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Dow Could Hit 100,000 By 2030; Adviser Urges Investors To Prepare

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The Dow Jones Industrial Average could hit 100,000 by 2030, according to financial author and adviser Ric Edelman. Edelman, who believes incredible profits are in the making for those who prepare for new economic realities. If it doesn’t hit 100,00, he said, it will probably hit 150,000.

The blue-chip index currently trades at around 21,000, meaning a surge to 100,000 would mark a roughly 376% increase.

In his book, “The Truth About Your Future: The Money Guide You Need Now, Later and Much Later,” Edelman tries to educate investors on saving for retirement in the age of technology with life expectancies of 110 and 120. People will need to work much longer than they do today because they will live much longer.

Fortunately, technology has reduced the cost of investing, thanks to exchange-traded funds.

Retirement Will No Longer Exist

“We’re not going to have a future the way our parents and grandparents had theirs,” Edelman told interviewer Scott Gamm in “The Street,” a Yahoo interview show.

Retirement now, as a 20th Century innovation is gone. It won’t exist in the 21st Century.

“You need to save in companies that are going to survive and thrive in the 21st Century,” he said.

Gamm asked Edelman how a person who has failed to start saving early can make up for getting a slow start. “It’s never been easier thanks to the Internet, and exchange traded funds and products of that type,” Edelman said. “Investing has gotten cheaper, it’s gotten easier, it’s gotten faster, it’s gotten safer.”

“Exponential technology also brings with it exponential growth… compound interest,” Edelman said.

And when you take advantage of saving not for 20 or 30 years but for 50, 60 years, you’d be amazed how much wealth you can create.

The Growth Of The Gig Economy

Gamm pointed out a person can also create wealth by having a “side hustle” as opposed to a 9-to-5 job. Edelman agreed. “Thanks to the gig economy, the shared economy, you have the ability to make money on a part time basis with very low risk, very low barrier to entry,” he said. “Anybody can do this, and an awful lot of Americans are.”

He said 16% of American workers are strictly working as contractors who work only when they feel like it.

Will The Trump Rally Continue?

Donald Trump

Noting that some people might be afraid to invest in the markets, Gramm asked Edelman what he thinks of the Trump stock rally. “We’re going to see a continuation of this for the next several decades,” Edelman said.

Over the last 50- or 60-year period, the DJIA has increased. “There’s no reason to think that won’t continue, in fact, financial technology makes that easier,” Edelman said. “We’re going to see incredible profits in the United States as well as globally.”

In his first market update to his clients last month, Edelman noted that the DJIA was up 11 percent since the election, and the S&P 500 index was up 9 percent. If this pace continues, he said stock prices will gain 24 percent this year alone.

He acknowledged there is concern that the “Trump Rally” will fizzle, and that it’s simply the “honeymoon period” new presidents typically experience. Trump’s failure to repeal the Obamacare also fuels this concern since Trump promised he would repeal Obamacare.

Should Trump also fail to reform the tax code and rein in the budget, will stock prices fall?

Why Trump Doesn’t Own The Rally

Edelman claims it’s incorrect to believe that the rise in stock prices is only due to Trump. While the election has excited investors since he’s seen as a business-friendly president, that’s not the only reason stock prices are up. Edelman points to the following economic factors fueling rising stock prices:

• U.S. corporate earnings increased 8% in the fourth quarter. Profits from overseas operations, meanwhile, rose 14.5% compared to the same period the prior year. This marks the biggest advance since mid-2010, according to the U.S. Commerce Department.

• Individuals, not just companies, are now making more money. Personal income is up 4.6% compared to the prior year. Salaries and wages are up 5.5%, according to the Bureau of Economic Analysis.

• The overall economy is growing. According to the Bureau of Economic Analysis, gross domestic product increased 2.1% in the fourth quarter.

• Consumer confidence rose in March to its highest level in 16 years, according to The Conference Board.

When people are confident they will continue to make more money, they are willing to spend more, Edelman noted.

Hence, sales of newly-built homes increased 6% in February, marking a 20% gain over February 2016 and the largest increase in five years.

The president cannot claim responsibility for much of the improvement, Edelman noted. But his positive attitude and his statements that please Wall Street contribute to the country’ economic improvement.

