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Energy, Tech and Finance

Overview

Investing in a risky market or investing a lot of money can be unnerving but if you want your investments to grow and continue to grow for the long term you need to move away from lower-risk investments such as cash or bonds.

Shares have historically performed better than cash or bonds over the longer term, though remain aware that there are always exceptions and nothing can be guaranteed.

Energy

Energy Introduction

With a broad sell-off across the energy sector and the broader market, many investors are concerned about further losses.

However, every sell-off presents an opportunity. Buying and holding when everyone else is selling can lead to very lucrative returns in the long run, long -term investors can find value in a sea full of red, it’s just about picking the right opportunities at the right time.

The future of the global energy market.

The outlook is more promising on the international front, with total investment in renewable energy rising 4 per cent in 2015. The rise came despite the falling costs for solar panels and a drop in prices for fossil fuels. We should continue to see a grow in renewable energy, including cheap fossil fuels.

Tech

The tech sector has exceptional opportunities for profit as it is home to many of the most innovative growth companies today. However, the sector is constantly changing and remains remarkably competitive, this makes the sector risky, causing many investors to stay clear of the sector altogether.

The world of in-app purchases is growing quickly, in-app purchases or ‘micro transactions’ are now a multibillion dollar industry based on ‘freemium’. Freemium refers to apps on smartphones and tablets that are free to play or download but offer users the option to spend real money to help their progress.

Users find themselves spending real money to level up, receive helpful power ups or gain access to premium content.

Data suggest that iPhone users tend to spend more than Android users.  The most popular games across the two platforms are “Clash of Clans” and “Candy Crush Saga” In terms of in-app purchases, free-to-play games are the ones people spend the most on. The logic behind this is that by making the initial product or game free, the user will become a little bit addicted and won’t mind paying a small amount to beat a particularly hard level.

One of the fastest growing groups of gaming are social casinos, even in America where mobile gambling is illegal. Year on year, the amount of money spent on in app purchases continue to grow, interestingly the biggest spenders are aged around 45-55.

Investing in new Tech platforms

In-app purchases

Supercell has been labelled one of the most successful software developers. They are behind the highest-grossing games app in the US, and made nearly $900m in revenues in 2015, despite having just 132 members of staff

Mel Morris invested £140,000 into King media, the game developers behind Candy crush. Mel is now a shareholder in the company and received over $530 million.  With some of this money he bought Derby County Football Club, and is now its chairman. Since success stories such as Mel’s came to prominence, many entrepreneurs, venture capitalists and even the banks have now tried to tap in to the gaming sector

The leading game at the moment is Clash of Clans, which makes over a $1 million a day and there are many other games earning similar amounts.

Virtual reality

Super Data Research suggest that video games will be the key driver of virtual reality hardware. Game developers will expect to see a global audience of 55.8 million virtual reality users and produce 38.9 million virtual reality devices this year. The global market is expected to grow to $8.9 billion in 2017 and $12.3 billion in 2018.

Finance

ISA

There are two types of ISA’s available: Stock & Share and Cash ISA. ISA’s are a tax free way of saving between the ISA tax years. Using ISA’s will limit your investing strategy for a high yield return.

Advanced Investing

Venture Capital Trust /Spread betting/Forex/CFDs /Mutual Funds/Bonds//Futures/Equities

Advanced investing takes a lot of time and attention, though this somewhat high maintenance investing route will control the risk to your capital and provide potential inflation-beating returns.

Pension

SIPP investments are good for people with a large pension pot, as it allows greater control and an access to a wide range of assets. This is only suitable for experienced investors who are comfortable with taking investment decisions.

You should always review how your pension is invested regularly and as you get older, it is advisable to change your investment strategy to reduce risk as retirement draws closer.

Commodity

Gold investment worldwide has grown dramatically in the last five years. Sales of gold jewellery across Asia are surging as private investment continues to grow. Gold buyers in Asia tend to think of their jewellery as a form of gold investment which is gold jewellery in Asia, usually heavy chains and bracelets, is known as “investment jewellery” in the gold industry.

Gold mining companies worldwide struggle to meet the growing demand from gold jewellery and gold investment buyers, this continues to push gold price higher.

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