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Meet Warren Buffett’s Greatest Investment That He Will Never Make – CCN.com

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  • Warren Buffett should be buying gold this year as the commodity is expected to surge in value.
  • The stock market is expected to face turbulence.
  • The flight to safety and constrained supply will be catalysts for gold.

Warren Buffett’s faith in the stock market is legendary. The Oracle of Omaha has cut his teeth in the U.S. stock market and is an ardent advocate of the asset class. But there’s a chance that Buffett has lost confidence in the stock market of late, which is why he should be looking at gold as an investment.

The billionaire investor’s Berkshire Hathaway is reportedly sitting on more than $128 billion in cash. Buffett has gone four years without making a big deal, and it’s not surprising to see why he may be afraid of putting in stocks.

Gold prices are set to soar in 2020

Gold is currently trading at a spot price of $1,566 an ounce, but it’s widely believed that the commodity will end the year past the $2,000/oz. level.

Gold price chart.
The price of gold has soared in the past year, and it isn’t done yet. | Source: Kitco

City Index technical analyst Fawad Razaqzada is one of many who believes that gold will hit that magic mark this year thanks to a correction in the stock market:

If U.S. stocks were to correct themselves in 2020, then this surely could lead to elevated levels of safe-haven demand for gold … As the U.S. equity market bubble finally bursts, safe-haven demand could nudge gold past its 2011 peak of $1,920, before tagging the $2,000 psychological hurdle.

Razaqzada’s prediction is already coming true as investors are abandoning the stock market and loading up on gold thanks to geopolitical tensions. This is something Warren Buffett should have done as the rising tensions between the U.S. and Iran have sent gold prices to seven-year highs. Equities are expected to struggle in 2020 in light of a protracted conflict in the Middle East.

Higher oil prices will dent consumers’ spending power in the U.S. and also hurt corporate earnings. That’s bad news for Warren Buffett as he might have to keep sitting out of the stock market this year. The other option for Buffett is to buy gold.

Gold demand is expected to remain strong in 2020 on the back of central bank buying and the flight to safety, laying the groundwork for higher prices. Constrained supply will also play a role in boosting gold prices. BMO Capital Markets forecasts that gold production will decline in 2020, paving the way for prices to increase.

Warren Buffett’s hunting ground is in trouble this year

In his letter to shareholders a couple of years ago, Buffett had said:

The magical metal was no match for the American mettle.

The legendary investor was comparing gold’s returns to that of stocks, albeit in a skewed way. He was comparing how much a $10,000 investment made in stocks and gold back in 1942 would be worth in 2018. But what Buffett conveniently forgot is that the price of gold in the U.S. was fixed by law until 1975.

It’s a noble thought to have faith in America’s economy and invest in the stock market. But Buffett seems to be forgetting that the American economy is not in the best of shape this year, and companies listed on the stock market are overvalued. If U.S. companies are unable to meet earnings growth targets in 2020, their stock prices will crash in the event of a correction.

U.S. consumer confidence is in the doldrums, manufacturing activity is weak, and Trump seems willing to risk a war with Iran.

Gold price vs stocks returns chart.Gold price vs stocks returns chart.
Gold returns have been way better than stocks over the past two decades. | Source: Ycharts

Gold will continue to shine in such a situation. As it turns out, gold prices have handily beaten the broader stock market in the past 20 years and the yellow metal is your best bet at a time when a crash is in the offing.

So, it would be prudent for Warren Buffett to seriously consider an investment in gold this year and put his billions to work. If Buffett doesn’t do that, gold could become the greatest investment he never made.

Disclaimer: The opinions in this article do not represent investment or trading advice from CCN.com.

This article was edited by Sam Bourgi.

Last modified: January 7, 2020 4:20 PM UTC

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More cash, less buzz for 2020 investment bank interns – The Journal Pioneer

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By Elizabeth Howcroft

LONDON (Reuters) – Buzzing trading floors, classrooms and networking drinks have been replaced by online projects, ‘hackathons’ and fitness sessions for the class of 2020 investment banking interns.

Goldman Sachs , Morgan Stanley , Barclays , JP Morgan , UBS , RBC and Citi have all held internships virtually this year as they adapt to the restrictions imposed by the coronavirus pandemic.

Schmoozing with executives and fellow interns has been via virtual coffees and quizzes, while Goldman Sachs laid on Zoom networking lunches, hackathons and fitness and cooking classes.

