Leverage – Investing News Wire http://investingnewswire.club/ Thu, 19 May 2022 14:10:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://investingnewswire.club/wp-content/uploads/2021/05/default1.png Leverage – Investing News Wire http://investingnewswire.club/ 32 32 This leveraged ETF shows that TIPS are not immune to bond market pain https://investingnewswire.club/this-leveraged-etf-shows-that-tips-are-not-immune-to-bond-market-pain/ Thu, 19 May 2022 14:10:15 +0000 https://investingnewswire.club/this-leveraged-etf-shows-that-tips-are-not-immune-to-bond-market-pain/ While Treasury Inflation-Protected Securities (TIPS) can help provide some degree of security in a market environment like today where rates are rising, they are not completely immune to bond market woes. Bonds trailed equities lower as inflation fears continued to spread through financial markets. While selling pressure has eased somewhat in recent trading sessions, bond […]]]>

While Treasury Inflation-Protected Securities (TIPS) can help provide some degree of security in a market environment like today where rates are rising, they are not completely immune to bond market woes.

Bonds trailed equities lower as inflation fears continued to spread through financial markets. While selling pressure has eased somewhat in recent trading sessions, bond bears could still find opportunities if a hawkish Federal Reserve continues to hike rates as expected through 2022.

Last week’s inflation report “showed that overall, year-on-year inflation slowed slightly to 8.3% in April from 8.5% in March,” as reported by the the wall street journal. “This marked a long-awaited turning point, as prices no longer compare to the deeply depressed levels of the start of the Covid-19 pandemic.”

“Bond investors, however, were more concerned about the monthly pace of price increases, which they see as a better indicator of the direction of inflation,” the WSJ added. “Removing food and energy prices also removes some of the noise in the data, giving a better picture of underlying inflationary pressures.”

Meanwhile, according to the Bloomberg US TIPS Index (Series-L), TIPS fell like the rest of the bond markets in Q1 and rallied in Q2. The index itself is down about 7% for the year.

2 options for TIPS Weakness or Strength

Direxion Investments has a few options to play the strength or weakness of TIPS. The two ETFs are just one part of a suite of leveraged ETF products that Direxion offers to play both sides of the trade.

For traders who err on the side of optimism, there is the Direxion Daily TIPS Bull 2X Stock (TIPL)and for the drop, there is the Direxion Daily TIPS Bear 2X Stocks (TIPD). Both ETFs seek to achieve 200%, or 200% of the inverse, of the daily performance of the Solactive TIPS ETF, which provides exposure to U.S. Treasury Inflation Protected Bonds, commonly referred to as “TIPS”, according to a statement from the solidifier.

TIPD table

For more news, insights and strategy, visit the leveraged and reverse channel.

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The Biden administration has a plan to boost affordable housing https://investingnewswire.club/the-biden-administration-has-a-plan-to-boost-affordable-housing/ Mon, 16 May 2022 21:26:57 +0000 https://investingnewswire.club/the-biden-administration-has-a-plan-to-boost-affordable-housing/ By Betsy Klein | CNN The Biden administration announces an action plan on Monday to boost the supply of affordable housing amid high inflation. Taken together, administration officials said, the announced measures will help close the affordable housing deficit and “ease the burden of housing costs,” noting that house prices are a key driver of […]]]>

By Betsy Klein | CNN

The Biden administration announces an action plan on Monday to boost the supply of affordable housing amid high inflation.

Taken together, administration officials said, the announced measures will help close the affordable housing deficit and “ease the burden of housing costs,” noting that house prices are a key driver of inflation.

The move is the administration’s latest step to show it is working to rein in high prices nationwide. U.S. home prices continued to climb in February, according to the most recent data from the S&P CoreLogic Case-Shiller U.S. National Home Price Index. Prices rose 19.8% year-over-year in February, an even higher rate than the 19.2% growth seen in January.

Amie Fishman, executive director of the Non-Profit Housing Association of Northern California, said the president’s announcement is good news for the state and the Bay Area. “Bold administrative action on housing is essential,” she said. The efforts could build momentum for future changes, she said.

A major obstacle to building more affordable housing in California is the formula for allocating low-income housing tax credits, Fishman said. If Congress agrees to lower the thresholds for obtaining these bonds – much sought after by nonprofit investors and developers to finance affordable housing projects – California could more than double its production of subsidized housing over the next the next decade.

