How Will the Next Economic Crisis Affect Forex Trading?

Just when you start thinking you’re safe, the economy comes right back to bite your leg. We got over the Great Depression; so, we finally got our things in order, and we started making the money and bringing progress into our future.

But as the laws of Murphy seem to remind us, if things seem to be going right, then something is bound to go wrong. The economic crisis is upon us, and the first thing that will receive a hit will most likely be the Forex trading.

What Is Forex Trading

Foreign exchange, or in short, Forex, is an international market where people buy and sell currencies. The concept is close to the stock exchange, where shares of companies are traded among themselves.

Also, like within stock markets, you don’t gain ownership of that money. You simply profit from changing the value of said currency; you benefit from the exchange rate. And the Forex market is actually the one that sets the value of that exchange rate.

The Causes of Economic Crisis

We don’t just run out of money without a reason. We run out of money because we do it to ourselves. Take the Great Depression, for instance; we never even saw it coming.

One day, we all had roofs over our heads and threw money everywhere we could. The next day, banks collapsed, we were jobless, and half of us lost our investments. And we’re the ones that caused it.

The sad thing is that it’s happening all over again, and it’s making an impact on the Forex system as well. Here are the main causes of the next economic crisis and how it will eventually affect the Forex trading system:

 

  • Political Events

 

Every nation has elections; they’re so common, we don’t even think twice about them. Still, an election can also have a great impact on the economy of a nation. Think about the money that goes into the election campaign. For one, that’s money that goes down the drain, just to attract the voters.

Secondly, traders see elections as an isolated case of probable uncertainty and political instability. In most cases, a Forex participant will keep a close eye on the election pool and try to predict the outcome. If the government changes, chances are that the ideology will also change. They may take a different approach to fiscal policy, which will eventually affect the value of the currency – and ultimately, the exchange rate.

  • Natural Catastrophes

A natural disaster can leave a great hole in the economy of a country. If said nation experiences a massive earthquake, flood or tornado, many things will be lost: lives, morale, and also infrastructure.

As a result, a lot of the nation’s money will go into trying to repair the infrastructure. The higher-ups will have to tap into the country’s resources to clean and rebuild. Therefore, instead of pushing that money into a more advantageous venture for the economy, they are burying it into patching up breaks in the chain of value.

Consequently, the economy will also be weakened, and the exchange rate will go down. A disaster-stricken country will avoid spending as much money, to prevent making the hole even bigger. Suffice to say, a natural catastrophe will definitely mean the fall of the economy’s currency.

  • War

War, like elections, is also something that we do to ourselves – only to a larger scale. The impact of physical war on foreign exchange is never pretty. That’s because, just like natural disasters, it leaves behind a broken infrastructure that will ask for a lot of money to fix.

Citizens will most likely have to borrow from other countries in order to get back on their feet, and their efforts will most likely have to be financed by cheap, low-interest rates. This will eventually lower the currency value – and there you have another situation where Forex will be affected by the economic crisis.

All we can do right now is hope that countries won’t start aiming rockets at one another; however, since humanity is territorial and wants power, it will eventually happen – regardless if it’s ten or fifty years from now.

Final Thoughts

The more we dig holes into the economy of our country, the more the exchange rate will go down. All we can hope for is that Forex participants will see these changes coming and come up with solutions. Even you can learn more about trading and sharpen your skills by setting an online virtual trading account.

Ed Rempel Org

Ed Rempel – Not Sold on ETF’s and Index Funds

Why I Won’t Own an Index Fund or ETF

 Skilled Fund Managers

Many investors are skeptical that there exist fund managers who have skill and who can beat the index over the long-term. Other investors believe that there are fund managers who have skill, but that it’s impossible to identify them ahead of time.

There are skilled fund managers that can be identified ahead of time. I know quite a few of them. You just have to look using the right criteria.

Identifying Skill

When looking at funds, many investors take an objective approach and study recent returns, look at ratings or statistics, or try to forecast which sectors will perform well.

Other kinds of skill evaluations are more subjective and rely on insider judgments, e.g., doctors assessing other doctors, or even actors judging performances of their peers.

