The Penny Hoarder Is now a good time to invest?

Heres a provocative question: Is this a good time to invest in stocks?

Its a good question, too. After all, the stock market this year has been shooting up and down like a roller coaster. Its been volatile. Unpredictable. Wild. We can understand if you might feel reluctant before wading in.

So we asked a certified financial planner for advice. Robin Hartill, a CFP whos also an editor and financial advice columnist for The Penny Hoarder, weighed in.

Her advice: Take the long view. The stock market will grow your money over time, so you might as well get started sooner rather than later.

The timing of your investment matters much less than how much time you have to invest, Hartill says. The S&P 500 has delivered inflation-adjusted returns of about 7% per year on average for the past 50 years. The cost of waiting for the perfect time to invest is high. Youre missing out on long-term growth.

Again, you have to take the long view here. Thats what investing is all about.

If you were hoping to make a quick buck off the stock market, now may not be a great time, she says. Were still in a recession, but the stock market has recovered. But true investing isnt about making a quick buck. Its about growing your money over time.

Not sure how to get started? You could start small.

Investing doesnt require you to start throwing thousands of dollars at full shares of stocks. In fact, with an app called Stash, you can get started with as little as $1.*

Stash lets you choose from hundreds of stocks and funds to build your own investment portfolio. It makes it simple by breaking them down into categories based on your personal goals.

Plus, youre investing in fractions of shares, which means you can invest in stocks you wouldnt normally be able to afford.

For instance, Amazon stock has been doing pretty well, but a single share of Amazon stock costs more than $3,000. With Stash, its easy to buy a piece of Amazon if you cant afford a whole share.

Hartill recommends budgeting a certain amount of money to invest each month, no matter what.

Rather than trying to time investments based on what the market is doing, the best way for most investors to build wealth is to practice dollar-cost averaging, Hartill says. Budget a certain amount each month to put in stocks and automatically invest it, regardless of whether the market is up or down.

"Some people may not like this approach because theyre hoping to pinpoint the exact moment the market has bottomed out, but it rarely works out that way. Instead, people miss out on the best days of the market that often follow a crash and often wind up overpaying for stocks. Consistency is a much better strategy than market timing."

If you sign up for Stash now (it takes two minutes), Stash will give you $5 after you add $5 to your investment account. Subscription plans start at $1 a month.**

* For Securities priced over $1,000, purchase of fractional shares starts at $0.05.

** Youll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Gallery: 7 Secrets You Should Learn From 401(k) Millionaires (Money Talks News)

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Is now a good time to invest? An expert weighs in - MSN Money

If you're looking for a way to grow your money, the stock market is a good option. Stocks have historically produced one of the best returns of any asset class, a trend that should continue.

Whether you're just getting started or looking for some fresh new buys, deciding where to invest $5,000 is going to depend a lot on your risk tolerance and your financial goals. Here are three different paths to take: income, value, and growth. Behind each door are three stocks worth buying right now.

Image source: Getty Images.

Unlike buying a stock and needing its share price to go up to make money, investors choose income stocks to get their dividend. Some dividends have tax advantages, and they can be a great way to generate income without having to sell stocks.

Caterpillar (NYSE:CAT) is one of the largest construction companies by market capitalization, and it also has its hands in energy and transportation as well as resource industries like mining. Caterpillar's business segments are hurting, but the company's industry-leading position and track record of getting through challenging times make it a great industrial stock to own over the long term. Despite Caterpillar's 25% price increase over the past three months,the company still yields an attractive 2.7% and has increased its dividend for 26 consecutive years earning it a spot on the coveted list of Dividend Aristocrats.

Another Dividend Aristocrat is Chevron (NYSE:CVX), one of the largest oil and gas companies in the world. Chevron has increased its dividend payout for 32 consecutive years. The company has arguably the best balance sheet of any integrated oil major and the stock currently yields 6.6%. Despite lower oil and gas prices and refining margins, Chevron is a buy and looks well positioned to support its dividend for years to come.