“We need this federal change to move all of these stalled projects forward,” Fishman said. “We can’t do it without Congress.”

President Joe Biden said last week that tackling inflation was a top national priority for his administration. He attacked Republicans for a plan presented by the head of the Senate GOP campaign arm rather than coming up with new proposals to tackle the worst inflation the country has seen in 40 years.

Among the new policies announced Monday are moves to leverage existing federal funding to encourage state and local reform of zoning and land-use policies, a senior administration official told reporters, via funding the bipartisan Infrastructure Act and the Department of Transport. A second official noted that the administration will take steps to improve federal funding mechanisms for manufactured housing, multifamily housing, and single-family home construction and rehabilitation.

There are also moves to fund or produce more manufactured housing, accessory living units – also known as garage apartments, basement apartments or backyards, according to a White House fact sheet. yard – 2-4 unit properties and smaller multi-family buildings.

The administration will also spearhead the supply of affordable housing for homeowners, which the second administration official said is intended to address “the growing trend of single-family home purchases by large institutional investors.”

And the administration “will work with the private sector to address supply chain challenges and improve construction techniques to complete construction in 2022 of the largest number of new homes since 2006,” the fact sheet says. .

Housing and Urban Development Secretary Marcia Fudge will join Commerce Secretary Gina Raimondo and other Biden officials to address building materials supply chain disruptions with industry leaders. industry, according to the fact sheet.

The actions “will help close the housing shortage in five years”, said the first senior official, and will be combined with a range of proposed legislative measures to help reduce costs. The legislation, which will require congressional approval, includes tax credits for low- and middle-income homebuyers and a proposed $25 billion in subsidies for the production of affordable housing.

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2022 HANDBOOK RELEASED ON “LEAVING TECHNOLOGY FOR NON-PMET WORKFORCE MANAGEMENT” https://investingnewswire.club/2022-handbook-released-on-leaving-technology-for-non-pmet-workforce-management/ Thu, 12 May 2022 08:55:00 +0000 https://investingnewswire.club/2022-handbook-released-on-leaving-technology-for-non-pmet-workforce-management/ With vacancies in the labor force becoming a source of concern for Singapore businesses, this handbook provides technology solutions that can be leveraged by Singapore companies to attract, hire, engage and retain the non-PMET workforce and thus focus on increasing workforce productivity. SINGAPORE, May 12, 2022 /PRNewswire/ — To help Singapore businesses in their dual […]]]>

With vacancies in the labor force becoming a source of concern for Singapore businesses, this handbook provides technology solutions that can be leveraged by Singapore companies to attract, hire, engage and retain the non-PMET workforce and thus focus on increasing workforce productivity.

SINGAPORE, May 12, 2022 /PRNewswire/ — To help Singapore businesses in their dual effort to reduce blue-collar vacancies while increasing labor productivity, hrtech.sg published a comprehensive manual titled “Leveraging technology to attract, engage and retain the NON-PMET workforce. This manual is now available as a free download for companies in all industry segments via this link: https://bit.ly/nonpmet-handbook.

Compiled by hrtech.sg after extensive research covering a wide variety of small and medium-sized enterprise (SME) employers and Nope– professionals, managers, executives and technicians (excluding PMET), the manual comes at a time when companies are struggling to attract and retain blue-collar labour. In fact, according to 2022 market statistics, 48.9% of vacancies for non-PMET positions have been vacant for six months or longer.

The handbook showcases 13 essential HR technology tools that can be leveraged across the employee lifecycle and showcases case studies of Singaporean SMEs in the F&B, Electronics & Manufacturing, Supply Chain & Retail segments that have innovated and also leveraged technology in the management of their blue collar workers. .

“This handbook is aimed at both HR teams and business owners who want to take advantage of the best technology solutions to enable their staff to develop their digital skills and provide higher value work to improve productivity” , declares Sriram IyerFounder and CEO, hrtech.sg.

