European Stocks Or Better To Say Businesses
When compared to what you get from your bank on your cash,investing in stocks that represent a part of a business seems a very smartthing to do. The Royal Dutch Shell stock gives you a high dividend yield but itgives you also a risk, 100% related to oil.
Stocks are always very volatile because the majority ofpeople see it as a gambling place and not as an investment place. However, ifyou look at it from an investing perspective, you can be very well rewardedover time.
My message is simple, have part of your portfolio in goodbusinesses that will keep delivering over time. One example is the Visa video that I did ormany other stock analyses on my blog.Ill make an analysis about oil soon so please subscribe.
If you manage to not worry about stock prices, but focus onthe businesses that you own and the yield those businesses produce over time,youll do good and much better than by keeping your cash in a bond or on yourbank account.
What The Risks Are Of Investing In Stocks
Considering how volatile the stock market can be, buying stocks is not entirely without risks. Here are the major pitfalls to watch out for:
- Losing your money: Theres no reward without risk. Stock prices change frequently, and often unpredictability too. Investing in stocks means theres a chance you could lose all of your money, especially if you play in the short term. You could even lose more than your capital if you apply leverage with margin trading or short selling.
- No guaranteed returns: Despite your best efforts, investing in stocks may not give your the returns you expected. Nothing is guaranteed. You cant tell with certainty how a stock will perform in the future. Theres no guarantee that the price will rise or the company will still be in business.
How Does A Us Stock Market Crash Affect European Countries
U.S. stocks are correlated to European stocks but not directly. Stocks on either side of the pond don’t necessarily move in the same direction or with the same volatility, but both markets represent sentiment about business and economic growth. Therefore, a major crash in U.S. stocks could rattle the nerves of European investors who are looking at business sentiment in their country. That fear could result in a sell-off of European equities, but that isn’t a guarantee, and there’s no way of knowing how quickly European investors would react.
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Find A Stock Exchange
Once you have selected your stock of interest, the next step is to look for the exchanges that list your target stocks. For European investors, buying through a Europe-based stock exchange is usually the cheapest option because of exchange fees and currency conversion fees. But you can only buy some stocks on overseas exchanges like NASDAQ or NYSE. The largest exchanges in Europe are:
Amazon To Invest $972m For Electric Vans Trucks In Europe
Amazon said Monday it will invest 1 billion euros to add thousands of more electric vans, long-haul trucks and cargo bikes to its delivery network in Europe.
The investment would grow the number of electric delivery vans the company has in Europe from roughly 3,000 to 10,000 by 2025, the Seattle-based retail giant said in an announcement on its website.
With the investment, Amazon is also hoping to purchase more than 1,500 electric trucks, up from five in the United Kingdom. To accommodate those vehicles, the company said it will build hundreds of fast chargers across its European facilities that can charge the vehicles in roughly two hours.
“Our transportation network is one of the most challenging areas of our business to decarbonize, and to achieve net-zero carbon will require a substantial and sustained investment,” Andy Jassy, Amazon CEO, said in a statement, referring to the company’s pledge to be net carbon by 2040. Despite the pledge, the company said its carbon emissions grew by 18% last year, driven by the surge in online shopping during the coronavirus pandemic.
Amazon has launched 25 “micro-mobility hubs,” or more centrally located delivery stations in dense European cities, that allow the company to try out different delivery methods, such as bike and foot deliveries. On Monday, it said it expects to double those hubs by 2025, which will allow the company to take more delivery vans off the road.
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Hsbc Warns Investors To Avoid European Stocks
- The macroeconomic outlook in Europe is bleak as supply disruptions and the impact of Russia’s war in Ukraine on energy and food prices continue to stifle growth, and force central banks to tighten monetary policy aggressively to rein in inflation.
- Typically, investors have turned to European markets in search of value stocks companies that trade at a low price relative to their financial fundamentals.
- “I would caution against buying Europe because of the cheaper valuations and interest rate movements,” said Willem Sels from HSBC Private Banking.