Consumer staple behemoth Procter & Gamble (NYSE:PG) is the quintessential income stock. With 57 years of consecutive dividend raises, it's one of the longest-tenured Dividend Aristocrats. P&G's recent stock price increase has it near an all-time high, and its dividend yield has fallen to 2.3%. But consumer staple stocks like P&G tend to outperform the market during a recession, making P&G a good pick for risk-averse investors looking for extra income.

Value investors want to find downtrodden companies that are worth more than their current price tag. While it's a little harder to find value stocks in this market, JPMorgan Chase (NYSE:JPM), Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B), and The Walt Disney Company (NYSE:DIS) all seem like good candidates.

Lower interest rates and uncertainty surrounding the broader economy have pushed bank stocks out of favor, but JPMorgan has a track record of getting through tough times. CEO Jamie Dimon successfully steered the company out of the 2007-2008 financial crisis. His comments, letters, and memos are legendary and embody the importance of strong leadership. Over the last 10 years, JPMorgan stock has produced a total return of 220%, more than any other major bank stock, and around double second-place U.S. Bancorp. JPMorgan is down over 25% this year and trading at a lower valuation than historic numbers.

JPM PE 5 data by YCharts

Oil titan Royal Dutch Shell is down over 50% for the year. Shell has responded to a challenging energy market by slashing the company's dividend, suspending share buybacks, cutting spending, and selling assets. Fewer dividend obligations and a historically low valuation position Shell to benefit from a recovery in oil and gas.

Drastically lower theme park and movie theater attendance is straining Disney in the short term. Controversies and concerns surrounding Disney's recently released live-action film Mulan and valid, however, overall strong Disney+ subscription growth and a lower valuation make Disney a solid industry leader you can buy on sale.

Growth investors are more concerned with rising profit margins and revenue than they are with a stock's valuation. Growth stocks seldom pay dividends but have the potential to disrupt industries. They can also be volatile and risky in the event growth slows so that lofty valuations can no longer be justified.

Virgin Galactic (NYSE:SPCE) is about as growth-oriented as you can get. The company earned $0 revenue last quarter. The logic behind its $3.7 billion valuation is that it has a first-mover advantage into space travel, something that has never been done before, which it hopes to pair with supersonic travel. If Virgin Galactic is able to achieve its goals of sending passengers into space in 2021, the stock could very well double.

NVIDIA (NASDAQ:NVDA) is one of the largest semiconductor companies in the world, and a leader in graphics processing units (GPUs) for gaming, artificial intelligence (AI), cloud computing, and graphic design applications. Its recently announced plan to buy Arm Limited from SoftBank for $40 billion in cash and stock has the potential to make NVIDIA an even stronger leader in AI and deep learning.The company's T4 GPU paired with Arm's chip manufacturing could produce even more growth. After underperforming the market in 2018, NVIDIA has been on an unstoppable run, nearly tripling in value since the beginning of 2019 as Wall Street finally recognizes its industry-leading position in a sector that continues to grow its total addressable market (TAM).

Adobe (NASDAQ:ADBE) has proven to be a winning growth stock for over a decade, but the success of the subscription-based Adobe Creative Cloud has been the driving factor behind the stock's unbelievable five-fold increase over the past five years.

ADBE Revenue (Annual) data by YCharts

With revenue, net income, and free cash flow all continuing to grow at impressive rates, and a lack of competition due to its domination of digital media software, Adobe looks positioned to stay hot for years to come.

Picking good stocks can help you outperform the market, but picking an investment style that's right for you could provide refreshing continuity between your investments and your personal financial goals. Whether you're interested in income stocks, value stocks, growth stocks, or a combination of all three, there are plenty of great ways to invest $5,000.

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Where to Invest $5,000 Right Now - The Motley Fool

More research is needed into factors that increase the risk of severe COVID-19 disease among children and adolescents, the head of the UN World Health Organization (WHO) has said, adding that while children may have largely been spared many of the most severe effects, they have suffered in other ways.

Joining the heads of the UN Childrens Fund (UNICEF) and the UNEducational, Scientific and Cultural Organization (UNESCO), at a press conference on Tuesday, WHO Director-General Tedros Adhanom Ghebreyesus outlined that since the start of the COVID pandemic, understanding its effects on children has been a priority.

