Brokerage

It’s human nature to want to make the most of previous investments, even when they lack positive value in the present. Known as the sunk cost fallacy, it is prevalent in everything from wars to investment choices. How do we break free of the tendency to sink more money into a lost cause and channel it into something worthwhile instead?

Lumber prices were an unlikely beneficiary of COVID-19 stay-at-home orders; people stuck at home became do-it-yourself carpenters, creating a huge demand for a limited supply. But prices have tapered off in the last couple of months, and many are wondering if the frenzy is over and lumber prices will settle down to pre-pandemic levels.

Digital investing apps have opened the gates to investment, and those formerly excluded have flooded in. Does the financial advisor have a role in a world of robo-advisors and digital brokers? The answer is yes for many investors who seek a human investment partner and find having one provides confidence, due diligence and higher returns.

Thanks in no small part to the pandemic driven lockdowns of 2021, the gambling and gaming sectors experienced a boom in business as consumers flocked to betting platforms and online casinos. Similarly, a turbulent market for shares, currencies and commodities has led to soaring sign-ups for a range of trading platforms, including Robinhood, which added six million users in just 60 days during January and February 2021. 

Prices have been on an upward trajectory in 2021, with oil leading the pack. Factors such as increased demand facing reduced supply led to crude prices jumping nearly 45 percent during the first half of the year. Will it hit the milestone of $100 per barrel soon? Some experts predict it will, while others hold more reserved expectations.

Technology has soared during the COVID crisis, but the outlook for fintech funding has been mixed, as investors prioritized surety, especially during the pandemic’s early days. Although fintech funding experienced a pronounced drop during the first half of 2020 across VC, PE and M&A, it has recovered impressively, auguring well for 2021.

If you feel as if your every move is being tracked, you may be right. Investment firms and other businesses are paying a premium for alternative data, including geolocation data, hoping it will give them a competitive edge in their quest to maximise investment returns by lending them greater insight into consumer patterns and preferences.

Investors committed to advancing environmental sustainability are flocking to cleantech investing. Cleantech is finding growing acceptance as green goals infiltrate private and public sectors, ushering in a host of investment opportunities as the focus turns from traditional non-renewable sources of energy to clean and green alternatives.

Cryptocurrencies have circulated for a while but are still plagued by scepticism. Recently, cryptos have received endorsements from high-profile advocates, and the credibility of this asset class is growing—along with its prices. What are the top cryptos, where are their prices heading, and are they worth serious investor consideration?

Trade relationships expose firms to the economic upheavals of their international partners, but natural hedging is one method to minimize the risks. Matching currency footprints, financial hedging, operations hedging are some of the ways firms can build a hedge to lessen exposure and protect themselves from importing shocks from abroad.