The evaluation of a fund manager falls somewhere in between those two approaches, the objective and the subjective. I believe that, to find the best fund managers, you have to study them, not the fund.

Start by finding fund managers that have beaten their index over their career or long periods of time. This could be in more than one fund. They do not need to beat the index every year – just over time. Then study them to find out how they do it. Is it because of stock-picking skill?

Outperforming the appropriate indexes is just one factor in the criteria. Top fund managers are usually not trying to secretly follow the index–they’re more likely to have an effective style (like value investing), and have high “active share,” which means that they’re investing in a way that differs from the index; they also often have great experience and have their own money invested in the funds that they manage, i.e. “skin in the game”.

My All-Star Fund Managers

One of my special skills is identifying all-star fund managers — it’s essentially my main focus related to investments. I’ve found around 50 fund managers over the years who I would characterize as having superior skill, and all of them have beaten their index over long periods of time.

Most of those 50 managers are on my “watch list”. I own only a handful of those funds. Although I’m resistant to the idea of sharing statistics about my own personal investments, mostly because my investment style may not be suitable for every investor, I want to emphasize that it’s possible to identify skilled fund managers early and ahead of time.

Why I Will Never Own an ETF or Index Fund

I won’t ever own an ETF or an index fund because I’m not happy with below-index returns. I choose investments based on the fund managers–I want to invest with the Albert Einstein of investors, the absolute best. ETFs and index funds don’t have fund managers, so I’m not interested. The goal of investing is to obtain the highest long-term return after fees, and a skilled fund manager provides enough value to pay for those fees and more.

Above-Index Returns

There are really two options when you’re pursuing above-index returns: one, you can find yourself an all-star fund manager, or, second, you can choose a portfolio manager who’s paid by performance fee. When portfolio managers are paid by performance fee, they’re motivated to beat their index. If they don’t beat the index, the fees are similar to ETFs. If they do beat the index, the fee pays for itself.

Getting above-index returns is all about finding skill.

Allergen Stock Falls 0.39% Over Patent Deal with Native American Tribe

Allergen (AGN) stock is down over 0.39% to close on Wednesday after lawmakers take aim at the company over a patent deal they made with a Native American tribe. The pharmaceutical company struck a deal with Saint Regis Mohawk Tribe in September.

The patent deal would transfer Allergen’s patent for Restasis, an eye drug, to the Native American tribe.

Lawmakers state that the deal is an attempt to leverage the advantages that tribes have with patent challenges. Sovereign immunity allows the tribe to maintain exclusive rights to the drug through 2024, shielding the company from generic competition.

Allergen – known for their Botox drug that is used for anti-aging purposes, hyperhidrosis, muscle stiffness, spasms, eye disorders, wrinkles and uncontrolled blinking – is accused of using the workaround to protect the drug from competition.

The company’s September press release states that it entered into a “sophisticated” opportunity. The deal, transferring the patent rights to the tribe, allows the company to protect 15% of their profits.

Botox helped the pharma company boost their revenue by 10% annually, offsetting the falling revenue of older drugs the company offers. Botox is also under pressure as alternative medicines, and treatments, like iontophoresis, continue to threaten the company’s blockbuster product.

Restasis accounts for $1.5 billion of the company’s sales. St. Regis’ deal allows the tribe to receive up to $15 million per year in royalties and a $13.75 million payment. Tribes, along with universities, have patent protection.

The tribe said that the deal was a way for them to diversify their income.

“We realize that we cannot depend solely on casino revenues and, in order for us to be self-reliant, we must enter into diverse business sectors to address the chronically unmet needs of the Akwesasne community; such as housing, employment, education, healthcare, cultural and language preservation,” states the tribe’s council.

Legal professionals and lawmakers state that anyone who cares about drug prices should be worried about the deal.

Allergen’s move will keep generic drugs from reaching the market, allowing the company to maintain no competition. The drug’s prices will remain unrivaled by competition.

The Hatch-Waxman Act, enacted in 1984, allows generic competition to enter the market faster. The generic version of drugs will go through FDA approval faster. Allergen’s attempt to safeguard their patents will keep the drug’s prices higher by keeping competition stagnant.