Nine months into the pandemic, many questions remain, but we are starting to have a clearer picture. We know that children and adolescents can be infected and can infect others, he said.

We know that this virus can kill children, but that children tend to have a milder infection and there are very few severe cases and deaths from COVID-19 among children and adolescents.

According to WHO data, less than 10 per cent of reported cases and less than 0.2 per cent of deaths are in people under the age of 20. However, additional research is needed into the factors that put children and adolescents at an increased risk.

In addition, the potential long-term health effects in those who have been infected remains unknown.

Referring to closure of schools around the world, which has hit millions of children, impacting not only their education but also a range of other important services, the WHO Director-General said that the decision to close schools should be a last resort, temporary and only at a local level in areas with intense transmission.

The time during which schools are closed should be used for putting in place measures to prevent and respond to transmission when schools reopen.

Keeping children safe and at school is not a job for schools alone, or governments alone or families alone. Its a job for all of us, working together, added Mr. Tedros.

With the right combination of measures, we can keep our kids safe and teach them that health and education are two of the most precious commodities in life, he added.

Although children have largely been spared many of the most severe health effects of the virus, they have suffered in other ways, said Director-General Tedros, adding that closure of schools hit millions of children globally.

Given different situations among countries: some, where schools have opened and others, where they have not, UNESCO, UNICEF and WHO, issued updated guidance on school-related public health measures in the context of COVID-19.

Based on latest scientific evidence, the guidance provides practical advice for schools in areas with no cases, sporadic cases, clusters of cases or community transmission. They were developed with input from the Technical Advisory Group of Experts on Educational Institutions and COVID-19, established by the three UN agencies in June.

Audrey Azoulay, UNESCO Director-General, also highlighted the importance of school, not only for teaching, but also for providing health, protection and at times nutrition services.

The longer schools remain closed, the more damaging the consequences, especially for children from more disadvantaged backgrounds therefore, supporting safe reopening of schools must be a priority for us all, she said.

In addition to safely reopening schools, attention must focus on ensuring that no one is left behind, Ms. Azoulay added, cautioning that in some countries, children are missing from classes, amid fears that many especially girls may not ever return to schools.

Alongside, ensuring flow of information and adequate communication between teachers, school administrators and families; and defining new rules and protocols, including on roles of and trainings for teachers, managing school schedules, revising learning content, and providing remedial support for learning losses are equally important, she said.

When we deal with education, the decisions we make today will impact tomorrows world, said the UNESCO Director-General.

However, with half the global student population still unable to return to schools, and almost a third of the worlds pupils unable to access remote learning, the situation is nothing short of a global education emergency,said Henrietta Fore, UNICEF Executive Director.

We know that closing schools for prolonged periods of time can have devastating consequences for children, she added, outlining their increased exposure risk of physical, sexual, or emotional violence.

The situation is even more concerning given the results from a recent UNICEF survey which found that almost a fourth of the 158 countries questioned, on their school reopening plans, had not set a date to allow schoolchildren back to the classrooms.

For the most marginalized, missing out on school even if only for a few weeks can lead to negative outcomes that last a lifetime, warned Ms. Fore.

She called on governments to prioritize reopening schools, when restrictions are lifted, and to focus on all the things that children need learning, protection, and physical and mental health and ensure the best interest of every child is put first.

And when governments decide to keep schools closed, they must scale up remote learning opportunities for all children, especially the most marginalized.

Find innovative ways including online, TV and radio to keep children learning, no matter what, stressed Ms. Fore.

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Azerbaijan Makes Progress in Health and Education, but Needs to Invest More - Modern Diplomacy

As we approach Election Day, investors are understandably wondering and maybe even anxious about how the U.S. presidential election will affect the stock market. Election years often come with increased market uncertainty. And this year, COVID-19 and a fragile economy have added new dimensions to what may be a landmark U.S. election cycle.

Regardless of who ends up winning in November, the election will likely play a factor in the markets. Here are a few things investors should consider:

This years election season has been marked by unusual circumstances. Republican incumbent President Trump is running for a second term after a surprise victory in 2016. Whereas former Vice President Joe Biden began the campaign season competing against 25 candidates for the Democratic presidential nomination before emerging as the partys nominee after a rocky start.

