By Jackie Ross

Many people wonder about whether or not real estate is among the good investments that they can make. With lower mortgage rates and accessible loans more investors are opting for real estate, especially when they seek long-term investment options and the potential for high returns.

Value Appreciation

– As time goes on, the value of property grows. Unlike some assets such as cars that depreciate and cause you to lose money as soon as you purchase them, holding on to property makes itpossible for you to earn more money.

– Homes are likely to appreciate at a steady rate with substantial averages, depending on the areas. People who hold on to these types of investments can expect to enjoy the benefits of appreciation.

– The most effective way to increase net worth is by reducing debt and increasing appreciating assets that include real estate, which is well known for appreciation and its positive impact on net worth.

Portfolio Diversification

– Financial planners often advise investors to diversify their portfolios.

– Diversifying your portfolio enables you to spread the risk around. This means that when some investments are down, the others may be up.

– Real estate gives you a good way to create diversification within your portfolio. Its low correlation with stocks is one of the reasons to pick real estate. Real estate is usually stable or goes up when stocks go down and this can help you minimize losses. Find a real estate agent here.

Evading Inflation (more…)

By Charlie Brown

Getting a high quality shipping container is vital to ensuring safe carriage of valuable goods across seas and lands when you’re in business. It is important to build yourself a fleet of reliable containers so that you can move large product quantities with ease. Beyond just knowing whether a container is new or used, there are other terms and factors you must know so that you buy the best containers for your purposes.


1. Renting versus buying

If you’re involved in continual transportation of goods in bulk, then renting a shipping container will end up being too expensive over the life of your business operations. In such cases, it is far better to buy new containers that will give you a long service life before you will need to replace them. However, if you’re only moving goods once, such as when relocating, buying may be too steep an expense for you and renting would be more advisable in this case. When choosing whether to rent or buy, remember that there are companies that offer rentals for a period of time as well as those that provide for one-off trips. The former is ideal if you’re involved in periodic transportation of goods e.g. small businesses that buy their stock once or twice a year. Different contracts can allow you to hire containers for any period of time.

2. State of the containers

Some shipping or storage containers are stipulated to be sold ‘as is’, which means that you buy them in the current condition. Sometimes, you may find that these containers have a little damage or certain irregularities. These containers will also be cheaper than those which are new and in perfect condition. Before paying for an ‘as is’ container, you need to ensure that it is transport-worthy and will be able to carry your goods properly, particularly if carrying overseas. Any holes or leaks are signs that you should not buy them for overseas transport or you could damage your goods. (more…)

By Charlie Brown

Owning shares or stock refers to having partial ownership of companies. Several people continue to invest and become shareholders. While shareholders do not personally own physical assets, they can invest in running the company. Shareholdings indicate the percentage of ownership in a company according to the amount a person has. Annual general meetings give shareholders the opportunity to participate in company policies.

Stock Market

The stock market is also known as the securities exchange or stock and is a market within which people are involved in issuing and trading shares of companies. The share prices are a reflection of the market condition and these prices are typically based on supply and demand. Stocks that are high in demand are associated with an increase in price whole stock that is heavily sold decreases in price.

Listed Companies

Being listed requires companies to attain certain stipulated standards. Listed companies are those that can be traded within the market. A float means that a company has launched on the stock exchange and information regarding upcoming floats is provided by the country’s Securities Exchange. Companies generally list because they need liquid assets for business growth.

Initial Share Offering

A float or initial public offering is when companies offer their shares for trading for the first time on the stock exchange. Prospective investors use the official prospectus to determine whether they want to invest. The prospectus consists of form that can be filled when applying for initial share offerings. Click here for Share Price Australia.

A prospectus should always contain the information that is required to enable prospective investors to make informed decisions regarding investment in the company. It should also reveal any risks that go along with the investment and discuss the assumptions that form the basis of profit forecasts.

