Cardano (ADA) is a proof-of-stake blockchain. This means that ADA coins need to be made available (i.e. staked) to be used as validators of transactions taking place on the blockchain. ADA holders are thus incentivized by rewards to stake their coins to pools: these are independently run server networks that underpin the proof-of-stake mechanism. Staking rewards come in the form ROA (return of ADA). The concept is similar to how you might earn interest on fiat currency held in a bank account.
Both the US and Europe’s economies are officially in recession. Here in the UK, inflation is at 7% (forecast to rise to 10% in the coming months), with fuel, energy, and food prices being the major concerns for most people. In an effort to curb inflation, the Bank of England is gradually increasing interest rates, meaning the cost of borrowing is going up too. Investors have noted stock markets globally tumbling, and cryptocurrencies have recently experienced the most dramatic of falls. Did I mention we have an ongoing war in Europe too? It all feels quite dystopian. Especially if you’re aged 30 or younger: meaning you were below 18 years of age at the time of the Great Financial Crisis (2008) and therefore haven’t experienced anything like this in your adult life up to now.
Fledgling investors typically have lots of questions, and sometimes a little anxiety. They may have heard investing provides better returns but when it comes to taking the first steps, people often feel overwhelmed, and unsure where to start. Given that investing isn’t taught in schools, all the investing jargon, and the wide range of investing strategies, it’s no wonder some people develop a sort of “investiphobia”.
I’ve not written an investing-related post for a while. I try to share thoughts and ideas related to investing more on my Instagram page these days. But it’s sometimes useful to write these things down and so please find below a “brain dump” summarising my high-level thoughts about investing as we approach the end of the year…
In January 2021, I decided to transfer my Stocks and Shares ISA from Hargreaves Lansdown to Freetrade. The funds arrived a few days ago, meaning the process took just over a month from initial request to completion.
I wanted to look back and share how my “investment strategy” has developed throughout this turbulent year.
The Covid-19 Coronavirus pandemic has seen 25% of the value of the S&P 500 wiped out in the last 30 days. People are in quarantine, people are losing their jobs and people are dying. We are living in unprecedented times and many are anxious for what the future holds.
If, like me, you are young, without health issues, and in a stable job that allows you to work from home then you are privileged. It goes without saying that the privileged amongst us must do what they can to support those who are vulnerable. Beyond this, putting social and health issues to one side for just a moment, it is permissible to consider whether there is any silver lining to the current situation. Indeed, as distasteful as it may sound, those belonging to Generation Y or Z, in particular, should reflect on whether this crisis might equally veil opportunity. I am referring to a much-needed break for young people: to be able to invest in stocks at prices below “fair value” for the first time in their lives!
Let me start by saying that stocks and bonds are not mutually exclusive. Indeed, a smart investor keeps a balanced and diverse portfolio that reflects their age, attitude to risk and personal set of circumstances. That said, as we go into 2020, if your portfolio is sitting heavy in equity investments you may wish to look at redistributing some of that towards bonds. Now, let me explain why…
It’s been a while since I wrote a post so thought I’d share an update on my investments.
The stock market had been going strong so far this year. However, Trump looks to now have poured cold water on things, in threatening a trade war with China. The S&P 500 is down 3% in two weeks, and my favourite Technology Index fund is down 6% so I’ve bought more of that, as I said I would.
There have been some big technology IPOs in Pinterest, and Uber yesterday but I’ve steered clear of both of those. Instead, I’ve been looking at start-ups to invest in.
If you’re interested in investing in a start-up but not sure how to go about it read my previous post first