The handbook also features 7 best HR technology product vendors to help companies attract, hire, engage and retain their non-PMET workforce. These include FastGig (Talent Market), Grabjobs (Recruitment Automation Platform), and Multiplier (Global Employment Platform) in the Recruitment & Onboarding category; Beekeeper (Employee Communication) in the Employee Engagement category; ArcLab (Upskilling & Reskilling Platform) in the Learning & Development category, GetPay (Earned Wage Access) in the Compensation & Benefits category; and Tapplent in the all-in-one HRIS category.

About hrtech.sg

hrtech.sg is a Singapore– Headquartered HRTech market analysis and development company, striving to create the greatest value for client companies by combining the right HRTech solutions to meet their business and talent challenges. hrtech.sg also hosts that of Singapore larger and organized HR technology market with the presence of approximately 150 advanced technology suppliers serving the Singapore talent market. For more details: www.hrtech.sg

For further information on this press release, please contact Sriram Iyer (+6590251164, sriram@hrtech.sg) or Swechha Mohapatra (+6590996205, swechha@hrtech.sg)

SOURCE hrtech.sg

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GNCCI to Train 800 Young Entrepreneurs to Leverage AfCTFA https://investingnewswire.club/gncci-to-train-800-young-entrepreneurs-to-leverage-afctfa/ Tue, 10 May 2022 11:16:30 +0000 https://investingnewswire.club/gncci-to-train-800-young-entrepreneurs-to-leverage-afctfa/ The Ghana National Chamber of Commerce and Industry (GNCCI) has launched a project to train about 800 young entrepreneurs in the field of Micro, Small and Medium Enterprises (MSMEs) under a special training project. The MSME Digital Skills Training Project aims to train and build capacity in digital techniques for young entrepreneurs to improve their […]]]>

The Ghana National Chamber of Commerce and Industry (GNCCI) has launched a project to train about 800 young entrepreneurs in the field of Micro, Small and Medium Enterprises (MSMEs) under a special training project.

The MSME Digital Skills Training Project aims to train and build capacity in digital techniques for young entrepreneurs to improve their performance in their business areas and be ready for the opportunities of the Free Trade Agreement. African Continental Exchange (AfCFTA).

As of last week, the first phase of the MSME digital skills training project has trained 92 participants, more than half of whom are women, with the rest to be carried out in subsequent phases.

It is organized in partnership with Expertise France and should help participants integrate and apply the knowledge acquired during the training to their businesses.

Project launch

At the launch of the initiative in Accra on April 29, GNCCI Chairman Clement Osei-Amoako said the training should equip young entrepreneurs with the skills to take advantage of the AfCFTA.

“Last week, the first phase of the MSME Digital Skills Training Project was held in Accra and brought together 92 participants, more than half of whom were women.

“Generally, attendees were excited about the opportunity to develop their digital skills and decided to meet the requirements to ensure business growth and resilience post-COVID-19,” he said.

Mr. Osei-Amoako also noted that: “As part of the project, the Chamber will organize similar workshops in the remaining seven cities of the country, including Cape Coast, Takoradi, Ho, Kumasi, Koforidua, Sunyani and Tamale in the coming years. . weeks,” he said.

Expressing his gratitude to Expertise France, the president said the chamber found the collaboration more compelling because technology continued to be a dominant force in driving economic growth.

He said this requires conscious efforts to strengthen their human resources with the skills required to drive digital transformation and business growth.

Financial options

A project consultant, Tsonam Cleanse Akpeloo, said the training would enable participants to understand financial options and opportunities for business growth and expansion.

He said the project targets 50% of participants as women, who would be introduced to digital transformation and coached to develop digital transformation plans for their businesses.

He said businesses were expected to understand, identify and leverage digital platforms that would allow them to assert credibility, improve visibility and process transactions.

He added that the training would enable MSMEs to take advantage of the opportunities available to participate in the African Continental Free Trade Area Agreement.

Digital skills and content

The Director General (CEO) of Expertise France, Jérémie Pellet, said that the program to be implemented will result in the development of digital skills and content among MSMEs.

He said the launch of the program was timely and would yield significant results for the resilience of Ghana’s private sector as more than 800 participants were to be trained.

Pellet said participating companies could also register on digital platforms after the training, improve their online visibility, build credibility and facilitate cross-border transactions.

He said post-workshop mentoring and coaching would also be provided to ensure better ownership of the trained participants.