Capital Growth

People choose to invest in shares instead of other assets due to possibility of capital growth in the shares that they select. This usually occurs on a long-term basis although shares can occasionally rise and fall sharply. (more…)

Canadian Trading Trends
Everybody wants to make a buck on the markets. The problem for so many of us is that the financial markets can be confusing and intimidating at times. The S&P/TSX is the premier stock exchange for Canadians. It lists a large selection public companies and the market capitalization was reported at $2.2841 trillion as at 30 March 2017.

There are multiple indices on the Toronto Stock Exchange (TSX) including the S&P/TSX Completion Index, the S&P/TSX 60 and the S&P/TSX Composite Index. Recently, the Toronto Stock Exchange hit an 8-month low. This presents many challenges to Canadian investors are looking to profit off the appreciation of stocks.

Why are Markets Bearish in Canada?

It’s important to understand that the Canadian economy is driven largely by commodities, notably crude oil. On Friday, 7 July 2017, the TSX plunged to a near 8-month low at 15,027.16.  This was driven by multiple factors including weakness in oil prices and a desire for an interest rate hike by the Bank of Canada. Investors don’t miss an opportunity to make a buck on the markets. Since then however, the TSX has rallied. By Monday 17 July, 2017 the TSX was trading at 15,175.76 and is on a gradual uptrend. This is also being fuelled by rising oil prices, spurred by strong demand from China.

In June 2017, Canada’s jobs numbers were better than forecast. Pundits were expecting 10,000 new jobs to be added, but the Canadian economy added an incredible 43,500 jobs. Of course, the US economy performed more robustly, given its size and sheer volume with 222,000 new jobs added in June. South of the border, analysts were anticipating 179,000 new jobs. Equally surprising was the yield on 10-year bonds in Canada, now at 1.884%. Every time bond yields rise, traders retreat from equities markets.

Oil prices have whipsawed in recent weeks. Lower prices were driven by increased production with US shale oil producers. According to the Canadian Association of Petroleum Producers (CAPP), 2017 production will increase by 270 K per day, while 2018 production will increase to 320 K per day. With such dramatic increases in production, it’s no wonder that oil prices are being depressed and the TSX is affected. Fortunately for the bulls, rising oil prices can turn markets around and this is what we have been seeing recently.

 

Charles Mandel, an acclaimed equities trader, routinely directs traders to didactic resources to understand how macroeconomic activity impacts individual stocks. One such example is the Stern Options Facebook page which lists economic news releases, stock price movements and other economic data for Canadian traders.

Canada’s economy is largely driven by crude oil. It is the world’s third-largest source of crude oil reserves, and it ships more to the US than all other countries combined. WTI crude oil rig counts have been increasing for 23 weeks on the trot. There is still tremendous potential for output to increase further. As a trader, this information can be put to effective use with put options on oil-producing companies across the board.

How Can Canadians Benefit from Bearish Markets?

While markets are trending bearish, it’s important to understand that there are options available. If you are interested in equities trading, your strategy should be one of short-selling weak companies. Weak companies may include the energy companies such as Exxon Mobil Corporation, Sunor Energy Inc, and Cenovus Energy Inc.

Note that the market capitalization of these companies has decreased significantly since the oil heyday a few years ago when prices were $100 + per barrel. Markets have absorbed much of the weakness in energy stocks, and further depreciation of prices will have a much lesser effect on overall market performance.

While a bear market is taking place, it’s important to identify all the companies that meet these criteria. Things to look for include companies that are operating in a declining ‘economy’, companies that are operating in a weak ‘sector’, or companies with little or no earnings to speak of. If the stock that you’re considering is rapidly approaching a sell signal, or it is performing poorly relative to overall trends, it should be identified as a bearish stock.

There are many tell-tale signs of how to identify the development of a bear market in Maple Country. Equities markets will typically decline before the economy starts to move into recession. Interest rates usually start to rise at about the same time that the market starts to turn and there are bare alert signals on the bullish pattern index indicator. Regardless, there is always money to be made in bear markets!