There is always a good time to learn how to make passive income. Your earnings have a significant influence on your life and level of comfort. If you’ve just realized that your salary is no longer satisfactory to meet your needs, or if you just intend to gain extra money, you have to develop a passive income strategy. 

Passive income guarantees financial security in any case of an emergency with no need to work hard for it. Creating the right passive income strategy allows you to set up passive income flows that enable you more flexibility and freedom of choice. Some exciting passive income schemes and opportunities have emerged over the last ten years, making it easier even for young adults to make additional money. First, let’s define passive income and then outline some popular strategies you can follow in the sections below.

What Is Passive Income?

Passive income is money that people usually receive regularly without actively working for it. In other words, passive income doesn’t require active work after a certain point. On the contrary, active income is money earned in exchange for carrying out a service.​ Everyone tends to generate a passive income so that they may retire wealthy and live a full life. There are a few types and stages of passive income. By creating various passive income sources, you can regularly get a significant amount of money from work that is already completed.

However, in the beginning, you either have to dedicate much of your time, effort, and creative thinking to set up your passive income streams or regularly invest a bit of your energy in maintaining the process.

Ready to start earning a passive income? Here is the list of the eight best passive income ideas that can significantly increase your revenue:

1. Dropshipping
2. Blogging
3. Digital Guides
4. E-Books
5. Digital Downloads
6. Affiliate Marketing
7. Real Estate Investing
8. Investing in the Stock Market

A significant number of passive income ideas are linked to your laptop, so if you want the money that is not tied to the specific location, opt for the projects that can be done online. So, all you need is a computer and a proper internet connection.

Dropshipping

Dropshipping means you manage an online retail store and use the services of a third-party supplier to fulfill the order. With dropshipping, you don’t need to deal with the product directly. The main difference between dropshipping and the standard retail store is that the seller doesn’t own inventory. Instead, the seller buys it as needed from a wholesaler or manufacturer to fulfill orders. 

With the dropshipping model, you don’t need much contribution to launch the business since you don’t purchase the requested product until the sale takes place. With no necessity for stocking inventory, you have a great chance to start a profitable dropshipping business by investing little money. By the way, you don’t have to know how to code or create a website to get started. Platforms like Shopify, Bigcommerce, and Wix allow you to start your dropshipping business without specific skills.

Blogging

Blogs are an exciting passive income opportunity for writers or leisure activities enthusiasts. A blog is an online information source where writers share their views on various topics.

Your blog becomes a passive income stream via display ads, affiliate marketing, or digital product sales. Earning passive income through display ads requires SEO skills (search engine optimization) to generate traffic to your website. Once your blog is sustainably getting traffic, different brands may reach out to offer collaboration. 

To start blogging, you have to:

1. Select the suitable niche for your blog
2. Choose the most convenient blogging platform (Ex.: WordPress)
3. Create a domain name (Ex.: www.myblog.com)
4. Buy a web hosting account 
5. Style your blog, create content, and promote it via social media

Digital Guides

We all have excellent skills in something that someone is ready to pay for. You can turn your expertise on any subject into benefit through a digital guide or course. 

A digital guide continues to sell itself without you having to do much work after the initial creation. However, it may require a lot of work upfront, but once an online guide is created and launched, it can provide you with a passive revenue stream for years. 

You may already be sharing quality content on-demand and not even realizing it. It can be an Instagram post, YouTube channel, or blog sharing advice on a particular topic. Instead of sharing your knowledge for free, turn it into passive earnings by monetizing it. 

E-Books

Like a digital guide, an e-book is another outstanding opportunity to convert a particular skill into a yield in the form of royalties. The main distinction is the way this information is wrapped. 

An e-book requires a laptop, tablet, or e-book reader to view long-form texts. E-books are not necessarily the length of huge novels, though they can be. 

Keep in mind that the more time and effort you spend promoting your books, the more cash you’ll make online and offline.

Digital Downloads

Instead of making a complete e-book, try producing a single downloadable product. Downloadables usually exist on their own and bring value to your customers. Printable checklists, worksheets and spreadsheets, guides, and social media templates are all viable options for digital downloads. 