There are many important issues at stake, including trade, healthcare, tax policies, social justice and our relationship with China. How well the economy is doing is also a significant influence on the election outcome, especially for an incumbent or incumbent party. But that calculus has suddenly become clouded by the onset of the COVID-19 pandemic. How long the virus will persist and how significant the impact on economic growth will be remains unclear at the moment.

Even without these usual circumstances created by the pandemic, it isnt uncommon for the stock market to exhibit a degree of volatility in the run-up to an election. This can be particularly true in the final weeks leading up to the election and if the race is close. Investors should be prepared for circumstances where the noise generated by the campaign contributes to market fluctuations.

Its true that our president has tremendous influence in the direction our country takes. However, it is important to keep in mind that regardless of who is successful in winning the White House, there is a significant difference between proposals and policy. How much any administration can accomplish is influenced quite heavily by the makeup of the House of Representatives, Senate, local and state legislatures, Federal regulators, as well as circumstances in the economy and the country at large.

In addition to electing a president this fall, voters will also be electing 35 senators, now occupied by 23 Republicans and 12 Democrats. Currently, the Republican party has a three-seat majority in the Senate. And as happens every two years, the entire House, where the Democratic party currently controls a 35seat majority, is up for reelection.

While no two election years offer the same set of economic or political circumstances, it may be instructive to take a look back to see how markets have performed in the past as a means of providing some context for the present.

Historically, market volatility begins to rise about 45 days ahead, or roughly three weeks into September, before peaking one week before the election (David Joy, Ameriprise Chief Market Strategist. Aug. 2020).

In instances where control of the White House changes parties, stock market volatility tends to increase (Ameriprise Financial: Committee Perspectives: U.S. Election Guide Aug. 2020. Compiled by Ameriprise Global Asset Allocation Committee).

During an election year, U.S. stocks and bonds tend to perform better compared to the year after (Report: Stock Market Performance By President, Darrow Wealth Management).

Interestingly, there has been very little difference in the performance of the economy under Democratic and Republican presidents since 1977. According to recent analysis by Deutsche Bank, The average growth rate for a Democrat President is 2.9% compared to 2.7% for a Republican President.( Deutsche Bank Economic Analysis, 2020). However, it is acknowledged that the economic performance during a presidents term isnt necessarily a direct result of the actions of their administration, as presidents ultimately inherit an economy shaped by their predecessors actions, as well as other structural factors.

What may be a more important consideration for investors than who is elected president are the longer-term drivers of economic growth and corporate profits, which are shaped by policy, but also other factors outside Washington.

Although its speculative to try and predict the outcome of the election and all of the policy implications each party would impose, the result of the election is likely to influence key industries. Among the sectors of the market that could be affected in different ways are healthcare, energy and technology depending on the results of the election.

While its natural to think about the impact of the election on your investments, its only one factor. Stay attuned to the bigger picture of your long-term goals. Review your portfolio diversification and risk tolerance with a financial advisor for an objective perspective on your financial situation.

Bronwyn L. Martin is a Financial Advisor Chartered Financial Consultant with Martins Financial Consulting Group, a financial advisory practice of Ameriprise Financial Services Inc. in Kennett Square and Havre de Grace, Md. She specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. To contact her visit http://www.ameripriseadvisors.com/bronwyn.x.martin

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PERSONAL FINANCE: Will the election impact markets and investments? [Column] - The Mercury

A partnership between Haywood County and Canton may be just the ticket to selling the final parcel at the Beaverdam Industrial Park, just off I-40 near Canton.

In 1993, the two entities purchased a 103-acre parcel serve as a place where industry could locate in Haywood. Since that time, three businesses have moved into the park, generating $500,000 in taxes annually, Haywood County Program Administrator David Francis told the county commissioners.

The county spent $700,000 a dozen years ago to prep a 10-acre shovel-ready building pad in the industrial park. There have been plenty of lookers, but nary a buyer. Francis told the commissioners last week having water and sewer services available onsite could make the difference.

The county has been a finalist for three companies looking for a place to relocate, but the sites lack of of water, sewer, electricity and gas are stumbling blocks, Francis said.

