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Where to start investing without dying in the attempt – Entrepreneur

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February
9, 2021

4 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.


The goal in winning the money game is to achieve and maintain financial freedom.

Many try, but few succeed. Why? They handle the worst number in investments, which is 1. That is, they have only one investment. And that makes them more vulnerable in times of uncertainty like the one we are living in now. Because there is a great chance that that 1 will become 0, you will run out of your capital and have to start over.

The secret to investing and not dying in the attempt is to invest in multiple investment vehicles that generate multiple sources of income. In that way, if one stops working, the impact will be minimal and you will have the resources to place them in a new investment and build a new source of income.

One of the reasons people invest in just one investment is because they don’t know where else to invest.

For this reason, I share six business areas where you can invest in 2021.

1. Business or companies

Image: Depositphotos.com

That is investing in someone else’s company. The easiest way is through crowdfunding platforms. The investment amounts can go from 5000 pesos onwards and the times are normally medium term (four or five years).

2. Real Estate

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Two of the reasons why many people prefer to invest in real estate are the increase in value over time (capital gains), and the fact that it is a tangible investment, that is, you can see your investment. You can also start on crowdfunding platforms, FIBRAS or with a small property that is easy to acquire and sell.

3. Stock Exchange

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The Stock Exchange is an organization that facilitates the sale of securities. The easiest way to get started is through indices like the S & P500, which has the results of the top 500 companies in the United States. Historically, the value of the S & P500 has grown consistently over the years, with some declines in economic downturns, but recovering and exceeding its previous value in no time. You can buy it and let it grow.

4. Metals

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Gold, silver and platinum mainly. Metals are hedge investments against inflation. In economic crises, countries give stimuli to the population for consumption and that consumption is what generates inflation. In those moments is when metals become the stars of the moment.

5. Intellectual Property

Image: Depositphotos.com

One of the easiest ways to make money is through Intellectual Property. For example, if you write a book, develop software or patent an invention, you will be able to receive income through royalties, a license for use or exploitation. Royalties allow you to make money while you sleep.

6. Protection

Image: Depositphotos.com

This is one of the safest areas to invest and where I would recommend starting, for example, with government instruments such as bonds or treasury certificates. To invest you need 100 pesos and although it will not be the vehicle that will give you the most returns, it will be backed by the federal government.

Now that you know the different investment areas, my recommendation is that you start with one and then explore the others.

Remember that the objective is and will be to invest in multiple investment vehicles to generate multiple sources of income that allow us to achieve and maintain our financial freedom.

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Bank of Canada’s next move to be tapering asset purchases: Reuters Poll

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By Mumal Rathore

BENGALURU (Reuters) – The Bank of Canada‘s next policy move will be to taper its asset purchase programme following a solid economic rebound and sustained growth later this year, according to a majority of economists in a Reuters Poll.

Despite renewed lockdowns in some provinces and expectations of a slowdown this quarter policymakers expect a recovery to be driven by a successful vaccine rollout, knock-on effects from a U.S. fiscal package and further gains in oil prices.

The consensus of the March 1-5 poll predicted the BoC would keep its key interest rate on hold at 0.25% through to the end of next year, unchanged from the previous poll.

While two of the top five Canadian banks predicted the central bank would hike rates as early as the second quarter next year, none of the 34 respondents expected any change at the bank’s next meeting on March 10.

More than 70% of poll participants, or 15 out of 21, who responded to an additional question, said the central bank would taper its asset purchases programme as its next move.

“The bank will look to re-calibrate its quantitative easing programme before moving on the overnight rate,” said Derek Holt, vice president of Capital Markets Economics at Scotiabank.

“If growth comes in stronger than expected, we could see a reduction in monetary support offered through the asset purchase programme.”

Despite the Canadian economy contracting 5.4% in 2020, its deepest annual drop on record, it ended 2020 on a brighter note and grew at a stronger-than-expected annualized rate of 9.6% last quarter.

The economy likely grew 0.5% in January, according to the latest Statistics Canada report despite being hit by a second wave of infections and containment measures.

“The Canadian economy soldiered through the second wave of restrictions much better than anticipated, supported by a big rebound in resource sector activity and a raging housing market,” said Douglas Porter, chief economist and managing director economics at BMO.

“Look for new growth drivers to kick into gear as the economy re-opens in stages through this year, leading to roughly 6% growth – a nice mirror image to last year’s deep dive. It’s not precisely a V-shaped recovery, but it’s very close.”

All 25 economists who answered another question agreed with the BoC’s assessment of a solid and sustainable economy in the second half of this year.

 

(Reporting by Mumal Rathore; Polling by Manjul Paul; Editing by Jonathan Cable and Edmund Blair)

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Comparing Luxury Investment Around the World – Visual Capitalist

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Do you enjoy the finer things in life? For many of the world’s wealthy individuals, acquiring luxury goods such as art, fine wine, and watches is a passion.

Unlike traditional investments in financial assets, luxury goods can be difficult to value if one does not have an appreciation for their form. A rare painting, for example, does not generate cash flows, meaning its value is truly in the eye of the beholder.

To gain some insight into the market for luxury goods, this infographic takes data from Knight Frank’s 2021 Wealth Report to compare the preferences of nine global regions.

Global Tastes in Luxury Goods

To rank the most popular luxury investments in 2020, Knight Frank surveyed over 600 private bankers, wealth advisors, and family offices. The following table summarizes their findings, as well as each category’s growth according to the Knight Frank Luxury Investment Index.

