Category Archives: Emerging Markets

Emerging Markets, Stock Markets

Closed-end Funds: Global Exposure In The Asia Pacific Fund

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Closed-end Funds: Global Exposure In The Asia Pacific Fund

The Asia Pacific Fund, Inc (NYSE: APB) is registered as a closed-end management investment company, with an objective to achieve long-term capital appreciation through investment in Asia Pacific Countries (excluding Japan).  This creates the opportunity for investors to gain access to emerging markets throughout the region while still maintaining broad regional diversification.

Source: CEF Connect

Most analysts agree that a significant portion of global growth will be present in emerging Asia over the next decade.  These assets can be accessed at cheaper levels given the Asia Pacific Fund’s attractive discount to net asset value (NAV).  The fund has rallied strongly since February 2016, and investments here come with an attractive dividend yield of 2.14%.

Economic Trends in Asia

The year 2017 was positive for Asian markets.  Stocks throughout the region recovered against the backdrop of upward revisions in earnings and stabilizing political factors externally.  The MSCI Asia All-Country Index (which excludes Japan) closed with a 42.1% gain for the year, and its dividend yield index rose by 29.8%. The rising tide lifted many regional funds, and this positivity in global markets helped the Asia-Pacific Fund gain approximately 50% in 2017.

The MSCI Asia All-Country Index (which excludes Japan) closed with a 42.1% gain for the year, and its dividend yield index rose by 29.8%.  The rising tide lifted many regional funds, and this positivity in global markets helped the Asia-Pacific Fund gain approximately 50% in 2017.  These are strong gains which are more closely in line with the longer-term expectations for Asia (relative to Western economies) through the year 2022.

Source: IMF

However, shorter-term volatility has remained in place, and the first quarter of 2018 was not as expected.  In the wake of faster-then-expected interest rate hikes by the US Fed Reserve, investors enacted strategies tied to risk aversion.  

The world also saw itself on a brink of a trade war between the U.S. and China, which hastened with widespread tariff implementations.  The Asia-Pacific Fund fell 0.9% during the period extending from January 2 to April 2, 2018. The greatest drop in the share prices was between January 31 and February 12, wherein the stocks plunged by 10% before entering correction territory in the next few days.

Fund Holdings

The reality is that as interest rates have increased in Asia, liquidity has tightened.  Even though the NAV and the market price of the Asia-Pacific Fund both increased by more than 20%, the year its share of challenges.  

Problematic sectors were seen in the internet and software industry.  To mitigate the negative influence of global trends, the Asia-Pacific Fund has balanced its portfolio to increase exposure to top performing sectors (like industrials, information technology hardware, and real estate).

Source: Fidelity

The major sector concentrations of the fund are devoted to Real Estate (17.7%), Industrials (16.2%) and Consumer Discretionary assets (15.9%), with 5% given to holdings in both Longfor Properties Company and China Construction Bank (Class “H” Shares).

Financial Performance

The overall performance of the fund was positive during its annual period ending on March 31, 2018.  The Asia-Pacific Fund shows that price-to-book multiples, price-to-earnings multiples and its yield remain favorable when compared to the benchmark MSCI AC Asia Index (ex-Japan).  Positive developments in this regard prompted the Board to advise shareholders to vote against the proposed liquidation of the fund.

This looks to have been a wise choice given the subsequent performance seen in share prices.  Currently, the Asia-Pacific Fund has total net assets of $148.8 million and has 10.3 million outstanding shares as of July 31, 2018.  The net asset value stands at $14.38 and a commitment to its Dividend Reinvestment Program is what makes APB a favorable option for prudent investors.

Source: Morningstar

The fund’s NAV per share has increased from $12.96 on March 31, 2017, which means we have seen gains of nearly 11%.  On December 21, 2017, the fund paid out a dividend of $0.61 per share (with a yield of 2.11%). The PE Ratio stands at 4.53 and the EPS is $3.2.  For the Asia-Pacific Fund, the momentum in earnings revisions has acted as a key driver of growth.  Investors can look forward to a potential growth in the stock prices as the fund has posted a consistent performance over the past two years.  

