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  • The Benefits of Gold In A Diversified Portfolio

    The Benefits of Gold In A Diversified Portfolio

    With its storied history, gold is an investment that holds its value. It is also an important commodity for any investor. Investors who are interested in investing in gold do so for three reasons, as a hedge to offset losses, a safe haven, and as a direct investment.

    Whether it’s gold exchange-traded funds (ETFs) or gold stocks or even physical gold assets, investors have several options when it comes to investing in the gold market. Indeed, many investors see gold as an excellent hedge against the weakness of the U.S. dollar during times of economic crisis and inflation.

    Gold trading history has seen gold as a commodity that retains its value despite financial and geopolitical uncertainties.

    A strategic asset allocation in a diversified portfolio, gold performs well in normal, low-inflation economic markets. Even during times of geopolitical and economic uncertainty, gold hedges against stock volatility.

    Increases portfolio efficiency

    While the ideal investment portfolio is dependent on an investor’s long-term outlook, diversification is an important concept for the modern investor.

    Gold brings a special element to a diversified portfolio. Portfolio diversification traditionally centers around three main asset classes; stocks, bonds, and cash. This leaves gold as an underutilized and overlooked investment option.

    The ideal balanced portfolio would represent non-correlated assets. As gold tend to go up when stocks tumble, there is virtually zero statistical correlation between gold and stocks.

    Gold though is not the only strategic asset to provide portfolio efficiency. Bonds and cash have similar properties and historically have proven to be highly attractive from a diversification point of view. But with global interest rates widely expected to trend higher, bond valuations face a downward pressure. Similar, central banks pushing yield to negative diminishing cash’s positive returns.

    The overall performance of gold is akin to fixed income investments. Precious metals are an attractive investment option because they increase portfolio efficiency while lowering portfolio risk.

    Lowers risk while increasing return

    Ultimately, gold’s role in a diversified portfolio is to serve as portfolio insurance.

    The perception is, gold, provides a hedge against economic slowdown and inflation. As a risk management tool, gold is decoupled from economic developments and is less prone to manipulation. Historically, gold have also proven to be especially useful in protecting portfolios against severe market drawdowns, such as the 2008 financial crisis.

    When analyzed against several market uncertainty in recent decades, particularly the U.S. Credit Downgrade, Yuan devaluation, and Brexit, gold has performed admirably. Where heightened turmoil and volatility have resulted in negative equity returns, gold has posted positive returns.

    Its effectiveness against traditional risk assets defends investors against high equity exposure.

    Portfolio Allocation

    As gold mainly serves as a dynamic hedge on the risk management front, essentially as an investor’s insurance policy against economic downturn and market turmoil, the average investor should be careful with how much of their portfolio they allocate towards gold.

    The best gold trading strategy is 5%-10% strategic portfolio allocation.

    Gold does not earn dividends and interest like other productive enterprises, namely equities and bonds. Rather, gold serves your portfolio as a store of value. It preserve purchasing power, particularly over the long term. It’s resistant against the appreciation and depreciation in currencies, allowing it to maintain spending power over time.

    As a pro-cyclical source of demand, gold should be held in diversified portfolios with a long-term outlook. Gold is highly volatile in the short term. Much like commodities, gold is vulnerable to swings. It can have spectacular highs and horrendous lows.

    Therefore, it is advisable to maintain gold in a portfolio for some period of time. This precious metal is most favorable when held 10+ years within a balanced portfolio.

    At one time in world history, gold was used as global currency. Now, it serves to ensure modern investment portfolios are well-diversified. Its ability to remain resilient during times of economic and geopolitical uncertainty makes it an additional option to integrate with other asset classes to effectively manage portfolio exposure.

  • Financial Mistakes You’ll Hate Yourself For in 10 Years

    Financial Mistakes You’ll Hate Yourself For in 10 Years

    Budgeting and setting financial goals is not always easy, but you will regret not doing it in the long run. Whether you forget to make a budget, or you didn’t enroll in your 401(k) plan, there are a number of financial mistakes that you will end up hating yourself for in the next decade.