Trump wants to:
• reduce corporate and individual tax rates
• reduce regulation
• increase jobs
• bolster U.S. competitiveness in foreign markets
• repatriate billions U.S. corporations have overseas
• spend $1 trillion on infrastructure

Such positions please investors since they support an environment for improved corporate profits which translates into higher stock prices.

What If Stocks Fall?

The question remains: if Trump fails to pass his policies, will stock prices fall?

This is possible, Edelman noted. Hence, he gives the following advice:

He reminds his clients that portfolio diversification is important since it helps manage risks if stock prices fall. His company’s managed asset program is not totally invested in U.S. stocks.

Strategic rebalancing is also important. Most Edelman managed asset portfolios have been rebalanced this year. The company has been a seller, not a buyer, of over-performing funds. This is a way to maintain proper asset allocation.

Third, Edelman reminds clients of a core market truth. A stock price decline is not synonymous with a loss. Investors should consider what happens after a decline. History indicates stock prices move only in two directions: up and down. If prices drop, sit back and wait. Because markets move in cycles, prices eventually rise. It is always important to remember, however, that past performance does not guarantee future results.

Fourth, keep in mind every new president suffers slips in his early days, and Trump is no exception.

President Clinton failed to pass a health care overhaul in his first term. George H.W. Bush sent commodities prices into a spiral by saying he hates broccoli. The stock market survived such “crises.”

Fifth, keep in mind the stock market has increased dramatically in the last six months. Even if the Dow fell 10 percent, it would still be ahead of where it was on Election Day.

Consider All Aspects Of Financial Security

Lastly, consider that a person’s financial security will not be determined primarily by any president or Congress. A person determines their own future.

Every individual must focus on the aspects of their personal finances that they can control. This includes making sure wills and trusts are up to date, that too much in interest isn’t being paid on the mortgage, that one has the right kind and amount of insurance, the right amount of cash reserves on hand, and proper contributions are being made to retirement plans.

Edelman is chairman and CEO of Edelman Financial Services LLC. He has a radio show, six books, a column, conferences and nearly half a dozen appearances on Oprah. His books include “The Truth About Money; Ordinary People, Extraordinary Wealth” and “The Lies About Money.”

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.9 stars on average, based on 8 rated postsLester Coleman is a veteran business journalist based in the United States. He has covered the payments industry for several years and is available for writing assignments.




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4 Comments

  1. corporate_citizen

    May 13, 2017 at 7:02 pm

    We’ve all heard this bull(ish) talk before, just before the dot.com crash:

    https://en.wikipedia.org/wiki/Dow_36,000

    Bottom-line, the stock market cannot rise without liquidity; the hyper-liquidity dumped by central banks for decades, now. Having said that, there is a possibility that the US equity market will rocket upwards due to flight capital if foreign markets flounder. With interest rates at 5,000 year lows, sovereign debt may likely be the catalyst.

  2. thoth

    May 14, 2017 at 7:59 am

    Does the Fed have enough money to buy all those stocks?

    Oh yeah…… Wonder whats it’s balance sheet will look like in 2030

  3. kochelli

    May 15, 2017 at 6:12 pm

    This doesn’t make sense. Probably a typo…

    If it doesn’t hit 100,00, he said, it will probably hit 150,000.

    • Edward Talliot

      May 15, 2017 at 6:42 pm

      Yes, most likely..

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ICE Has Raised $182.5 Million for Upcoming Bakkt Trading Platform

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The downturn in crypto has not deterred high-profile investors from betting big on the future of the market. Intercontinental Exchange (ICE), the world’s largest stock exchange operator, has raised $182.5 million in support of its Bakkt cryptocurrency venture.

Bakkt: Institutional Support Grows

The Bakkt startup has raised $182.5 million from more than a dozen high-profile investors and venture capital firms, CEO Kelly Loeffler announced Monday. First-round investors include: Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, Naspers’ fintech arm and Protocol Ventures.

“Our work today is centered on driving institutional access for digital assets, along with merchant and consumer uses, and we’re already expanding on this vision, collaborating with great companies like Starbucks in these efforts,” Loeffler said.

Further details on Bakkt’s 2019 objectives will be announced sometime next month, though Loeffler indicated that the focus is on developing new infrastructure for the nascent market. This includes the “industry’s first institutional grade regulated exchange, clearing and warehousing services for physical delivery and storage.”

