Trends and Investing: Avoid Being the Pig

In the stock market and in any other business or industry market, there is the bull, the bear and the pig. Bullish outlooks mean a positive attitude towards trends despite economic implications. A Bearish outlook means a negative attitude. These two investors’ outlooks will signify their actions towards their investments with proper knowledge and analysis. But for the pig, it is all about getting the best from the trend.

Investing trends become popular especially when one investor’s outlook makes sense to the other because of supported fact or a brief prediction of the future based on current news and consumer perception. Pigs normally go with investing trends without thought, simply thinking that the trend can make sure their investments are safe, and can generate them money they deem to be enough.

Pigs normally react with their investments based on certain rumours they find. Often, a tip from another investor or an industry insider is enough to urge them to sell their stocks as soon as possible, or buy the stocks of a downgraded firm because it will pick up the pace in a few months.

They often act with greed, without any consideration to the inherent value of certain details. For example, since the smartphone boom fuelled the rise of Apple and other technology companies on top of the grid, many pigs went to buy the stocks once Apple’s stock value loosened out. However, how are they so sure smartphone technologies are here to stay, and no distant replacement is yet to appear?

Avoid being the pig when investing; never let greed cloud your judgment. According to research, those who buy and hold their stocks, especially investors with a financial plan, are the ones who gained higher profits in the previous few years.

An Investor’s Guide to 2014

The following year is a new world of promise for investors. With many new niche businesses that have potential great profits and technology lowering the risks involved, previously inaccessible terrains can now be approached with ease. Any investor should watch out for the following this upcoming year.

1.    Internet-based Businesses

Imagine if you had a large capital that could be broken down to smaller businesses that actually have a large ROI than your initial capital. This is what the Internet and small businesses actually can do for investors. The best thing about Internet-based businesses is that you gain less risk as every one of your business can go in different directions.

2.    Technology

Speaking of the Internet, the communications technology that connected the world is still improving and new technologies for accessing it, saving information and making business data easier to manage and assess are still going. App developers are also earning windfalls with more and more smartphones being produced each year.

3.    Oil

Oil’s value is to increase by 2014 as the supply of oil is gradually winding down. Oil might be expensive this 2013, but it will be higher by 2014 and the further years to come.

4.    Renewable Energies

As oil’s value is increasing in demand and decreasing in supply, it would be wise to invest in renewable energy technologies. Once the oil runs out, re-invest your money in renewable energy development. You could reap the efforts in the next few decades.

Profiting from Tax-Free Investing

Investors face high Capital Gains Tax on profits they make selling stocks or assets. Tax-free investing ensures lower returns with lower taxes, but there are ways to profit highly from it.

1.    Cash ISA

Individual savings accounts are free of CGTs in the United Kingdom along with below £6000 worth of properties. You accumulate interest rates that are free from tax, allowing you to save up £5000 or more from your profits. Its high liquidity ensures that you have access to your money any time you need it.

2.    Stock and Shares ISA

Another form of ISA is an investment ISA account that allow you to hold stock shares and funds. Like Cash ISAs, you are free from tax. These include corporate and government bonds. The interest you get from the bonds will be free of income tax if an ISA holds them.

3.    Self-Select ISA

Self-select ISAs allow you to mix shares, funds and bonds using an ISA wrapper. However, you might have stockbrokers charge you a fee for fund trading and share dealing costs. However, be sure that you are a seasoned investor who knows the trade effectively before proceeding.

4.    Venture Capital Trusts

BCTs allow you to invest in unquoted firms who are only beginning. Most of these are listed in the Alternative Investment Market. Being high-risk investments, VCTs could provide income tax relief of 30%on their investments.