Investment strategy – Maw Fin http://mawfin.com/ Fri, 13 May 2022 16:48:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://mawfin.com/wp-content/uploads/2021/10/default-120x120.png Investment strategy – Maw Fin http://mawfin.com/ 32 32 TradeTech: Opportunity for European Asset Managers as US Investment Strategy Shifts https://mawfin.com/tradetech-opportunity-for-european-asset-managers-as-us-investment-strategy-shifts/ Wed, 11 May 2022 08:44:44 +0000 https://mawfin.com/tradetech-opportunity-for-european-asset-managers-as-us-investment-strategy-shifts/ During the Economic Fireside Chat at TradeTech in Paris this morning, a panel of leading economists, researchers and practitioners discussed the impact of the coronavirus pandemic on global economic activity and what it could mean for the future. both from a balance sheet and cash flow perspective. Interest rate volatility Of course, one of the […]]]>

During the Economic Fireside Chat at TradeTech in Paris this morning, a panel of leading economists, researchers and practitioners discussed the impact of the coronavirus pandemic on global economic activity and what it could mean for the future. both from a balance sheet and cash flow perspective.

Interest rate volatility

Of course, one of the main issues in the coming year will be the significant rise in inflation and how central banks can manage that.

“There’s been a huge jump in commodity prices – oil prices, gasoline prices, wheat prices given the situation in Ukraine,” said Kevin Daly, senior economist at Goldman Sachs. “Growth is holding up better than expected, but everyone is trying to cope with this massive inflationary dynamic which was already there before the war but which has considerably exacerbated.

“Central banks have a ready toolkit in the form of interest rates to deal with inflation. But will they be able to walk the tightrope between slowing growth enough to reduce inflation, but not enough to push the economy into recession? It’s a very thin path with lots of places to fall.

American Opportunity

Jane Buchan, CEO of Martlet Asset Management and a seasoned hedge fund specialist, pointed to a critical opportunity for European asset managers as US investors begin to look beyond their domestic lens for the first time in a long time.

“In the United States, we had a really tough start to the year,” Buchan said. “It used to be a market where you were rewarded for being in the US – a lot of investors said, why put our money overseas when the domestic market is doing so well? So what is happening now is a small-scale panic in the institutional asset management market. Should we be more diverse, should we look abroad? They are also exploring different asset classes that they may not have looked at before. Exchange rates and currencies, commodities, have all been pushed aside for the past few years, and people are now reassessing that. We are seeing a move from the big US investment managers to change what they want to do.

One such trend is a shift to equities given the current freefall in the fixed income market. “In the United States, we had a bull run on bonds. As people see those values ​​falling, we could see a reallocation back to equities,” Buchan predicted.

“US institutional investors will look more outside the US than they have in the past five years, and that’s a strong message for European asset managers.”

Focus on climate change

Finally, Dirk Schumacher, Managing Director and Head of European Macro Research at Natixis, underlined the crucial importance of climate change as an impact that investment managers must take into account in the years to come.

“Climate change is real and we have to spend a lot of money to deal with it,” he told the conference. “There will be mistakes made along the way. There will be structural breaks, there will be sectors that will not adapt, energy prices will remain high. All of this is difficult to model, but the green transition is here to stay, and the sums spent will be colossal.

Adapt to the opportunity

Looking ahead, it’s likely that the world will end up looking like a rather different place in the next few years, and strategies will have to adapt to adapt to that.

“Where are we once all these shocks have been absorbed? Schumacher asked. “The neutral rate will probably end up being higher than it was before.”

Daly agreed. “The question is: when will we see the peak of US inflation? This will be the next big thing for the market to deal with. You will need to decide which trades you want to set up in this environment.

“I’m not sure we would want long-only stocks. You might want to take off your US fixed income shorts. We are seeing initial evidence that the spike could be around the corner within the next two months. The challenge will be how the market responds to it.

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Investment Strategy Considerations Outlined with NFTs https://mawfin.com/investment-strategy-considerations-outlined-with-nfts/ Tue, 10 May 2022 18:00:00 +0000 https://mawfin.com/investment-strategy-considerations-outlined-with-nfts/ As NFTs continue to gain traction in mainstream culture, an industry advocate has outlined some vital considerations for SMSFs considering investing in these assets. In an online post, Townsends Business and Corporate Lawyers attorney Elizabeth Wang explained that an NFT, which stands for non-fungible token, is a digital asset that is a unit of data […]]]>

As NFTs continue to gain traction in mainstream culture, an industry advocate has outlined some vital considerations for SMSFs considering investing in these assets.

In an online post, Townsends Business and Corporate Lawyers attorney Elizabeth Wang explained that an NFT, which stands for non-fungible token, is a digital asset that is a unit of data stored on a digital ledger. It is unique and not interchangeable.

“Nowadays, almost anything digital can be an NFT, such as signed drawings, paintings, music, and photos,” she noted.

Ms. Wang said there is no simple answer to the question of whether an SMSF can invest in an NFT.

When determining whether to invest in an NFT, the fiduciary must consider whether the investment would meet the sole purpose test and whether the SMSF’s investment strategy will be met, she said.

