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ETFs as Safe-Haven Assets in an Uncertain Financial Future

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Have you ever wanted to trade an asset that would provide you with a diversified portfolio during uncertain times? If the answer is yes, then an exchange-traded fund is the right instrument for you. An exchange-traded fund (ETF) is a security that provides you with exposure to different assets. As of 2020, there were more than 7,600 ETFs traded globally. Investing with these types of assets can give you access to both passively managed ETFs and actively managed ETFs. You can also design different trading strategies using ETFs that can be used in uncertain times.

What is an ETFs

An ETF is a financial instrument that is traded on an exchange hence the name exchange-traded fund. The asset can hold various tradable instruments, including stocks, bonds, commodities, and indices. If you want exposure to the different stock sectors, such as the financial and energy sectors, you can purchase an ETF. For example, the Energy Select Sector Fund ETF holds various stocks that have exposure to the energy markets. Some of the shares held by the ETF include large-cap integrated energy companies like Exxon Mobile, as well as oil services companies like Schlumberger. The fund also owns oil and gas producers like Williams Companies.

When Were ETFs Introduced?

The first exchange-traded fund was traded more than 30-years ago in 1990. The first U.S. ETF was introduced in 1993 and tracked the movements of the S&P 500 index. The SPY (S&P 500 SPDR) became very popular and is still one of the most actively traded ETFs.

What are the Benefits of ETFs

There are several benefits of using ETFs to diversify your portfolio. ETFs differ from mutual funds in that you can buy and sell and exchange-traded funds throughout the trading session. If the price of the underlying assets is not cooperating with your investment strategy, you can stop out of an ETF instead of waiting for the end of the trading session to close out with a loss.

ETFs are generally tax-friendly investments. Mutual funds generally issue capital gain payouts to investors at the end of every calendar year due to redemptions. ETFs minimize capital gains by performing a like-kind exchange of stock which reduces the tax burden. As opposed to mutual funds, there are usually no investment minimums. ETFs are a lower-cost alternative. While the average mutual fund has a fee of 1%, most ETFs have an expense ratio between 0.3 and 0.95%.

How Can You Use ETFs

When you invest with ETFs is provides a type of exposure that is different. You can use the ETF to gain exposure to an underlying instrument or use it to hedge the direction you have in your portfolio. You can also use ETFs to pair trade the market taking a neutral market position.

Here are some examples.

Say you are a portfolio manager that concentrates on technology stocks. Before an adverse move, you might consider selling an ETF that focuses on the technology sector, like the Technology Select Sector SPDR (XLK). The investment moves in tandem with the price of several public trading stocks in the technology sector. The goal for the portfolio manager would be to offset some of the losses that might occur with gains in a short position of the XLK.

Another way you might consider using an ETF is to trade one that holds products that are unavailable using stocks. For example, if you want to trade the oil price, an ETF only has oil futures. The same can be said for gasoline or corn, or silver.

Additionally, you might decide that you want to take a market-neutral position and use ETFs to offset the risks. Market neutral risk is a risk where you are not exposed to the market’s general direction but instead speculate on the outperformance of one asset relative to another. These trades are often called pair trades. An example would be taking a long position in financial stocks because you think interest rates will move higher but offsetting that risk with a short-position in utilities. Your stockbroker or your CFD broker offers these types of trades.

The Bottom Line

The upshot is that ETFs are a diverse financial instrument that offers several different ways to create exposure to the capital markets. Recall, an ETF is an exchange-traded fund that has stock-like features. The most important is that you can enter and exit intra-day, differing from mutual funds.

ETFs can provide you with a security that tracks the movements of a group of stocks or a single commodity. There are also sector ETFs which help you take advantage of owning a diversified group of stocks. You can use an ETF to hedge your exposure by selling it short. You can also take a market-neutral position where you are long one ETF and short another ETF. Your ability to purchase defensive stock ETF as well as use ETF to generate market-neutral trades is why ETF can be used as a safe-haven asset in uncertain times.

