Will High interest rates crash the market in 2022?

Will High interest rates crash the market in 2022?

Over the better part of the past 12 months we’ve spoken quite a bit about the impacts that interest rates have on the overall economy asset valuations and honestly just investor sentiment. Overall which realistically shouldn’t be that much of a surprise as we’ve seen firsthand the impact that low interest rates have on the stock. as well as the real estate market over the past two years and you know this comes at a time when inflation is at the highest level that we’ve seen since the 80s right as we can see from this chart average inflation across the us has reached 7.9%. which yeah i had mentioned in a previous Article that i absolutely believed we continue seeing inflation rise past the 7.5 percent that we saw in january and realistically this figure could continue to rise and stay at very high levels over the course of 2022. which is very difficult for everyday consumers so at this point though let’s consider that the federal reserve really doesn’t have any other option than to start raising interest rates gradually in order to try and tame this out of control level of inflation while also avoiding completely halting economic growth across the american economy now…

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What can FED do?

After months of anticipation towards the fed actually raising interest rates over time. Well now it is actually commenced where the american federal reserve has indeed approved the first interest rate hike. Now more than three years december 2018 to be exact and this is really significant because increased interest rates do have direct impacts on the economy as well as the markets. Just like we’ve seen the opposite of over the past two years when rates were near zero so yeah as we can see here since march 2020 the fed dropped down rates to 0.25 percent in order to stimulate economic growth in the face of the pandemic and it stayed there for the better part of two years until this past week, where the FED approved a point two five percent rate hike which now sits at point five percent now a point two five percent interest rate hike you might be asking yourself what exactly does this mean for everyday individuals and investors.

Economic Impact

well quite simply this has a direct impact on the prime rate that banks and other lenders are going to use in order to issue out consumer loans so typically say a bank is going to issue out a personal line of credit at the prime rate plus a certain percentage for the borrower’s total rate so this basically means that over the next couple of years it’s gonna get more expensive to borrow money for all purposes from credit cards personal lines of credit mortgage and so forth now this point five percent interest rate hike isn’t much in the big picture but let’s consider that the fed can’t just simply uh raise interest rates by one percent out of the blue this would totally destabilize the market so it’s somewhat of a balance and also a stable increment over time however it is expected that we’ll be seeing six more rate increases by the end of the year bringing the consensus funds rate to 1.9 percent and for now the fed also expects three more rate hikes in 2023 and none the following year meaning that by the end of this entire rate hike cycle we should be seeing rates at around 2.5 percent which would put us at around the same rates that we experienced just before the pandemic but really that’s just a guess and if inflation does continue to rise rapidly it really wouldn’t be out of the question if we see the fed increasing rates at a quicker pace but then also by larger increments at a time based on reasons that we’ll be discussing shortly even though this could definitely have a shock on the financial system the question really though is will these interest rate increases be enough to materially counter the high levels of inflation that we’re experiencing while also allowing though for continued economic and gdp growth which of course we do want to continue seeing well historically speaking the fed tends to lower interest rates in order to further stimulate economic growth as lowered financing costs tends to encourage further borrowing and investing but what ends up happening is that when the rates get too low as we’ve experienced over the past two years well this can very well lead to excessive growth and well subsequent inflation which reduces purchasing power and undermines the actual sustainability of the economic expansion in question i mean at the end of the day inflation aside let’s not forget the insane level of asset growth that we’ve experienced in both the stock market as well as the real estate market since the march 2020 lows the s p 500 expanded by over a hundred percent and many markets added 30 to 70 value to their real estate which is almost never before seen in such a short period of time so essentially when it’s cheaper to borrow not only do consumers utilize more debt but so do businesses in order to further fuel their own growth and expansion which really just creates an environment of larger output and productivity on the flip side when it’s more expensive to borrow which is the reality that we’re going to be faced with over the foreseeable future well this leads to consumers purchasing less goods and services and so demand tends to end up dropping which should have an impact on decreased inflation one of the most striking examples of this was back in the early 80s where inflation was at 14 and the fed raised interest rates to 19 which caused a severe recession but it did end up putting an end to the crazy inflation that the us was seeing so all this to say that with interest rates on the rise over at least the next two years we should expect this to yes have an impact on taming inflation but then also decreasing economic growth pretty much across the board..