Investors should avoid allocating to Europe in the hunt for value stocks, as the continent’s energy crisis means the risk-reward is still not there, according to Willem Sels, global CIO at HSBC Private Banking and Wealth Management.
The macroeconomic outlook in Europe is bleak as supply disruptions and the impact of Russia’s war in Ukraine on energy and food prices continue to stifle growth, and force central banks to tighten monetary policy aggressively to rein in inflation.
Typically, investors have turned to European markets in search of value stocks companies that trade at a low price relative to their financial fundamentals when trying to weather volatility by investing in stocks offering stable longer-term income.
Investing In Europe New Opportunities On The Old Continent
To investors, continental Europe can sometimes present a face only a mother could love. In English-speaking investing communities, an image exists of the EU now sans the UK, one of Europes most market-savvy countries as a crusty, statist, and conflict-torn bloc, over which leading investors regularly wring their hands in disappointment.
In this narrative, the confusion over the unions pandemic vaccine-buying programme counts as only the latest in a whole history of blots on the Brussels copybook. In an article entitled, Europe, please wake up, even the avowedly pro-European billionaire financier George Soros once warned that the EU could go the way of the Soviet Union. Who in their right mind would place their money in a region so obviously marked by decline?
Bond investors still cannot forget the threat that hung over Greek and other sovereign bonds in the 2010-12 eurozone debt crisis. The stock prices of Europes banks have struggled to tread water since. More broadly, not only have European shares failed to recover from the March pandemic market shock anywhere near as well as the USs, they have consistently lagged behind the US since the 2008 global financial crisis,
In the past decade, the US S& P 500 index has more than tripled while the Stoxx Europe 600 index of top European shares is up only about 40 per cent. US shares now trade on a price/earnings multiple of about 23, compared with 16 for European equities.
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Helping Ukrainian Refugees 3 Things You Can Do To Help
Although the war in Ukraine is no longer dominating the UK news cycle, there are still many people who are suffering as a result of the conflict. Several of our Cubers have family in Ukraine, and were committed to continuing to support those affected by the war.
Whether youre a founder, investor or an employee, there are still many ways that you can help.
Uk Residence By Investment
Because the United Kingdom is still part of Europe, though not part of the EU after Brexit, we would like to talk about UK residence separately.
There is no special residence or citizenship by investment program in Great Britain for generous foreign investors. However, a UK Tier 1 Investor visa offers as many if not more benefits as Golden Visa schemes in continental Europe.
How much do I need to invest in the UK?
Say, you can invest as much as £10 million then you will be able to apply for UK settlement, also known as an indefinite leave to remain, after 2 years. How does it work?
How to get permanent residence in Great Britain?
Neither permanent residence status nor UK nationality are granted automatically. While you need to make an investment, be of good character and in good health to get an investor visa, you and your family members must show a good level of spoken English test and knowledge of customs and traditions in the UK to be able to apply for settlement. This can be done by passing two tests.
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What Caused The Euros Drop In Value
Exchange rates constantly fluctuate but generally operate in a set range. Global events like Russias war with Ukraine and energy shortages have made the international markets wary of the eurozone in the short term.
This has encouraged people to move their cash back into the safe haven currency that is the reliable old U.S. dollar, and this weakened the demand and value of the euro.
As my high school economics teacher told me, reduced demand means reduced price.
Cities Must Invest In Our Future
Why do people take out mortgages to buy homes? Its a big investment that takes a long time to pay off, but for many people it means stability, and the knowledge that theyre investing in their future. Its for the same reason that cities want to be able to borrow to make large, long-term investments. But cities arent just looking for a roof over their heads they want to fight climate change, and make sure that Europe is digitally and socially resilient for the coming decades.
Current EU legislation prevents this. The Stability and Growth Pact effectively means that our cities cannot raise the money to make the large investments we need to secure our future. Cities are responsible for almost half of European investment, funding the policies that we need to get free of Russian energy dependence and fight climate change.