Mr. Pellet said the chamber was one of their partners in the implementation of the Africa-Caribbean and Pacific-European Union digital response program to the COVID-19 crisis.

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Rules can help you regain control of your home – Saratogian https://investingnewswire.club/rules-can-help-you-regain-control-of-your-home-saratogian/ Sun, 08 May 2022 16:07:39 +0000 https://investingnewswire.club/rules-can-help-you-regain-control-of-your-home-saratogian/ Too often we wait for things to get out of hand before doing serious work to improve problems at home. However, even if you’ve waited too long, you can make changes to improve cooperation and calm in your home. One key is to make sure you understand leverage and how to apply it in your […]]]>

Too often we wait for things to get out of hand before doing serious work to improve problems at home.

However, even if you’ve waited too long, you can make changes to improve cooperation and calm in your home. One key is to make sure you understand leverage and how to apply it in your home (we covered that last week!)

Without leverage and structure, good habits tend to erode and parents find themselves frustrated and relying on more demanding and controlling language. It does not work and should be abandoned. So, the key to raising cooperative and responsible children is to be consistent with structure and your use of daily influence with children. (How do we use leverage: responsibilities and work are done daily before children have access to their gifts.)

In today’s article, we go even further. We discuss the importance of setting limits and relying on the effective use of limits to teach better “control” of behavior.

Limits and Rules: What Really Works

While structure is important, it’s equally important to set firm boundaries with clear consequences. Thus, to integrate the domestic limits that your child will respect, it is essential to understand how we teach respect for the limits that you set for yourself.

Many parents will tell me that they have made a list of rules and constantly repeat them to their teenager, but he/she does not listen or follow the rules. There’s a good reason for that.

1 — Rules/limits mean nothing without clear consequences

For many children and teens, any rule or limit you set is useless with no clear consequence. This is also true for many adults. If the speed limit is 65, and there were no tickets to go faster, many of us would be driving well over the daily speed limit. Why? Because the consequence is there to teach respect for the speed limit; without it, we would not respect it.

To bring this concept home, consider your teenager’s iPhone. If you tell your daughter that she can’t use her phone after 10 p.m., but stays on her phone in her room long after that time, we see an unnecessary rule or limit. If you tell your kids to eat in the kitchen, not in the family room, but you regularly find food in the family room, chances are you won’t have any consequences for the limit you’re supposed to have set. .

We could go on with many examples, but the point is this: Limits or rules really don’t mean anything to many kids if you don’t have consequences if you go over that limit or break that rule. Don’t expect them to listen because you asked or because they should, because the thought will drive many of you crazy!

2 — Do not use control language. Give a choice, but explain the consequences of each choice once, and only once

To gain authority while giving up control, avoid pretending you can dictate children’s behavior. Instead, let them know they have a choice when it comes to the boundaries and rules you set: they can honor them and enjoy life, or they can ignore them and face a consequence. For limits to be truly effective, you want to make sure that each choice comes with a clear, pre-determined consequence. This needs to be built into the rule or boundary because that’s how your teen will learn to honor them.

Note that we want to mimic reality. In the real world, we can go 90 mph because no one can really stop us. Yet if we choose to drive that fast, there is often a painful consequence – flashing red lights signal a costly consequence, hence the teaching of the limit.

The goal here is to avoid controlling/requiring language where you “tell” your kids what they can or can’t do because, as noted above, most won’t respect it. Instead, let them know that they always have a choice and that every choice has a consequence.

Now you might be wondering how to manage your daughter’s phone usage? A rule might be that your daughter can enjoy her phone tomorrow if the phone is in her charger at 10 p.m. in mom’s room and stays there. But she needs to understand that if she doesn’t put it in the charger before 10 a.m. or takes it out for use after that time, the phone will be disabled the next day and remain off for 48 hours. The key is to let her decide and learn from her choices. Don’t protect her from her choices.

Final remarks: Limit the number of rules, so life is simple. But reinforce the rules with clear boundaries that are set with consequences. Don’t keep talking about it.

Remember: it is the consequence that teaches the limit, not your deception or your preaching. Be clear, consistent and upfront about each consequence. Then just keep your emotions out and let the learning begin. They will learn to respect the boundaries taught in this way, with far fewer futile exchanges of words aimed at controlling their behavior.