The sole purpose test, she said, will be satisfied if the sole purpose of an SMSF is to provide retirement benefits to its members.

“However, difficulties may arise in trying to meet the sole purpose test because an SMSF cannot directly or indirectly provide financial assistance or benefits to its members before their retirement, including use of or access to assets SMSF,” she explained.

“The ATO states that a cryptocurrency is more likely to have been acquired as a personal-use asset if the cryptocurrency is acquired and used within a short period of time compared to an acquired cryptocurrency and held for a period of time before such a transaction is made.”

An SMSF may be able to meet this requirement, she said, if the trustee is able to demonstrate that the NFT will not be used as personal-use property by the trustee or members of the SMSF and that it will rather be kept or mainly used. as an investment.

Ms. Wang said that the current rules regarding SMSF investment risk are based on the “investment covenants” framework in s52B of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act).

The administrator of the SMSF, she said, will have to consider a number of aspects, including the risk involved in making, holding and realizing any investment, the likely return on an investment, diversification, liquidity, costs and tax consequences as part of its investment strategy.

“As part of this framework, an SMSF fiduciary must exercise due diligence in relation to all investments made by SMSF. The problem here is the risky nature of NFTs as an investment. The process of buying an NFT can be complicated because most NFTs must be acquired using an Ethereum-enabled crypto-wallet. As with other types of cryptocurrencies, NFTs are also susceptible to crypto scams and hacks,” she explained.

Investing in NFTs may not be a prudent SMSF investment, she said, especially for those approaching retirement age, where stable income-generating assets and minimal risk significant capital loss are significant.

“Generally there is no intrinsic value attached to an NFT unlike a stock or bond where you already know the intrinsic value of that investment. A successful NFT usually only has the value of the next person who is willing to pay for it,” she noted.

Ms. Wang explained that NFTs could, however, play a role when they are part of an appropriate strategy.

“For example, the fiduciary may be able to argue that having less than 5% of the fund’s total assets invested in digital assets such as NFTs does not pose a material risk to the fund and yet adds the potential to increase the fund’s overall investment performance,” she said.

“Whatever the decision, NFTs as an investment must be approved in an SMSF investment strategy. It may also be necessary to amend an SMSF Trust Deed to allow for investment in digital assets such as NFTs.

Miranda Brownlee

Miranda Brownlee is the Deputy Editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF industry.

Since joining the team in 2014, Miranda has been responsible for breaking some of Australia’s biggest superannuation stories and has reported extensively on technical strategy and legislative updates.
Miranda also has extensive experience in business and financial services reporting, having written for titles such as Investor Daily, ifa and Accountants Daily.

Investment Strategy Considerations Outlined with NFTs

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Last update: May 10, 2022

Posted: May 11, 2022

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Why my investment strategy doesn’t revolve around index funds | Smart Change: Personal Finances https://mawfin.com/why-my-investment-strategy-doesnt-revolve-around-index-funds-smart-change-personal-finances/ Sat, 07 May 2022 17:45:59 +0000 https://mawfin.com/why-my-investment-strategy-doesnt-revolve-around-index-funds-smart-change-personal-finances/ (Maurie Backman) The money you’re constantly putting aside for retirement absolutely shouldn’t stay in cash. If you go this route, you won’t grow your money at a rate fast enough to outpace inflation. The result? You could find yourself strapped for money later in life and your long-term goals could be in jeopardy. Rather, it […]]]>

(Maurie Backman)

The money you’re constantly putting aside for retirement absolutely shouldn’t stay in cash. If you go this route, you won’t grow your money at a rate fast enough to outpace inflation. The result? You could find yourself strapped for money later in life and your long-term goals could be in jeopardy.

Rather, it is important to invest the money you accumulate for retirement and other goals. And in this regard, you can decide to just load on index funds.

Index funds are passively managed funds whose objective is to track and match the performance of the benchmark indices to which they are linked. A S&P500 an index fund, for example, will aim to do as well as the S&P 500 itself.

Image source: Getty Images.

Index funds are actually a very good choice for the typical investor, and that’s not just my opinion. Investment giant Warren Buffett has long index funds hailed as a great way for everyday investors to grow their wealth.

But my personal investment strategy doesn’t revolve around index funds. Here’s why.

1. I’m comfortable with stock picking

Index funds are a great option for people who don’t know much about picking individual stocks, or aren’t comfortable going that route. While I may not have the same stock-picking skills as some investors, I probably know more than the average person. Based on my knowledge, I am comfortable evaluating stocks and choosing individual companies in which to invest my money.

To be fair, I’m also willing to put in the time and research different companies before diving in. Some people may not have the desire or the patience to do this, and that’s okay. Since I regularly spend time reading about stocks (sometimes just for fun), investing in individual companies is doable for me.

2. I want a portfolio with the potential to beat the market

Index funds have a few drawbacks, one of which is that they won’t allow you to outperform the broad market in your portfolio. As I mentioned earlier, index funds want to outperform the indices they track, but their goals are not to beat them.

I, on the other hand, have slightly more ambitious goals. My goal is to build a portfolio that does at least slightly better than the broader market. To achieve this, I have to put together my own mix of investments.

