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Eminem and Mark Wahlberg invest in StockX

Why HNWIs are looking to the North for hands off Investments

Sometimes when names such as Eminem and Mark Wahlberg get involved in start-up companies they can sometimes appear as a publicity stunt. The new company gets the headlines because of the “famous investors” and very often the famous investors receive free or discounted stock. However, the situation with StockX seems to be very different with Eminem and Mark Wahlberg having a fundamental interest in the StockX business.

So what is StockX?

First of all, Eminem and Mark Wahlberg are just one of many famous investors in this new company. This has resulted in $6 million being raised for expansion away from the current sneakers market into other areas of business. Continue reading “Eminem and Mark Wahlberg invest in StockX”

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The pros and cons of penny stocks

US homeownership down to levels not seen since the 1960s

There is no doubt if you pick a successful penny stock there is the potential to make a significant gain especially if it has been overlooked by other investors. In the USA a penny stock is deemed to be one trading for less than five dollars a share and they are often traded via the pink sheets and the OTCBB. By definition penny stocks are often illiquid and there are a number of factors to take into consideration if you are looking down this particular avenue.

Liquidity

As we touched on above, liquidity can be a major problem with penny stocks especially if there is something going on with the company. This may be good news or bad news, but it can have a significant impact upon your ability to both buy and sell shares in any real size. If there is good news and the share price is pushing ahead then you may find it difficult to buy in any decent size. While if there is disappointing news, with the share price heading south, you may find it difficult to sell in any size. Continue reading “The pros and cons of penny stocks”

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Feds Janet Yellen tries to pop stock market bubble

Stock markets

Slowly but surely the Federal Reserve seems determined to pop the growing stock market bubble which has seen the Dow Jones Industrial Average move to record highs. The transcript of the last Fed meeting between 31 January and 1 February has seemingly cast doubt on the intentions of the president Donald Trump. This is not the first time that the Fed has attempted to reduce expectations but there does seem to be a direct conflict between comments from the Fed and policy intentions announced by Donald Trump. So, why is the Feds Janet Yellen trying to pop the stock market bubble?

Unrealistic expectations

There were a number of issues which were covered in great detail during the last Federal Reserve meeting one of which was the increase in stock markets which “might reflect unrealistic policy expectations”. These policies include significant tax cuts and massive infrastructure spending to jumpstart the US economy and employment market. These are policies which have been central to Donald Trump’s election campaign and it seems as though investors will hold him to his word. Continue reading “Feds Janet Yellen tries to pop stock market bubble”

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Fed extends investigation into real estate money-laundering

Are Apple and Tesla a match made in heaven?

In a surprise move the Fed announced plans to extend an ongoing investigation into six of America’s largest real estate markets. This is an issue which has been heavily publicised by the authorities as they look to control funding for US real estate transactions. There have been allegations for many years that real estate markets such as South Florida, to take one example, have been used by criminals to launder money back into the system. It is very difficult to prove money-laundering beyond reasonable doubt but the authorities are looking to introduce new regulations to make it more difficult.

Registering shell company ownership structure

The use of offshore shell companies has been a very popular means of integrating illicit funds into legitimate real estate transactions. The very fact that the US government is currently targeting such transactions might give the impression this is a “US problem” when in reality it is a worldwide real estate market problem. The UK authorities have been looking into similar issues regarding the acquisition of luxury properties in London and other governments around the world have been looking to tighten their regulations. Continue reading “Fed extends investigation into real estate money-laundering”

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Google parent Alphabet files lawsuit against Uber

Are tracker funds the way forward for investors?

Despite the fact that Google was one of the early-stage investors in taxi hailing company Uber it seems that the two are now at loggerheads over allegations of stolen secrets. Alphabet has alleged that Uber’s self-driving car project contains an array of striking similarities with Alphabet’s own project. Papers served to the court claim that Google was inadvertently copied in on an email from a component company reporting back to Uber on its self-driving car project. We await more detail when the case goes to court but this could have serious ramifications for Uber.

Former Google employee takes centre stage

A former engineer with Google is alleged to have downloaded more than 14,000 highly confidential files before his resignation. Claims by Google suggest that he was meticulous in trying to cover his tracks and conceal his activities. When the former engineer left the company, to launch a self-driving truck operation called Otto, the plot thickens when Uber went on to acquire his business. It will be interesting to see how this court case pans out because self-driving vehicles have attracted a lot of interest over the last couple of years. Indeed Tesla has been under constant pressure amid allegations that the system incorporated in its vehicles has been complicit in a number of serious accidents. Continue reading “Google parent Alphabet files lawsuit against Uber”

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Interest rate rise could decimate first-time property buyers

Why HNWIs are looking to the North for hands off Investments

While there are high hopes for a general recovery in the US real estate market on the back of Donald Trump’s presidency, there are concerns about rising interest rates. Amid speculation that the Fed could increase US base rates up to 3 times during 2017, what would this do to first-time property buyers? Even though base rates are still near historic lows there are serious concerns about the bottom end of the US property market as and when base rates move further ahead.

