Martin, our money man and main investing partner, emailed us last night and said simply “I’ve pretty much lost it all”. We’d been shopping for a commercial property to buy to diversify our investments. Martin was once again partner with us on the deal we found, assuming he was comfortable with the numbers.

At least he was planning to before the markets crashed and Martin lost his six figure down payment! Now, sitting on pennies (o.k., not quite, but definitely not enough to make a down payment on a million dollar industrial property), Martin is probably really wondering what so many other people do, “Is real estate a much better investment than stocks?”

My answer is always a resounding “It depends” or “Diversification is best”… but if you change the question and ask me where my money is invested, 90% of my money and my net worth resides in real estate (even excluding my current home).

And yes, I am young – I’m in my early thirties! I am also a millionaire and it’s all thanks to real estate. It’s not to say that stocks won’t make you rich, Warren Buffet is one extreme example of the wealth that can be created through stocks, but I like real estate because:

1. You Can Kick It! Real estate is tangible. You can drive by a property and tell your friends or family that it is your property. You can also check up on how it’s doing. That is not as easy if

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Last month, the Fed took a drastic step to cut rate twice by a total of 125 basis points. And with a drop of 225 basis points since last fall, what does this say about likely stock returns? Let’s look at the historical data.

Since 1950, the Fed cut more than 200 basis points 11 times in attempts to simulate a faltering economy. Economists believe it takes six months for the rate cuts to take effect which should last for as long as three years. Therefore I examined the one- and three-year returns of the S&P 500 Index and the Fama/French Small Cap Value benchmark portfolio for each rate-cut period.

After cuts of 200+ basis points, the average one-year return for the S&P 500 was 13.5% with two negative-return periods. The average three-year returns for the S&P 500 was 31.8% with one negative-return period.

However, the Fama/French Small Cap Value benchmark portfolio fared better. The one-year average return is 34.5% with no negative returns. The three-year average return was 100.5% with just one negative-return period.

Periods of rate cuts	S&P500	S/V*	S&P500	S/V*

of 200bp or more	1y ret	1y ret	3y ret	3y ret

Oct 1957 - Mar 1958 	32% 	64% 	55% 	106%

Apr 1960 - Jan 1961 	11% 	23% 	25% 	47%

Apr 1970 - Nov 1970 	8% 	12% 	10% 	-1%

Jul 1974 - Oct 1974 	21% 	34% 	25% 	149%

Apr 1980 - May 1980 	-19% 	46% 	46% 	175%

Jan 1981 - Feb 1981 	-14% 	10% 	20% 	131%

Jun 

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Over the earlier couple of yrs, cryptocurrency has been a very hot subject across the globe. Most individuals are now familiar with cryptocurrency, specially Bitcoin. As a make a difference of simple fact, Bitcoin is on major of the checklist of cryptocurrencies. If you have no thought why the cryptocurrency is mounting in popularity all over the world, you are on the correct web site. In this posting, we are likely to explore 5 reasons why this new kind of currency is so common. Go through on to uncover out more.

1. Low transaction charges

The lower transaction charge is a person of the primary motives why cryptocurrency has been increasing in worth more than the past number of many years. No matter what kind of standard payment process you go for, you will have to fork out a significant transaction cost.

On the other hand, if you go for cryptocurrency for creating payments, you will have to pay back minimum amount transaction service fees. Consequently, it would make sense to use this new form of forex for producing payments on line for your wished-for items and solutions.

2. No federal government regulation

A different sound rationale why a large amount of individuals have confidence in cryptocurrencies is that they are not regulated by any govt. As a result, the worth of the currency remains steady irrespective of the authorities of a distinct nation.

Also, some investors want to defend their wealth, which is why they invest in cryptocurrencies. In … Read more

Ok, so everyone knows that it is pretty much impossible to predict what the stock market will do. If that were the case, there would be a lot of millionaires who made their wealth from the stock market … wait there ARE a lot of millionaires that made their wealth from the stock market. Ok, if MORE people could predict what the stock market was going to do, there would be a lot MORE millionaires who made their wealth from the stock market and definitely a few more billionaires to join the likes of Warren Buffet. 

Now, once again no one can predict the future. However, there are a few tools that investors can use to put the odds in their favor. Nothing is guaranteed, but when the odds of something happening are in your favor you can be sure that you will have a much greater chance of succeeding. One of the tools I want to get into is knowing when to sell stocks. I also want to drill deeper and talk about specific days in general that are good for selling. 

Let’s think of an example, based on recent events you know that stock markets tend to have massive drops if something really bad happens in the world. A good example that everyone is probably familiar with would be the 9/11 attacks on the World Trade Center in New York. The market dropped so much that trading was halted. The following day, the market dropped even more! However … Read more

If you are going to put money in cryptocurrency for the first time, we suggest that you get at least a basic understanding of the industry. In this article, we are going to give you 5 tips and tricks that will help you become a better investor. Keeping these tips in mind, it will be easier for you to achieve success as a beginner.

1. Look for Reputable Sources of News

You will find different opinions about the world of cryptocurrency. According to some people, crypto is nothing but a fad, while others think that it is a great investment, especially if you are looking to invest your money for the long term.

If you are sure that you can benefit from Crypto, you should stay tuned to trustworthy sources and don’t listen to non-believers. For achieving success as an investor, you should consider some facts and then keep investing your money wisely.

2. Get Ready for Volatility

Unlike regular currencies, cryptocurrency is not that stable. A few months back, the value of one of the most popular cryptocurrencies called Bitcoin was around $40000. But it has now dropped back to $30000. So, what you need to do is make your decision wisely. If you become greedy, you may suffer huge losses.

Even if you ask expert crypto traders, they will say that even they don’t have the mastery of the art. So, you need to be careful when it comes to you investing in crypto as cryptocurrencies are quite … Read more

A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different from stocks and bonds, although all three are types of investment. Let us discuss about different types of investment options for small investors and entrepreneurs.

Debentures vs. Stocks:
When you buy stocks, you become one of the owners of the company. Your fortunes rise and fall with that of the company. If the stocks of the company soar in value, your investment pays off high dividends, but if the stocks decrease in value, the investments are low paying. Higher the risk you take, higher the rewards you get.

Debentures are more secure than stocks, in the sense that you are guaranteed payments with high interest rates. You are paid an interest on the money you lend the company until the maturity period, after which whatever you invested in the company is paid back to you. The interest is the profit you make from debentures. While stocks are for those who like playing the field, and are willing to take risks for the sake of high returns, debentures are for people who want a safe and secure income.

Debentures vs. Bonds:
Debentures and bonds are similar except for one difference – bonds are more secure than debentures. In case of both, you … Read more