Interest Rates and the Markets

how this can impact the stock market right we’re investors here and with interest rate hikes impacting the economy well this is going to undoubtedly ripple over into the stock market in fact we’ve already been seeing this with investors already pricing in these expected rate increases ahead of time that’s definitely something that is interesting about the stock market sentiment and overall investor emotion can lead to upwards and downwards movements in the broad market and individual positions so even though we have been seeing the broad market bounce back over the past week or so this definitely does not mean that the bleeding has fully come to an end at the end of the day it’s easy to forget that the stock market is made up of actual businesses that operate in the economy and many of these businesses utilize debt capital to further expand and grow so of course an increased cost of borrowing also negatively impacts the bottom line of many companies especially unprofitable companies to begin with now that being said the fed actually expects business growth will continue to slow down for the rest of the year at around 2.8 percent which happens to be down from the prior forecast of 4 growth so really even though it’s already been extremely rough over the past year or so for many tech and smaller cap companies that are unprofitable and also utilize a lot of debt capital to fuel their growth well i kind of think that this is going to continue unraveling over the foreseeable future at least until we’re seeing these interest rate hikes stabilize in the market right because even though the market has already started pricing in these rate hikes over the past couple of months before it even started happening well if the fed decides to increase the rates at a much quicker pace or by larger increments this could absolutely have a destabilization effect on the market of driving it down further now that being said does this mean that you shouldn’t continue investing in the stock market over the course of this year and next no not at all always remember that it’s completely normal to see periods of slowed economic growth and valuation growth throughout the course of a long-term investment approach granted that the funds and your asset allocation are suitable to your investor profile as well as your risk tolerance i’m simply going to continue doing what i’ve been speaking about for years on the channel and doing myself as an investor being the older cost averaging into broad market low cost index funds that allow me to average into the market and ride the growth of the american economy over years to come now what about the impacts on the real estate market right i’ve been speaking a lot more about real estate investing on the channel because it’s something i’ve been doing a lot more of in real life and i’ve also been speaking about it a lot on my tech talk make sure to follow me there if you don’t already posting it daily multiple different clips about questions people have as well as other topics about real estate investing and just investing in general really well i’m not going to dive into all the details around what impacts the real estate market but of course interest rates does have an impact on this somewhat right if you want to learn more about my thoughts around the real estate market and how raising interest rates could potentially have an impact on lord or at least stabilizing the real estate market over the next couple of years make sure to check out the video that i’m going to be overlaying right here now the bottom line is that as investors we should absolutely be expecting the markets to be somewhat choppy over the next year or two as all of these factors are tugging at the market and trying to be priced in especially following such a large market rally that we saw over the course of last year so make sure to leave me a comment down below letting me know how you think these interest rate hikes are going to impact the stock market and the overall economy this year.

Will High interest rates crash the market in 2022?

Why Elon Musk Bought Twitter?

Why Elon Musk bought Twitter

ELON MUSK bought a nine  percent stake in twitter but Why Elon Musk Bought Twitter ? well, this is  actually old news, He bought this steak  yesterday.  The new news the breaking news  is that he’s now on twitter’s board. So  he was immediately put on twitter’s  board after buying the large stake and  this brings in the question what is  elon’s master plan. Here what is Elon Musk  trying to accomplish. This is one of the  most powerful individuals in the world.  maybe the most powerful by some  quantifiable measures and now he’s on  the board of directors of one of the  most influential companies in the world  so we’re going to talk about what elon  musk’s real plan….

Why Elon Musk Bought Twitter?

Elon musk purchased 9%of twitter and he can do that  because he has a lot of money in fact he  could buy a lot more of twitter if rules  and regulations didn’t prevent him from  it but now he owns nine percent of the  company and this was breaking news as of  yesterday just that news alone launched  twitter shares up around 25%  in one day so the company gained more in  a single day than it ever has since its  ipo and in that single day of the 25%  increase elon musk made over 500 million  dollars on his investment to put that in  perspective that is more than twitter’s  entire net income for the past three  years.

How much Elon Musk Earned from Twitter in a single day?

elon musk made more money in one  day off of twitter stock than the  companies made in the past three years. This is big news in and of itself  but then there’s discussion on well what  does he intend on doing right is he  going to have a passive stake or he kind  of just owns the company and  has it as an investment or is he going  to take a more active role and many  people actually assume that he would  take a passive stake that is an  assumption.