What is Bakkt? Preparing for the Physical Bitcoin Futures Market

Bakkt is scheduled to launch its bitcoin futures market Jan. 24 but delays in regulatory approvals could see that date get pushed back by a week or more. Further details can be found in the following article from Dec. 22.

Disrupting Traditional Finance

Bakkt has been described as the world’s first physically-backed bitcoin futures market, but its mandate stretches far beyond that. When ICE first unveiled the crypto startup in August, the goal was to broaden institutional access and consumer adoption of digital assets. Through high-profile partnerships with Starbucks and Microsoft and with the support of early investors like Susquehanna International and Fortress Investment, Bakkt is aiming to bring “regulated, connected infrastructure together with institutional and consumer applications for digital assets,” according to Jeffrey Sprecher, the founder and chairman of ICE.

NYSE Owner Is Betting Big on Cryptocurrency with Bakkt

The launch of a physically-settled bitcoin futures market as early as next month means institutional investors can access digital assets through a trusted custodian. On the consumer side, Starbucks will be the flagship retailer of Bakkt with the goal of developing practical applications for commercial use. According to Starbucks senior executive Maria Smith, consumers will one day be able to convert cryptocurrencies into dollars at various Starbucks locations.

Starbucks will play an important role in helping Bakkt disrupt the traditional payments market. One of Bakkt’s stated goals is to move consumers away from credit cards toward crypto applications.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 740 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Projects Built on Stellar and Possible Investment Ideas

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In this article, I will speak about five projects that have chosen Stellar blockchain as opposed to the Ethereum network. A distinctive feature of Stellar (https://www.stellar.org/) is that it is sharpened for micropayments and has a throughput of up to 3,000 transactions per second and confirmation within 3-5 seconds. So it is not surprising, that many projects like a Stellar as a solution for their projects.

SmartLands

SmartLands (SLT) is a platform for issuing security tokens and tokenization of real estate. Since the ICO in November 2017 it has raised slightly more than $1.7 million at $0.50/SLT. The product, designed for business use, is ready and works.

I do not see any entry points here although the coin has provided 7x returns in USD over 6 months.

Mobius (MOBI) – “connect the world with the blockchain” – is their slogan. It provides integration of tokens and smart contracts into any existing applications, as well as m2m (machine-to-machine) payments. During the ICO it raised $35 million at $0.16/MOBI. The token itself is used for payment in dApp store and stacking.

The asset does not seem interesting for me for investing.

SureRemit

SureRemit (RMT) is a specific niche product sharpened for quick and cheap remittances targeting migrant workers, as well as micro-payments for utilities. During the ICO it raised $10 million at $ 0.02/RMT. The application is ready, about 700 reception points are open in 5 countries in Africa and the Middle East.

  • SureRemit Price: $0.00458187
  • Market Cap: $2,290,759
  • Trading Volume: $587.40
  • Website: https://sureremit.co/

No entry point since there is virtually no volume.

Ternio

Ternio (TERN) is the “fastest blockchain in the world,” according to the website, with a bandwidth of up to 1 million transactions per second. During the ICO it raised $3 million at $0.02/TERN. The project is designed for online advertising, but according to the developers, can apply to any area where high transaction speed is required.

Maybe a good point to open some minor positions to play against ETH for short term with an aim of 20%.

SIX Network

SIX Network (SIX) is the brainchild of the Thai giant OOKBEE, offering “blockchain integration into everyday life.” During the ICO it raised $42 million ($ 0.1/SIX). The team released a universal wallet and founded a blockchain fund. Beta version is scheduled for the third quarter of 2019.

  • SIX Network Price: $0.01072694
  • Market Cap: $2,924,708
  • Trading Volume: $157,785
  • Website: https://six.network/

Here could be a good option to play against BTC. Currently, the price is around 250 Satoshi, and the target could be in a range of 400-450. Volumes are increasing, but no major exchanges are present.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.9 stars on average, based on 42 rated postsVladislav Semjonov has a legal and financial background. He has been involved in crypto space since early 2017 in both ICO advising positions in several ICO consultancy firms, and as an ICO analyst for VC. He began contributing for Hacked.com in April 2017.




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What is Bakkt? Preparing for the Physical Bitcoin Futures Market

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As interest in the global cryptocurrency market grows, the need for a safe and efficient way to use digital assets grows with it. This article will focus on the Bakkt platform, which will allow institutional customers to perform various operations with digital assets as part of a seamless global network.