 

Key Advantages of Using Demo Trading Account

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The demo account is a big advantage for newcomers. By using the demo account, they can get the real experience of trading. But, sometimes, newbies don’t want to use the demo account because they think, it’s not necessary. However, to improve the performance, every beginner should use the demo account. Traders should try to practice before starting real trading. Because, if they don’t gain practical knowledge, they become surprised to see the instant changes in the market. But if you can practice regularly, you may trade smoothly.

In this post, we will discuss the advantages of having a demo account. Being a newbie, you should read the article carefully. So, let’s learn more about these advantages.

Do the backtesting

Traders should check out their plan before using it. Being a trader, if you don’t use your plan properly, you may face problems. However, sometimes, the plan doesn’t match the situation. For this reason, traders may lose their money. But, if they use the plan in the virtual market, they may understand, whether their plan will work properly or not. Sometimes, they need to make some changes to improve the plan. However, through the backtesting, you may also understand, whether the changes are appropriate or not.

Bear in mind, without becoming comfortable with the trading plan, you can’t use it properly. However, you should try to use the plan in different scenarios in the virtual field so that you can use the plan in the real market. However, if you directly use the plan in the real market, you may make some major mistakes. As a result, you may face a destructive loss. So, you should not apply the plan without being sure about it.

Polishing the skills

By using the demo account, traders can improve their skills. As a result, they may boost their performances. If the pro traders see, they can’t perform properly, they also start practice in the demo account. Because in the virtual field, they can test the different types of techniques. To trade properly, they apply different types of risk management techniques. So, if they firsttry them in the virtual field, they might be able to decide what will work better for them. As a result, they may use it in the real market and thus minimize the risk.

If you try to trade without developing your skills, you may face the worst possible situation. So, as a trader, you should improve the specific trading skill or skills which may help you to succeed. Never trade ETFs without having real confidence in your actions. Trade in the demo account for as long as you need to, and make sure you prepare yourself properly.

Boost the confidence

Newbies get the confidence to trade by practicing regularly. If they see that they’re doing well, they get the courage to decide on real trading. Bear in mind, if you have a lack of confidence, you can’t take wise steps. However, traders should try to gain the proper knowledge so that they can get the courage for taking responsibility. In terms of trading, if you can’t gain practical knowledge, your theoretical knowledge will fail to help you.

Being a trader, you should learn how to use theoretical knowledge in the real life. Because it’s important to have a good basis of knowledgeso you can perform better in the real market. By the same token, some traders need to understand that if they know how to reduce the difficulties, they may become confident automatically. But if they don’t know the right ways to trade, their confidence level will take a hit. That’s why only consistent practice can help them deal with confidence issues in the long run.

So, as a trader, you might understand the advantages of having a demo account. That’s why you shouldn’t avoid using the demo account. if you do, you won’t be able to cope with the high level of competition in the market for long. Keep in mind that day by day the competition is increasing. So, without working hard, you can’t succeed.

4 Tips For Planning Events

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Whether you are planning a birthday party, an anniversary, a fundraising event, an art show, or funeral services, there is a lot that goes into the planning of an event. You may start to feel stressed out or like there is no way you will be able to pull things off the way you want to, but don’t fret! Here are 4 simple tips to help you plan any type of event.

Start Early

Start your planning as soon as possible to account for any snags that may end up coming in your way. It may feel strange to start planning a Christmas event during the summer, but time will run out before you know it and you will be glad to be able to get things done ahead of time. Of course, certain things cannot be planned much in advance. If you are planning a funeral for example you may not have much time. Just do the best you can with the time that you have and don’t let time constraints increase your stress levels too much.

Get Help

You may opt to hire professional event planning help, or you might choose to do everything on your own and ask some friends or family members to help you out with planning. Either way, make sure you have extra hands, eyes, and brains in some form! It is extremely difficult to single handedly plan any event, no matter how small, so don’t expect too much out of yourself. Take help where you can get it and set aside some of your budget just in case you need to bring in a professional later on.