The Act allows the original drug maker, in this case Allergen, to be able to have exclusive rights to their drugs for a specified period of time. This right is an attempt to help manufacturers recuperate their research and development costs.

Generic drug makers can challenge these limits, not set in stone, and force companies to allow generic versions of their product on the market.

Tribes and universities are immune to these challenges, allowing Allergen to keep generics out of the market for an additional four years. Allergen is in the middle of a federal patent trial.

The judge ordered the company to file briefs by October 13 “addressing the question whether the Tribe should be joined as a co-plaintiff in this action, or whether the assignment of the patents to the Tribe should be disregarded as a sham.”

Food Truck Profitability Numbers to Know

Some restauranteurs enter the food truck business because it’s less expensive than running a brick-and-motor eatery. There’s more to food truck profitability than just the truck, though. Monthly expenses will vary based on the cuisine you offer. Top food trucks in Canada offer fare that ranges from cupcakes to burgers and grilled cheese. Below are the numbers you’ll need to research to forecast your costs of operation and return on investment accurately.

Buying a Food Truck

Buying a new, customized food truck can save on prep time. You’ll be able to set up the service area precisely as you want. Calculate interest fees if you’re financing the vehicle. If your budget is tight, you can cut costs by researching used food trucks for sale.

Stocking Your Food Truck

Ordering just the right amount of food will take some practice. Order too much, and you’ll end up with waste and lost profits. Prepare less than you need for the day’s crowd, and you’ll lose out on potential sales.

Getting Your Permits and Licenses

You’ll need to follow all city laws and health codes to launch a food truck business. Business licenses, health permits, and food handling certifications are usually on this list. 

Renting Commissary Space

Local laws may require that you rent space in a commercial kitchen called a commissary. You’ll cook and store food, clean dishes, and get rid of your trash in one of these facilities. Some commissaries also offer a place to park and charge your truck.

Paying Rent or Event Fees

 

Image via Flickr by quinn.anna

Most likely, you’ll pay rent for a parking spot, too. Earning income at local events and fairs is an option that can increase sales and profitability. These venues usually charge a participation fee, plus a percentage of your sales. 

Insuring Your Business

You’ll need to insure the truck against accidents, damage, and liability. Protect yourself with liability insurance, too. If you hire staff, add workers compensation costs to your insurance tally. 

Maintaining the Food Truck

Add food truck maintenance costs to your profitability review. Account for normal wear and tear and unexpected major repairs. Expenses like oil changes, brakes, and new tires can add up quickly.

Staffing the Food Truck

 

Image via Flickr by SierraTierra

Friends and family may help out, however budget for hiring additional staff. Be sure to add employee hourly rates to your profitability checklist. 

Marketing Your Business

Marketing needs will depend on the foot traffic around your food truck. Profitable food trucks have loyal fans who will need to know where to find your truck. Experiment with free marketing like social media platforms to save money. 

Projecting Food Truck Income

Feel free to use this image just link to www.rentvine.com

Image via Flickr by Dave Dugdale

Finally, estimate the income you can earn with the truck each month. Calculate whether your revenue will cover costs and if there will be any profit remaining.

These are the critical numbers to review to determine the profitability of your food truck. Run the numbers to make sure you can get a return on your investment before you launch a food truck business.

3 Things Every New Investor Must Consider Before Investing

CNBC states that 52% of Americans aren’t investing, as of 2015. This means that people lost their window during the bull market. Stocks are soaring, and it’s harder now to find great stock deals than it was in 2009.

But that doesn’t mean that the market has run out of steam.

There’s still so much growth ahead. Warren Buffett made the bold prediction that the Dow will hit 1 million in the next 100 years. Whether this turns out to be true or not is yet to be seen, but one thing is for sure: the stock market is strong right now.

Investing for the long-term is a smart investment choice.

Before you start investing, you need to know:

1. What is Your Goal?

Your investment goals mean a lot. In fact, your investment goals will change as you age. When you’re younger, you might take higher risks. You can choose to invest in startups or choose to invest in solid stocks, such as Microsoft.