 I think is ridiculous when  you look at someone like elon musk is he  really that passive in anything this man  is the most active on the forefront ceo  of almost any company and i didn’t think  he was going to buy twitter to take a  backseat in the company. Well of course  the very next day which is today elon  musk is now joining twitter’s board of  directors and he’s teasing significant  improvements so he’s making it very  clear that this is not a passive stake  he’s on the board of directors he’s now  in part helping run the company. elon  musk plays a unique role in this because  typically when you have someone join the  board of directors they don’t have the  same type of voice that someone like  Elon Musk does.

So now the situation that  we’re in is elon musk owns nine percent  of the Twitter. the company’s stock price  is up 33  in the past two days and he’s joined  twitter’s board of directors so this  leaves the question ‘’what does he plan on  doing now’’?

What does ELON MUSK plan on this?

 This is where i think  we’re getting some good takes and a lot  of bad takes here’s where i think we get  a bad take of why elon musk bought  twitter this is from rich greenfield he  goes on to explain how investors are  overlooking the user growth of twitter  more than anything it’s certainly  highlighting twitter’s had a lot of  progress momentum on the user growth  side that investors simply ignored after  the last quarter because of the cost  side of the equation so elon musk bought  twitter because investors are ignoring  twitter’s user growth  this is not  about uh profits and losses and user  engagement and you see what it’s about  actually i disagree i think it is about  users  why isn’t he fun why isn’t he scouring  the the broken you know all the the  fallen angels and tech and taking stakes  and all of this this one is one  you’re missing the point you’re missing  the point the reason he’s making these  comments about open sourcing.

You  know kind of the town hall like this  whole way he’s thinking about it is  because twitter has gotten so big and so  important  that he believes that there should be  different algorithms or different ways  of information ferreting up to the top  he wouldn’t care if twitter was  irrelevant and tiny and not growing as  rapidly as it is he wouldn’t care so i  think the point is he does care.

Because  twitter is relevant twitter is a  relative  you’re missing a point i’m making he’s  not doing this to try to juice the stock  and make some money like an activist  investor to try to open up shareholder  values so he can make some money. He’s  doing it because he wants to change the  way that twitter’s being run right now  in terms of censorship and uh and  everything else you don’t think that  that’s what he’s doing here you think  it’s purely an economic play that he’s  making why didn’t he buy there’s a lot  of cheap companies out there that he’s  not interested in i think this breaks  down in large part the argument  happening over twitter. A lot of  twitter’s shareholders might think that  ”elon musk is buying twitter for economic  reasons he’s buying it because the  company’s undervalued and elon musk sees  value there and then there’s the joe  kernan side of it …

What JOE KERNAN said when elon musk purchased twitter?

JOE KERNAN is saying that  ”the economics have no part in this the  valuation of twitter has no part in it  elon musk is buying twitter for entirely  different reasons. and i have to say this  is one of the cases where i strongly  agree with joe kernan now rich goes on  to make another assumption that i think  is clearly false i don’t think it’s true  at all here’s what he says regarding  elon’s ability to make change at twitter.  i mean nine percent stake’s not going to  give him the ability to change the  he’s got to own a lot more than 9 to  have an impact on how this company runs.

Well you’ve got to start with with 9 you  can’t you know you can’t start with 60%.  He says that 9%  isn’t enough to make change at the  company it’s not enough to impact the  company at all and just a day later  after this interview elon musk is on the  board of directors and saying that he’s  working closely with them and advocating  for great changes to the company. If  we’re going to look at why elon musk is  buying twitter i think it’s first  important to understand incentive here  elon musk has literally no incentive to  make more money he has all the money he  could possibly spend in a hundred  lifetimes. He’s worth currently 267  billion dollars that is over a quarter  trillion dollars most of us look through  things through the lens of economic  value.

 elon musk has literally no incentive to  make more money he has all the money he  could possibly spend in a hundred  lifetimes he’s worth currently 267  billion dollars that is over a quarter  trillion dollars most of us look through  things through the lens of economic  value. We want to create more wealth we  want to get more wealthy because right  now we don’t have enough money to fully  retire or we don’t have enough money to  get all the things that we want elon  musk has solved this problem long ago  and money hasn’t been his primary  motivator. i think for a very long time i  think that his aspirations are far  beyond that and we can get an idea of  what elon musk’s aspirations are by  previous things that he said on twitter.  He was quickly welcomed to the board of  twitter quote through conversations with  elon in recent weeks it became clear to  us that he would bring great value to  our board the ceo prague said quote he’s  both passionate and a believer and  intense critic of the service which is  exactly what we need on twitter and in  the boardroom to make us stronger in the  long term. So the ceo of twitter is very  welcoming to elon musk and i think he  should be elon musk creates a lot of  value with most things that he’s  involved in.