In the beginning, you’d better do market research to define your potential customer base. The first point to start is to check your competitors. Google all related keywords and see the result. That will be your competitors. Study what they offer and how they promote their products and think of unique ways to present your product. 

Affiliate Marketing

If you run a successful blog and get enough traffic, you can integrate ads into your website and get paid per click or view on the ads. This is a good form of passive income because you are simply involved in promoting someone else’s products and get a cut of sales. 

The best ways to promote your affiliate links are via social media, emails, a YouTube channel, blog, or podcast. The most well-known affiliate marketing platforms are Amazon Associates & ShareASale. But there are some other platforms to choose from.  

The key here is quality and content authenticity. If you offer bad-quality products, your will soon lose your audience. Make sure you promote high-quality products you are entirely confident in.

Passive Income Through Real Estate

Real estate investing is among the most expensive ways of getting passive income. It requires a substantial initial investment and additional expenses from time to time. 

But before you plunge into the real estate business, take your time to decide on what type of real estate investor you’d like to become. 

Depending on your finances and the amount of time you want to dedicate, you have multiple options for real estate investments to choose from. However, the most popular options are short-term rentals (like Airbnb) or long-term rentals, where you become a landlord.

Yield from the Stock Market

Becoming a stock market investor is perhaps the most obvious way to get passive income built from capital gains or dividends.

Once the value of your stocks grows, you may reinvest your dividends and see how your investments multiply through the system of compound interest. 

Investing in stocks of a company means you become one of its “owners.” When the prices are down, it is the perfect time to purchase stocks. If you aggressively save money and seek good-value, dividend-paying stocks, you may be able to achieve a solid passive income before the traditional retirement age. Diversify your investments to diminish the risk of losing everything if a company fails.

How Many Sources of Passive Income to Have?

Everything depends on your ambitions and financial goals.

Do you have growing career opportunities? Perhaps there will be enough one or two income streams, such as profit from affiliate marketing or royalties from your precious book. 

If your current position is shaky, you may want to increase your income streams to ensure financial security in case of an emergency. 

Taxes and Passive Income

Remember that, like income from a full-time job, revenue gained from passive streams is taxable. 

The amount of taxes differs, depending on various factors, such as the type of passive income source and how much money you get. Income earned from real estate is taxed differently from dividends earned on stocks. 

Since this part may seem confusing, you’d better discuss it with a professional tax consultant to learn all the nuances about your particular situation. They can also provide more details on accounting and documents required by your legislation.

Summary

Passive income sources can boost your investments, multiply your savings, or protect you from unexpected events.

The good news is that there are numerous options to generate your revenue, and there is no limit. A passive income can be very beneficial because you become a boss. However, this requires you to do your best to maximize your performance.  

Take your time while exploring the ideas above. Some streams are more rewarding, but they can be high risk. If you are a newcomer or not confident enough in your decisions, you can reduce such risks by investing in passive income ideas that have been tested and proven to be successful. Don’t hesitate. Just start increasing your wealth.

The post 8 Proven Passive Income Streams for 2021 appeared first on Financeritual.

The 5G networks are still being currently deployed, and the process is in the initial stage. It takes many resources to develop this most modern wireless technology in different parts of the world. So, it comes as no surprise that experts believe the investments in 5G infrastructure, which were almost $10 billion in 2019, will soon (by 2026) increase to become a whopping $58 billion. This means that the compound annual growth rate in case the expectations meet reality will be 29%.

Such companies as NVIDIA (NASDAQ:NVDA) and Ciena (NYSE:CIEN) are definitely worth checking out since the potential advantage of the enormous infrastructure spending will be very profitable for investors. Both NVIDIA and Ciena produce essential technologies that are necessary for the proper work of 5G networks. In this article, you are going to learn exactly why these companies are expected to become the best 5G-related stocks in the coming years.

Ciena will probably profit by providing the spine of 5G networks

Establishing 5G isn’t possible without deploying optical fiber networks. They are necessary to maintain an extensive rise in bandwidth, as well as to decrease latency and the consumption of energy.  While making the transfer to 4G, the telecom operators are already claimed to have spent more than $144 billion to improve the existing network infrastructure in 2014-19, and 5G will require even more.