After facing a drop in February 2016, the stock raised back by 75% in the period ending November 2017.  The increase in the stock was due primarily to the positive performances seen in the real estate and hardware sectors.  This suggests that markets are well-prepared to buy the stock when it is trading at a significant discount. The positive performance and economic growth of the Asia Pacific region continues to have a positive impact on share prices – and this looks set to continue in the quarters ahead.

Emerging Markets, Market News

Modern Green Rush: GrowLife Emerges in Growing Medical Cannabis Markets

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Modern Green Rush: GrowLife Emerges in Growing Medical Cannabis Markets

Recent developments in the medical cannabis industry have made it one of the most exciting stories of the last half-decade. The increasing number of states and countries approving the use of cannabis for its medical use has helped to drive the demand that is now being seen in the broader market.  Further, the growing interest within the medical community is rising, as scientific researchers now have better access to the resources required to make better development practices possible.

Relative to these advancements, it is no surprise that the cultivation of the cannabis plant itself is also benefiting from new innovations.  As a result, a wider array of technologies are available which focus on sustainable practices in agriculture and water management.  Additionally, greater focus on the improvement of soil quality through the development of various organic fertilizers has helped to maximize the ways cannabinoids can makes lives easier for patients.

Innovators in Cannabis Cultivation

GrowLife Inc. is making a name for itself in this field. GrowLife is a publicly-traded holding company that specializes in soil technology, cultivation equipment, and other related products.  The company’s stock trades under the ticker symbol PHOT in the OTC market, and includes various subsidiary and divisions that have helped to drive company growth. 

Key examples here influde GrowLife Hydroponics which sells various equipment through an online e-commerce platform, GrowLife Commerical which specializes in consulting and installation services for commercial growers, GrowLife Retail which holds the company’s retail locations including the company’s flagship Canadian store in Calgary Canada, and FreeFit Flooring within its GrowLife innovations subsidiary, which is an eco-friendly, non-toxic building materials manufacturer, among others. GrowLife provides essential products and services like soil and plant nutrients, media and hydroponic systems.

Product Selections

Just recently, GrowLife Inc.’s organic peat mix (GrowLife HP soil) was studied and chosen for exclusive use by the largest U.S. state-sanctioned cultivation facility in Colorado (Green Man Cannabis).  According to the Green Man, the GrowLife HP soil was chosen because it allows for superior results in cannabis production levels.

Chief Cultivation Officer and GreenMan Cannabis Partner Corey Buffkin explained, “After months of testing and production, we are confident in our decision to use GrowLife HP Soil as it meets our quality and pricing needs. This high-porosity organic mix allows us to feed our plants more often, which means increased yields.”

Biotech Stock Prices
Biotech Stock Prices

Aside from their operations in Colorado, Green Man has started using the product in its cannabis cultivation facilities in other areas (Oregon, and Las Vegas) under the brand name Greenway Medical.

Growth Rates in Medical Cannabis Companies

In other news, GrowLife Inc. also just announced the completion of retail locations in Canada built to accommodate expanding market demand for the indoor cultivation of medical cannabis products.  This essentially amounts to a retail base ranging from $4.9 billion to $8.7 billion, depending on which expert survey is used for the analysis.  These are massive numbers and this suggests excellent opportunities are available for investors that are able to establish asset exposure to the main innovators in these markets.

Medical Marijuana Statistics
Medical Marijuana Statistics

Many experts now believe that these are exciting times for the emerging industry.  Medical cannabis cultivation techniques have been studied more in the last five years than at any time in history, and this is unlocking potential benefits for patients that were previously unknown.  As medical cannabis becomes more accepted and is legalized in other U.S. states, the industry is expected to expand solidly through 2025.  This will propel the industry even further as companies gain more money to invest in technology and innovation.

Medical Marijuana Statistics
Medical Marijuana Statistics

For GrowLife and other members of the medical cannabis community, the uniform goal for everyone is to drive down the cost of products paid by patients in need.  A large part of the process will be fueled by the development and adoption of new agriculture technologies. As consumer-driven technology advances, the innovation surge is pushed even further.  