3. I have choices in my retirement plan

People who save in an employer-sponsored account 401(k) plan are often limited to a selection of funds, as opposed to individual stocks. But because I have a different type of 401(k) – a solo 401(k) – I don’t have that restriction. Instead, I can invest my long-term savings in individual businesses, and that’s an option I prefer to jump on.

What is the right choice for you?

There’s absolutely nothing wrong with using index funds as an investment for retirement and other long-term goals. But I have my reasons for choosing different stocks that I believe have a solid level of growth potential.

One thing to keep in mind, however, is that you don’t have to choose between index funds and individual stocks. Investing in both could end up making you very wealthy, while making it easier to keep your portfolio nice and diverse.

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Investment Strategy Series – No1 “Buy the Dip” https://mawfin.com/investment-strategy-series-no1-buy-the-dip/ Wed, 04 May 2022 08:04:34 +0000 https://mawfin.com/investment-strategy-series-no1-buy-the-dip/ The Expression “buy the dip” can be used to describe a fundamental investment approach. This doesn’t mean you have to go “all in” when an asset’s price is falling; rather it implies that you should average when the price is falling and/or buy after the price has stabilized. This method is also much safer to […]]]>

The Expression “buy the dip” can be used to describe a fundamental investment approach. This doesn’t mean you have to go “all in” when an asset’s price is falling; rather it implies that you should average when the price is falling and/or buy after the price has stabilized.

This method is also much safer to use when the market is bullish, in a stagnant economy or when the main trend is up or sideways, rather than in a volatile market.

So if passive income starts with smart investments, buying the current market downturn seems like the best possible decision for a thriving digital wallet.

“Buy the dip” strategy

– Accumulate small amounts of cryptocurrency when the price drops, creating an average position with the goal of buying more as the price drops even more. This allows you to create an average price instead of hitting volatile peaks;

– Keep your money in the bank until the price stabilizes, and maybe even starts to rally, then buy – this is called buying an out-of-support reaction;

– Allow the execution of buy orders at lower prices. Setting buys just before historical support levels, massive “buy walls” and psychological levels are particularly effective approaches in the stock market (because prices tend to recover at least briefly from these levels).

“Buy the dip” – Ethereum (ETH)

Is it worth buying the dip? On-chain analysis is an essential tool for distinguishing between the speculative value and the utility value of a cryptocurrency. Many metrics are showing bullish signs right now.

Ethereum’s on-chain metrics appear to be extremely strong, despite the somewhat slow start to the overall cryptocurrency market through 2022.

Since the beginning of the year, the usefulness and acceptance of Ethereum (ETH) increased significantly, due to increased capital inflows and chain activities.

Due to Ethereum’s undervalued fundamentals and its current price of 2,761.35, which is well below its all-time highs, now could be the best time to buy the dip before the second most important cryptocurrency launches its next bullish push (The Merge).

Ethereum (ETH) merger

the ETH The merger is expected to take place later this year and with it, the primary trading route in cryptocurrencies will be enhanced and improved to its very core.

Specifically, Ethereum is about to undergo the most significant change in its nearly two-decade history: it will move from its current PoW (proof of work) consensus method to a PoS (proof of stake) mechanism. The good news is that transitioning to Proof-of-Stake technology will reduce network energy consumption by at least 99.95%.

Visit the official website at https://ethereum.org/en/ to learn more

“Buy the Dip” – Rocking Protocol (SSW)

Switch Protocol (SSW) is an ecosystem comprised of multi-chain DeFi technologies, protocols, and use cases. It is represented by the stock symbol SSW and operates on the Ethereum blockchain. SSW, being a multi-chain protocol, intends to be implemented on a variety of platforms, including BNB smart chain and Polygon.

Switch Protocol (SSW) is a blockchain-based service that offers a variety of services for users who wish to take advantage of the range of trustless, inexpensive, and decentralized services that blockchain has to offer.

It is a complete on-chain liquidity protocol that can be deployed on any blockchain that supports smart contracts, including BNB smart chain, Polygon blockchain, and Ethereum. It can serve as an endpoint for automated market making (buying and selling tokens) as part of a smart contract.

An important goal of the project is to disrupt the old way of engaging and thinking about cryptocurrency by reshaping education while simultaneously developing a platform to promote education and cryptocurrency to people. around the world, as well as to ensure the financial and technological culture of all. members of society.

The Seesaw Protocol native SSW utility token can be purchased from PancakeSwap (V2). The flow market price is $0.012

toggle token has a total market capitalization of $990,000,000 at the moment.

On April 8, 2022, the token presale ended and the market trends have driven the value down. Right now, investors are buying the dip – just like they do for ETH and BTC, as analytics still show upside potential.

Visit the official protocol website at https://www.seesawprotocol.io/ to learn more

“Buy the Dip” – Bitcoin (BTC)

Bitcoin (BTC) hit a high of $50,000 for the first time on December 27, 2021. Five months later, the “first” cryptocurrency is trading at $37,948.63 well below the $40,000 mark. However, investors and analysts remain fully confident that inflation has reached the critical threshold to initiate BTC acceptance.