Budget

Make sure you have a budgeting plan for your event as a whole as well as every individual aspect of it. Planning even a small event can get expensive very quickly and you don’t want to overspend and end up having to backtrack later. Do not allow yourself to go over budget by making lists of pros and cons of certain event aspects in case there is something you need to choose to cut out.

Stay Organized

Keeping organized with calendars, notebooks, spreadsheets, and reminders in your phone will go a long way in helping you to plan any event with much less stress. As long as you have lists so that you know exactly what needs to be done each day you will be able to manage your time wisely so that nothing gets forgotten.

Planning an event is a large task and you should be proud of yourself for undertaking it. As long as you start your planning as early as possible, get help when you need it, budget properly, and keep organized, everything will turn out exactly as you envision it.

 

 

Crowdfunding Agency Ideazon Predicts Where Crowdfunding Is Heading

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The crowdfunding industry has experienced drastic growth in the past couple of years. Businesses and startups have seen the benefits of crowdfunding and have hurriedly welcomed the idea.

In this article, we will be speaking to a crowdfunding expert who works with the biggest crowdfunding agency, Ideazon.

When did the first crowdfunding campaign happen?

A British rock band was able to fund an entire reunion tour in 1997 entirely through online contributions from their fans. The band used the same tactic to finance their subsequent studio albums after raising a total of US$60,000 via the initiative.

The band had no idea that they were pioneering a modern fundraising concept at the time. The first successful online crowdfunding effort inspired thousands of others, paving the way for millions of individuals to successfully finance their own campaigns, a process made possible by the Internet’s accessibility and eventual technical advances.

Presently, where does the crowdfunding industry stand?

The crowdfunding industry has reached its pinnacle and shows no signs of slowing down. It’s difficult to predict what fundraising will be like in a few years.

According to a report from Technavio, the crowdfunding industry would rise by USD 196.36 billion between 2021 and 2025, with a CAGR of over 15%. The effect of the COVID-19 pandemic on the industry, as well as the new opportunities and threats that market players can foresee, are also discussed in the paper.

The influence will be major in the first quarter, but will eventually fade in subsequent periods, with only a minor effect on full-year economic development. The global crowdfunding industry was estimated at $13.9 billion in 2019 and is expected to grow tremendously by 2026.

As a crowdfunding expert in Ideazon, what will you say is the future of crowdfunding?

First of all, I predict that there will be a transfer of authority. Kickstarter, Indiegogo, AngelList, and LendingClub, among the most common sites, should be concerned about the latest wave of platforms.

They’re developing brand-new approaches and will quickly catch up to the industry’s leaders. Also, Crowdfunding is used to represent the interests of small businesses and individuals who wished to try their hand at entrepreneurship.

From now on we can expect more major businesses and startups to use “the crowd” to try innovative market concepts and solicit input on future new goods.

What do you think the biggest challenges will be facing crowdfunding moving forward?

As companies began collecting money from Initial Coin Offerings, crowdfunding took on a new look (ICOs). Since Mastercoin’s initial coin offering in 2013, a slew of other cryptocurrencies has followed suit. These cryptocurrencies include Ethereum, Telegram, Bancor, and a slew of others.

The potential of initial coin offerings (ICOs) has risen dramatically, especially in 2017, when projects raised massive amounts of money in a matter of seconds. I and the entire Ideazon team expect to see more of this in the future.

Do you see the number of people crowdfunding increasing?

If big organizations are looking into crowdfunding, then it is certain that the number of people, businesses, and startups that will start crowdfunding campaigns will be on the rise.

 

Four Things Your Packaging Tells Customers About Your Brand

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When coming up with a new product, packaging is probably going to be one of the key factors that you think about before your product is able to be put out on the shelves and brought to the market. However, your product packaging can play a bigger part in marketing and getting interest in your product than you might think. Along with offering a protective casing for the product and keeping different product parts and components in one handy place when the customer comes to purchase it, your product packaging can do a lot more for your brand. Here are just some of the factors that are influenced by your product packaging.