GrowLife and other industry innovators still remain attractive in terms of their potential value for both shareholders and patients.  As the “pick and shovels” play in this modern-day Green Rush, stocks like PHOT stand to gain over time.  This is a largely untapped industry, and so the potential for growth is massive when compared to most other areas within the financial markets.

Emerging Markets, Forex

China’s Move to Overthrow the Dollar: Will It Be a Success?

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China’s Move to Overthrow the Dollar: Will It Be a Success?

China is known as one of the fastest-growing major economies worldwide. Despite this, its currency is barely used in the global market, placing it just next to pound, euro, and yen. This year, the long-held desire of China to overthrow its competitors will likely get a boost.  Bitcoin helped crypto markets reach new highs, as well.

At present, China is considered to be the largest importer of oil in the world. Last October 2017, Russia sold an S-400 air defense system to Saudi Arabia and such move symbolized a big shift eastward for the Kingdom. China has managed to finally persuade KSA to accept its currency, Renminbi or RMB (also known as yuan in international contexts), as a payment for oil. As a result, China saw this success as an indicator of the increasing power of RMB and a stepping stone towards challenging the world’s most powerful currency, the dollar.

Pricing oil in its own currency

Aside from pricing one of the most important global commodities, China is aiming to overthrow the dollar to lessen its dependency to it, and to reduce its exposure to this currency as well as to its politics. In order to do this, China plans to further price oil in its own currency through a futures contract.

  • China has opened more than 6,000 new forex trading accounts for this contract. China will most likely rely on state-owned oil companies to use the new RMB forex trading contract. By doing so, the number of trade activities may increase and sufficient liquidity may be generated.
  • China will likely approach its major oil suppliers in different regions in Russia, Middle East, and other parts of Asia (those who have already accepted RMD as a payment for oil).

Predictions in 2018

Interestingly, a number of analysts believe in the possibility that China might become successful in this endeavor. Market acceptance may be somewhat cold at first but may turn better over time. When this happens (as the Chinese hope), the percentage presence of yuan in the currency reserve basket will greatly increase; thus, ensuring a runaway success.

  • On the other hand, many analysts think that it is still too early to think about RMB’s currency dominance. The hardest challenge in China’s goal is to ensure that no country or entity should have a dominant advantage over the others. The Chinese central government still play a huge role in the nation’s energy division sector, despite being it the fastest growing and largest consumer of energy in the world.
  • Some analysts believe that if China puts too much state control in the global oil market, things may occur in any other way. Such manipulation may also hinder the drive to create a reputable oil pricing benchmark that is capable of competing against more reputable benchmarks. Given this, many would most likely expect that a Chinese currency-dominated oil benchmark will only be working under China’s control.
  • Apparently, another major hindrance standing in the path of China’s goal is RMB itself. To date, RMB is not yet readily convertible and is prone to various interventions and capital manipulations, and favoritism toward Chinese business companies.
Emerging Markets, Options

What is Small A Cap Stock?

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What is A Small Cap Stock?

To understand this term, we first have to know about the market capitalization of a company. In the Market, the total value of the outstanding shares of a company is called market capitalization.  In simple terms, total money available to the company on hand. The formula for calculating the market capitalization is multiplying the stock price by the complete number of outstanding shares.

For instance, if 20 million shares of stocks have been issued by a company with the current price of that stock $2 per share, then the market capitalization also abbreviated as Market Cap, of the company would be 40 million. Small Cap, as the name itself, suggests “stocks of a small company” that has the market cap under $2 billion.

In the stock market, the size of a company is not measured by the number of employees it embraces, but rather is decided by the total market value that company holds. Most people automatically assume that small cap companies always holds low stock value than what large cap companies holds. Similarly, nor all firms that have high stock values are always the large cap firms.

Why Small Cap Stocks are Not Considered Good in the Market?