There is no way to anticipate what would trigger a Bitcoin bullfight. However, with “huge coin supply volume” amassing around $45,000, traders and analysts still believe that BTC may reach $50,000 by the end of summer 2022. If so, then buying the dip could mean millions for investors who still believe in Satoshi Nakamoto and his genius.

Visit the official website at https://bitcoin.org/en/ to learn more

KEYWORDS: Buy the Dip, Seesaw Protocol, SSW, Bitcoin, BTC, Ethereum, ETH, Market,

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Prime Minister meets with Cuban Ambassador – Investment Strategy https://mawfin.com/prime-minister-meets-with-cuban-ambassador-investment-strategy/ Wed, 04 May 2022 07:43:57 +0000 https://mawfin.com/prime-minister-meets-with-cuban-ambassador-investment-strategy/ May 04, 2022 Invest in Barbados To print this article, all you need to do is be registered or log in to Mondaq.com. Cuban Ambassador His Excellency Sergio Pastrana paid a courtesy call on the Prime Minister, Honorable Mia Amor Mottley, QC, MP, recently at Ilaro Court, Two Mile Hill, St. Michael. The two men […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

Cuban Ambassador His Excellency Sergio Pastrana paid a courtesy call on the Prime Minister, Honorable Mia Amor Mottley, QC, MP, recently at Ilaro Court, Two Mile Hill, St. Michael.

The two men discussed the long-standing relationship between Barbados and Cuba, as well as other areas of mutual interest, including health, biotechnology, trade and air connectivity.

Diplomatic relations between Barbados and the Republic of Cuba were established on December 8, 1972.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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How to Consider Startups as an Alternative Investment Strategy https://mawfin.com/how-to-consider-startups-as-an-alternative-investment-strategy/ Tue, 26 Apr 2022 22:14:30 +0000 https://mawfin.com/how-to-consider-startups-as-an-alternative-investment-strategy/ Many investors think their options are limited to stocks and bonds, either directly or through a 401(k) or IRA. There are, however, many alternative investment options available. For some investors, startups are a good choice. Startups feature hungry entrepreneurs looking to turn an idea into a profitable business. Startups are an attractive consideration for alternative […]]]>

Many investors think their options are limited to stocks and bonds, either directly or through a 401(k) or IRA. There are, however, many alternative investment options available.

For some investors, startups are a good choice. Startups feature hungry entrepreneurs looking to turn an idea into a profitable business.

Startups are an attractive consideration for alternative investment options. Investors, however, should do their homework and invest cautiously. Knowing what to look for in an investment and what questions to ask are important steps. Learning how to protect your investment can make startups an attractive choice for investing your money.

Your risk tolerance plays an important role

Startups may seem like a tantalizing possibility. The Silicon Valley giants all started out as small companies short of garages and dormitories. It was the investors who believed in the ideas and gave these fledgling companies a boost.

Yet for every Apple, Microsoft and Facebook, there are hundreds of other companies that have failed.

There is a high risk, high reward element to alternative investments, especially startups. Federal regulations have relaxed when it comes to investing in these companies. However, the Securities and Exchange Commission still imposes certain restrictions on the amount investors can invest over a 12-month period.

If your annual income or net worth is less than $107,000, SEC guidelines allow you to invest up to $2,200 or 5% of the lesser of your net worth or annual income.

If it’s over $107,000, you can invest up to 10% of your annual income or net worth, whichever is lower, up to $107,000.

Alternative names for seed investing include venture capital and angel investing. For personal investors, the concept is enticing. Help an ambitious young entrepreneur overcome the hurdle of funding and try his luck. Just be aware that many companies don’t.

Know how much you are willing to risk before getting involved in seed investing.

Smart investors consider startups like the other investment categories. Instead of putting all their funds into a single asset, savvy investors diversify their portfolios. Taking the same approach with startups is a good choice.

Develop your investment strategy

Build an investment strategy before embarking on alternative investments. Start by deciding how much you are going to invest and how many trades you are going to invest in. Having 15-20 investments gives your startup portfolio the diversity to protect the financial commitment.

Do you want to give equal weight to all your start-up investments? It is an approach to diversification. Another is to give yourself the leeway to invest more in businesses you strongly believe in. Either way, it’s best to know you plan to allocate your funds before you invest.

What do you want to invest in? Think about the types of businesses you want to engage in. Are you looking to support an idea that a great team is working on? Would you rather invest in a more mature startup that offers a functional product or service and, perhaps, revenue?

You can also specialize in one industry and spread your investments in that niche. You may want a combination of investment stages on your first foray.

Find your sources of offers

With the stock market, investors have access to all publicly traded stocks available. This is not the case with startups. Finding companies seeking funding is not as straightforward as alternative investments. Access to startups requires a bit of groundwork.

Various crowdfunding platforms provide access to startups looking for angel investors. The platforms offer different levels of access and offer a minimum of due diligence. These sources provide access to multiple companies across all industries, while others focus on a niche investment area.