Wage rises not keeping up

Wage rises are not keeping up with the gradual increase in mortgage rates and the gradual increase in US property prices. As a consequence the affordability factor will worsen significantly for first-time buyers in the next couple of years. This means that affordable housing will become less affordable and even those towards the middle price range of the US property market will start to feel the pinch. Indeed there are concerns that we could be on the verge of yet another US mortgage crisis brought on by competition at low interest rate levels and compounded by thin profit margins. Continue reading “Interest rate rise could decimate first-time property buyers”

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Are social media sites in danger of morphing into each other?

Big, powerful and influential companies attract enemies

Today’s, not unexpected, news that Facebook is looking to introduce an array of applications which will mimic Snapchat will cause some concern within the social media investment arena. More and more we are seeing social media giants such as Facebook and Twitter using their enormous membership numbers to introduce services similar to those offered by their competitors. When you bear in mind Twitter is a valued at $12 billion, Facebook at a staggering $385 billion and Snapchat around the $20 billion mark, there is some serious money in these companies.

Is competition too intense?

While Facebook is head and shoulders above any other social media website it too faces its own challenges. The company needs to make bigger and bigger investments and take larger and larger risks to make any difference to its headline figures. Then you have the likes of Twitter and Snapchat for example who are still valued in the billions of dollars but yet to make any real headway into profitability. Continue reading “Are social media sites in danger of morphing into each other?”

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Does Snapchat lack ambition?

Snapchat, you live by the sword you die by the sword

Snap Inc, the parent company of Snapchat, is currently undergoing a love in with institutional investors as it pushes ahead with an ambitious IPO. Initially there were suggestions that the company would be floated with a valuation of between $20 billion and $25 billion. However, the company has since cut this price range to between $19.5 billion and $22.3 billion amid suggestions that the investor roadshow may not be going as well as planned. So, does Snapchat lack ambition or is reality starting to hit home with technology shares?

Definite interest in technology shares

There is most certainly growing interest in technology IPOs and depending upon how the Snapchat deal progresses there could be more to follow. The company announced its plans to float on the stock market in a blaze of glory suggesting it had a higher activity rate amongst its members than other prominent social media channels. This obviously caught the attention of investors because there is no point having millions upon millions of members if they are inactive with no chance of spending. Continue reading “Does Snapchat lack ambition?”

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Is Kim Dotcom going to the US to face the music?

Is Kim Dotcom going home to face the music?

The very fact that he changed his name from Kim Schmitz to Kim Dotcom says everything about the life and times of well, Kim Dotcom. This is a man who has attracted the attention of US authorities for the last five years after his Megaupload filesharing website was closed down. The US authorities filed charges of conspiracy, racketeering and money laundering against Kim Dotcom and three of his colleagues. The fact that he lives in New Zealand has frustrated the US authorities and the extradition process has been painfully slow to say the least. However, is Kim Dotcom now on his way to the US to finally face the music?

Extradition request granted

There have been many court cases over the years and indeed at one point Kim Dotcom was arrested by the New Zealand authorities only to be released on bail. The array of charges which Kim Dotcom and his colleagues face could see them facing decades in prison if they were proven in the US. Therefore, it is no surprise to learn that the party are fighting tooth and nail to avoid extradition to the US where their case already seems to be a done deal. Continue reading “Is Kim Dotcom going to the US to face the music?”

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Warren Buffett wants a bigger bite of Apple

Stock markets

Warren Buffett, the billionaire investor, has had a long-term dislike of technology shares although it would appear this is starting to fade. Filings in the last final quarter of 2016 cast a very interesting light on his Berkshire investment vehicle and his apparent switch from core long-term investments into Apple and airline companies.

This is a man who takes as long as it takes to researchers companies, find out what makes them tick and when he decides they are the one then he puts significant funds on the line. So, why does Warren Buffett want a bigger slice of the Apple?

Quadrupled stake in Apple

Many analysts were astounded to learn that Warren Buffett’s Berkshire Hathaway vehicle now holds 57.4 million Apple shares (as of the 31st December) up from 15.2 million in the previous three months. This is a phenomenal investment and a stake which is now worth approaching $8 billion. We all know that Apple is going through an “interesting” period with expectations that iPhone sales will fall off and the company will need to bring out new technology and new products. However, it does still have a multibillion-dollar warchest available for investment and acquisitions. Continue reading “Warren Buffett wants a bigger bite of Apple”