Two years ago, Japanese scientists stumbled across a type of bacteria that ate plastic. A rare breed that was found chowing down in a dump. Naturally, scientists decided to investigate further. And now they’ve stumbled upon a breakthrough. The team behind the discovery have isolated the enzyme that produced the bug. And in their testing to see how the enzyme had evolved, they accidentally made it even more effective.
The technology industry has been extremely active in the last decade. You always hear about a new tech start-up trying to disrupt an industry. Whether it is fintech, blockchain or cyber security, technology is always striding ahead. So how can you profit from new tech start-ups, innovation and a changing landscape?
I believe small-cap investing could be profitable whether the economy is doing well or poor. You should be aware of how these external factors might affect your investing. Interest rates, economic down turns and the supply of credit can all affect small-cap stocks in the short-term. But long-term, what impacts small-caps far more is their earnings potential.
Ten years ago, I was familiar with the battle of Villers-Bretonneux and the exploits of the AIF on the Western Front. But I was less aware of the exploits of the bloke at the top — John Monash. In this 100-year anniversary of the victories of 1918, I thought it would be fitting to cast markets aside for the day, and remind you just how remarkable this man was.
There is a good chance that the long term impact of this royal commission will be a complete dismantling of bank business models. As I pointed out yesterday, banks are already starting to put their funds management businesses up for sale. Next, the rest of the wealth management arms (including the financial planning networks) will probably go too.
Today, we’re going to look at something a little different. We’re going to look at when you should sell your small-caps stocks. It’s not always an easy decision to make. But it’s an important part of investing. If done wrong, it could significantly reduce your returns. But if done right, you could lock in profits and minimise your risk at the same time.
Banks always have and always will attract the type of individual who wants to make a lot of money from being ‘a banker’. And while there are plenty of decent ones around, the truth is there are plenty of abhorrent individuals willing to fleece other people for their own benefit. Things took a turn for the worse when the banks began to get into the wealth management game in the early 2000s.
For small-cap stocks, cash flow is extremely important. I would argue it’s even more important for small-cap than it is for Blue Chips like IBM. And that’s because they have far fewer options. Unlike IBM, small-caps don’t have as much power to renegotiate lending terms.
Much of the world is currently a bit doom and gloom when referring to the stock markets. Our speakers presented thoughts and ideas that weren’t necessarily optimistic, but they shed a bit of light that might make the future less daunting.
What does a typical stock portfolio look like? Well, it’s apparently not too flash. According to Openfolio — a network of 70,000 members who share their portfolio data — the average US investor made less than half the S&P 500’s return in 2016.