Global Average Ranking Category 10-year growth in asset values (%)
1 Art 71%
2 Classic cars 193%
3 Watches 89%
4 Wine 127%
5 Jewelry 67%
6 Rare whiskey 478%
7 Furniture 22%
8 Colored diamonds 39%
9 Coins 72%
10 Handbags 108%

Art was unmistakably the top category for 2020, ranking first in every geographic region except Africa and Asia, where it placed second instead. The global market for artwork was estimated to be worth $64 billion in 2019, and is often facilitated through auction houses such as Sotheby’s.

In terms of asset appreciation, rare whiskeys have climbed the most in value over the past 10 years. Connoisseurs of this spirit will be familiar with distilleries like The Macallan, whose rare bottles can sell for more than a million dollars.

Comparing Luxury Investment Between North America and Asia

Below, we’ve compared the rankings of Asia and North America to get a better idea of how preferences can vary.

The biggest differences here are watches, which ranked first in Asia but fourth in North America, and classic cars, which ranked second in North America but fifth in Asia. The remaining eight categories took similar spots across the two regions.

Rank Asia Popularity North America Popularity
1 Watches Art
2 Art Classic cars
3 Jewelry Wine
4 Wine Watches
5 Classic cars Jewelry
6 Rare whiskey Rare whiskey
7 Handbags Furniture
8 Furniture Handbags
9 Colored diamonds Coins (tied for 8th place)
10 Coins Colored diamonds

Asia’s stronger preference for watches was likely driven by Chinese consumers, who are now the biggest buyers of luxury watches globally. Demand throughout the COVID-19 pandemic proved resilient, with exports of Swiss watches to China increasing by 17.1% between January and November 2020.

Classic cars, on the other hand, may be more popular in North America due to the region’s longer automotive history. Two of America’s most iconic automakers, Ford and General Motors, have both been around for over a century!

The Biggest Sales of 2020

Here were some of the most extravagant and noteworthy luxury sales from 2020.

Art

Francis Bacon’s 1981 Triptych Inspired by the Oresteia of Aeschylus was sold by Sotheby’s for $84.6 million in June 2020. A triptych is an artwork that is divided into three sections but displayed as a single piece.

Other paintings by Francis Bacon have sold for even larger amounts. In 2013, Three Studies of Lucian Freud was sold by Christie’s auction house for $142 million.

Classic Cars

A 1932 Bugatti Type 55 Super Sport Roadster sold for $7.1 million in March 2020, making it one of the biggest classic car sales of the year.

Founded in 1909, Bugatti has produced some of the world’s most sought-after cars. The French brand was acquired by the Volkswagen Group in 1998, and since then, has released numerous special edition cars with price tags reaching well into the millions.

Handbags

An Hermès Himalaya Niloticus Crocodile Retourné Kelly 25 sold for $437,330 in November 2020, becoming the most expensive handbag ever sold at an auction. Founded in 1837, Hermès is commonly regarded as one of the world’s most prestigious makers of handbags.

COVID-19 Dampens Luxury Investment

When compared to 2019, total sales for Sotheby’s declined 16% in 2020, while Christie’s, another leading auction house, reported a 25% decline. Despite these decreases, executives remain optimistic.

“The art and luxury markets have proven to be incredibly resilient, and demand for quality across categories is unabated.”
– Charles Stewart, CEO, Sotheby’s

The industry has been largely successful in transitioning to online operations, with Sotheby’s reporting that 70% of its auctions in 2020 were held online, up from 30% in the previous year.

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Investment advisor at Canaccord Genuity charged in Vancouver pizzeria confrontation – CTV News Vancouver

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VANCOUVER —
One of the men charged following a heated confrontation over masks at a Vancouver pizza restaurant is an investment advisor at Canaccord Genuity.

The company issued a statement to CTV News on Friday saying the employee has been suspended without pay pending the outcome of an internal investigation.

“We are incredibly disappointed to learn of a shameful incident of inexcusable behaviour involving one of our employees,” a spokesperson for Canaccord Genuity said in an email.

“Canaccord Genuity rejects the disgraceful behaviours, opinions and actions of the individuals involved. They are in no way representative of our firm’s values.”

Vancouver police confirmed this week that assault charges have been approved against James Henry Davidson and Brenton Thomas Woyat.

Profiles on Facebook and LinkedIn identified Woyat as an investment advisor at Canaccord Genuity as recently as Thursday, though both pages appear to have been deactivated.

The allegations stem from a late-night altercation at the Pizza Pizza location in Vancouver’s Kitsilano neighbourhood on Feb. 20.

Video shows two men confronting staff in an apparent dispute over the restaurant’s mask policy. The pizzeria requires everyone capable of wearing a mask to do so, in accordance with the province’s mask mandate.

“You guys are complete morons. COVID is a joke. You are completely brainwashed,” one man yells in the video.

The recording later shows a teenager who was waiting outside the pizzeria getting roughed up.

Police said the men drove away from the scene, but that officers pulled over two suspects minutes later. Const. Tania Visintin said one of them is facing a possible charge of impaired driving as well, but she could not specify which one.

Visintin described the behaviour captured in the video as “ridiculous” and “embarrassing.”

“This young man was just outside a pizza joint trying to eat pizza and he gets assaulted by two grownups,” Visintin said Thursday.

Police said they’ve seen a growing number of incidents involving customers who become belligerent when asked to abide by provincial guidelines in businesses.

“It’s unfortunate because these shop owners or store employees are just doing their job, they’re just making a living and following the rules,” Visintin said.

Woyat is scheduled to appear in court on March 17, while Davidson is due to appear on April 9.

With files from CTV News Vancouver’s Allison Hurst

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