Tag: stocks

Eurobonds and the Federal Reserve

Posted by WFG – August 26, 2011

8/24/2011

TSX – 12,343.81

Dow Jones – 11,320.71

S&P 500 – 1,177.60

Nasdaq – 2,467.69

Gold and Mining

  • Gold took a big hit as their prices continue to fall. Despite the market’s rise, investors were cashing in on the metal as they awaited the Jackson Hole summit. Speculation is mixed on whether the Federal Reserve will signal an extra round of U.S monetary easing.
  • If the Federal Reserve does approve more quantitative easing then the chances are that gold prices will rise. If they don’t, then gold prices will fall. With the uncertainty many have decided to take no risks as gold already hit a peak in early august. Read the rest of this article

Oil Investment

Posted by Winflow – July 11, 2011

With oil prices on the rise, it’s not surprising that there is an increased interested in investing in oil. Oil investment can be an important part of diversifying your portfolio and provide a hedge against inflation. If you are interested in investing in oil there are a number of ways you can do so.

  • Stocks. You can invest in oil by investing in a company that produces oil like Shell or Esso. This type of stock is called a commodity stock. They can be highly volatile so it is important to balance your portfolio if you choose to invest in oil this way.
  • Oil futures/ oil future options. A direct method of owning oil involves investing in oil futures or oil future options. It should be noted that the futures market is highly volatile and involves a lot of a risk. You also may find yourself investing a large amount of capital in futures.
  • Exchange-traded funds (ETFs). Another method of owning oil is through ETFs. There are two main ways you can utilize ETFs for oil investment. You can purchase commodity-based oil ETFs or energy-sector ETFs. If you are interested in direct investments, you should invest in community-based ETFs like the US Oil Fund. For indirect oil investments, consider energy-sector ETFs. Energy-sector ETFs come with a lower risk than other investment options.

Types of Investments

Posted by Winflow – July 7, 2011

For novice investors, it is important to learn about the different investment options available to you. Different types of investments have different levels of risk and different ROIs. You should choose an investment that suits your investment style, whether you are risk averse or risk-loving.

Do you need help making smart investment choices and growing your stock portfolio? If so, contact the Winflow Financial Group. We offer a number of services for investors.

Types of investments include:

Stocks

When you purchase stocks you are becoming part-owner of a company. Investors who choose to invest in stocks get a say in shareholder meetings and are entitled to a portion of the company’s profits. It should be noted, however; that not all stocks pay dividends. Some stocks will only return your investment if they increase in value. Stocks are more risky than other investment options but they have the potential to provide high returns.

Bonds

Bonds are like writing an IOU for a company or the government. You are giving them money for a certain period of time and they will pay you back the money, with interest, over time. Bonds are ideal for risk averse investors because they are relatively low-risk. If you purchase a bond from the government you are more or less guaranteed to get your money back. Due to the fact this investment type is relatively risk-free the rate of return is generally lower than most types of investment.

Cash Equivalent Investments

These investments protect your initial investment and let you have access to your money. These are typically low-risk investments that have a low-rate of return. They are ideal for short-term security and are a highly liquid investment option. Cash equivalent investment types include treasury bills, passbook savings account or money market funds.

Mutual Funds

Buying a mutual fund involves pooling your money together with other investors and having it professionally managed. Mutual funds have a pre-determined investment objective and are ideal for novice investors that don’t have specialized knowledge. The rate of return and risk level of a mutual funds depends on the type you buy.

Other investment options include derivatives and commodities. Investing in these options often requires a more specialized knowledge of the stock market.

 

Selling Stocks from Your Investment Portfolio

Posted by WFG – July 4, 2011

If you’ve built an investment portfolio over a long period of time, selling the assets can be a tough task no matter where you are in your career. There are two human emotions that make the decision harder, and these are fear of regret and greed. But the ability to control these makes a better trader.