Clifton Park-based parenting expert, author, speaker and licensed psychologist Dr. Randy Cale offers practical advice for a host of parenting issues. His website, www.TerrificParenting.com, offers free parenting tips and an email newsletter. Readers can learn more by viewing past articles found on The Saratogian, The Record and The Community News websites. Submit your questions to DrRandyCale@gmail.com

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Depression after rate hike pulls this leveraged ETF higher https://investingnewswire.club/depression-after-rate-hike-pulls-this-leveraged-etf-higher/ Fri, 06 May 2022 23:51:46 +0000 https://investingnewswire.club/depression-after-rate-hike-pulls-this-leveraged-etf-higher/ EAlthough financial markets have already readjusted in preparation for a rate hike by the Federal Reserve, the depression that followed the hike was behind the most recent sell-off. the Direxion Daily S&P 500 Bear 3X ETF (SPXS), however, has been profitable so far. During Thursday’s trading session, SPXS ended the day up 10%, which is […]]]>

EAlthough financial markets have already readjusted in preparation for a rate hike by the Federal Reserve, the depression that followed the hike was behind the most recent sell-off.

the Direxion Daily S&P 500 Bear 3X ETF (SPXS), however, has been profitable so far. During Thursday’s trading session, SPXS ended the day up 10%, which is a sign of the times in major stock indices.

Traders can take advantage of the inverse strength of the S&P 500 with SXPS. The fund targets daily investment results equal to 300% of the inverse of the daily performance of the S&P 500 Index.

For the year, SPXS is up more than 35%, underscoring inflation fears that rocked the S&P 500 in 2022. Markets expect further tightening, which could pull SPXS further higher if a rally cannot bring the S&P 500 back to life.

“Despite the tightening we have seen in financial conditions over the past few months, it is clear that the Fed would like to see them tighten further,” mentioned Zachary Hill, Head of Portfolio Strategy at Horizon Investments. “Higher equity valuations are inconsistent with this desire, so unless supply chains heal quickly or workers return to the workforce, any rally in equities is likely on hold as messages from the Fed are becoming more hawkish again.”

“Truly extraordinary” market moves

Needless to say, there have been unprecedented moves in the market so far in 2022. Volatility, based on the CBOE Volatility Index (VIX), has soared to over 80% three times this year, and we only have one term.

“If you go up 3% and give up half a percent the next day, that’s pretty normal. … But to have the kind of day we had yesterday and see it reverse to 100% in a half – day is really extraordinary “, mentioned Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

VIX chart

For more news, insights and strategy visit the Leveraged and reverse channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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How the New-Age Workforce Takes Advantage of Social Networking Opportunities https://investingnewswire.club/how-the-new-age-workforce-takes-advantage-of-social-networking-opportunities/ Wed, 04 May 2022 05:20:44 +0000 https://investingnewswire.club/how-the-new-age-workforce-takes-advantage-of-social-networking-opportunities/ In recent years, the explosive growth of social media technology has dramatically gained traction and changed the way people communicate in social places, at home, and at work with others. New-Age Workforce Today’s millennial employees have given them a better understanding of their work areas, organizational policies, rewards and benefits, and are more aware of […]]]>

In recent years, the explosive growth of social media technology has dramatically gained traction and changed the way people communicate in social places, at home, and at work with others.

New-Age Workforce

Today’s millennial employees have given them a better understanding of their work areas, organizational policies, rewards and benefits, and are more aware of their skills and competencies than they had in the past . Millennials have their own style and their own way of doing things, and they’re changing the workflow. They prefer working in groups and using technology to help them work faster and more efficiently. Their social mindset is also important; they want to stay connected and informed.

Workforce Social Networks

Social networking is a type of social media that allows users to connect with others and build communities. Rather than just posting without interaction or ads, it’s better to build relationships. In addition to using internal social media sites, employers can leverage public social media platforms to market their brands and connect with employees and customers.

Employers can use social networking sites to market their businesses. A plethora of employers use social networking sites to view candidate profiles. The list of justifications for screening candidates through these tools is long, and the number of employers taking advantage of them continues to grow.

Benefits of social media for employees

The business benefits and benefits of social media in the new-age workforce are still vastly underestimated and undervalued. Despite the fact that various organizations around the world have started to integrate certain aspects of social media technology and reap the commercial benefits, fear, resistance and risk are the views that still dominate many organizations.