Reputation:

Your product packaging might often be the first thing that customers see about your brand, and can contribute to your reputation in a big way. Customers are likely going to make some assumptions about your brand itself when they see your packaging, which is why its’ so important to come up with a design that reflects your brand and what it stands for. If you want to appear cool and young, or high-end and expensive, your product packaging can make all the difference when it comes to the opinions that customers will form that eventually lead to your brand’s reputation.

Quality:

Your product packaging can say a lot about the quality of the item that is inside. Since it’s often the only thing that customer will see before they buy the product and open up the packaging to find it, your design can make a huge difference to the choices that customers make. Naturally, most of us want to purchase the best quality products at the best price, and your packaging can help the customer decide. Consider a high quality product that you have purchased yourself – chances are that it came in stunning and quality packaging, rather than something cheap and flimsy.

Aim:

The product packaging that you use can be a way to tell your customers more about what your brand aims to do. Along with including information about the product on your packaging, you could mention a charity that you support or something good that you do like offering a product packaging recycling service to improve your eco-friendly brand. You can find out more about designing the perfect product packaging, and obtain help with your product, at thepkglab.com.

Important Information:

Last but not least, your product packaging is an important part of making sure that the customer has all the information that they need about the product before they buy it. This could be telling them more about what’s included with a product that comes with different components or informing them of the ingredients used in food or cosmetics products, including any allergens that they will need to be aware of. Being as informative as possible with your product packaging is important since most people will want to ensure that they have all the facts before they buy.

 

3 Ways To Prepare Your Body For A Hunting Trip

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In addition to getting things like a hunting license and all of the necessary equipment before you leave on a hunting trip, to have the best possible experience, you may also want to spend some time preparing your body for what you’re about to put it through. So to help you in accomplishing this, here are three ways to prepare your body for a hunting trip.

Exercise Your Body Correctly

When thinking about preparing your body for going on a hunting trip, one of the biggest considerations is how you’ll train physically so that you can withstand all of the physical activity you’ll be doing throughout the hunt.

To help you with this, Josh Kirchner, a contributor to GearJunkie.com, recommends that you spend most of your time focusing on your legs, core, and cardio training. By building up these parts of your body, you’ll be able to handle all the walking involved in hunting as well as find that your body can better support itself under the weight of your pack. And with all that extra weight you’ll be carrying throughout the day, you’ll be glad you did some cardio training so that you aren’t completely wiped out when it comes time to take care of the meat you got on the hunt.

Get The Right Equipment And Gear

Another part of preparing your body for going on a hunting trip is making sure that you have the gear and equipment you’ll need so that you can be safe and comfortable.

As part of this, Hunter-ed.com recommends that you get appropriate clothing for your trip and get the right gear to use. Depending on what type of hunting you’re doing and what time of year you’re going out, the right clothing could range from a basic hunting t-shirt to full winter clothes. Along with this, the gear you’ll bring will vary based on what you’re hunting too, so make sure you do research beforehand to best prepare yourself and bring what you’ll need.

Prepare Yourself Mentally

It’s not only physical preparation that you should undergo when planning to take a hunting trip.

According to Tyler Freel, a contributor to OutdoorLife.com, going on a hunting trip can be just as mentally taxing as it is physically taxing. Knowing this, you can prepare yourself mentally by realizing that you’ll likely be very physically uncomfortable throughout a lot of your hunt, what with walking for miles and miles in unpredictable weather. Additionally, the thrill or disappointment that you might feel when your trip is over should be something you prepare for as well.

If you’re wanting to go on a hunting trip in the near future, consider using the tips mentioned above to help you be physically and mentally prepared for this excursion.

 

Are Savings plan for Children Worth the Investment?

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Every parent dreams of providing the best future for their child. This task has become quite intimidating due to the rise in inflation and a lifestyle change. Most essential items associated with your daily life have continued to evolve more expensively over the years, like fuel cost, food, clothing, pulses, and vegetables.

The rise of inflation will make it hard for our children to manage their basic needs effortlessly. However, you can secure their future by smarty investing your money as saving for child plan.