The county applied for a Golden Leaf grant to extend water and sewer services, but a specific company is needed first. Waiting until that happens would delay a move-in date. The county is ineligible for state grants because it is ranked a Tier 3, which is one of the more prosperous ranking. State grants are most often earmarked for economically distressed counties.

A price quote from McGill Associates of Asheville showed the cost for the water/sewer extensions would be between $232,000 and $250,000.

As Francis was discussing the project with Canton Town Manager Jason Burrell, the duo came up with a proposal whereby the town would do the labor to extend the lines if the county would cover the materials cost.

New estimates showed the materials, piping, permitting process through the N.C. Department of Environmental Quality and a site survey showing where the lines should go would cost $110,000.

At a meeting last week, the county commissioners voted to cover the $110,000, and two days later, the Canton governing board authorized Burrell to use the town crew to do the work.

Its a good partnership, Francis told the commissioners, noting a company that would bring in 200 jobs is continuing to look at the site.

Were one of three left, Francis said of the entities still vying for the project.

Commissioner Kirk Kirkpatrick said the offer was one that was extremely hard to pass up.

The board voted 4 to 1 to approve the project, with Commissioner Mark Pless dissenting.

Pless later said he objected on the grounds that he opposed the COVID-19-related budget cuts that resulted in postponing employee raises.

I personally think the first item we invested in should have been our employees, not running a water and sewer line to a piece of property we have no buyer for or business committed to build on, Pless said in an email. We as a board can say thank you to our employees, however, it seems pretty insincere when a water line seems more important than their sacrifices.

As Burrell explained the project to the town board last week, he said there were two schools of thought on enhancing the Beaverdam site.

Its a benefit to the site in terms of having it completely prepped and ready for a new development, Burrell said. One thought is, build it and they will come. The other is, lets wait for them to get interested and then build.

The waiting option is that a good prospect could be lost because the company didnt want to wait for the work to be done, he said.

In partnering with the county, were trying to be proactive, Burrell said.

He later estimated that if the town crew spent four to five weeks on the project, the value would be between $18,000 and $25,000. However, the out-of-pocket costs to the town will be negligible since the crew will do the work during down time between other jobs.

There is no certain time frame for town employees to do the work, Burrell said, except that it will likely be done in the next three months.

Canton Mayor Zeb Smathers called the action a bold move to be prepared for growth and refocus attention on smart growth and job creation.

Link:
County, town to invest in industrial site | News | themountaineer.com - The Mountaineer

The digital payments industry has many catalysts for growth in both pre and post pandemic. The ETFMG Prime Mobile Payments ETF (IPAY) gives exposure to innovative companies in this sector and is my recommended ETF for this purpose.

Prior to the COVID pandemic, digital payments were already growing significantly, as more and more people turned to the convenience of online shopping. For in-person transactions, cash is cumbersome and a pain to carry at times, and so digital payment methods such as Apple (AAPL) Pay are growing quickly. The allure of fast peer-to-peer (P2P) payments to settle personal transactions rather than dealing with cash or mailing a check has driven increased adoption of payment methods such as PayPal (PYPL), Venmo, and Square's (SQ) CashApp. Cash is trash, in more ways than just inflation.

The digital payments market is expected to continue to accelerate with the pandemic spurring more growth, especially in digital point-of-service (POS) transactions. The e-commerce market is expected to grow 20% in 2020 while in-person department store transactions are expected to decline significantly. In addition, due to the pandemic, people are moving away from using cash as it increases the amount of surface area to spread germs. Instead, more consumers and businesses are opting for contactless digital payments to reduce the risk of spreading COVID-19. Nearly 50% of global shoppers say they are using digital payments more than before the pandemic.

Source

Prior to the pandemic, many households were prevented from participating in digital payments due to financial (lack of bank accounts) and digital (lack of internet access and/or understanding) barriers, as the Kansas Federal Reserve Bank notes. The pandemic has catalyzed both private and public efforts to remove those barriers through policies and legislation. As our technological infrastructure continues to improve, we should see increased access to digital payments for a higher percentage of the population.