Such optical fiber networks are a must when it comes to 5G, as they can give limitless bandwidth. Apparently, the most advanced systems’ speed will be up to 20GB/second, while the fastest result of 4G is about 1GB/second. Thus, according to some estimates, the companies working with fiber optic cable are going to increase their profit two times by 2025. Ciena, too, is expected to increase sales dramatically.

It has a whole spectrum of 5G solutions, for example, special routers that are made for 5G, automation software, etc. Ciena has the experience of working with big operators from different countries, including, for instance, top-3 Indian telecom operators.

The company has assisted Verizon to increase four times the fiber capacity necessary for 5G networks in the US. Another company that used Ciena’s services was Telefónica U.K., which clearly tells us that it’s in the center of the 5G rollout.

Another crucial thing is that the company dominates approximately one-fourth of the whole market of optical network hardware. Also, the share has only been growing over the past years.

All in all, investing in Ciena is an excellent decision if you want to profit from the market’s secular growth in 5 G-related spheres.

NVIDIA is working around a central problem

NVIDIA focuses on graphics cards used in computers and data centers. They are also essential for making 5G networks faster. In October 2019, the company announced the partnership with telecom titan Ericsson to increase 5G networks’ efficiency using GPUs (graphics processing units). NVIDIA is planning to fill in the gaps in the network infrastructure we have now, in which carriers can’t use bandwidth in accordance with the requirements.

The bandwidth wastage of 5G might be higher than 4G, and that’s why the networks must be improved to become more intelligent. NVIDIA’s GPUs are made for precisely this purpose. The company’s innovations let telecom operators shift bandwidth from place to place, decreasing costs considerably.

Besides, it is thought that 5G will require smaller data centers, which will be necessary for lowering the latency and making the processing quicker. As a result, this will heighten the need for data center GPUs.

The data center business accounted for 37% of NVIDIA’s revenue during the last quarter, which is about 80% more than a year ago. And with the development of 5G, the gain in this sector will only be growing.

The post 2 Great 5G-related Stocks to Buy Right Now appeared first on Financeritual.

There are so many stocks out there, people can even get lost in them. At the moment the largest companies like Amazon.com or Google parent Alphabet which trade at four-figure prices. Bear in mind that nominal prices don’t mean much – $50 stocks can be just as solid as $250 stocks.

However, typically cheap small caps or even micro-caps are cheap for a good reason. It might be compelling to buy cheap stocks because of the psychological factor; it’s nice to be able to buy many shares. What is more, these stocks are often characterized by price swings, and it seems to investors that they’ll lead to big gains in a short time.

Institutional investors do the opposite, though. Sometimes they trade once a stock dips below $10 or lower. That’s due to low nominal prices typically being a sign of higher risk – they might be in long-term decline. Even good cheap stocks carry some risk, for example, narrow revenue streams or debt.

Here you can find five cheap stocks that have promising potential. Once again: they are risky, so only invest in these what you can afford to lose.

LiveXLive Media

Company’s market value: $195 million

Ever since the start of the pandemic, one of the things people miss is live music: concerts, club performances, dance-hall shows, and so on.

It’s good that in such circumstances LiveXLive Media (LIVX, $3.28) doesn’t only rely on live events. Thanks to it, the company shows more-than-doubling of shares. This digital media company that works with live music does the same thing with streaming music, internet radio, and video content.

In June 2020, LiveXLive announced record 2020 revenues of $38.7 million. That’s a significant improvement from $33.7 million in 2019. Here we have to remember that its losses growing quickly, too.

Despite everything, analyst Brian Kinstlinger has LIVX in his portfolio. He points out that the company has a new direct sales force which is driving better monetization. Another analyst, Jon Hickman, raised his price target, it is now $5.75 instead of $4.50 due to the growth of subscribers.

Evoke Pharma

Company’s market value: $86.0 million

Having a pharmaceutical/biotech name or two is a must in any list of cheap stocks to buy. They are often characterized by having big quick-movement potential based on trial data.