    Not Paying Off Your Credit Cards

    When you get a credit card, it is far too easy to spend money that you do not have and get into debt. Many people fall into the trap of carrying over a balance from month to month. In a single year, you can waste hundreds of dollars on interest.

    Paying off your credit card each month saves you when it comes to interest. It also ensures that your credit card debt does not grow out of control. If you continuously have problems paying your credit card bills, there are ways to help you. If nothing works, you may need to rethink having it in the first place.

    Not Budgeting Your Money

    Too many people put off budgeting until later in life because they don’t think it’s necessary. Budgeting does not mean denying yourself fun toys or splurges, you just have to be more responsible about it.

    You can still buy a new phone–but you have to add it to your budget. Your budget helps you figure out where you are wasting money and what you could change. Instead of wasting money on cable or coffee, you could save that money for a vacation or put it toward a 401(k).

    Once you get used to having a budget, it becomes easier to save money and hold off on impulse splurges.

    Forgetting to Invest in Insurance

    Not investing in life insurance, health insurance, and other insurances can ruin your finances.

    If you were to die today, would your family be financially secure? If you became ill, could you afford the doctor’s bill? These are questions you need to consider.

    One of the biggest causes of bankruptcy is medical debt. Right now is the time when you should be considering disability insurance, long-term care insurance, and health insurance policies. Accidents happen, and it is important to make sure that you are prepared for them as much as possible.

    Buying a Car You Cannot Afford

    A vehicle might be necessary to get you to work, but it does not have to be brand new. Too many people buy a car that they cannot afford. If they use a car loan, then they also have to pay higher costs for car insurance.

    A car payment can easily cut into your budget and your retirement plans. Once you stop having a car payment, you will find it surprisingly easy to afford things like vacations or an emergency fund.

    Skipping Your Emergency Fund

    Sooner or later, accidents will happen whether you’re ready for it or not. Your car might break down, or your child may fall ill. Life is full of mishaps, and you will most likely have a financial emergency at some point.

    Your emergency fund should have at least three months of expenses set aside. Some people have closer to 12 months, but it all depends on your situation. If you are single and can easily find another job, you might need less. If you have children and the sole breadwinner, you will need more money set aside.

    Your emergency fund should be placed somewhere that you can easily access it, but you should only do it when you absolutely have to. The entire goal of the fund is to provide you with cash when an emergency happens, so you need it somewhere that you can easily reach. You could try an online savings account or a savings account at your current bank.

    Neglecting Your Retirement Plan

    Because of compound interest, you will have more money in your retirement account if you start saving now. Plus, retirement accounts, like a traditional 401(k) can lower your tax bill in the current year.

    Social Security is not enough for a secure and happy retirement, so you need to make sure that you are prepared for your golden years.

    Forgetting to Discuss Money Matters With Your Spouse

    For your family to reach your financial goals, you have to work as a team. You need to make decisions together, this way, everyone is aware of what’s going on.

    Financial problems are a leading cause of divorce, so discussing money matters can help your relationship as well as your financial situation.

    Save Yourself from the Regret

    To reach your financial goals, you have to make sure to avoid these mistakes. By planning ahead, buying insurance, and setting a budget, you can make sure that your household is protected from financial mishaps.

    You will never forgive yourself later in life if you don’t try and financially prepare yourself for the future. It seems nearly impossible, but by realizing it now, you can save yourself a lot of trouble later on.

  • Benefits of Buying Home Furniture Online

    Benefits of Buying Home Furniture Online

    Furniture plays a significant role in enhancing the overall interior of a home. Therefore, it is always best to find attractive and appealing, yet functional furniture pieces that would help you to boost the allure of your home.When it comes to buying home furniture in Kenya, you can find a large variety of styles and designs available in the market.