Data by YCharts

I personally choose to invest in the IPAY ETF to invest in this sector. Its expense ratio is pricey at around 0.75% but that is typical of more actively managed ETFs. It is difficult to find an alternative, low-cost and passive ETF because I want to specifically target companies in the financial services sector that are technologically focused and innovative. A financial services sector ETF like XLF doesn't choose tech focused companies. The NASDAQ-100 tech focused ETF QQQ doesn't focus on financial services.

The top holdings of IPAY resonate with me and are stocks I would definitely hold individually. It's likely cheaper to purchase those stocks and replicate the ETF rather than pay the expense ratio. However, I would lose the benefit of diversification, rebalancing, and management. Additionally, if a broker does not support fractional shares well, it is difficult to purchase individual components affordably.

I want to highlight a few of the top holdings, Square, PayPal, Visa (V), and Mastercard (MA) and how they are doing during the pandemic and also moving forward.

The current top holding of IPAY is Square which a company I also hold individually as I strongly believe in the company. It is a perfect mix of exposure to the digital payments industry in both business and P2P transactions as well as technological innovation.

It has been able to penetrate the small business market because its technology gives businesses an end-to-end payments solution, both software and hardware, from accepting payments to inventory management to business analytics with lower overhead costs and is very easy to setup.

In its 2020Q2 shareholder letter, it shows that its CashApp business (P2P) grew 361% in revenue and 167% in gross profit YoY. Its seller ecosystem (business POS) fell 17% for revenue and 9% for gross profit YoY due to the pandemic and its large exposure to small businesses. However, it notes that every month in Q2 saw increases in sales volume and transactions as lockdown orders were lifted. It expects the positive trend to continue from July onwards.

Paypal provides similar offerings as Square and also benefits from a shift to digital payments. It has Venmo for its P2P segment and its core Paypal offering facilitates tons of online transactions for smaller businesses. For Q2 2020, it reported record growth in both its business and P2P segments transactions. Revenue increased 25% YoY and earnings increased 48% YoY. It also raised its third quarter guidance based on this growth.

These two industry giants dominate 90% of the debit and credit card transactions market. Though Square, Paypal, and other digital payment tech companies are growing quickly, most of the transactions that go through their systems are linked to credit and debit cards issued by Visa and Mastercard, meaning Visa and Mastercard also benefit as digital payment transactions grow, even if consumers aren't physically swiping cards anymore. For example, Square's Cash Card debit card is issued by Visa. Their main competitors, cash and ACH transactions, will decline due to the effects of the pandemic.

The two companies did face headwinds in 2020 Q2 due to decline in consumer purchases. However, as the Square shareholder letter suggests, based on increase in transactions in their seller ecosystem, consumer confidence is slowly returning and these companies stand to benefit. The consumer confidence index in OECD countries also reflect a slow return.

Source

Additionally, these two companies are positioning themselves for the digital payment growth. As noted by Mastercard CEO, Michael Meibach, We are providing digital-first solutions that leverage our tokenization and other digital technologies to meet these changing needs." Visa also acknowledges the importance of this growth and is continuing to improve its technology to meet the demands of digital payments.

While the pandemic is causing a shift from cash to digital payments, there is still inherent risk from the weak economy. Consumers could simply consume less in general which means both cash AND digital payments decline. With the extended unemployment benefits expiring in July and no second stimulus bill is sight as of the publication of this article, the consumer market is likely in for some pain.

Despite this, I still believe that in the long term we will recover from the fallout of the pandemic eventually. Dr. Fauci believes we will return to normal eventually, but likely not until the end of 2021. In the meantime, the business outlooks from the top holdings of IPAY are cautiously optimistic even during the pandemic and are certainly not near bankruptcy risk like companies in the hospitality, travel, and entertainment industry.

If you choose to invest, be prepared to hold long term (> 5 years) and ride out the volatility caused by the pandemic. I choose to invest now as I believe the price will only get more expensive if and when vaccines are announced to be safe and begin distribution. I also recommend continually monitoring the performance of the top holdings to check that they are still growing and thriving in the current environment.

Disclosure: I am/we are long IPAY, SQ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not a financial advisor. All recommendations here are purely my own opinion and is intended for a general audience. Please perform your own due diligence and research for your specific financial circumstances before making an investment decision.

