Stock Investing

There are many possible avenues for investors to set funds aside for future uses, such as in retirement or to achieve distinct financial goals. Stock investing is one of the most popular options for investors, and incredible gains can be had for those with the risk tolerance and understanding to leverage opportunities. Investing in stocks can be relatively straightforward, but savvy investors know that certain tips can help hedge one’s bets. Here is a look at five of the most critical stock investing tips:

  1. Evaluate current financial situations – too often, potential investors forget to check whether they can free up enough funds to make a stock purchase. To succeed, investors should have little or no debt and about six months of emergency funding to cover living expenses for personal and family uses. If both of these criteria are met, investing in stocks should be comparatively painless.

  2. Assess risk tolerance – not everyone can handle the high-stress environment of volatile stock investments. While high-risk investments have the potential to produce greater returns, most investors prefer to balance these options with lower-risk investments; returns are generally lower, but these lower-risk options tend to be more stable over the long term.

  3. Diversification – financial experts agree that spreading investments over multiple accounts and types can help protect asset values over the long term. Stock investors should seek out multiple investment categories, including automotive, manufacturing, aviation, agriculture, computer technology, and pharmaceuticals, only to name a few of the many options. When one market experiences a downturn, others may be on the rise, helping to preserve value and to produce stable returns.

  4. Invest in companies that are well-managed – larger corporations with solid business track records tend to make better investments than startups or other companies without a long history. While nothing is guaranteed in stock investing, leaning toward established companies can help preserve asset value, even if returns tend to be smaller than more volatile ventures.

  5. Do your research – there is a wealth of information available for new stock investors, including guides that help one navigate the complex and confusing investment industry language. Many financial information resources can help investors understand what terms mean and how to best leverage information for smart, safe, and lucrative investing options.

Andrew Binetter: Uncertainty in Today’s Investment Markets

Recent developments in world markets have been unprecedented. Some of the largest stock markets and indexes have seen record highs and corresponding lows as trade disputes and a strengthening U.S. economy have generated upheaval. This volatility in the markets have driven investors to seek new information and new guidance.

Some of the information investors sought have revealed insights into the prevailing atmosphere – one of uncertainty and of fear.

Investopedia, a leading online financial knowledge resource, has tracked many of the terms investors are searching for, and have noticed a strong uptick in interest of what the market is doing and where it is headed. In this article, we’ll take a look at some of the terms that are driving investor search traffic.

Highest Spike: “Bear Market”

The term “bear market”, or a market in which share prices are plummeting, experienced the largest spike in search traffic by Investopedia, showing a nearly 6500% increase in interest in the final weeks of 2018. According to a survey conducted by the American Association of Individual Investors, 50.3% of investors were bearish on the market, while nearly 32% were bullish.

Capitulation

Showing an 869% spike in interest, the term “capitulation” is closely related to bear markets. In simple terms, the work means investors selling off holdings during declines in the stock market, erasing any gains they may have had previously. In December, 2018, just over $75 billion in assets were sold off from exchange-traded and stock mutual funds in the United States alone. This massive figure represents the largest amount of asset outflow ever recorded.

Market “Correction”: Generating Search Traffic

When stock markets see dramatic increases in investor activity and price, there are times when those markets undergo correction. Investopedia defines the term “correction” as a 10% or greater decline in the price of a given security from its most recent high or peak. Many investors wondered if a market correction was coming, and so increased search traffic on the Investopedia website to the tune of 655%. A similar review of Google search traffic indicated that many other people around the world were searching for information about corrections, with the highest interest in the term appearing toward the end of 2018.

Light at the End of the Tunnel: “Bubble”

All was not doom and gloom in investing information searches. While market volatility and an uncertain future have led many investors to brush up on some of the most fear-inducing investment terms, there was one term that actually experienced a drop in search traffic. That term was “bubble”, or the phenomenon of a given market or security experiencing a short or unusual spike in price before losing value rapidly. This term has been used to characterize several investment markets, such as in real estate or stock indexes. Bubble saw a 13% decline in search traffic volume in the later part of 2018.

Article brought to you by Andrew Binetter

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Talking Investment Management

Andrew J. Binetter certainly knows a thing or two about investment management. As a trailblazing entrepreneur and pioneering business executive, Andrew has seen numerous business trends come and go. Formerly the Director of the Australian Fruit Juice Association, Andrew was also the co-founder–and later CEO–of Nudie Foods Australia. These positions, as well as the many others he would take on throughout his illustrious career, presented ideal opportunities by which he could utilize his creativity and unconventional marketing approach.

Andrew-Binetter-04

Andrew was appointed CEO of Nudie in March of 2005. At that time, the company–which he himself co-founded–was pulling in a very respectable $15 million in annual revenues. This was a pretty impressive accomplishment by most measures, and was due in large part to Andrew’s entrepreneurial expertise.

But Andrew was never one to rest on his laurels, and he continually worked to find ways by which an already up-and-coming brand could be made even better. With his pioneering marketing abilities and slightly off-kilter business sensibilities, Andrew helped make the then 2-year-old company one of the biggest brands in the Australian consumer market. With Andrew at the helm, Nudie Foods shot all the way to the top, eventually being awarded first prize at the Beverage Innovation Awards held in Moscow in 2008. When the company was sold in January 2015, it was pulling in an estimated $86 million a year in revenues.

Binetter’s business savvy and personal touch was apparent in many aspects of Nudie Foods’ operations. The company struggled for acceptance in the Australian beverages market in its early years, which was by then already crowded with numerous competing brands. Even before becoming the company’s CEO, Andrew played a crucial role in setting up offices and distribution centers in Perth, Melbourne and Brisbane.

  • He also helped set up a factory in Sydney.
  • Oversaw the operations of the company’s R&D/NPD teams.
  • Managed its procurement, manufacturing, warehousing, and transport/logistics divisions.

Through it all, he constantly had a pulse on Nudie’s sales and brand/marketing management, and even found time to manage the accounts/finance department.

Andrew has an equally impressive resume as an investment manager. In June 2004, he played an instrumental role in securing an investment from Champ Private Ventures, which was then the largest private equity firm in Australia. With the contracts signed, Champ owned 25% of nudie shares to the tune of $20 million.

When pressed for the secret to his success in investment management, Andrew is quick to say that it isn’t due to any single factor. But one of the first things he would suggest is to diversify. Throughout much of his career, Andrew strove to build a well-balanced, low cost, and diverse portfolio, taking into consideration factors such as risk tolerance, time horizon and investment objectives.

nudie juices creators of good

He is also a big proponent of staying committed to business goals and investing for the long-term, as proven repeatedly throughout Nudie’s long and sometimes rocky history. For the tenacious and endlessly creative entrepreneur, these qualities are essential for helping investors weather the many challenges that lie ahead, with success being the inevitable result. To learn more about investment opportunities with Andrew, visit: https://www.crunchbase.com/person/andrew-binetter.