    While there are many companies, which can help you to buy these products, going online is something can provide you with numerous benefits. There are various reasons why people opt for online shopping when it comes to buying furniture. You can get almost anything on the internet, and the considerable convenience provided by the online shopping is just unmatched.

    I have recently bought a study table for my home from an online site, and I am incredibly impressed with the pleasure and comfort I got from shopping online. If you are still wondering why buying furniture online is suggested, then below are some points that will help you to understand its benefits.

    Below mentioned are some of the perks of buying furniture through the internet.

    Easier and More Convenient          

    One of the most significant benefits of going online to buy furniture is that it offers you extreme comfort and convenience. You do not have to go out in the sun and look for the right product in every shop.

    Just sit at your home, and buy what you want to. Also, you can choose the items you like without any pressure of buying it. Pick what allures you the most, and then buy the one that you think would be the best choice for you.

    All you need is to sit in front of a screen with an active internet connection, and you can buy your desired item just like that. Imagine, you do not have to get ready to go out, and you would not need to step a single step out of your home to start your shopping. Does not this way of shopping excite you much now? ?

    Save Time

    Since you will not need to put on your shopping shoes to go out in your car or any public transport, and you will not have to shop to shop to check out their collection, you would be saving a lot of your time.

    Why waste the whole in searching the best piece of furniture, when you can simply buy it right from the comfort of your home? You would be able to do other important things of your home, while not cutting back on the excitement of shopping, as online stores are there for you.

    Whether you are at the office, with friends, at home, or anywhere, you can start your shopping right away with your mobile phone having the internet connection.

    Wide Varieties to Choose From

    Talking about the traditional way of shopping, you will have to go to every store to have a look at their varieties. Even though we search a lot, not always, we get what we want.

    By going online, you can take a look at the wide variety of furniture items carried by different companies, without any difficulties. This way, you choose the best from the pool of options. Getting various varieties allow us to find out the right furniture match for our home interior.

    Comparing

    Another great thing about online shopping is that it gives you an ease of comparing the products and services of different furniture stores.

    Different stores offer its products at different prices. Therefore, you can compare not online the collection various shops, but can also compare their prices. This will help you to locate a shop that would be able to offer you your desired items at the rate you can comfortably afford. So, go online, and compare the varieties of furniture pieces of various companies, and buy the best item for you.

    Easy Checkout Process

    Online companies offer a secure checkout process for their customers. You just need to follow a few simple steps on the website of the company and place an order for your required item.

    By doing a few transactions, your order will be placed, and the product will be delivered to your doorsteps within the estimated period. While locating the right online store to buy home furniture in Kenya, it is advisable to approach the one that has a good reputation in the market. A well-reputed and well-established company mean superior quality products and more satisfied customers.

    Therefore, do a general online search to find out a reliable online store that would help you to buy quality furniture items at a reasonable rate.

    Author bio :-

    Me (Amit Sharma) is an all-time professional Writer and very honest sincere and up-front blogger. In general, I try to blog up-front and honest, without being argumentative or confrontive. I take care not to offend, but sometimes, I just want to bash intelligence into some brains.

     

  • 5 eCommerce Trends That Will Shape 2018

    5 eCommerce Trends That Will Shape 2018

    Wayne Gretzky, the uncontested greatest hockey player of all time, was asked a question about just how he became so good at the game. His answer? He would “skate to where the puck [was] going to be, not to where it had been.” In other words, he anticipated what was going to happen and planned ahead, as opposed to what has happened or even what is currently happening now.