Joining an angel investment club is another option. Here you will find like-minded investors eager to identify strong potential investments. They can also be a good sounding board for making decisions about your investments or hunches about businesses. Often, members pool research responsibilities and decide where to invest their funds.

Understanding financial instruments

Investments in startups come with various investment options. Convertible notes are a popular investment instrument today. Convertible shares are essentially a loan that earns interest over time. Eventually, the note is converted into shares.

The conversion is usually tied to a major event, such as the first major funding round. Convertible investors get shares at the price offered for the financing round, for example.

For investors, the convertible approach can mean a substantial payoff when the company gets the attention it deserves. For startups, these agreements allow them to work and invest the money brought in without worrying about repaying the debt. They are a simple way to raise funds while fine-tuning the business.

Other options include debt financing, where you lend the business money. The contract pays a fixed or variable return, depending on the performance of the business.

If you invest in late-stage startups, you may be able to buy shares, like in a public company. You may need to hold onto the shares until the company goes public.

How to research startups

Reviewing business plans and financial data is an important factor to use in deciding whether or not to invest. Also consider whether you have expertise in the startup field, allowing you to apply this knowledge to your decisions.

If you meet the team, are they passionate about their work and see its success? Do they have the expertise to lead or do they learn as they build?

Also, get an idea of ​​the market size. A large and growing market is essential for startups to succeed. Finally, ask yourself if now is the time for the idea – why this product or service right now?

Startups can be an exciting way to invest and see the possibilities. Learning about companies and being part of their success has its unique rewards.

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How Twitter fought Elon Musk with a real estate investment strategy https://mawfin.com/how-twitter-fought-elon-musk-with-a-real-estate-investment-strategy/ Tue, 26 Apr 2022 07:00:00 +0000 https://mawfin.com/how-twitter-fought-elon-musk-with-a-real-estate-investment-strategy/ The social network briefly turned to a poison pill to fight the richest man in the world. And it turns out that poison pills have a long history in the real estate industry. Earlier this month, as Elon Musk intensified his attempts to take control of Twitter, the company’s board adopted a dramatic and curious […]]]>

The social network briefly turned to a poison pill to fight the richest man in the world. And it turns out that poison pills have a long history in the real estate industry.

Earlier this month, as Elon Musk intensified his attempts to take control of Twitter, the company’s board adopted a dramatic and curious strategy: the poison pill.

The effort came after Tesla’s billionaire CEO bought more than 9 percent of the social network, but before he tinkered with the $44 billion that ended up earned him the company this week. And for this brief interregnum between the old and the new Twitter regime, the poison pill represented a high-risk bet to keep the company out of Musk’s hands.

The poison pill strategy ultimately failed thanks to the strength of Musk’s bid, but what few realized as the story unfolded was that Twitter was finally releasing its book of real estate investment world game.

What is a poison pill?

A poison pill is a method to ward off investors who would take control of a company by buying large amounts of stock without the approval of the company’s board of directors. In other words, it’s a defense against a hostile takeover.

The poison pill strategy specifically allows investors to buy new shares of the company at a discount. This in turn dilutes the shares of the potential owner, who is generally not allowed to buy shares during the poison pill event, meaning that he ultimately owns less of the company than he hoped. originally. In this way, a poison pill strategy gives more control to minority shareholders and deprives the potential acquirer – in this case Musk – of some influence.

However, there are also disadvantages. Deploying a poison pill can also make corporate actions less desirable, hence the name “poison pill”, and discourage institutional investment, among other things. Another potential downside includes the empowerment of existing managers and leaders, even if those managers do not guide the business to its peak performance.

A well-known and recent example of this is when Papa Johns used a poison pill to prevent company founder John Schnatter from taking over the pizza maker after he was ousted. A number of other companies such as let’s group and At Dave and Buster’s have also used poison pills recently.

In the case of Twitter, a company deposit with the United States Securities and Exchange Commission argued that the poison pill would “protect shareholders against coercive or otherwise unfair takeover tactics.” The plan – which the board unanimously approved – would have been triggered if a shareholder had acquired 15% of the company.

What does it have to do with real estate?

Companies in various industries have used poison pills in the past, but by the late 1990s, the strategy was associated with one industry in particular: real estate.

Specifically, in 1998, 31 different real estate investment trusts, or REITs, used poison pills, according to the the wall street journal. These trusts typically own large real estate portfolios — such as shopping malls, office buildings, or self-service warehouses — and sell shares to investors, allowing people to technically become part owners simply by buying shares. .

However, by the 1990s, the stock prices of some REITs were crashing. According to Logprices got so low that the companies themselves were worth less than the total value of their assets – meaning investors could have bought all the shares of some REITs for less than they would have paid for the land only these REITs owned.

Those 31 REITs who adopted poison pills in the 1998s represented a huge increase – there were only five poison pills of FPIs the previous year – and at the time, an analyst told the Log that even more real estate companies were exploring the strategy.

The era of widespread poison pills for REITs finally died down as the economy evolved in the early 2000s. However, as recently as 2020, corporate defense firm Latham and Watkins advised real estate companies to consider defense strategies such as poison pills in response to the escalating coronavirus pandemic. In other words, poison pills are still in the toolbox of publicly traded real estate companies.