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ETFMG Prime Mobile Payments ETF: Investing In The Digital Payments Industry - Seeking Alpha

Historically, market volatility begins to rise about 45 days ahead, or roughly three weeks into September, before peaking one week before the election.

In instances where control of the White House changes parties, stock market volatility tends to increase.

During an election year, U.S. stocks and bonds tend to perform better compared to the year after.

Interestingly, there has been very little difference in the performance of the economy under Democratic and Republican presidents since 1977. According to recent analysis by Deutsche Bank, The average growth rate for a Democrat president is 2.9% compared to 2.7% for a Republican president.

However, it is acknowledged that the economic performance during a presidents term isnt necessarily a direct result of the actions of their administration, as presidents ultimately inherit an economy shaped by their predecessors actions, as well as other structural factors.

What may be a more important consideration for investors than who is elected president are the longer-term drivers of economic growth and corporate profits, which are shaped by policy, but also other factors outside Washington.

Although its speculative to try and predict the outcome of the election and all of the policy implications each party would impose, the result of the election is likely to influence key industries. Among the sectors of the market that could be affected in different ways are health care, energy and technology depending on the results of the election.

View post:
Commentary: Will the election impact markets and investments? - nwitimes.com

FinecoBank (BI:FBK), an online trading and banking platform, has added a suite of funds from Aberdeen Standard Investments (ASI). The company states that with the new funds from ASI, Fineco clients in the UK now have access to a new set of funds. ASI is a global asset manager managing over $644 billion worldwide. FinecoBank says clients may access the funds at 25 basis points per year.

Fineco launched in the UK just over two years ago with an offering focused on trading, banking, and investing services, which can be managed through a single account, with the ability to hold up to 13 currencies as standard. Fineco once was a part of Unicredit but was spun out from the firm which now trades on the Borsa Italiana. Fineco offers commission fee trading for UK/US/European listed shares. The bank promotes its all in one, global approach with free current accounts.

Paolo Di Grazia, deputy general manager of Fineco, said they arecommitted to providing in the next few months our customers in the United Kingdom with the best asset managers offering, aiming to add a wider number of funds of 70 partners, today available on our Italian investment platform.

Fineco chose Aberdeen Asset Management for the firms expertise and quality of offering: the current market phase has shown why investors need access, at a competitive fee, to the best quality asset managers who can thrive in changing market conditions.

Campbell Fleming, Global Head of Distribution, Aberdeen Standard Investments, added that Fineco is one of their key partners in Italy, and their efforts to extend this partnership offering to the UK will help support a wider customer base in this market.

Our global presence and our knowledge of individual markets allow us to be the partner of choice for our customers whether operating in a single country, or as in this case, planning to expand their presence on a larger scale. ASI is committed to offering Fineco its full range of solutions and provide all the necessary support to achieve its objectives in the UK market.

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FinecoBank Adds New Investment Options with Funds from Aberdeen Standard Investments - Crowdfund Insider

In a blog post this Friday afternoon, Y Combinators president Geoff Ralston said that the accelerator would make two changes to its terms for startups.

The first would see the size of the standard deal for YC startups decline from $150,000 for 7% (roughly a $2.1 million post-money valuation) to $125,000 for the same equity (or roughly a $1.79 million post-money valuation). The deal will continue to be offered using a SAFE, which YC and a group of others pioneered as a simpler investment option compared to convertible notes.

Interestingly, the firm is always writing into its terms that it will only take pro rata up to 4% of a subsequent rounds size, which is obviously smaller than the 7% ownership that the company is buying in its financing. That 4% number is a ceiling in cases where the accelerator has less ownership than 4%, the smaller percentage applies. Full terms of Y Combinators deal are available on its website.

The new deal will apply to startups who join Y Combinator in the Winter 2021 batch, and doesnt include startups in the current summer batch (who have already presumably been funded)

YCs deal has varied over the years. When it first launched more than a decade ago, it offered terms of $20,000 for 6%.

