Investments Archives | Page 10 of 10

What stocks to invest in 2015?

It is just like the eternal question every year again – what stocks to buy and what to ignore. The question is simple, but the answer is somewhat complex, as there isn’t any easy and straightforward way to respond to it. Investors can choose however different strategies. Like every year there are always certain companies that will grow no matter what the state of the economy does. These rather save investments are perhaps one of the best strategies to follow. But there are also sectors and industries that will be particularly flourishing in 2015.

Certain stocks have been climbing for four years in a row. Better judgement might suggest that there is an end to it. However, certain companies are simply not giving in. Furthermore, the December sell-off is the perfect opportunity for investors to enter the game. Companies like Apple (APPL) have been trending and created nothing but revenue for investors. The Apple stock has generated profits for five consecutive years and there isn’t any indication that 2015 will be different. The reputation of the company’s iOS operating system is better than ever and iPhones are leading the smartphone market. Apple appears to be a no-brainer.

The same holds for other IT stocks. The social media platform Facebook (FB) has enjoyed a 40% increase in the last year alone. Instagram, which is part of Facebook Inc., just reached 300 million active users and is said to have a vast potential for growth. With potential video ads launching on Instgram this year, the Facebook stock is set to climb further. Next to Apple and Facebook stands another giant, which has similar prospects – Google (GOOGL). The market share of the company is beyond belief and easily surpasses the ones of the competitors. No matter whether mobile phone market, online search or services and applications – the sails are set into one direction. Investing in any of these IT brands could be a risky undertaking considering their extremely long runs up the market ladder, but they are clearly not finished yet. Therefore, any of them should be a save investment for 2015.

However, these are not the only stocks, which are predicted to go up. Many other information technology stocks are said to behave similarly. Even the famous heavyweight Goldman says that investment in this sector will bring favourable profits. The growth predictions for this particular industry are set around 9%. This will ensure decent returns for shareholders.

Another investment tip given by many important financial institutes are the big global stock market indices. At least within the first half of 2015 the major indices are expected to grow. Especially the S&P 500, the American stock market index, is according to the forecast of the financial institute Goldman Sachs continuing to increase in value. Since the crash in 2009, the index has doubled in points and even climbed over the value it has had before the crash. Analysts calculate with at least another 5% increase in the first few months of 2015. Also the TOPIX, the Tokyo Stock Price Index, is on an upward spiral and estimated to be even steeper than the American index. Although the Japanese economy has suffered various setbacks in the last years, the predictions for the second most important Japanese stock market index are positive.

Investments not to make are material stocks. As the Chinese economy is experiencing stagnation, the demand for raw materials is going back. The stocks have increased in the last years, however the prediction for 2015 is dim. Most likely the stocks fall deep before they will increase and stabilise again. One should wait until they fall though. The moment when they will fall is unclear, but the fall itself is almost certain. Once the material stocks have considerably decreased, one should consider investing again.

No matter whether coal, oil or base metal – the price is weak. The oil price hit a five-year low and the coal price even went below its 10-year average. The wheels of the commodity super-cycle seem to be stuck in the sand. With oil and coal having increased up to a ten-fold in the last 15 years, the growth has been cut. China and other emerging nations had been responsible for a massive demand of materials. However, slow economies and decreased demand, especially in China, are now creating the halt.

Although major economies, such as Russia and China, are slowing down for different reasons, the Asian market is expected to grow in 2015. The emerging markets of China and India as well as South Korea and Indonesia are not to be underestimated in the next twelve months. Reforms and different policy chances have reduced bureaucracy and enable so economic growth. Furthermore, through policy changes unproductive and ineffective industries and sectors will be more exposed to the order and self-regulation of the markets. One of the best performers of the Asian markets in 2014 was the Deutsche X-Trackers Harvest CSI 300 China (ASHR), which increased by 47%. The steep trend increased especially in the last two months of the year and is therefore a top contender to watch and invest in for the first few months of the New Year.

While still in trouble is 2013, India and Indonesia have stabilised their currencies in 2014, while Korea, Taiwan and Singapore had suffered compared to the US dollar. This however has helped India and Indonesia to push reforms and growth their own markets. The Indonesian iShares MSCI Indonesia ETF (EIDO) grew by over 21% and the Wisdom Tree India Earnings Fund (EPI) could improve by more than 27%. Both of them can be interesting for investors in the next six months. Although both experience occasional setbacks, one could consider them as a long-term investment, as their potential growth could be up to 20% for the next two years.

In general 2015 isn’t looking bad at all. The US market as well as different Asian markets, such as the Indian and Indonesian markets, are expected to grow further, although some have already been growing too long in the opinion of some analysts. Investing in information technology stocks will be the safest bet though.