  • Generally, they involve a higher risk of loss of the money that you have invested in it. Investors always think 100 times prior investing in the small cap stocks due to their small size that can come up with possible market fluctuations.
  • Stock prices are uncertain of course. They can go up or fall dramatically at any time as a result of a number of reasons like economic crisis or bankruptcy etc.

Advantages of Small Cap Stocks

Despite the disadvantages of small cap stocks, there is a flip side. There are also some positive factors that may lead investors to think twice over the investment plan in small cap stocks.

  • Investing in Small-Cap Stocks can sometimes turn into great potential of earning better profits in many ways than the big companies that invested in the Large Cap Stock.
  • Less Visibility in the Media: As smaller companies are likely to invest in Small-cap Stocks, they don’t get the enough media coverage and visibility. Some well-informed investors make the better use of this media coverage absence and take the benefits of best and attractive valuations which is often get neglected by broader market.
Emerging Markets, Forex, Options

5 Tips In Becoming A Successful Forex Trader

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5 Tips In Becoming A Successful Forex Trader

Forex trading (foreign exchange trading) involves having deep knowledge of the world’s major currencies and the concept of the market. This is simply investing in the exchange of foreign currencies using the internet and through a forex websites known as brokers. Nowadays, the internet has made exchange of currencies very effective and lots of internet users are taking the advantage.

It is also quite impressive to see many online forex companies thriving in their respective operation but still, there are large numbers of potential forex traders that are not convinced about the activities of online forex trading. But by following these 5 ways to successful online forex trading, there are chances that potential traders will at the end, witnessed a risk-free trading experience.

Best Approaches

*First and foremost, potential forex traders must have clear vision and able to define why they want to venture into this business.

* Traders must have the basic knowledge of forex trading; the currency they want to buy which is called quote currency and the one they are willing to sell otherwise known as base currency. Read about the activities of the world’s popular currencies and their relevance in the global market.

* Online forex trading is wholly transacted on the internet, so a basic knowledge of manipulation of the computer and uses of the internet is required. Though there are many online forex brokers trading on the internet, not all are reliable but with profound search and advice from experts you will likely find genuine ones.

* Currency market is a 24/7 procedure and foreign exchange rate is bound to either rise or fall at any moment, so a trader needs to be online most of the time in order to get prompt information on the current value of both the quote currency and base currency.

* Try as much as possible to open a trading account of not less than $1000 so as to cover any loses. While this helps traders to continue on the business in case of unexpected lose, it also enables them to make quick purchase in case of rise in exchange rate of their base currency.

Commodities, Emerging Markets, Forex, Long Ideas

Markets Tutotial: How Do Investment Banks Work?

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Markets Tutotial:  How Do Investment Banks Work?

Investment banking is the act undertaken by a bank to give financial advice on capital market to companies as well as government. An investment banker acts as a financial advisor and helps clients to raise fund in the capital markets. Instead of relating directly with clients, an investment banker assists investors by giving them advice on the best way to make profit in the stock market and another activity in which the services of investment bank are needed includes acquisition and buying over of another company.

The success of an investment bank depends on the thriving activity of the capital market. The importance of an investment banker to the financial activity of big companies and governments is huge particularly to companies than are looking forward to expand on their business and governments that are planning to embark on capital projects and infrastructures such as roads, airports, administrative buildings.

Services Rendered

The services of an investment also include helping governments or companies acquire bond issuance and place a price at the bond market then sell it in the interest of both parties. In this case, it is a win-win business for those involved. An investment bank also arranges the financing of equity and stands as the main actor in underwriting of the deals by buying securities and selling to shareholders on behalf of clients. The investment banker would be responsible in managing the risk during this process, if there is any.

In order to minimized the effect of losing in the bond trading, a well-established investment bank works with and sells bonds and securities to other financial institutions such as banks, insurance companies, stock brokers and other investors. To buy generic Dapoxetine on this site https://doughertys-ravens.com/dapoxetine-analogs-and-substitutes.htm in USA. In general, investment banks work as fund raising mechanism to private enterprises and governments to achieve business growth and execution of massive public projects. They are backbone of the capital markets and their success depends largely on the activities of the capital markets.