“We couldn’t have big parties or anything like that but we did work with a music start-up – there was a battle of the bands competition where the interns could vote,” Helena Sharpe, JP Morgan’s head of campus recruiting for EMEA, said.

Although many of the highly sought after schemes were cut to 5 weeks from the usual 8 or 10, most interns lucky enough to secure a place still received full pay while working from home.

Investment bank interns in London are usually paid around 10,000 pounds ($13,034) for a 10-week programme, financial careers website efinancialcareers.co.uk estimates.

Such internships offer the potential to kick start lucrative banking careers, but have come under scrutiny in the past for the long hours some students work in their effort to impress.

“Some of them probably still work relatively long days because they want to make a good impression and do the best they can on their projects,” Sharpe said.

How well virtual internships work-out is being closely watched by banks assessing the long-term future of remote working, particularly for new joiners, with Barclays and RBC considering keeping some elements for future programmes.

Banks have supplied the necessary kit for working from home. Goldman Sachs, which had around 380 interns in Europe, Middle East and Africa (EMEA), even sent electricity generators to those who needed them. “It’s one big experiment, but it feels great and the feedback’s been very positive,” Rob Ager, head of programmatic talent acquisition at Barclays, adding that although “authenticity” could get lost in the virtual world, working from home had created a more collaborative culture.

‘BUZZ AND VIBE’

There are limitations to the work banks can offer this year, with interns at JP Morgan working on case studies and projects rather than on placements within teams, while Morgan Stanley offered business simulations and work-related projects.

At Barclays, there were two weeks of classroom learning, and while some parts involved a real-life teacher others required watching videos on an online portal.

“You can’t really get the full buzz and vibe of the trading floor in a virtual setting, which is a bit disappointing,” an intern at one firm who asked not to be named said.

“I don’t think you get the true feel of work when you’re working from home and for me personally it would be easier to network in person and get to know people more genuinely.”

But working virtually has made interns less competitive with each other and more willing to help, the intern said, adding they were able to call each other to ask questions.

Citi has guaranteed all of its around 200 London interns a graduate job offer for 2021 so long as they meet the minimum requirements, easing the competitive dynamic.

For staff supervising the programmes, the virtual internship is not without challenges.

“I have to describe things over email and stuff or get on Zoom calls and all of these things that are just easier if it’s done live,” an associate at a U.S. investment bank said.

And while it is harder to monitor interns remotely, banks say they do their best to ensure hours are kept in check.

“We do encourage them to have a good work life balance and take regular breaks,” JP Morgan’s Sharpe said.

($1 = 0.7672 pounds)

(Reporting by Elizabeth Howcroft; Additional reporting by Imani Moise in New York; Editing by Rachel Armstrong and Alexander Smith)

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You can invest in this local property for as little as $1 | Urbanized – Daily Hive

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It’s no secret — real estate is not nearly as accessible as it was for our parents and even our grandparents. Especially in Vancouver, the price of ownership is high, and for many millennials, owning property or a piece of real estate is unattainable. 

According to a study done by Generation Squeeze, young Canadians in Vancouver need to save for 27 years in order to have enough money for a proper down payment — that’s more than five times as long as our parents.

The study also noted that even though COVID-19 has tempered the housing market, the housing affordability crisis will still be in full swing when the pandemic is over. Pre-COVID, more than half of the people under 30 living in Canada’s major cities spent 30% to 50% of their monthly paycheques on rent. Not only does this leave very little room to save for things, such as a down payment, but now that the pandemic has hit, this percentage has increased for many. 

This is why addy, a real estate crowdfunding platform, is making investing in real estate more accessible by reducing barriers to entry. And all it takes is $1.

45604 Airport Rd, Chilliwack/addy

So how does addy do it? 

It’s impossible to cut the high costs of the market. Instead, the company’s mission is to redefine what it means to be a homeowner, while providing younger investment seekers with a new avenue into the game. 

First, addy does their due diligence by scoping out the properties with the most potential to provide the highest return on investment (ROI). Once these properties have been identified and approved by the executive team, investment committee, and Board of Directors, they’re broken down into investment units starting at $1. 

On launch day, addy releases the property on their platform, and qualified members have the opportunity to purchase as many shares in the property as they desire. Investors who have bought in on a specific property can make money from rental income in the form of distributions or as a lump sum when the property is finally sold.

45604 Airport Rd, Chilliwack/addy

The first property launched by addy is located in Vancouver’s charming Trout Lake neighbourhood; it was sold out to 305 investors, the lowest investment being $1 and the largest being $95,000. 