How to check if your savings are safe

When making an investment, one wants it naturally to be safe. Most investors make their moves only with secure projects that seem unshakable. Some even prefer investments that potentially generate less but are secure than investing in a something that is shaky but could be highly profitable in good circumstances. Surely there are investments, which are stable and generate a favourable income. However, as the international market grows increasingly interconnected, more and more investments and business areas can be effected by daily fluctuations and financial breakdowns. There is one question that rises – how can one be sure that one’s investments are safe?

When the international housing bubble erupted, plenty of people lost their money. However, many more questioned whether their investments were safe or were as well danger. These questions aren’t easy to answer, as obviously each area of investment is different. However, there are a few things to be kept in mind. First of all, the location of your investment is key. It can depend on the country whether your investment is protected or not. For example, if you have savings in the UK, you are covered up to £ 85.000. In case your bank goes bankrupt or fails, your savings are covered up that amount of money. This is however not straight forward, as not all banks in a country are regulated by the same. If you have obtained an account at a foreign bank, you may want to check whether your account is also regulated in your country. Foreign banks may be subject to the controls and regulations of the country of origin.

Although banks have created protections for the accounts of their costumers, it doesn’t mean that each account is safe. In most cases one has a certain protection sum at one particular bank, not for each account at the same bank. If you have a larger amount of money deposited within several different accounts at one bank, it is very likely that one is only protected for a total amount. If one demands better security for the funds, one should shift the savings to different banks. Having one’s savings distributed among the accounts of different banks, one feels surely safer and less paranoid, especially if one fears the next global economic breakdown coming soon.

Having understood these protections schemes and knowing where your money and investments are located, one has taken the very first step to save one’s earnings. For obvious reason, different countries and banks have also varying protection programmes and regulations. Having savings distributed among several accounts, it allows you to freely move the money when needed. In the case of an international crisis or any similar event, the accounts in the various countries are differently affected. This provides the chance to move the funds as desired.

However, one should also know which banks are vulnerable and which aren’t. Keeping one’s funds within the FSCS, the Financial Services Compensation Scheme, one can provide further protection and security. Furthermore, it is important to know who owns the banks in which you have deposited your money. Your bank might have been bought or is owned by another superior bank that could be more vulnerable. Therefore, one should be aware of who owns what bank. Changing owners within the banking system isn’t an uncommon procedure and can sometimes happen faster than one tends to believe. In case you are for some reason not able to distribute your money among different banks, you should consider a joint bank account with your partner, as those are usually covered to higher amount. As the amount can vary though, you should check for the details with your bank.

Many people prefer to keep their money in an offshore saving account, as the interest rates are there significantly higher as with normal banks. Considering the collapse of the Icelandic bank Icesave in 2007, one has a very recent example of large amounts of offshore money that can disappear extremely fast. In any case, banks often don’t require the account holder to live in the country in which the account is situated. Therefore, it is advisable to research the country with the personally most favourable conditions. As different countries have varying amounts and limits that are protected, one can choose and customise one’s own saving accounts around the world. Wherever you decide to keep your money the £ 85.000 limit is a good guideline for an account. If this limit seems for some reason implausible, than one should try to separate one’s saving somehow. Although the limit of approximately £ 85.000 cannot be met, any cut and division will be a further protection.

If one is really scared of another collapse like in 2008, then one should really obey to this limit. The reason is that the governments, which mostly have to deal with the consequences, will prefer a bailout than payouts. Therefore, the FSCS compensation scheme protects certain amounts, but nothing beyond that. In most cases, the governments cannot afford that a bank goes bankrupt. It is often cheaper and more convenient than if a failed bank is saved with public tax money – even though this is not understandable to most of the population.

Another alternative is state-owned banks. However, not every country has this kind of luxury. One has often the chance though that one can use a state-owned bank in a country, which one isn’t living in. State-owned banks have however the advantage of being the first one to be rescued in the case of a heavy situation. If one has money abroad with a state-owned bank, one can relax in most cases. Surely not all state-owned banks are the same. For obvious reasons one should choose a democratic country as well as a bank that really is regulated as a state-owned bank according to international standards instead of a few questionable individuals.

Personal savings and investments surely are tricky issues. Although the international market is more vulnerable than ever before, it doesn’t mean one needs to submit one’s savings to luck. The distribution of wealth between several different accounts is often a stable solution.