And then you also have to know your goals. What are you investing for?

  • Education?
  • Retirement?
  • Down payment on a home?

Liquidity will dictate a lot of your choices. If you invest in bonds, for example, your investment will be tied up until the bond hits maturity.

If you want to make income from your investments, you may want to choose a stock that pays quarterly dividends. There’s a lot to consider, so fledge out your goals so that you know what type of investment is best for you to hit your goals.

2. Do You Want Hands-On or Hands-Off Investing?

You can be a hands-on or hands-off investor. You can choose to be a hands-on forex trader, or you can choose to invest in stock indexes. When you invest in an index, you’ll have your investment generate the same rate of return as the market index.

Index funds, such as the S&P 500 fund or the Vanguard 500, allow you to cut fees and make a substantial return.

Several expert investors recommend funds because they offer superior returns. You can also choose a hedge fund, but the fees will kill you in the end.

If you want to be completely hands off and take the worry of your own investment away, choose a hedge fund or index fund. Buffett recommends index funds if you’re a hands-off investor.

3. Risks, Portfolio Diversification

Investments are a risk. When you invest, the goal is to try and balance your risks as much as possible. Diversification is the key to balancing the risks of your portfolio. You can write a whole book on portfolio diversification, but a lot of investors choose to divide their portfolio among:

  • Stocks
  • Foreign stocks
  • Bonds

And now you’ll also have digital currencies and precious metals mixed in, depending on the investor. If all of your money is invested in stocks, it’s a big risk. Markets can crash, causing you to have your investments cut in half.

If you don’t mind risks, you can make a lot of money in currency trading or commodities. The key is to determine your goals, how you want to invest your money and then to determine the risks you’re willing to take.

Your portfolio will then start to materialize based on these factors.

An Introduction to Financial Instruments

What are financial instruments, and how are they used in the world of finance? These are the kinds of questions you might be asking yourself as a newcomer to the market. You will certainly need to know what they are, and how you can make the most out of such assets.

These financial instruments are simply the types of assets which can be bought and sold. Such financial instruments are often also regarded as capital packages which are up for trade. The majority of financial instruments will keep a very useful stream of capital which fuels investors all over the world and their various activities in the market.

Making the Most out of your Means

Such assets come in various forms, including as cash, or in some cases as a right stipulated by a contract that the delivery of receiving of cash must be adhered to. They can also be a piece of evidence that one is entitled to ownership of a particular entity.

Financial documents are generally broken down into two forms, virtual or real documents which connote a tangible agreement made regarding any kind of monetary amount. Those financial instruments which are equity-based will provide proof of ownership for a particular asset.

A financial instrument based on debt will obviously be for things like loans which were formed by investors for the sake of asset owners.

More Interesting and Valuable Forms

Then there are the financial instruments that fall under a third and very unique category, that of foreign exchange instruments. Such a division is broken down further into other subcategories, such as common share equity and preferred share equity.

The International Accounting Standards has outlined financial instruments to be any binding contract which will provide financial assets to one party, while to another it will provide a liability which possesses an equity or financial liability.

The Variety in Financial Instruments

There are two main kinds of financial instruments: Derivative instruments and cash instruments. Such cash values will be influenced directly and stipulated by the current markets. The relevant securities need to be easily transferable.

One can also use cash instruments in the form of deposits, as well as loans which were appropriately set up between a lender and a borrower.

The attached characteristics and values seen in derivative instruments will generally be based on what the underlying vehicle factors happen to be, such as indices, interest rates, and of course assets.

The Classes of Assets

There is indeed what is known as an asset class when we look at financial instruments. Such classification will depend on an asset’s formation as an equity-based or debt-based asset. In terms of financial instruments that are short-term and based on debt, you can expect a lifetime of around a year or less.

You need to ensure that you know how this classification system works, especially with the assets you are most likely to encounter the most, depending on the main sectors of the market you may be entering.

Fun Ways to Earn Money

If you want to earn money in Canada, there are many fun ways in which you can achieve the objective and be happy about it. We always think some of the ways and if you think it is worth giving a try, don’t hold yourself back and enjoy your time while earning money.