Investing in a savings plan will make a massive difference in your child’s life. You can beat the rising cost of inflation with the right investment planning. Right from standard education to marriage, your savings can help your child achieve their dreams. The importance of savings in your children’s life is enormous. The money you save gives them protection against unforeseen demands and enables them to live an adult lifestyle hassle-free.

Saving for child is like building financial protection that will provide a long term, risk-averse solution to meet the inflated future cost of education, marriage, and other goals without damaging the overall financial position you aim to achieve.

Are you still confused about whether you should start saving for child or not? If yes, then read the reasons for investing in saving plans that we have mentioned below.

Reasons For Using a Saving Plan to Secure your Child’s Future

Cushion Against Fund Flow Disruptions

Before saving for child, it is advisable to create a cushion of protection for yourself to navigate any unexpected financial requirements. In case of your demise or a drop in income, your child’s future is protected by such a saving plan. He can pursue his studies without facing any financial difficulties. Depending on your financial budget and lifestyle, choose the saving plan.

  • Inculcating the habit of savings

Another significant reason to start saving for child at an early stage is that it inculcates a habit of savings. Savings is an art that requires commitment and discipline. Committing to the child plan motivates you to get into the habits of regular savings.

3. Focused on a single purpose

There are plenty of investment plans out there in the market. Child plans are specially designed to cater to the future needs of the children. These plans ensure the growth of the funds and cover the general and educational needs of your child. You can also customize these plans as per your child’s needs.

4. Easy Planning For a Well-Diversified Portfolio

Saving for child eases the stress of planning for the child’s future. So, if you want to make your life or your child’s life comfortable, then start saving for him.

5. Tax Benefits of Child Plans

Child plans offer tax concession and benefit both- the invested funds and tax benefits received, to reduce the financial stress that comes from investing in them.

The Right Time To Start Saving For Your Child

Time is your greatest ally, the earlier you invest, the sooner the returns you get on the invested money. Even if you save a small amount, it will accumulate into a large sum over time. The return you get can either be utilized or reinvested into other plans. So, saving for child is the wisest thing you can do for your child.

The Frugal February Challenge

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If you’re in need of a way to jump start your financial savings plan, the frugal February challenge may be just the ticket. Although the origins are a bit unknown, frugal February has been steadily gaining notoriety over the last few years. As it’s the shortest month, with expensive holidays in the recent past, the frugal February challenge is meant to be a month spent not spending. Focusing on ways to recoup money, kickstart savings and become financially resourceful for the entire month. There aren’t specific tasks you need to follow, so here are a few ideas to make your frugal February a savings success.

Track Expenses

Tracking expenses is a somewhat straightforward process that any financial planner Orlando will recommend. If you haven’t tracked your spending before, use February to keep a close eye on where you’re spending your money and be sure to monitor both your credit and cash expenditures. Many people don’t realize just how much money they spend on things like groceries, or restaurants. Take this time to analyze how you spend your money and continue to monitor your habits in the months to follow as well.

Audit Bills

What are your monthly bills and can they be lowered? Yes you need insurance, but when was the last time you checked your rate and coverage? Shop around and see if you can lower your bill, or find another company with a lower price. This also goes for entertainment. These days we all have multiple entertainment packages, during frugal February is the best time to look at what services you actually use, what services are worth spending money on and what you can cancel to save some dough.

Reduce Energy

Cutting back on your energy usage is good for the environment and better for your wallet and reducing electric and gas costs can be easily accomplished. By making sure lights are off in the rooms that aren’t being used, you can really reduce your electric bill. If you’re able to change your bulbs to efficient LEDs, you’ll find even more savings. The U.S. Department of Energy estimates that by lowering your thermostat by 1 degree, you save 1% on your energy bill. Imagine the savings if you lower it 3 or 4 degrees.

Frugal February is a challenge meant to motivate you to tighten up and better understand your spending habits. It will enable you to save, strategize, and create positive financial headway early the year.

Could Mortgage Rates Be Headed Up? Jacques Poujade Shares His Insights

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Jacques Poujade is one of the top real estate investors and advisors of the time. With over 30 years of experience under his belt, Poujade is managing partner at LendsPlus, a real estate financing firm that helps homeowners make their property investment dreams come true.