Evoke Pharma (EVOK, $3.48) is among such names. The stock has grown more than two times this year thanks to the excitement caused by its Gimoti nasal spray, which was approved recently by the U.S. Food and Drug Administration (the FDA).

Gimoti (its generic name is metoclopramide), is unique as it’s the only nasal product (others are administered orally) approved to treat gastroparesis, which is a condition that interferes with digestion and let the stomach to contract.

This approval by the FDA gives Evoke a chance to access a $5 million credit line for the purposes of funding manufacturing and commercialization. Also, the company stands out because it virtually has no debt.

EVOK, similar to other cheap stocks, is not appreciated by Wall Street. However, analyst Raghuram Selvaraju upgraded the shares from Neutral to Buy after the FDA approval; he set a 12-month price target of $10, which is three times more than current prices.

AIM ImmunoTech

Company’s market value: $83.5 million

Of course, right now both the medical community and the stock market are focused on research related to treating coronavirus. AIM ImmunoTech (AIM, $2.56) is a biotech company based in Florida with an entry in the product pool of the disease: Ampligen (rintatolimod), which is used for treating severely debilitated patients with chronic fatigue syndrome. In May, human trials to assess the effectiveness of Ampligen was authorized by the FDA, as well as interferon also called alfa-2b, which is extremely important for the progress in helping cancer patients with COVID-19.

The company has also applied to treat chronic fatigue caused by coronavirus after some evidence backing Ampligen’s effectiveness was found in Argentine. Similarly to many health and pharmaceutical companies working to fight COVID-19, AIM shares have increased in value a lot in 2020; at the start of the year it was below 60 cents, and now it’s well above $2.

The shares have received three Buy ratings from three so far. One of the latest ratings was given by Jason McCarthy; his idea about the price target is $5 per share, as he thinks that the value of Ampligen’s potential hasn’t been quite captured yet.

The post Three Stocks to Buy Under $10 appeared first on Financeritual.

There’s something compelling about collecting cheaper shares. First of all, it’s easier to buy a round-number lot when it doesn’t break the bank. Secondly, there’s actually evidence that such shares have a tendency to perform better than their higher-priced counterparts.

So, check out these great stocks under $10 worth of adding to your portfolio!

Sirius XM Holdings

In our age of mobile internet, it’s honestly quite amazing that this hardware-specific satellite radio business based on subscription can do well. But it’s true! Sirius XM Holdings (NASDAQ:SIRI) is a good example of that. Last year the company added about a million new paying members, bringing the total subscriber number close to 30 million.

We should admit, however, that the growth pace is rather slow. As Rick Munarriz has pointed out, the 2020’s revenue is expected to grow by 4%, and that’s not a lot. Each year the satellite radio business is closer to reaching its full potential in the total addressable market. But Sirius XM is working on its plan-B, the company has acquired Simplecast to enhance the monetization of its already existing podcast business.

But this is what can be compensated by Sirius XM’s consistency. The customers are devoted not only to the commercial-free radio but to the people hosting their favorite programs. Sirius XM also gives access to some exclusive sports events and programs that aren’t available otherwise.

Nokia

You probably think that Nokia (NYSE:NOK) is just a mobile phone maker, which is true to a degree (it sold a big part of its smartphone division to Microsoft in 2013). That’s why phone production is less and less of a priority for Nokia. The next big thing for the company is 5G – the technology that will be appreciated by the investors soon.

Its potential might be less than other companies’ (like Ericsson or Qualcomm), but it has its victories, too. In June, for example, it announced that China Unicom (NYSE:CHU) had tapped Nokia to provide about one-tenth of the tech for the 5G network. At the same time, the company became the leader in wireless broadband technology in the production of 1 GB wireless broadband speeds in the U.S. using C-band frequencies. This hadn’t previously been available to mobile network operators as well as manufacturers.  This is very important considering the fact that American radio waves have gotten very crowded.

It will probably take quite some time before the company reaches incredible highs, given that the shares are just $5, it may well be worth waiting.

Plug Power

Plug Power (NASDAQ:PLUG) is another promising stock under $10. The number of households familiar with this company is increasing, just like its revenue.