What happened to the poison pill of Twitter?

The short answer here is that Twitter finally stopped trying to prevent Musk’s takeover and, this week, accepted his offer. On the way, Musk against competition investment giant Vanguard, which briefly overtook it as the largest shareholder in the social network. At one point, Twitter founder and former CEO Jack Dorsey also criticized company board for what he described as “plots and coups” in efforts to thwart Musk.

Ultimately, however, the resolution was perhaps less dramatic than Dorsey’s comments might have suggested; Musk’s offer ultimately involved paying $54.20 per share, which represented a steep premium to the price at which the shares were trading.

In the end, it was all about the money.

What this means for Twitter remains to be seen. Media commentators have describes a variety of potential future scenarios ranging from Musk leaving Twitter almost alone to him shaking the platform and welcoming banned accounts again, like the one belonging to former President Donald Trump. Musk has also repeatedly teased potential changes, but so far has not set out an overall vision for his time at the helm of the company.

Email Jim Dalrymple II

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Investment strategy: how to overcome volatility and inflation https://mawfin.com/investment-strategy-how-to-overcome-volatility-and-inflation/ Tue, 19 Apr 2022 22:00:00 +0000 https://mawfin.com/investment-strategy-how-to-overcome-volatility-and-inflation/ Over the past five trading sessions, the benchmark Sensex has lost nearly 3,000 points due to likely aggressive rate hikes by the US Federal Reserve, rising inflation, fourth quarter earnings plus lower than expected and the surge in Covid-19 cases in parts of Europe and China. Also in the debt market, the yield on benchmark […]]]>

Over the past five trading sessions, the benchmark Sensex has lost nearly 3,000 points due to likely aggressive rate hikes by the US Federal Reserve, rising inflation, fourth quarter earnings plus lower than expected and the surge in Covid-19 cases in parts of Europe and China. Also in the debt market, the yield on benchmark 10-year government securities rose to 7.16% on April 18 from 6.46% on January 3, and the Reserve Bank of India, in its review of the monetary policy of April 8, signaled that its objective is now shifting from reviving growth to controlling inflation.

Spiral inflation

Consumer price inflation hit 6.9% in March, a 17-month high and remained above the central bank’s tolerance limit for the third straight month. The wholesale price index accelerated to 14.5% in March from 13.1% in February. Experts expect the RBI to start raising interest rates soon and the amount of hikes will depend on inflation footprints. In such a volatile market, experts advise individuals to lower their expectations for equity returns and keep asset allocation in place. They should consider investing in quality stocks during downturns, investing in floating rate funds and target maturity funds in fixed income securities, and gaining some exposure to exchange traded funds on the market. ‘gold.

Equity strategy

A market correction is the perfect time to buy quality large-cap stocks, especially companies that are posting good numbers. Although mid-cap companies offer good buying opportunities, investors should examine company fundamentals and cash flows. VK Vijayakumar, chief investment strategist at Geojit Financial Services, says a clear trend in the market is the preference for value over growth. “This trend and the outperformance of mid caps should continue. Investors will have buying opportunities in these declining segments,” he says.

Vineet Bagri, managing partner at TrustPlutus Wealth, said if there were further declines this week, sentiments would worsen further and risk aversion would rise given the earnings season hasn’t started on a high. good mark. “Nevertheless, we suggest buying slowly and steadily during dips, especially for long-term investors, and not turning away from the market altogether,” he says.
Debt: target maturity funds, floating rate funds

Target maturity debt funds are suitable if the investment horizon matches the target date. If a rise in rates occurs, there will be an impact on the market value of these funds. However, if you hold them to maturity, the returns would be almost similar to the return to maturity, as volatility tends to decrease the closer the fund gets to the target maturity.

In the event of rising interest rates, investing in floating rate funds will offer less duration risk than longer term fixed income instruments. Experts say that in a rising interest rate environment, floating rate funds could generate higher returns than other fixed income funds because a floating rate fund’s returns are tied to the rate of interest. reference interest.

Diversifier: ETF on gold

Investing in gold is a good way to diversify, acts as a hedge against inflation and mitigates losses during difficult market conditions and economic downturns. Gold ETFs recorded net inflows of 205 crore in March after recording net outflows for two consecutive months. Gold ETFs offered by mutual funds are a cost-effective option for buying the metal electronically.

  • A market correction is the perfect time to buy quality large-cap stocks
  • Target maturity debt funds are suitable if the investment horizon matches the target date
  • Floating rate funds can generate higher returns in a rising interest rate scenario
  • Gold is a good diversifier, helps hedge against inflation
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investment strategy | volatility | inflation: watch out for volatility; invest in installments for the next 3-4 months: Trideep Bhattacharya https://mawfin.com/investment-strategy-volatility-inflation-watch-out-for-volatility-invest-in-installments-for-the-next-3-4-months-trideep-bhattacharya/ Tue, 19 Apr 2022 11:20:00 +0000 https://mawfin.com/investment-strategy-volatility-inflation-watch-out-for-volatility-invest-in-installments-for-the-next-3-4-months-trideep-bhattacharya/ “We are positive on domestic cyclicals in the form of industrials, financial lending, direct and indirect real estate plays from a portfolio construction perspective. In contrast, we remain neutral to negative in pharma, IT services, consumer staples and utilities,” says Trideep BhattacharyaCIO, Edelweiss AMC. How do you think the rest of the calendar year will […]]]>
“We are positive on domestic cyclicals in the form of industrials, financial lending, direct and indirect real estate plays from a portfolio construction perspective. In contrast, we remain neutral to negative in pharma, IT services, consumer staples and utilities,” says Trideep BhattacharyaCIO, Edelweiss AMC.