1. Private Island caretaker

This is a dream for many people, and it is possible that you might even want to have a place to take care of where you can soak up the sun, enjoy your time and go on Adventures while being paid for it. Being a private Island caretaker is a big responsibility, but it has its own set of benefits. So, make sure that you start looking for such opportunities and enjoy the task.

2. Designing video games

We love spending time on different video games and have many thoughts in our mind that can help us in developing and an ideal game for every gamer. If you have the skill to design a video and you, wish to make one this can be a great task for you. Designing video games can help you and keeping yourself occupied most of the time while doing something you love doing.

3. Enjoying your time in a Casino

Casinos are fun, and we all know it. There are many people who would want to spend most of the time in casinos but have their fears in mind. If you fall in this category, we suggest that you should look for online Casino Canada and restrict your time and money in this direction. This will ensure that you push yourself to the limit set by you and not by anyone else.

4. Makeup artist

If you love this task, there is no better way in which you can earn money and be happy about what you’re doing. Being a makeup artist and help you in a number of ways and can get you many opportunities. In this case, please suggest that you specialize in a particular category and keep learning to expand your knowledge base and cover different occasions to play with the combinations. Being a makeup artist can also help you in achieving your dream of traveling to different places and gaining exposure when the time is right.

5. Writer

If you have many ideas in your mind and you wish to share it with this world, you can write it down on paper and left in the world recognize your talent. Being a writer, you’ll have many opportunities to express your opinion and to make this world a better place to live in. Remember the freedom you get in this field will not be equivalent to most of the jobs you might consider.

Things to Know Before Investing in Bitcoins

Bitcoins are amazing, and we love using Bitcoins for almost everything we work on. However, it is possible that there are many things you do not know about Bitcoins and knowing the same can change the game for you in totality.

So, here are some of the most important points to know before you invest in Bitcoin.

1. Learn about the process

Bitcoins are extremely easy to use, and it shouldn’t be difficult for you to use Bitcoins and complete your transactions at the earliest. However, it is advisable to learn the process in detail, making sure that you have adequate knowledge about everything that is related to the process. To start with, you should know about Mining Bitcoins and transaction fees that are related to every transaction completed by you.

2. Keeping a track of your Bitcoins

We all know that if the transaction is being accounted in the Global letter and so we stop caring for our accounts. Making this mistake because it can cause you serious problems. With this being said, make sure that once you have completed your purchase for Bitcoins, you move them into your wallet instead of leaving them at the exchange. If possible, opt for hardware or paper wallet in order to store your Bitcoins.

3. Buying Bitcoins from reputed exchanges only

Bitcoins are safe and easy to transact, but one should avoid buying Bitcoins from exchanges that have a bad reputation. Transacting at the wrong exchange, you might be at the risk of losing a decent chunk of your money. So, the extremely careful about it and make sure that you’re buying Bitcoins from exchanges that are repeated and trustworthy.

4. Bitcoins are exclusive and not an alternative

Although there are many posts online that consider Bitcoins to be as good as gold, you should know that Bitcoins are exclusive. Gold has its value and considering Bitcoins to be an alternative to gold is not a smart thing to do. The two commodities have their value, and each option should be considered as an exclusive option.

5. Bitcoins are not manipulated by the government

When regular currency gets manipulated by every country’s government, Bitcoins cannot be manipulated. This is one of the biggest reasons because of which it is considered to be one of the best forms of currency available today, and people have faith in it. With this, you should also know that there will be transparency on a global level and it will help us be satisfied with our money being stored in the form of Bitcoins.

Brookfield Renewable Partners to Hold Q3 2017 Conference Call on November 1

Brookfield Renewable Partners (BEP) stock is up 0.79% to close on Wednesday but remains down 0.86% in the last month. The company recently announced quarterly dividend rates for its Series 2 Shares.

The renewable energy company will pay an annual rate of 2.62% in dividends.