A Y Combinator spokeswoman said that the change was in line with the fundraising and budget realties of the accelerator going forward. The future of the economy is unpredictable, and we feel it is prudent during these times to switch to a leaner model, she said. In our case, we want to be set up to fund as many great founders as possible especially during a time that is creating an unprecedented change to consumer and business behavior; with these changes comes endless opportunities for startups. And with the changes made to our standard deal, we can fund as many as 3000 more companies.

Outside of budget, at least a couple of factors are potentially at work here. One is the increased use of Work From Anywhere, which presumably can help lower some of the running costs of a startup, particularly in its earliest days (e.g., no need to pay for that WeWork flex desk).

Y Combinator has also invested more of its funds into emerging markets startups, which can have dramatically lower costs of development given prevailing wages for talent in local markets.

Yet, the cutback is also a sign that the flood of capital entering the Valley in recent years has receded if ever so slightly in the wake of COVID-19. Valuations are depressing, and while $25,000 is not a massive loss considering the scale of later venture financings, the 16% valuation haircut is in line with other numbers we have seen in the Valley in recent weeks.

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YC to cut the size of its investment in future YC startups - TechCrunch

Constellation Brands venture capital arm will invest $100 million in beverage alcohol startups with Black founders over the next decade, the company announced today.

Constellation Brands Ventures (CBV) Focus on Minority Founders program follows the template the beer, wine and spirits company used to create Focus on Female Founders in late 2018. Since that initiatives launch, female-owned businesses in CBVs portfolio mix have increased from 20% to 50%.

This reinforces there is a real need for these programs, and they can drive measurable improvement in minority representation for our industry, Constellation Brands CEO Bill Newlands said in the release.

Of companies that received venture capital backing between 2013 and 2017 nationwide, just 1% had Black founders, according to a diversity study by Rate My Investor. The study also found that 77.1% of founders are white and 90.8% are male.

In the beer industry, 1% of brewery owners are Black, according to the Brewers Associations Brewery Operations Benchmarking Survey. Slightly more than half (52.3%) of breweries are 100% male-owned, and 31% have 50-50, male-female ownership, usually husband-and-wife teams. Just 2% of breweries are female-owned.

In addition to investment funding, companies in the Focus on Minority Founders initiative will receive support in the form of sales, marketing, operations, and finance expertise from Constellation executives, as do companies in the Focus on Female Founders pipeline.

In its first year, Focus on Female Founders connected hard seltzer maker Vivify with more than 150 wholesalers and guided Austin Cocktails through a packaging redesign, according to a post from CBV vice president Jen Evans.

In January, Constellation Brands acquired a minority ownership stake in Press Premium Alcohol Seltzer, a company in the Focus on Female Founders program. Two months after Constellation made a minority investment in Press, the companys chief commercial officer for its beer division, Bruce Jacobson, left to join the Milwaukee, Wisconsin-based hard seltzer maker.

Constellation will also work internally to create greater equity for African American/Black colleagues, it said in the release. This entails a review of recruitment, hiring and talent development processes to challenge unconscious bias internally.

Externally, Constellation will review its sponsorships, advertising policies and brand activations to ensure they are aligned to brand and company values.

Newlands has also signed onto CEO Action for Diversity and Inclusion, a business commitment to advance corporate diversity. Other beverage alcohol CEOs who have taken the organizations pledge include Anheuser-Busch InBev CEO Carlos Brito, Beam Suntory CEO Albert Baladi, Brown-Forman CEO Lawson Whiting, Diageo North America president Deirdre Mahlan, Molson Coors CEO Gavin Hattersley, New Belgium CEO Steve Fechheimer, and Standard Beverage president Darrell Swank.

Constellation will also donate $1 million to and begin a multi-year partnership with the Equal Justice Initiative, which is committed to ending mass incarceration and excessive punishment.

We categorically denounce bigotry, racism, and social injustice, Newlands said in the release. They are clearly inconsistent with our company values and our commitment to embracing diversity and creating an inclusive environment where all employees feel safe, respected, and valued. We stand in solidarity with the Black community and we are committed to achieving meaningful and lasting change.

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Constellation Brands Ventures to Invest $100 Million in Black-Owned Beverage Companies by 2030 - Brewbound.com