The reason for this growth is the fact that the public interest in what the company is doing is on the rise. Plug Power’s technology converts hydrogen into electricity, which makes for both backup power systems, and also as a viable primary option for electricity generation. In 2019, the company’s top line increased by nearly 40%.

But the best part of the investment in Plug power is how fast it’s approaching financial viability. With the present momentum, the company is likely to swing to a profit in 2023.

The post 3 Excellent Stocks Under $10 appeared first on Financeritual.

This market has had a bunch of problems in the past. For example, MedMen burned through cash in 2020, and CannTrust Holdings had to file for bankruptcy because of being caught growing cannabis illegally. High volatility makes marijuana stocks a riskier asset, that’s why it’s better to turn to marijuana ETFs.

The AdvisorShares Pure Cannabis ETF. It started trading in April 2019. The ETF’s expense ratio is 0.74%. 1. The AdvisorShares Pure Cannabis ETF provides a dividend yield of 7.26%, which is quite generous; the assets are estimated to be about $45 million. The fund tracks American and Canadian companies specializing in health care, consumer products, and real estate.

The Horizons US Marijuana Index ETF (which was the first U.S.-focused marijuana ETF), began trading in April 2019 in Canada; the expense ratio is 0.85%. There are 30 companies based in the U.S.A.

The Cannabis ETF first started trading in July 2019; it owns 30 stocks and the expense ratio is 0.7%. This fund is managed passively; it tracks the Innovation Labs Cannabis Index. Despite having only $20.7 million in assets, the fund provides a dividend yield of 4.1%.

Often investors prefer passively managed ETFs because the fees are lower and returns tend to be higher. According to Morningstar, last year’s net inflows of passively managed ETFs were accounted for $162.7 billion, whereas the actively managed ones reported net withdrawals of $204.1 billion.

It’s important to remember that investing in passively managed cannabis industry ETFs can be risky. Head trader at truetradinggroup.com and co-founder of marijuanastocks.com Jason Spatafora believes that such ETFs hold less risk as managers can divest companies as soon as a major problem arises, whereas in passive ETFs holdings are rebalanced quarterly.

He also doesn’t recommend adding cannabis ETFs to a portfolio, as they often hold a lot of “garbage”. Spatafora says investors should try to create their own “index” with a smaller number of companies. In his opinion, investing in such ETFs at the moment is risky as well, since the volume in cannabis stocks usually decreases in summer. His advice is to wait untill August.

Michael Berger, the founder of Technical420 claims that the volatility in the cannabis sector in 2019 has influenced the returns of stocks, and in this market environment an actively managed ETF is a better choice.

Another considerable disadvantage of investing in marijuana ETFs is that it’s prohibited by the SEC for providers to own shares of companies directly connected to marijuana plant as it is still a Schedule I controlled substance. That’s why many cannabis ETFs cannot have shares of American marijuana companies.

However, Timothy Seymour, founder of Seymour Asset Management and portfolio manager of Amplify Seymour Cannabis ETF is sure that the regulatory environment is most likely to change soon because of the growing market in this country. This is a sophisticated consumer product, in his opinion, with over the top retail distribution. Both quality of products and operational excellence have improved compared to that of 3-5 years ago, he adds.

Many cannabis ETFs own shares of companies from Canada have already seen all-time highs, Spatafora supposes, and cannabis ETFs are quite a good addition for investors’ portfolios. While the assets of such fund as ETFMG Alternative Harvest are $581million with a very generous dividend yield equal to 7.25%, the ETFs that are passively managed offer even more; for example, GW Pharmaceuticals (10.7%), or Cronos Group (9%).

Spatafora advises investors to trade the stocks of Canadian marijuana companies and not to keep them long-term. Consider the example of the Canadian company called Canopy which has lost more than half of its shareholder value comparing to last year.

American cannabis companies have bigger potential for growth thanks to a bigger customer base, but until the above-mentioned problems are solved, it’s better to avoid investing in the existing ETFs.

Canada’s biggest problem is that in its marketplace, there aren’t enough dispensaries open to consumers. According to Spatafora, Canadian companies lose to American ones (like Green Thumb or Trulieve) in putting up impressive numbers and positive EBITDA.