    The same principle should be applied to your business. While it’s certainly important to examine the milestones and important financial and eCommerce trends that have resonated the last few years, you need to be prepared for what is going to be big in the future. This might mean taking risks that don’t pay out, which is unfortunate but nearly unavoidable in the long run. However, when they do pay out, they pay out big. Are you ready to anticipate what’s coming next? Here are five trends that will shape eCommerce in 2018:

    Growth

    The National Retail Federation estimated in February that eCommerce would grow 8-12% in 2017, which comes out to about $435 billion of growth. Another encouraging figure comes from TechCrunch, which reports that 70% of Americans do at least some of their shopping online. That’s about 255 million people. If you manage an eCommerce business, you have a vast pool of potential customers that can be tapped into with the right strategies and, if your business is stable, it’s recommended that you take those next steps into expanding your customer base.

    Mobile Shopping

    There’s something great about seeing something while out on the street that catches your eye, pulling out your phone and finding it online, and making a purchase. Mobile shopping allows customers to make purchases whenever the urge strikes them, no matter where they are. This is great for eCommerce businesses for several reasons. First of all, customers will obviously have more access to your site. When they visit more often, they’re more likely to make a purchase. Plus, there is less chance of them forgetting about something they want to buy because they can do it right away.

    Mobile shopping will become even more popular in 2018. However, to really make the most out of this trend, it is vital that you have a very mobile-friendly website. It’s easy to get confused or even suspicious of purchasing anything through your phone, especially since we’ve been (rightfully!) conditioned to be leery of putting our credit card information out into the world. When consumers see that you have a site catered to their mobile devices, they will feel much more comfortable clicking “Purchase.”

    Live Chat Services
    Customer service is one of the most important facets of converting a potential customer into an actual one, and online shopping is certainly no exception. But, how do you connect with customers that you can’t see? This is a bit of a tricky problem that has two potential solutions, both of which involve the same tool: online chat. The first method is to have chat pop-up as soon as someone visits your site, or set to appear after the visitor has spent a certain amount of time on your site. While this certainly gets their attention, it can also be seen as a bit pushy to the customer, like a sales representative immediately approaching a customer walking into a store.

    The other method is to have chat capabilities that are clearly visible to any visitors, but wait for them to come to you. You would be surprised at how many people want questions answered but don’t want to pick up the phone and call. When they have a chat option, they are much more likely to take advantage of it, which gives you an opportunity to seal the deal and convert them. If you’re not available to sit by the computer waiting for people to send you questions, you could consider setting up an AI chat bot, which will be an important part of this 2018 trend.

    Personalized Shopping
    One of the negative side effects of the eCommerce boom is that shoppers are getting increasingly lazy and picky about what they’re looking for. Despite the fact that scrolling through pages of items is still exponentially more convenient than walking through a store looking at everything, consumers want it to be even easier. Expect companies to improve the way they monitor visitors’ time spent on their sites so that they can provide a more customized shopping experience for them the next time they visit.

    Let’s use an example. Sarah loves shopping online for clothes and has a favorite site that she goes to. However, from that site, she has never purchased a heavy coat, despite the fact that the site offers several great coats that other people love. Because of this, it is probably safe to assume that Sarah will probably not be buying a heavy coat any time soon. The site would use the information that it has to minimize the number of heavy coats presented to Sarah so that it’s easier to scroll through the types of items that she has purchased in the past.

    Shopping with Augmented Reality and Virtual Reality
    When Pokemon Go was released in 2016, people all over the world were swept up in it and dove head in. Pokemon Go is a form of Augmented Reality, or AR, a technology that superimposes digital imagery on the real world. In our opinion, Pokemon Go was only the tip of the AR iceberg, and we’re about to see it really take off in the next few years as eCommerce companies begin implementing it.

    Being able to turn your camera towards yourself and get a glimpse of what a particular hat would look like, for example, would make shopping even more fun and immersive. We can only imagine what kind of creative experiences wait for us once virtual reality and AR technology becomes more accessible, which we hope is next year.

    If you’re a consumer, get ready to enjoy all the power of technology being catered to you. If you work in eCommerce – better get started on setting the trend!