Investors and Team

The brains behind Bakkt is none other than Jeff Sprecher, head of Intercontinental Exchange (ICE), the world’s premier stock exchange operator. The project’s CEO will be Sprecher’s spouse, Kelly Loeffler, head of ICE’s digital assets department.

Behind the development of the project is Intercontinental Exchange itself – the operator of global stock exchanges and data services. Bakkt will cooperate with such giants in the field of emerging consumer fintech, like BCG, Starbucks, Microsoft. The main goal is to form an accessible ecosystem capable of supporting the growing needs of the digital assets market. Investors of Bakkt include Fortress Investment Group, Eagle Seven, Galaxy Digital, Horizons Ventures, Pantera Capital, Protocol Ventures, Susquehanna International Group, LLP, as well as British billionaire and hedge fund manager Alan Howard.

Main Objectives 

Bakkt is supposed to integrate institutional level markets with a custodian services system through trade and consumer applications. The first phase of the project will focus on trading and exchange transactions with Bitcoin and fiat currencies. The choice in favor of Bitcoin is explained by the fact that it still has the highest liquidity in the cryptocurrency market.

By combining consumer and institutional applications with a regulated infrastructure, project founders seek to ensure transparency and trust in digital asset markets. This will provide the project with a key role in increasing institutional, trade and consumer participation in the field of digital assets.

As part of the initial offer of Bakkt, ICE plans to release non-digital Bitcoin futures with custodian services in the first quarter of 2019, subject to review and approval of by the Commodity Futures Trading Commission (CFTC).

Future regulated trading platforms will establish new protocols to manage specific security requirements and transactions with digital assets. In addition, the clearinghouse will form a special guarantee fund, financing of which will be provided by Bakkt.

As Hacked previously reported, Bakkt was originally scheduled for launch by mid-December. The date has since been pushed back to Jan. 24, but this too may face a slight delay. Read more: Bitcoin Pulls Back from Three-Week Highs After Rapid Ascent; Bakkt Postponed Again?

Benefits

This project is considered capable of engineering a global revolution in the field of digital assets and cryptocurrency technologies. This is provided by strong support from technological and financial giants mentioned above.

The main strengths of the project are identified below:

  • Availability of sale, purchase and storage of digital assets to end users.
  • Increase confidence, efficiency in the use of digital assets in commerce.
  • Development of new open ideas for connecting the traditional market liquidity and trade infrastructure to blockchain technology.
  • The company has been operating in the financial market since 2000 and is on the Fortune 500 and Fortune Future 50 list.
  • Its wide range of services includes customer service in investment and trading in global financial markets through exchanges, clearing houses and information services.
  • ICE Data Services is a leader in market data, providing the necessary information and connectivity to virtually any type of asset.
  • ICE is the parent company of the New York Stock Exchange, which has helped many companies increase their capital more than any other exchange in the world, stimulating economic growth and transforming markets.
  • Owns the world’s largest market for ETF Arca and the leading platform for mid-tier companies NYSE American.
  • It is a leader in almost all categories of futures for “soft” agricultural products (sugar, coffee and cotton).
  • ICE Futures Europe tops the list of global markets for the sale of Brent crude oil.
    At the end of 2017, it received revenue of $ 4.6 billion.
  • ICE’s powerful trading infrastructure can become a platform for the development of Bakkt, providing it with everything necessary for successful development.
  • The project has enormous potential for ensuring wide recognition and use of digital assets, which in turn will have a positive effect on the overall capitalization of the digital assets market.
  • The project is planned to be launched in early quater 2019 with the participation of the 12 largest world exchanges and a wide range of exchange instruments that will ensure the introduction of Bitcoin into the fiat market as a global digital currency.

The Bakkt project can provide a significant boost in the development of the digital asset market and the expansion of its use. In this regard, the year 2019 can be considered as the year of the merger of two segments of the financial world on a global scale – the fiat market and the sphere of digital assets.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.9 stars on average, based on 42 rated postsVladislav Semjonov has a legal and financial background. He has been involved in crypto space since early 2017 in both ICO advising positions in several ICO consultancy firms, and as an ICO analyst for VC. He began contributing for Hacked.com in April 2017.




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