The marijuana market which was considered essential during the pandemic in many states is now growing. By 2025, this industry is expected to grow to $33.9 billion (with the compound annual growth rate of 18.2%), according to The Arcview Group.

The post Investing in Marijuana ETFs in 2020 appeared first on Financeritual.

Redfin (real estate), Floor & Decor Holdings (home-improvement), and RH (luxury furniture) have been considered promising since they went public, so we might well expect them to grow even more in the future. They are determined to achieve their impressive business goals in the future, so the investors are likely to double their money (or maybe even more).

1. Floor & Decor Holdings

Floor & Decor added as many as 20 new locations in 2019 (that’s 20% year-over-year unit growth, and this rapid growth is expected to go on for a while. There are 123 stores at the moment, and the company is striving for having 400 locations in 12 years. 

So far, Floor & Decor has managed to reopen all of its stores after the closures caused by the pandemic. Despite being hard to ship, the flooring materials were still being sold well, but real locations are a must in this business. Recently Floor & Decor CFO Trevor Lang supposed that commercial real estate might get cheaper because of numerous retail businesses shutting down. This, while being terrible news, means that the company will be able to get new locations.

Floor & Decor is consistently profitable even though it’s spending has been growing over the years. This trend has been present since 2014, and it doesn’t seem to disrupt the company’s impressive growth.

2. Redfin

A real estate transaction includes lots and lots of expenses like the agent’s commission, title insurance, taxes, and so on. It’s so expensive and complicated. The good news is that Redfin can handle everything (except taxes) using the technology of a streamlined experience at lower rates.

If we calculate how much all the processes going into buying or selling a house make up for, we’ll come to the conclusion that Redfin has a more than $100 billion market opportunity. Take into account their $780 million revenue last year and you’ll see how much space for growth the company has. 

According to ATTOM Data Solutions, the average time a buyer lives in a house is estimated to be over eight years. Given that the company only launched in 2006, the customer loyalty has a great potential as well, even though it’s quite high already (there was 44% growth shown in repeat customers last year only).

All in all, it’s obvious that Redfin is picking up momentum, and it’s not going to slow down, which makes it a great investment idea.

 3. RH

It’s difficult to imagine a more contrarian company than RH. While other players in the home furnishings business are opting for inexpensive products, RH concentrates on luxury furniture demonstrated in gaudy showrooms. This approach has its advantages — there are few (if any) other big-name companies doing the same thing.

RH has been showing great results: in 2015-2019 its net income more than doubled thanks to the management wise enough to grow the business and save money at the same time. For instance, RH has chosen a sale/leaseback expansion model which includes developing a location while selling the property and then leases the space. That’s a great way to expand without paying too much for operational expenses.

RH wants to expand into all the major markets in the U.S. and generate $5 billion or $6 billion each year (in 2019 their net revenue was $2.6 billion). In addition, taking the showrooms to international markets is believed to make RH a $20 billion brand.

And there’s more. RH aspires to expand into hotels, food service, experiences, and so on. CEO of the company Gary Friedman stated the objective to create The World of RH. He thus estimates the market opportunity to be from $70 billion to $100 billion. Even a fraction of this success in the future will make your investment into the company today a great financial decision.

The post 3 Excellent Stocks That Are Likely to at Least Double Your Money appeared first on Financeritual.

In such conditions, people often buy penny stocks (stocks that are trading for less than $5), because if there’s even a small share price appreciation, the investors will get hefty profits.

So, how can we choose good penny stocks? Read on to find out about two promising stocks.

1. Xeris Pharmaceuticals (XERS)

Xeris Pharmaceuticals is based on an innovative technology platform that offers solutions for injectable and infusible therapies that simplify the process. Despite a serious sell-off at the end of June (at one point there was a loss coming in at 49%), its new $2.59 share price allows investors to go ahead and purchase these promising shares.