How do you think the rest of the calendar year will go?
Overall, we expect this year to be a story of two halves, where the first nine months would be quite volatile and it turns out to be the case. There are two reasons why we thought it would be volatile. First of all, we expected that this change in interest rate regime, going from a falling interest rate to a rising interest rate, would cause a bit of floating.

The second problem is inflation, which has raised its ugly hood over the last two or three months of this earnings season and going forward over the next month and a half we’ll probably see an increasing involvement of the same . We will see an earnings season where on the one hand commodity users will see the impact on their revenue and on the other hand commodity acquirers will see a positive effect on their revenue. This is reflected in the form of volatility in the overall market.

But if one crosses that over to the other side, into the second half of this year and moves into the next two or three years from what we’ve seen in the last 10 years and also India in Against the global backdrop, the investment thesis looks pretty robust. In the medium term, we remain rather positive whereas over the first six to nine months of the year, we are asking investors to take a more graduated view and to invest more in tranches rather than trying to be in urgency.

Lately we have also noticed some contraction in the valuation multiple, but it is now trying to stabilize near the long-term average of around 18-20x. Nevertheless, it is still quoted at higher levels, but at this stage and given the current market structure, would you advocate a further injection of funds and, if so, what strategy would you advise?
The fall in market multiples is more a function of the fact that, overall, thanks to the change in the interest rate regime from falling to rising rates, the cost of capital increases and therefore, from this point of view , the same cash flows are priced down and that’s what we’ve seen over the last three or four months in terms of the impact on valuation multiples and that’s why in some parts more than others, it is more in line with long-term averages.

The impact of inflation on India Inc.’s financials is not yet fully factored in and I believe it will likely start to be factored in by the end of the June quarter. It will be partly taken into account in the current quarter and partly in the next quarter. I would recommend investors from now on, for the next three or four months, to invest in a more gradual way, in installments rather than lump sum, because in the medium term some things in India are looking good.

How would you classify the different sectors into three categories if you had to adopt a positive, negative and neutral position?
In my view, over the next two to three years, three things will happen in the Indian economy that will stand out against the backdrop of the past 10 years. First, over the next two to three years, there is a strong chance of seeing a private sector investment cycle, something we haven’t seen in the last 10 years.

Second, the real estate sector – both direct and indirect – is likely to hit bottom. Real estate generally follows a seven-year cycle and therefore returns would be positive not only for stock markets but also for the economy in general.

Third, for the first time in the past 10 to 15 years, we have seen double-digit salary increases. This may spell trouble for companies trying to maintain their margins, but from a permanent economic power standpoint for the next two to three years, it’s generally a positive. So, based on these three elements, domestic cyclicals are overall the place to be from a medium-term perspective.

In terms of sectors, domestic cyclicals in the form of industrials, financial lending, direct and indirect real estate plays are where we are positive from a portfolio construction perspective. However, we remain neutral to negative on pharma, IT services, consumer staples and utilities. Generally speaking, this would be the sector tilt we have at Edelweiss MF in most long only portfolios. We’re pretty optimistic about them looking two to three years ahead.

What is the current view of the broader markets – the small and mid cap space?
Over the past year, mid and small caps have grown in an annual range of 45-55%, which is quite substantial compared to what we are used to on an annual basis. Against this backdrop, the valuation differential that existed between large, mid and small caps over the past 12-18 months has narrowed overall and as a result, going forward, market movement would be more equity specific. , more specific to the company and more specific to the earnings figure, rather than depending on the market capitalization category to which they belong.

Therefore, if I were to take a one-year view, I would be independent of market capitalization, but from a medium-term perspective – a three- to five-year outlook – given that my view of the Indian economy is constructively, we would think that midcaps and small caps certainly deserve a place in investors’ asset allocation. It’s just that in the short term, they might experience a little more volatility than what we’re used to or seen in the last 12-18 months.

What is the biggest risk this market has right now?
Come Diwali, if we still see oil lingering around $120 and above, then all bets are off. There is academic evidence to prove that if oil stays around $120+ for more than nine months, there is a reasonable chance of demand destruction not only in India but globally and India would not be no slouch in such circumstances. Under these circumstances, there would be demand destruction, a more stagflationary situation, more recessionary conditions overall and we should be concerned about that. This is in my opinion the biggest risk.

Our current view, as opposed to this, is that we believe inflation is more supply driven, more transitory in nature and by the festival season this year should be largely resolved. That’s the balanced view of risk and where we are.