    Author Bio: Arthur Jones is a writer and consultant specializing in the latest developments in eCommerce, from setting up a  global payment gateway to writing about ‘brick and click’

  • Real Estate Funk: Keep the Hustle During Hump Day

    Real Estate Funk: Keep the Hustle During Hump Day

    Two days down for the week and you still have two more to go. You were doing exceptionally well as you managed to close a few more deals from Arca South or some other fancy development on your plate. Suddenly, hump day sets in, and you lost the motivation to get out of bed along the way.

    Your mind fast-forwards to the weekend, wanting so badly to go on vacation but still have the urge to push yourself out of bed and go to work. If you are still feeling the funk even if you clocked in the office, here are some ways to fight off the feeling (even if you feel like you can’t).

    1. Look for an inspiration
    Is there a top performer in the company? Talk to them. Get to know them. Get to know what makes them tick. What makes him work hard? What inspires them? What makes them go over the daily grind?

    Though their habits and routine won’t be the exact things that will work for you, you can get an idea of what makes them the best at their job. Aspire to work alongside them instead of replacing them. It’s a healthier and more optimistic way of looking at it.

    You can also look for inspiration at other companies, establishments, and industries. They way they do things are sure to be different from how you conduct your day-to-day operations. It will give you a chance to think outside the box and explore different ways of pushing yourself to work harder.

    2. Read real estate horror stories
    Not ghost hunting and other creepy stuff.
    Read the stories of various experiences about house selling fails and unthinkable real estate buyer and seller conduct. You can learn from them so you can avoid committing the same mistakes in the future.

    The accounts vary from annoying to ultimately hilarious and one-of-kind. The will make you laugh and cringe as you are well aware these can happen to you. Reading the stories also provides entertainment for hours. However, don’t’ spend all day keeping yourself glued to them. You need to live and make your own unforgettable experience.

    3. Attend a personality development course
    Better yet, attend any class that makes you a hustler at your job and increases your value.

    Being in real estate allows you to interact with different types of people. Whether on the phone, private messages and e-mail, you still get to interact with them. Taking a course on essential conduct helps you learn new ways on how to interact with them. It also helps you pace how you conduct yourself.

    Other than how you present yourself or how you get along with other people, you can also take courses relevant to the industry such as topics in Finance, Economics, Marketing, and Interior Design and Interior Design.

    4. Wear something cool
    Professionals, especially those who meet with clients on a daily basis are required to wear proper clothing. Some companies prefer the formal look – suit with matching tie, closed heels and groomed hair. Others allow the business casual get up. Whatever, company policy you may have, you can always work around it, so your clothing reflects your personality and feelings.

    You can wear a different outfit on hump day. If your work requires a matching suit each day, try wearing one in lighter or brighter shade. Women can wear a suit in millennial pink which is a soft and delicate color currently in fashion. The color won’t distract the client or other people in the office. Men can opt to wear a printed top with their neutral coat and matted slacks. The quirky print on the shirt is a statement on its own and makes a tie optional.

    A change in appearance brings out a positive vibe from the boost of confidence.

    These are simple solutions we tend to forget. Being inspired by a successful figure pushes us to our limits while learning from others’ experiences makes us better at what we do. To maximize learning, it pays to attend and explore avenues we that aren’t in our league. Last but not the least, the easiest way to get out of the slump is through making ourselves feel like a million dollars. Dressing up will make ourselves feel important and place us back in our old selves.

  • Businesses that are No Longer Relevant

    Businesses that are No Longer Relevant

    It’s no secret that the world is changing. In recent decades especially, technology and the globalization of commerce has made several once well-known business brands completely irrelevant. It’s odd how fast it happens, but seemingly overnight big-name companies lose popularity as an increasing number of online options become available, or as larger, more successful organizations with a technology-first focus buy them out and change their structure. It’s tough to successfully own a commerce or user-focused business in today’s day and age. There are so many retail giants that drive down prices and take customers away from the little guys.