Analyst David Amsellem believes that is XERS underestimated as their innovative technologies are going to help adult patients with type 1 diabetes. Their cross-over study with 18 adult participants has proven that there was a 62% decrease in hyperglycemia in subcutaneous injections (SC) of XP-3924 (XERS innovation) comparing to injections of insulin alone. This gives the analytics and investors hope that the company’s future is going to be marked by rapid growth.

In the future Amsellem expects the company to look for a development partner in order to enhance the production capabilities of XERS and overall business growth. Amsellem thinks it’ll bring the shares to $11 price target (it 326% growth!), and other experts (from TipRanks, for example) agree.

2. Avinger (AVGR)

Avinger is a company that designs medical devices for diagnosis and treatment of patients with Peripheral Artery Disease (PAD). The current price is only $0.29 apiece, which makes it a very promising investment.

Nathan Weinstein from Aegis Capital thinks that the company’s recent capital raise due to equity financing combined with their efforts to cut operating costs has significantly strengthened its position despite the challenges AVGR had to face due to coronavirus. The analyst believes that eventually there will be a return to normalcy in both patient volumes and ordering activity. 

Weinstein’s optimistic outlook implies a $1.40 price target, which is essentially a twelve-month gain of 368% compared to the current levels. It’s important to note that his opinion is shared by others, judging by the information from TipRanks. 

The post 2 Penny Stocks That Are Expected to Grow appeared first on Financeritual.

The current market optimism with deteriorating economics on the background is worrying, to say the least. However, with the right mindset and a long-term investing strategy, we should be just fine. 

This is why now we should be focusing on risk control and avoiding rushed decisions. The Central Bank’s interventions aimed at increasing liquidity no matter what are misleading investors by giving them a false sense of security. 

First, let’s discuss the risk connected to investing. We can think of two types: to lose money and to miss an opportunity. You can avoid one of them, but not both at the same time. It’s up to you whether you want to play safe and potentially lose an opportunity or take an active approach and risk losing money.

Being cautious and mature seems old-fashioned to some. So when asked whether they are willing to risk to get rich, they usually say yes. How should one act to get profit?

Be unemotional

It is a trait of almost all great investors. It makes sense if you think about it: emotional people tend to buy when prices are high and sell at the bottom. Many successful investors practice contrarianism. It involves doing the contrary of what everybody else is doing at the extremes. 

What makes people emotional? Greed and fear. During market crashes logic tries to make you participate in the unique opportunity, but the emotions cause people to make bad decisions. This is the reason we should practice self-discipline. 

But no one is perfect, and the following rules are going to help you.

Rules

– Be a scale-up buyer

– Have actionable goals

– Decisions made under the influence of emotions make the investment process pointless

– Follow trends – the most part of your portfolio performance is mainly influenced by the long-term trends, so don’t worry too much about the short-term fluctuations

– Don’t turn a “trading opportunity” into a long-term investment – think about your goals concerning a particular stock 

– Always be disciplined 

– Losing money is an integral part of the investment process, so don’t invest money you aren’t prepared to loose

– You are more likely to score a good deal when the fundamental analysis is backed up by the technical price action

– Adding to a losing position is a bad idea

– The market can be “bearish” or “bullish”. In a bull market, you should be neutral or act considering long-term goals. In a bear market, you can also be neutral or take into account short-term trends

– If the market is trading at extremes, do the opposite of what everyone else is doing

– Consider rebalancing, when the money is taken away from winners and added to losers. You should only give your money to winners

– Pay attention to “Buy” and “Sell” signals. If you’re trying to get by without a “buy/sell” discipline, you’re bound to fail

– There are no perfect strategies. Just be consistent and learn from your mistakes

– Look closely at risk and volatility: analyze what leads to mistakes and try to use this information to generate profit

The long-term bullish trend which started back in 2009 is still here. The 2020 crash seems to have been reversed by the extreme monetary interventions of the Central Bank. It looks like in order to keep the bull trend intact we’ll need more and more interventions. 

If these measures fail, it will be a signal of the start of the next bear market cycle. 

It’s very difficult to predict what is going to happen next. But we should all remember that good things come to an end just like everything else. During disastrous times investors should focus on controlling the risks in the short-term, and try to stay away from major draw-downs.

The post Rules of a Working Investing Strategy appeared first on Financeritual.