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shares to buy | investment strategy: Be very careful but bet on these 5 sectors: Ajay Bagga https://mawfin.com/shares-to-buy-investment-strategy-be-very-careful-but-bet-on-these-5-sectors-ajay-bagga/ Fri, 15 Apr 2022 08:26:00 +0000 https://mawfin.com/shares-to-buy-investment-strategy-be-very-careful-but-bet-on-these-5-sectors-ajay-bagga/ “The market has decided that IT has outperformed over the last 16 months, it’s too owned and maybe it’s time to let off some IT steam. We could have even more blood on the IT index for a while, especially on the IT midcap,” says a market expert Ajay Bagga. The highlight of this week […]]]>
“The market has decided that IT has outperformed over the last 16 months, it’s too owned and maybe it’s time to let off some IT steam. We could have even more blood on the IT index for a while, especially on the IT midcap,” says a market expert Ajay Bagga.


The highlight of this week was the numbers we got from the TCS. What do you think of the whole IT package? Nifty IT is down about 3% and mid-cap IT stocks have definitely taken it on the chin?
Yes, there are three big problems with IT; one is the attrition number which has been high even though TCS hired 36,000 people this quarter but with 17% attrition the market is very concerned that if such high turnover occurs with a leading company, no one can guess what is happening on midcap CE.

Second, to block attrition, salary increases will come and this will cause margins to erode. Maintaining margins will therefore be difficult.

Third, domestic companies and European companies seem a bit clouded. This is what happens in computing. Seasonally, this is normally a very weak quarter for IT, so it was in line with expectations. The TCS numbers were ahead of expectations, but the market has decided that IT has outperformed over the past 16 months, is over-owned, and maybe it’s time to let off some steam. IT steam.

I’m still bullish on IT on a one year, two year basis. I think it’s one of the sectors to hold in India along with financials, but we may have even more blood on the IT index for a while, especially mid-cap IT.

This week’s headlines come from CPI numbers as well as IIP data with inflation hitting a 17-month high. Not only in India, but also in the United States, we have seen high inflation rates. What does this mean for future returns and the markets as a whole? Does the street not sufficiently assess the margin as well as the pressure on volumes due to the increase in commodity prices?
This quarter’s numbers are going to be good as commodity price issues have been slow to materialize. Even in India, it was four to five days after the UP elections that the rise in petrol and diesel prices of 80 paisa per day started. So March really doesn’t reflect the full picture for oil. April will be worse. Overall, the interest rate cycle is turning around after a 40-year downward trend. From 1980 to 2020, US interest rates fell from 20% to 0%. 1980 was the Volcker shock when, overnight, Paul Volcker raised US interest rates to 20% to curb inflation and this led to a huge recession which resulted in Jimmy Carter losing the election. Ronald Reagan arrived with a sort of America First package.

Exactly a similar situation now occurs on the side of the mirror. We are going to see several years of higher interest rates. There is no other way out, liquidity will have to be reduced as it has reached unsustainable levels. Just to give two examples; in 1980, at the start of the last cycle, no country in the world had a debt-to-GDP ratio of more than 300%. Today, there are as many as 25 countries, including the United States, China and Japan, where total debt to GDP exceeds 300%.

So we can say that the financial sector compared to the real sector, Wall Street compared to Main Street in 1980 was a ratio of 1:1, today it is 4:1. We’re talking about $340 trillion to $350 trillion of stocks, bonds, and all financial instruments around the world at totally unsustainable levels. I think we are in trouble when it comes to stock markets. It will take a year to calm down, but ultimately we are entering a recession in the United States, which will cause global economies to plummet and I would be very cautious on stock markets at this time.

The opening theme has worked for the last two, three months. Do you see more benefits to these counters or do you think the best has already been rated?
No, no, there is a huge advantage. Summer vacation is approaching and if you look around you at traffic, mobility metrics, huge queues at airports, hotel bookings, how ARPUs are improving, reopening trade is doing really well. I would stick to it. Thus, restaurants, hotels, airports, airlines should all do very well because this part of consumption is present. People have been locked up in their homes for two years and we are seeing a tremendous amount of travel and vacation.

The other thing is that a lot of parents come from abroad during the Easter holidays. So the reopening trade is very strong and it will hold. Airlines are doing well despite high ATF prices. Simple volume growth is coming back. The airports are full to bursting and despite the increase in flights, we are seeing a good filling rate. All four flights I took were full, not a single seat was empty.

If I were to give you a blank check and ask you to invest in some meters, what would be your best bets?
I think a lot about financials, oil, gas and cement. Cement is doing well because coal prices have come down slightly and I expect prices to rise across the board. So the cement looks good. Industrialists and defense are doing well. In the case of defence, there will be import substitution in the order of $26 billion to $28 billion over the next five years. This is a multiple of what these companies are doing now and the export market is targeted at $5 billion per year after five years.

So now is a good time to enter at ground level, wherever these prices are today. If the beneficiaries of advocacy can be identified in both the private and public sectors, now is a good time to focus on them.

We have also seen the story of the PLI releasing a fair amount of exports from India. It will happen on the defense side, first on import substitution, then on the export side. So a good time to get into the defense business.

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