* (In Singapore, we are protected by the Singapore Deposit Insurance Corporation, or SDIC, of up to S$50,000)

Original investments for the next 10 years

Wouldn’t you want to know where to put your hard-earned money, so it can work by itself? Don’t you want a secure and profitable investment that will bring money in the long run? Well, who doesn’t? But if it was so easy, why isn’t everybody doing it. Because it isn’t that easy and the markets become increasingly unsteady. However, there are certain areas that come close to what you would want to call a safe investment.

Those are areas that are less dependent on the fluctuations of the market. For example – as the world tries to stir towards renewable energy resources, an increasing number of governments are subsidising this particular industry. Hence, the industry grows and becomes more profitable – no matter whether another financial crisis will hit or not. Although nothing is even 100% secure, certain areas of investment are very likely to create profit. Not all are in Europe and North America though.

Investing in Asian markets is nothing new. However, some markets are booming and won’t stop for another decade at least. Singapore is one these markets. This sovereign city-state has the highest concentration of millionaires in the world and therefore plenty of investment power within the country. The construction industry is already booming for over a decade and there isn’t a sign for a halt. Property agents have turned wealthy, as land is being reclaimed and developed with the speed of light.

But there isn’t only property. The government and the Singapore Economic Development Board have opened up the country for foreign investors. The economy is not limited to construction and property, but excels in trade and shipping as Singapore has the busiest port in Asia. Also other sectors, such as technology, tourism and financial services, are welcoming and prosperous. As Singapore’s government stirs the economy towards further development and growth, there isn’t any end in sight for long-term investments.

Another interesting location for investments is Qatar. With the FIFA World Cup 2022 coming up, the investments from within the country are enormous. Qatar is not only investing stadiums and infrastructure, but aims to create a wonderland for tourists, just like Dubai has done. Stocks are being predicted to rise, if not triple within a decade. Different sources recommend the Qatar investment fund. However, there is a bitter taste to the bite. The Arab country has recently been criticised for the unfavourable treatment of their foreign workers. Furthermore, the FIFA is under pressure, due to accusations of bribery during the bidding process and allegations of slave labour. Although the FIFA says a reallocation of the World Cup 2022 will not happen, one should keep it in mind when investing in the Gulf country.

Properties can be in another sense an interesting investment. As certain cities loose their population, others are becoming increasingly popular. Detroit for example has lost half of its inhabitants in forty years. However, there are other urban centres that are already experiencing a scarcity of housing. Berlin for example has a rising demand for housing for ten years straight. The German capital has once been cheap with plenty of living space. Investors have renovated entire neighbourhoods and created upscale living. As the popularity of Berlin isn’t declining, the rents have not only increased, but property has become the hottest commodity in the city. Those who have invested in property early enough have made significant financial benefits.

Similar developments can be seen in various cities around the world. Brooklyn, London, Paris and Amsterdam are only a few examples. Furthermore, due to the housing crisis and the collapse of the international market in 2008 and 2009, the prices for houses and properties broke down. Five years later the prices are slowing picking up speed with the tendency to rise rather than to fall again. An investment in inner city housing and urban property will in many cases be a profitable one.

Barcelona, Madrid, Austin and other cities are becoming increasingly attractive. As the rents there are down at the moment, these cities provide investors with interesting prospects. The prices on the international housing market were terribly bad for a couple of years. As the crisis is passing and most countries are recovering, the prices will go nowhere but up. While the market in some cities might take some time, other city markets are already starting to boom. Furthermore, the trend of urbanisation is speeding up the process. London, however, is no longer interesting, as the rents have become too expensive which minimises the profit margin dramatically.

Up and rising are also leisure and entertainment. Never before have we consumed such a quantity of entertainment. Hence, the technology sector will not just be interesting, but also offer itself as a profitable investment opportunity. Social Media brands and small start-ups, such as Facebook and Whatsapp have in an extremely short period of time generated a large amount of value and money. Many others are following the example. The technology market has grown tight links to the entertainment and leisure industry. Therefore, it will be interesting to watch what is coming.

Surely there are people that keep reminding us constantly of the bursting dotcom bubble. However, investments in technology are profitable now and in the future. The dotcom bubble was an entity in itself – complex and difficult to understand for investors at the time. Through smart phones, iPads and HD gadgets the world has become more receptive towards this kind of technology. All these devices seem to be irreplaceable already – just imagine where the industry will be in only five years.

Furthermore, it is not only leisure and entertainment, but the finance and business world that aim to catch up with the speed of the technology. Entire industries are upgrading – no matter whether medicine, manufacturing or construction. The technology industry offers a wide range of investing possibilities. Brands like Facebook, Google and Apple are one option. However, there are also special technology funds that offer themselves ideally to long-term investors. These are a perfect alternative for those who don’t want to bother with daily fluctuations.

Search the site