    The main reasons that these businesses were erased from our world view? They were unable to keep up with the drive to go online. When people can order anything they want with one click and have it show up to their front door with free 2-day shipping through any big-name stores like Amazon or Walmart, or when people can transfer money around the world with no added fees through startup online-only transfer services, it’s difficult for smaller companies without that same online presence to keep pace. Let’s look at this list of businesses that are no longer relevant, and why they’re no longer on the map.

    Polaroid

    You remember it – the camera that you could snap a picture with and be holding that same picture in a matter of seconds! Of course, polaroid has many more products in addition to their iconic polaroid camera, but that’s what they’re known for. In the early 2000’s-2010’s, Polaroid was at a critical juncture in their business lifecycle. Digital cameras were all the rage, and with companies like Nikon and Canon quickly developing cameras and digital photo products to meet the consumer demand, Polaroid couldn’t keep up by simply selling their iconic point-and-shoot print-out cameras.

    Polaroid is still around, and they did manage to salvage their brand in light of the digitalization of amateur and professional photography, but they aren’t as “big” as they once were. While their brand remains a household name, only true analog photography die-hards and artistic photographers still own and regularly use a Polaroid camera.

    Blockbuster

    Blockbuster was once the only place you could go to find movies and old TV shows if you wanted to rent them. There were other brands like Blockbuster – such as Family Video – but Blockbuster was the more popular location for video rental. However, in recent years, streaming has become the only way users access video rentals. There are countless streaming services available – from Netflix to Amazon Prime – and by the time Blockbuster stepped up to offer Blockbuster on Demand (a video streaming service), they were too late. Of course, it didn’t help their case any that everyone still views them as a video rental storefront, not a streaming service.

    MoneyGram

    MoneyGram has struggled financially in recent years, particularly after the 2007-2009 economic crash. However, things seemed to be looking up for them in the early 2010’s when they partnered with Walmart to provide a money transfer service. Unfortunately, this stroke of luck didn’t last long. MoneyGram and Walmart parted ways, leaving MoneyGram to compete with online-only money transfer services like TransferWise and CurrencyFair. These online transfer services and other services like them offer money transfer opportunities with the best exchange rates and low or no transfer fees. MoneyGram is struggling to keep up with this level of competition. Recently, Ant Financial has entered a bidding war to acquire MoneyGram. In a recent letter, Ant Financial stated that if this acquisition goes through, they’ll be diversifying MoneyGram’s services and steering away from a solely-remittance based offering platform. Not surprising, given the intense competition in the money transfer industry right now, and exchange rates that keep improving more and more.

    Loan Sharks

    Although loan sharks are still alive and kicking, they are no longer anywhere near the levels of profitability they have been. With tightening regulation over payday loans in the UK and the USA, the APR these companies can take has been vastly limited in comparison to the past. Additionally, with the rise of P2P funding and business loan companies, there is just more access to cheaper funding than what loan sharks offer.

    Tower Records

    Tower Records was once a massive music distribution chain with physical storefronts. They were incredibly popular, and were well-known for their massive inventory selection and their excellent prices. In 2006, Tower Records filed for bankruptcy and underwent a liquidation process. Although they still have an online store, they are nothing like they were in their glory days. Tower Records, like many companies that relied heavily on a physical store location, struggled to keep up with audio streaming services such as iTunes. The ability for customers to purchase music online only continued to expand, and Tower Records could no longer afford to maintain their physical presence.

    RadioShack

    RadioShack’s bankruptcy story is relatively recent – they just filed in 2015. Once known for being the everything-technical store that also sold bits and bobs like RC Airplanes, RadioShack served customers since 1921. However, in recent years, more and more people have been getting their tech accessories and gadgets from bigger stores like Best Buy, or ordering them directly from an online retailer such as Amazon.

    While it’s unfortunate that these businesses were put out by online-first companies, it’s not uncommon for the retail landscape to change over time. While these changes feel strange, in another 20 years things will be completely different than they are even now.