Investment

4 Ways Tech Can Improve Your Investment Strategy – Entrepreneur

Published

5 years ago

January 17, 2020

Harry Miller

Innovations have radically democratized investing, making it more transparent and easier to engage in.

January
17, 2020

4 min read

Opinions expressed by Entrepreneur contributors are their own.

Investing has always had the feel of being a traditional affair that’s done by older people or the extremely wealthy, and it’s often an intimidating activity for many people to consider getting into. That has been changing in recent times, and one of the most important factors is the attention that has come from the tech industry.

From new fintech innovations like blockchain to apps that help people make myriad investment decisions, you can now proceed with full confidence that there are several tech aids to help you navigate the markets and come out unscathed and with a fuller pocket. Here are a few of the options you have and how to leverage them properly.

Financial-Planning Software

When it comes to investing, there is nothing as important as comprehensive knowledge of your portfolio and cash-flow situation. If you don’t have that knowledge at hand, you’ll find it difficult to monitor your stocks or other investments, and you might make decisions that are harmful to your overall portfolio.

With the financial-planning software now available, that information is literally at your fingertips. You can access budgeting tools, market and volatility analyses and other features with apps on your phone or computer.

Communication

If you want to maximize your profitability, you’ll need to work with a competent financial advisor, especially if you’re dealing with a lot of funds. One of the ways to make sure you’re getting the most from that relationship is by ensuring that you keep in touch as much as you have to. That way, you’ll be up to date on what’s happening in the market and with your portfolio specifically.

According to Umesh Agarwal, CEO of Credit 101, “It’s important to ask your advisors what communication channels they use and incorporate social media, VOIP or any other solution that’ll help you get updates and relay instructions almost instantly. In today’s world of split-second happenings on various markets, close communication will prove to be crucial for profitability and loss avoidance.”

Security

If you’re like most people, the vast majority of your financial transactions are conducted online. While that’s a great thing that makes life and investment much more convenient, it also exposes you to attacks by hackers and other security breaches that could lead to financial loss if you don’t protect yourself well enough.

You’ll need to go beyond the usual precautions for keeping data safe. It might be worthwhile to consider using a hard token or biometric verification to further secure your transactions. Don’t forget the basics though. Use secure password managers to keep your sensitive details locked away, and make sure your software is updated to reduce the risk of intrusions.

Situational Awareness

Before you can make the right deals, you have to know that the opportunities exist. With information overload nowadays, it’s very easy to lose track of important news that might be useful. It’s even possible to miss news that could have a major impact on your portfolio.

To fix that, you can use news-aggregation apps that use AI to track headlines in sync with your interests. With the recent advances in machine learning, those apps can help you identify opportunities automatically without your having to spend as much time scouring the internet or newspapers yourself.

In all, the potential of technological innovation in revolutionizing investment is great and will probably have markets looking completely different a few years down the line. But even today, there are a variety of tools in the categories above that can help you get ahead of the curve and reward your investment strategy.

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

3 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.