Networking technology can facilitate improved workforce productivity by improving the communication and collaboration skills of employees, which facilitates knowledge transfer and consequently makes organizations more agile. Additionally, it provides increased levels of employee satisfaction by reducing the social isolation of teleworkers and making them feel part of the organizational culture during long absences from the physical office.

However, these services can help young people develop their interests and find other people who share them. They can help young people discover new things and ideas and deepen their appreciation of existing interests. As a result, market position has many advantages.

Increase brand awareness

Outside of the business, there are two groups of potential customers: buyers and talent. A company may have one but not the other – there are countless B2B companies that have high brand recognition among potential customers, but little or no recognition among potential dates. By embracing social marketing in the workplace, these companies allow their employees to speak on behalf of the company to their vast personal networks.

Engage and build relationships

Social networking platforms can encourage informal conversations between colleagues and help build healthy working relationships. This is the simplest and most effective technique for encouraging employees to communicate with their colleagues after working hours. It can help build camaraderie and team bonds in the organization because it’s a more natural way to connect.

Improves employee engagement

Giving employees access to social marketing on their work devices builds their confidence, makes them feel valued, improves their mood, and increases employee engagement. When employees recognize that their employers trust them, it translates directly to better work. Indeed, employees feel more responsible and accountable for the work they do and the time they spend on social media.

Leverage the power

Social media shouldn’t really be a standalone toolset, but it’s essential for building the next set of apps that harness the power of crowds. They will take advantage of the opportunities created by social networks in a field of activity that will offer unprecedented advantages.

(Rupal Sharma is co-founder, O’hi-social network app)

(To receive our daily E-paper on WhatsApp, please Click here. We allow the PDF of the document to be shared on WhatsApp and other social media platforms.)

Posted: Wednesday, May 4, 2022, 10:50 a.m. IST

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ApeCoin (APE) can now be traded with leverage on Bitfinex https://investingnewswire.club/apecoin-ape-can-now-be-traded-with-leverage-on-bitfinex/ Mon, 02 May 2022 14:35:25 +0000 https://investingnewswire.club/apecoin-ape-can-now-be-traded-with-leverage-on-bitfinex/ Alex Dovbnya Bitfinex has launched ApeCoin (APE) margin trading Bitfinex, a leading cryptocurrency exchange, has launched margin trading for ApeCoin (APE), an Ethereum-based token related to the Bored Ape Yacht Club non-fungible token franchise. Users will be able to trade APE tokens with a relatively conservative leverage of 1.66x. The platform allows users to trade […]]]>
Alex Dovbnya

Bitfinex has launched ApeCoin (APE) margin trading

Bitfinex, a leading cryptocurrency exchange, has launched margin trading for ApeCoin (APE), an Ethereum-based token related to the Bored Ape Yacht Club non-fungible token franchise.

Users will be able to trade APE tokens with a relatively conservative leverage of 1.66x.

The platform allows users to trade with up to 10x leverage by borrowing additional funds from the exchange’s peer-to-peer (P2P) market. Trades must go through an intermediate verification process.

In October, Bitfinex enabled margin trading for 11 trading pairs, which cover Solana (SOL), Avalanche (AVAX), Cardano (ADA), Polygon (MATIC) and other cryptocurrencies. These cryptocurrencies can be traded with a maximum leverage of 3.3x.

Last year, Binance and FTX decided to limit the maximum leverage of 100x to just 20x as part of their efforts to comply with regulations.

Margin trading is considered extremely risky, therefore only experienced traders are recommended to trade with leverage.

The troubled beginnings of ApeCoin

ApeCoin captured the attention of the cryptocurrency community in March with its loud debut. Still, some criticized Yuga Labs, the creator of the Bored Ape Yacht Club collection, for adding more toxicity to the community by releasing new tokens.

As expected, ApeCoin failed to live up to the hype and crashed in the first days of trading. However, it has since grown a few legs, currently trading at $15. NFT market leader OpenSea recently added support for ApeCoin, boosting its adoption.

The ERC20-based token plunged more than 12% in the past 24 hours after the viral Otherside Metaverse sent Ethereum fees skyrocketing due to huge demand.