There is no doubt that 2020 was an unusual year in the real estate world. That being said, we caught up with Poujade to get his insights on the current of the real estate market and where we might be headed in 2021

How did COVID-19 alter the course of the real estate market?

The global pandemic definitely changed how people lived. Overall, everyone is spending a lot more time at home due to remote work and lockdown restrictions. That being said, I still saw a big shift in the real estate market.

More people moved out of metropolitan areas and to more unique, exotic locations they couldn’t experience before because they were anchored to their office’s location.

Why is property investing a safe choice for investors even in uncertain times?

If you’re unsure about whether property investing is a good idea, remember that it is a lot more stable than the stock market. People will always need a place to live, even in the midst of a global pandemic.

You also have a lot more control with an investment property – you put in the work from renovations to marketing. In essence, what you give is what you get.

Will mortgage rates be on the rise in 2021?

With the pandemic, we saw mortgage rates hit a record low for the first time in a long time. This has been a blessing and a curse – it has allowed a lot of people to invest in properties they were never able to afford before.

Though the economy is expected to improve in 2021, we will probably see mortgage rates continue to stay on the lower side throughout the course of the next year.

Should people purchase a home in 2021?

Despite the low mortgage rates, home prices are still inflated. That means that the inventory on the market is limited and sellers are charging whatever they want.

However, if things really do improve in the next year, I think that 2021 will be a better time to make the purchase you’ve been planning for.

What is one trend you know will carry on into 2021?

I think so. The house flipping trend will carry into the new year. COVID-19 has forced people to get creative with making an income, and house flipping is a great way to do so.

I’m seeing a lot of millennials jumping on this real estate trend. Their creative spirit and work-from-home lifestyles allow them to pursue home-flipping as a side gig. This is also a more stable investment, especially if you’re young and don’t have a lot of money.

Related Reading:
Jacques Poujade: Millennial Real Estate Trends to Watch
The Best Way for Millennials to Start Investing in Real Estate in 2020

 

4 Reasons Divorce Is Becoming More Common Than Ever

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Unfortunately, as much as people might get married hoping that it will last forever, statistics show that it is less likely than it ever has been before to remain together forever. People married between the ages of 20 and 25 have a 60% chance of getting divorced, particularly during the time COVID19.

However, age doesn’t seem to have much to do with it as the divorce rate has doubled over the last 20 years for people over 50 years old. The fact of the matter is that people are more willing to walk away than they once were in the past. Here are some of the reasons why.

 

Abuse

 

A lot of people would like to be able to stay together forever; however, they are in a toxic situation that is often abusive. Abuse doesn’t always have to mean physical harm. In some cases, abuse can be emotional or psychological. People who feel that they are a victim of abuse may not leave initially; however, after a while, they realize their situation won’t get any better.

It often starts small and starts to snowball over the years. When the victim starts to feel like there’s no way out, eventually, they seek to end the relationship. Today’s society, unlike a few decades ago, has many more resources available for victims of abuse. People feel like it’s more realistic to walk away in today’s modern society.

 

Married For The Wrong Reasons

 

Because of impulsive marriages in places like Las Vegas, a lot of people find themselves in a relationship that doesn’t make sense. People who rush into marriage are much more likely to end in divorce. Whereas people who take their time and slowly cultivate the relationship are much more likely to find themselves with someone who will stand the test of time.

 

Financial Stress

 

The economy is shakier than ever for a variety of reasons. Although couples try their best not to let stresses like money affect their love, it often ends up getting the best of them. Financial struggles can make even the calmest of people turn incredibly anxious. Couples who allow the stress of their finances to dictate their lives may find themselves unable to rekindle the relationship.

 

Long Life Expectancies

 

The fact of the matter is that people are living longer than they ever did before. It’s no surprise that after a while people may get more sick of each other. Once upon a time people didn’t live past 40 years old. However, now that people are living well into their 90’s and sometimes well over 100, they may not necessarily feel like staying with the same person the entire time. Logically, longer lives mean more divorces.