Brookfield also announced yesterday that they will hold their third-quarter conference call on November 1, 2017, at 9:00 a.m. ST. The company will discuss its latest initiatives and results with investors. BEP’s Q3 2017 results will be released before the opening bell on November 1.

A pure-play renewable platform, the company’s portfolio of facilities includes hydroelectric and wind operations in Brazil, Colombia, Europe and North America. Brookfield maintains more than 11,000 megawatts of installed capacity.

The company is under the Brookfield Asset Management company, which has $250 billion in assets under their control. The management company offers global alternative asset management, with investments in renewable energy, infrastructure, and real estate.

The management company invests in alternatives, including smarter buildings and technologies.

BEP’s cash flow and distributions have grown at a steady pace, with 16% annual returns for investors. The company, known for its high dividend yields, offers low-risk opportunity investments. The company’s portfolio of hydro assets continues to grow in value as their operating capabilities focus on long-term results.

The company recently acquired $5 billion in hydro assets from Colombia. The company’s stock is up over 5% in the trailing 90-day period primarily on the takeover of TerraForm Power (TERP). TerraForm, a public company has seen its shares dip 60% since they went public.

The bankrupt company’s assets are now under control by Brookfield Asset Management. The management company is expected to provide operational and financial support to help TerraForm return to profitability.

Brookfield Renewable Partners, the management company’s renewable power vehicle, has compound annualized returns of 14% in the past five years. The company’s takeover could mean that investors of TerraForm will have value created for them rather than suffering major losses.

Brookfield acquired a 51% stake in the company and will bring the company private. Brookfield Renewable Partners will inject $500 million into the company, helping to improve its finances and reduce the cost of capital.

TerraForm will transition to a top-wind and solar energy company. The entity has operations in Western Europe and North America. The $500 million in equity will allow TerraForm to continue to expand their operations with the intent of boosting the company’s finances so that it can secure other funding sources.

How to Start a Forex trading business

Forex trading can be very profitable if you know the rules of the game. Many Forex traders lose money in the beginning but it can prove to be highly lucrative once you get familiar with the arena. It can be a challenging task but putting in your efforts will surely pay you off.

In order to be a successful Forex trader, you need to continuously learn about it. Even if you become a pro, revisit the basics as one of the biggest secrets in your Forex success lies in the fundamentals.

In forex trading, some people make millions while some lose millions, but one thing is for sure, you will learn a lot. The key to success in forex trading is that treat it as a business. Do not rely on luck and get rid of impulsive approaches. You will need the proper knowledge of how things are done. Hone your skills continuously by learning new things in the field. Devise your own forex trading techniques and slowly you will beat the market. Nevertheless, here are some tips to get started in forex trading business:

  • Gain experience

 

The Internet is full of ideas to teach you on how to get better in forex trading but the experience is the best teacher. Understand the basic forex terminology. Get knowledge on the type of currency you will spend. Get aware of terms like quote currency, long position, short position, ask price and the spread. Make predictions about the economy and be political in your approach. Go through economic reports to make well-informed decisions.

  • Initiate

 

You can even start your forex trading business venture from your computer but make sure that there is a proper Internet connection set up because you don’t want to lose on great trading opportunities.

Whatever trading ways you begin with, make sure you are partnering with quality ones. You don’t want to be part of scams and lose a great deal of money. Nobody guarantees anything in this field so you are responsible for yourself. Stick to popular online trading platforms that have good proven track records and has a wide-spread company network.

  • Hone your skills

 

Forex trading is a combination of different skills. Make sure you polish them constantly as you progress in your business. Learn how to calculate profits and analyze the market. Analyze the market technically, fundamentally and sentimentally to get different perspectives of how the field operates. Keep a track of your profits and losses.

Forex trading is all about control. Keep yourself grounded and trust the basics. It is like other businesses. Do not get excited when you get an opportunity before you. Make relevant evaluations and assessments before taking any step further. Losing money is very common in forex but it is part of the game. Hone your self-control and risk management skills to excel the game of forex.

Be patient and persistence if you are interested in forex trading. The most important thing you must do is to learn from your mistakes and progress forwards. Keep in mind that only progressive mindsets reach the pinnacles of success in forex.