As the importance of investing in our future grows more urgent by the day, the level of actual long-term investment available to our cities continues in the downward spiral that it has been caught in for over ten years. The European Investment Bank found that 70% of cities reported significant gaps between the investments needed for social, digital and climate infrastructure and the money available and that was before the pandemic.
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The Best Foreign Exchange Opportunity In Decades
I predicted it 10 weeks ago, but it happened even quicker than I expected
In the last month the euro fell to below par value with the U.S. dollar.
The euro was worth less than the dollar on the international market. This has only happened once before and that was over 20 years ago.
Usually, the euros value hovers between US$1.12 and US$1.30, but it can move outside this spread in exceptional circumstances.
Back in October 2008, during the U.S. financial collapse, the euro was worth US$1.58.
A year ago, the euro had an average value of US$1.19. On July 12, 2022, the euro dropped below a dollar.
Even if youre not an expert in exchange rates, you can see the trend on the chart.
The greenbacks star is rising.
This is a once-in-a-generation opportunity.
Anyone with U.S. dollars to spend on European assets will find everything 16% cheaper due to the dollar discount.
Property is cheaper Travel is cheaper Services are cheaper
If youre considering buying property in the eurozone this year, now is the time to pull the trigger on it.
Even if you havent found the property you intend to buy yet, its worth it to buy euros now while theyre cheap and bank them until you need them.
If you never actually end up buying a property in Europe, you can exchange the euros back for dollars plus a profit when the euro rallies in value later this year.
Look Into Etfs For Diversification
ETFs are securities that track indexes, commodities, or baskets of assets like an index fund. With an ETF, you can buy one security at a time instead of buying the individual stocks of thousands of companies if you want to replicate the same returns as an index. Since ETFs offer instant diversification, they are handy for beginner investors because you can buy single securities that give exposure to many different investments.
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The American Buying Blitz
Americans are already taking advantage of the reduced cost of the euro. Americans spent 56% more in Europe in June 2022 than they did in June 2019 because the deals are so strong.
For Americans, this 16% stronger U.S. dollar has many advantages. It instantly discounts the price of:
- Renovation costs.
A strong dollar encourages U.S. tourists to come to Europe and rent out your investment property. Plus, the more you diversify your assets across currencies, countries and asset classes, the less vulnerable you become to any one global event.
The weak euro encourages Americans to invest in Europe, which drives demand and prices up increasing the value of your investment property.
This is a way to beat inflation. Back home, your dollars are worth 9% less than last year due to spiraling inflation in the United States.
However, while the eurozone did experience 8% inflation in the last year, the net effect of moving your dollars into euros would be that you are 8% better off even after inflation.
A few thousand people made millions on cryptocurrencies in the past decade, but millions of people have lost most, if not all, of their investments in crypto in the ensuing period of time.
The crypto-tracking website CoinGecko reports that 72 of the top 100 cryptocurrencies have lost 90% of their value since their peak.
The euro cannot ever lose this amount of value because its backed by economic output, not speculation.
Crypto will always be a crapshoot.
Overview: Buying European Stocks Outside Of Europe
Online stock trading is the best way to buy foreign stocks. Whether youre based in the United States or any other part of the world, theres a good chance you can buy a selection of the top European stocks through an online stockbroker.
Do you want direct access to European markets, participate in new offerings and trade in other European equities such as bonds? You may want to open an online account with a stockbroker based in the European Union that accepts clients from your country. This may require you to deposit funds in euros, although many international brokers accept U.S. dollars and U.K. pound sterling.
A large number of the bigger European publicly-traded companies have dual listings on other world stock exchanges, such as the New York Stock Exchange . Many European stocks without a dual listing still trade on U.S. exchanges through American depositary receipts , on U.K. exchanges through European depositary receipts and on other world exchanges through global depositary receipts .
Another way to participate in the European stock market involves buying mutual funds or exchange-traded funds that conduct the majority of their business in the European Union. You could buy shares in an index fund based on European investments in addition to ETFs and mutual funds.
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