markets. A better understanding of what you are investing in is essential to your success as a trader because it can help cut your losses and increase your gains. The best way to go about this is with research and knowledge. Take some time to learn all you can about how these investments work so that when financial news arises, you are better equipped for it.

It can also be helpful to better understand the personality traits of an investor; many people think that they don't need a lot of risk in their life because they're not comfortable with taking chances and investing is risky enough but what these investors fail to realise is this: research shows that those who invest with a higher level of risk will better their chances at making money.

You should also take the time to consider your personality, as an investor and what you want out of life; for example, if you like risks in small amounts or think that they provide some fun and excitement into your day then this is something to keep in mind when investing

Diversify Your Portfolio With Different Types Of Investments, Including Stocks, Bonds, And Mutual Funds

A better strategy would be to invest in a diverse range of stocks or funds so that no one decline affects you too severely. You could also choose ETFs which are better at managing risk. If you're not confident in an investment's return, don't go all out with it. Rather, diversify by holding other assets. The better trader will diversify by holding other assets. So, for example, if you have a lot of investments in the stock market but are not confident that they'll be successful, then it might make sense to invest some money elsewhere - like bonds or real estate.

Don't Panic - If You Think A Stock Is Too Risky For An Investment, Don't Invest In It

Don't panic when the market declines. Rather, have faith that it'll eventually bounce back to what you paid for your shares. Don't let your emotions dictate how much risk is too much for you. If there's a particular investment that scares you, then it might not be worth holding onto in the first place.

It is important to be mindful of how you invest and what your goals are to make the most out of your money. When investing, it's always a good idea to research before you buy anything, diversify with different investment types (stocks, bonds, mutual funds), set up alerts so that if there is any news about the company you're invested in and don't panic! All these are geared towards ensuring that you make the most out of your investment and become a better trader.

While many of these efforts have proven successful, with the UK economy now growing at the fastest rate in 80 years according to some estimates, efforts to restimulate the market have come as something of a double-edged sword for investors. 

Right now, inflationary pressures are becoming apparent on both sides of the pond, as the release of data in June showed that US consumer prices increased by 5% in the year up until May. At the beginning of August, inflation had overshot the Bank of England’s (BoE) forecasts for three successive months, and although it seems like some respite is on the horizon, ex-BoE chief economist Andy Haldane has voiced his doubts over the central bank’s actions to keep inflation in check. In the face of dovish thinking, Haldane was the only member of the monetary policy committee to vote in favour of tighter policy, in order to head off the threat to price stability. The BoE has suggested that UK inflation will top 4% by the end of the year, well above its original estimates. As such, some might wonder whether we are in for an era of much higher inflation, and potentially even a wage-price spiral. Whatever your position on monetary policy, traders and investors will naturally be concerned about how they should act in response to these developments. Here are some considerations to bear in mind.

Keeping an eye on inflation

First thing’s first, traders and investors should keep a close eye on central bank statements before taking any drastic action. For example, any dissenting views from key figures, or signals that the bank is set to raise interest rates and tighten monetary policy, can offer insight into the bigger picture, and the general outlook for inflation going forward. But beyond reading between the lines of these statements, there are some regularly reported measures of inflation that investors should be monitoring.

In the US, the Consumer Price Index (CPI), which reflects retail prices of goods and services, including housing costs, transportation, and healthcare, is the most widely followed indicator. That said, it is important to note that the Federal Reserve also emphasises the Personal Consumption Expenditures Price Index (PCE), which covers a wider range of expenditures. Meanwhile, in the UK, the official measure of inflation is its own Consumer Price Index (CPI), or the Harmonised Index of Consumer Prices (HCIP). 

Wherever you are in the world, central banks will have their own target rate of inflation. As such, traders and investors would do well to bear this in mind, given that protracted periods of high inflation pose a stealth threat to investment returns. Rising inflation in New Zealand, for example, has been enough for the Reserve Bank of New Zealand to project an interest rate hike this year and four hikes in 2022. This was when inflation spiked above the 1-3% target hitting 3.3% year on year. 

Investment options as a hedge against inflation

If investors do not protect their portfolios accordingly, inflation can be detrimental to fixed income returns, such as bonds. However, the effects of inflation can vary across sectors.For starters, the merits of gold, commodities and property must be carefully considered in an inflationary environment. While none of these assets are a perfect antidote to the inflation conundrum, they do offer a degree of portfolio protection.

In terms of commodities and precious metals, historically, the mantra that ‘gold is a hedge against inflation’ needs some careful consideration – if this were the case, then surely its price should hardly ever fall. Because gold gives no interest in holding it, investors tend to sell gold in order to buy riskier assets at the first sign of stronger global growth, and this is something to bear in mind. But so long as interest rates remain low, this is good for gold. 

By contrast, assets like growth stocks, including big tech and value stocks, might be less attractive. This is because higher inflation tends to impact the future profitability of these companies. As growth stocks have much of their earnings expectations in the future, this means that when rates rise, this damages these expectations.

On the contrary, inflation can actually be beneficial to some asset classes. As mild inflation is often a sign that the economy is growing, this means that businesses can raise prices, which in turn can stimulate job growth. For instance, a look at the S&P 500 returns historically and adjusting for inflation shows that an inflation rate of 2% or 3% is often a sweet spot, offering the highest real returns.

With this in mind, it is important to add that value stocks, which have a higher intrinsic value than their current trading price, will often outperform growth and income stocks. Value stocks frequently constitute mature and well-established companies with strong current free cash flows that may diminish over time, but this will largely depend on whether the investor in question is taking a long- or short-term view of the market. 

For those taking a short-term view of the market, some evidence suggests that higher inflation also tends to lead to increased stock market volatility – consequently, this creates fresh opportunities for either buying or short-selling stocks. Yet, it is vital to remember that the stock market is cyclical – while the bad times may hit investors hard, they will not last forever, and there is much to be gained from staying invested for the long haul.

Although central banks remain defiant that inflationary pressures are transitory, the bottom line is that inflation has arrived. Traders and investors will need to weigh their options carefully when determining their activities.

High Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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, United Kingdom, Dubai, and Cyprus.