When profits rise most investors don’t want to sell, because they could lose out on the chances of it going further. This is much the same as falling prices, and traders cautious of selling due to a rebound. So when should you sell the stocks in your investment portfolio? You could try opportunity cost sell.

This is when you constantly monitor the condition of your stocks. Use research and analysis on both your investment portfolio, and future additions. When a new stock has been found to be performing better than a stock already in the portfolio, you replace the stock, maintaining an even balance.

There is also the strategy of valuation-level selling. This is when a trader has a specific target that the price will reach. When it reaches this price the trader will sell, no matter what is happening on the market. It helps with keeping portfolio management in order, though it can sometimes be tricky when there’s the potential to make more money.

For more information on selling stocks contact the Winflow Financial Group.

Will Facebook Follow MySpace?

Posted by WFG – June 29, 2011

News Corp, the parent company of MySpace, is closing the sale of the social network company for a sum in the region of $35 million. The California site was purchased by NewsCorp in 2005 for $580 million and has seen a massive decline over the past three 3 years, since it peaked at $900 million. It will be purchased by Specific Media, in the next few days,who are based in Orange County.

The social network site, around before Facebook, will be expected to make severe cuts to employee ranks. The site had already cut staff in January, after re-branding the site. But this failed attempt to bring the company back to life didn’t halt the decline in traffic. The site was once seeing 76 million users and has since fallen to around 35 million.

But will other social network sites, such as Facebook, follow in their footsteps? Facebook might be larger, but recent news has suggested that it might also be losing users. It may seem farfetched to think that a website as large as Facebook could lose its power. But where twitter offers news and connections with up to date comments, Facebook seems to be falling behind. Even MySpace was once had a media platform for musical acts, such as Lily Allen and the Arctic Monkeys.

Facebook won’t see a decline anytime soon. But with the changing market, if you compare it to sites such as Twitter, there’s no reason why it may also follow MySpace into oblivion.

Risks are Important to Your Investment Portfolio

Posted by WFG – June 29, 2011

When looking into creating an investment portfolio you’ll come across a wide range of different theories and risks. Some people say that you should be defensive when first starting your portfolio, while others disagree. There are so many different opinions on the subject that after a while you don’t know where to look.

The simple fact of the matter is that you should build an investment portfolio you’re comfortable with, and only you will know when this is complete. Of course, this depends on your situation, but you should be both defensive and taking risks at the same time. Without a blend of the two you will fail to keep up with the market.

For defensive minded people there is the problem of inflation risk. Image you are standing in the street with a $5 in your hand. The value of your money will decrease every year you stand in the same position. Until you can no longer use this money as well as you could. In order to fight against the inflation  you’ll need to take some risks.

Of course, this doesn’t mean gambling. Simply investing in stocks, or bonds, which are considered safe will help fight against inflation risk. But there are also the options of investing in gold & silver, Treasury Inflation-Protected Securities (TIPS) or annuities.

Inflation is always rising, and to stay standing still will only lose you money in the long run.

Buying Stocks

Posted by Winflow – June 7, 2011

The stock market can be a confusing place for novices just starting to invest. Even buying stocks can be confusing. Common stocks are pieces or shares of an actual company. When you buy a company’s stock you will own a small percentage of their business.  If you are a first-time investor looking to learn about buying stocks, here are some things to keep in mind:

  • You buy stocks through a stockbroker. Brokers are individuals or corporations who are trained to buy and sell shares on your behalf.
  • Keeping your stocks as a part of your RRSP will help save you money on your taxes.
  • Full service brokers are ideal for stock market novices. These stockbrokers will provide you with information on stocks, help you make decisions regarding investing and answer any questions you have about owning stocks.
  • Discount stockbrokers are online companies that offer data for companies trading on exchanges. Unfortunately, these sites do not provide personal assesments or assistance in navigating the financial market.

To learn more about buying stocks for the first time, read this article on Stocktrades.ca. If you need help with your stock portfolio check out the Winflow Financial Group and request a free consultation with one of our trained professionals today.