If you’ve got some money to spare outside your emergency fund, you can change your financial future for the better by investing in these three no-brainer buys.

NextEra Energy

So this isn’t the most obvious choice. Anyway, over 10 years NextEra Energy (NYSE:NEE) has returned 385% for the shareholders, which is twice more than the return of the benchmark S&P 500 over the same period of time.

Owning a utility company stocks is great because of predictability, as both consumers and businesses tend to be consistent in the amount of electricity they need. What is more, NextEra focuses on renewable sources of energy (wind or solar energy). Currently, it’s the leader in this sphere, and the company is determined to consolidate its superiority in the future. With an 8.4% annual growth rate over the past 15 years, NextEra can be considered a no-brainer buy for any portfolio.

Pinterest

Social media company called Pinterest (NYSE:PINS) is a traditional growth stock. So, why should you prefer it to, let’s say, Facebook?

To begin with, Pinterest is great at attracting new users. The monthly active user (MAU) count on this site has grown from 102 million to 367 million by the end of March 2020 comparing to the beginning of 2019 thanks to increasing presence on the international markets. 

What is more, the company’s idea that users can share their interests and ideas freely with the world allows small and medium-sized businesses to capitalize on shared interests via e-commerce. Suggestive technologies help consumers find products that are like their pins, making everyone involved happy, including investors, who see rapid growth.

Trupanion

Finally, let’s talk about the companion animal insurance provider Trupanion (NASDAQ:TRUP).

If you have a look at pet industry statistics, you’ll see steady growth for more than a quarter of a century. In 2020 the U.S. pet industry is estimated $99 billion. No surprise here, as we treat our pets as family members. That said, the insurance policy penetration on companion pets compounds only between 1% and 2% in North America, which obviously shows great potential for growth. 

Trupanion is well prepared for the upcoming competition as it has necessary connections with the veterinary and medical service communities. Even though the company is operating in a slow-growing industry, is has 50 consecutive quarters of impressive 20%-plus sales growth.

The post 3 No-Brainer Buys for Investors in 2020 appeared first on Financeritual.

In our opinion, Vanguard offers some of the most lucrative funds; this company was among the first to develop the concept of low-cost index fund investing. This is why the Vanguard S&P 500 ETF (NYSEMKT:VOO), the Vanguard High Dividend Yield ETF (NYSEMKT:VYM), and the Vanguard Real Estate ETF (NYSEMKT:VNQ), are excellent choices for investors. Read on to learn more!

High dividends from trustworthy companies

If you care about dividends, but at the same time you want to invest long-term with growth potential, check out the Vanguard High Dividend Yield ETF. It tracks an index of about 400 stocks, and each of them pays above-average dividends. Also, in this fund, market capitalization is taken into account, which means that the larger the company is, the bigger role it plays. The holdings include JPMorgan Chase (NYSE: JPM), Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), and so on.

Since this ETF focuses on entities with above-average dividends, it pays 3.9%, which is about twice the yield of the S&P 500. And that’s with a 0.06% expense ratio! All in all, a great deal.

Real estate’s potential growth 

Real estate investment trusts (REITs) are a great long-term investment if you’re interested in both growth and income. REITs are obliged to pay out about 90% of taxable income to their shareholders, which is why they usually have high dividend yields. What is more, real estate values tend to increase with time, so, as a rule, long-term growth is there. 

If selecting individual REITs is too overwhelming, choose the Vanguard Real Estate ETF to get exposure to a diverse index of real estate investment trusts in your portfolio. Real estate was affected a lot by the COVID-19, so it could be a great time to start.

Warren Buffett’s favorite investment 

Despite the fact that it’s not a dividend-focused ETF, the S&P 500 has been showing great results in both income and growth so far. That’s why a solid S&P 500 ETF can be a great core of your portfolio.

Warren Buffett has mentioned more than once that this fund is the best investment for the majority of Americans. He has also talked about Vanguard because of its low-fee approach (0.03% expense ratio!). An investment in the overall S&P 500 is essentially a bet on American business on the whole; it has performed well so far, and it’s likely to keep the same.

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