This crowdfunding investment model reduces (but doesn’t eliminate) the overall risk, while giving millennials and Gen Zs an opportunity to get some skin in the game at a price point they’re able to afford. It also means investors aren’t responsible for managing tenants and other logistics associated with the property.

If you’re already getting out your pocketbook, addy is launching its next investment opportunity (only available to BC residents over 19 years of age) on August 11, 2020, with a minimum investment of $1 and a maximum investment of $1,500. 

This commercial property is a free-standing building with more than 2,100 sq ft of retail space located in the heart of Chilliwack, BC, on the southwest corner of Airport Road and Yale Road. Currently, the space is occupied by Starbucks and features a drive-thru plus 12 owned parking stalls. 

According to addy, the estimated timeline for return on your investment of this property is approximately five years. Any appreciation will be paid out at the end of the term, and investors can expect annual distributions from any excess cash flow.

If you’re interested in investing in this Chilliwack property or staying up-to-date on addy’s next property announcements, sign up for a free addy account wallet so you’re ready to invest when the right property comes along.

This content was created by Hive Labs in partnership with a sponsor

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More cash, less buzz for 2020 investment bank interns – TheChronicleHerald.ca

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By Elizabeth Howcroft

LONDON (Reuters) – Buzzing trading floors, classrooms and networking drinks have been replaced by online projects, ‘hackathons’ and fitness sessions for the class of 2020 investment banking interns.

Goldman Sachs , Morgan Stanley , Barclays , JP Morgan , UBS , RBC and Citi have all held internships virtually this year as they adapt to the restrictions imposed by the coronavirus pandemic.

Schmoozing with executives and fellow interns has been via virtual coffees and quizzes, while Goldman Sachs laid on Zoom networking lunches, hackathons and fitness and cooking classes.

“We couldn’t have big parties or anything like that but we did work with a music start-up – there was a battle of the bands competition where the interns could vote,” Helena Sharpe, JP Morgan’s head of campus recruiting for EMEA, said.

Although many of the highly sought after schemes were cut to 5 weeks from the usual 8 or 10, most interns lucky enough to secure a place still received full pay while working from home.

Investment bank interns in London are usually paid around 10,000 pounds ($13,034) for a 10-week programme, financial careers website efinancialcareers.co.uk estimates.

Such internships offer the potential to kick start lucrative banking careers, but have come under scrutiny in the past for the long hours some students work in their effort to impress.

“Some of them probably still work relatively long days because they want to make a good impression and do the best they can on their projects,” Sharpe said.

How well virtual internships work-out is being closely watched by banks assessing the long-term future of remote working, particularly for new joiners, with Barclays and RBC considering keeping some elements for future programmes.

Banks have supplied the necessary kit for working from home. Goldman Sachs, which had around 380 interns in Europe, Middle East and Africa (EMEA), even sent electricity generators to those who needed them. “It’s one big experiment, but it feels great and the feedback’s been very positive,” Rob Ager, head of programmatic talent acquisition at Barclays, adding that although “authenticity” could get lost in the virtual world, working from home had created a more collaborative culture.

‘BUZZ AND VIBE’

There are limitations to the work banks can offer this year, with interns at JP Morgan working on case studies and projects rather than on placements within teams, while Morgan Stanley offered business simulations and work-related projects.

At Barclays, there were two weeks of classroom learning, and while some parts involved a real-life teacher others required watching videos on an online portal.

“You can’t really get the full buzz and vibe of the trading floor in a virtual setting, which is a bit disappointing,” an intern at one firm who asked not to be named said.

“I don’t think you get the true feel of work when you’re working from home and for me personally it would be easier to network in person and get to know people more genuinely.”

But working virtually has made interns less competitive with each other and more willing to help, the intern said, adding they were able to call each other to ask questions.

Citi has guaranteed all of its around 200 London interns a graduate job offer for 2021 so long as they meet the minimum requirements, easing the competitive dynamic.

For staff supervising the programmes, the virtual internship is not without challenges.

“I have to describe things over email and stuff or get on Zoom calls and all of these things that are just easier if it’s done live,” an associate at a U.S. investment bank said.

And while it is harder to monitor interns remotely, banks say they do their best to ensure hours are kept in check.

“We do encourage them to have a good work life balance and take regular breaks,” JP Morgan’s Sharpe said.

($1 = 0.7672 pounds)

(Reporting by Elizabeth Howcroft; Additional reporting by Imani Moise in New York; Editing by Rachel Armstrong and Alexander Smith)

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