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Careful to be careful with the use of leverage https://investingnewswire.club/careful-to-be-careful-with-the-use-of-leverage/ Sat, 30 Apr 2022 21:00:00 +0000 https://investingnewswire.club/careful-to-be-careful-with-the-use-of-leverage/ Inflation has become one of the biggest global economic stories of 2022. Singapore is no exception, having recorded an overall inflation rate of 5.4% in March – its fastest pace since April 2012. Recently, economists and policymakers have sounded the alarm of impending “stagflation”, a phenomenon that combines economic stagnation and inflation, raising concerns among […]]]>

Inflation has become one of the biggest global economic stories of 2022. Singapore is no exception, having recorded an overall inflation rate of 5.4% in March – its fastest pace since April 2012.

Recently, economists and policymakers have sounded the alarm of impending “stagflation”, a phenomenon that combines economic stagnation and inflation, raising concerns among investors as to whether there is a way to hedge against this risk. particular.

In an inflationary environment coupled with low interest rates, keeping cash in the bank earns virtually no interest, but prices continue to rise. This can lead to a decrease in purchasing power over time, especially if you are not invested.

When it comes to managing inflation risks within your portfolio, there can be various asset classes such as inflation-linked bonds, properties or commodities that can have a high correlation. with the inflation figures. However, when we look at a longer-term portfolio, equities are usually the heart and main driver of returns.

What most investors don’t realize is that equities can provide a good hedge against inflation risk within portfolios, with companies passing on price increases to end consumers which will eventually trickle down to profits. and stock prices.

However, spotting companies that could pass on such a cost hike is not easy as it requires significant due diligence on the part of investors.

To this end, investors seeking to manage information oversupply as well as understand the critical risks and rewards associated with a particular investment may find fund managers increasingly important, particularly when it comes to it’s about filtering out those high quality companies.

As we look at portfolio allocation strategies that can better manage inflation risks, we will also need to ensure that diversification is reflected in the medium to long-term investment horizon. One of the pitfalls that investors tend to fall into is falling into the “recency bias” trap where they invest in assets or strategies that have performed well in the recent past.

For example, most investors might have a portfolio with an overweight to growth or technology stocks due to their strong performance over the past decade.

However, sectors such as materials, energy and financials, which generally have a higher correlation with inflation, may be overlooked. These are also sectors that are generally cyclical in nature and are overweight in value strategies.

Therefore, it is important that a portfolio has a good balance between growth, value and quality stocks to ensure a consistent and sustainable investment return profile over the long term and to protect against inflation.

With growing concerns of potential stagflation, there is no need to panic at this time, but it is prudent for investors to be cautious with the use of leverage as it can incur costs and higher risks when interest rates rise.

• Elson Goh is Head of Asia Portfolio Management, St. James’s Place

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Varun Beverages Q1 Review – Operating Leverage, Higher Realization Gains: Motilal Oswal https://investingnewswire.club/varun-beverages-q1-review-operating-leverage-higher-realization-gains-motilal-oswal/ Fri, 29 Apr 2022 04:18:12 +0000 https://investingnewswire.club/varun-beverages-q1-review-operating-leverage-higher-realization-gains-motilal-oswal/ BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s leading brokers, asset managers and research agencies. These reports offer BloombergQuint subscribers the opportunity to broaden their understanding of companies, sectors and the economy. Varun Beverages Ltd. delivered robust sales growth, supported by strong volume growth […]]]>

BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s leading brokers, asset managers and research agencies. These reports offer BloombergQuint subscribers the opportunity to broaden their understanding of companies, sectors and the economy.

Varun Beverages Ltd. delivered robust sales growth, supported by strong volume growth (19% YoY) across all geographies and higher realization (6% YoY).

Volume growth was driven by the early start of summer in India, which translated into higher demand.

Despite higher input cost, Varun Beverages’ operational performance has improved significantly due to higher realization and operating leverage. Consequently, EBITDA/unit cash improved by 17% year-on-year to Rs 29.5.

Considering its Q1 CY22 performance, we are raising our CY22/CY23 earnings estimate by 7%/6% as the growth trajectory is expected to continue with robust demand from out-of-home consumption and strong support from newly emerging products. launched.

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