Why Elon Musk bought Twitter

Why Elon Musk Bought Twitter?

Elon musk purchased 9%of twitter and he can do that  because he has a lot of money in fact he  could buy a lot more of twitter if rules  and regulations didn’t prevent him from  it but now he owns nine percent of the  company and this was breaking news as of  yesterday just that news alone launched  twitter shares up around 25%  in one day so the company gained more in  a single day than it ever has since its  ipo and in that single day of the 25%  increase elon musk made over 500 million  dollars on his investment to put that in  perspective that is more than twitter’s  entire net income for the past three  years.

Will The Student Loan Pause Payment Be Extended Again?

Will The Student Loan Pause Payment Be Extended Again?

Student loan pause usa student loan pause 2022 student loan pause extension student loan pause end date student loan pause extended student loan pause ending student loan pause again student loan pause after may student loan pause and tax refund will the student loan pause be extended pause student loan payments uk

Will there be another Extension?

The payment pause and interest waiver on  federal student loans has been in effect  for quite some time maybe even longer  than we realised so is it going to be  extended again  for the sixth time inquiring minds. Want  to know here’s what we found out  hey guys it’s justine with a college  investor investing in personal finance  for millennials let’s talk about this  payment pause and interest waiver  because we have all been enjoying  not being required to make any payments  there’s no interest accruing on those  federal student loans and so it gives  you the flexibility to either pay those  down while there’s no interest or  refocus and shift that debt payment to  something else in your personal finances. Now at the time of this recording that  waiver is set to expire on may 1st 2022.

How long has the waiver been in effect?

It means that this pause this  waiver has been in effect for 26 months  just over two  years and that accounts for roughly  125 billion dollars of waived interest.

Can the waiver be extended legally?

Can the  payment pause be extended further well  according to the heroes act of 2003 any  kind of waiver or modification to this  type of program can only be approved in  connection with a national emergency and  because the pandemic was declared a  national emergency. We’re still able to  see those extensions of the student loan  payment and interest waiver again and  again because we are still in this  national emergency.

How many PSLF viewer are in Student Loan pause?

There’s  also a limited public service loan  forgiveness waiver that’s extended  through october 31st of 2022 and because  this modification was allowed because we  have a national emergency. It may  indicate that the biden administration  will also push and extend this waiver  one more time for everybody with federal  student loans until october 31st of 2022. But this really is all up to president  biden and whether or not he will  continue this for a sixth time.

How borrowers currently feel in student loan pause?

in fact  according to a cnbc student loan survey  29 of borrowers believe that repayment  will resume on may 1st and 26 believe  the president will extend the payment  pause again, 28 believe some student loans will be  forgiven and 14 believe that all student  loans  will be forgiven. I don’t see that  happening but that’s just me also some  other interesting statistics that came  out of this survey is that 19 of  republicans support forgiveness of all  student loans compared with 43 percent  of independents and 46 percent of  democrats. There are also some divisions  based off of demographics more women  than men support student loan  forgiveness plus black and hispanic  survey respondents are more likely to  support student loan forgiveness than  white and and asian respondents younger  responders are more likely to support  student loan forgiveness 45 of genz and  43 of millennials versus 32 of gen x and  23 of baby boomers plus low income  respondents and borrowers who owe more  than others that don’t are more likely  to be in favour of student loan  forgiveness that makes sense right like  if you’re the person who’s going through  this and it’s really difficult for you  to pay off those loans you would  definitely be in support of some sort of  forgiveness program.

How waivers are Driven?{reason of stuent loan pause}

All this to be said  the most recent extension of the payment  and interest pause really was driven by  politics and not policy. A lot of people  thought that student loans and  employment would get back to  pre-pandemic norms by the end of 2021 in  a lot of ways it has kind of returned to  pre-pandemic levels the unemployment  rate for january 2022 was just at four  percent which was the same as it was in  january 2019. Before the pandemic also  deferment forbearance delinquency and  default are all at the pre-pandemic norm  normal rates so with all this  normalisation coming into place and  seeing hey like borrowers actually can  get back to making their student loan  payments. It does kind of make you  question whether or not we’re actually  going to see a sixth extension though  with the pandemic and the recent omicron  variant that popped up there’s always  going to be a little bit of that  hesitation  because we just don’t know what this  pandemic is going to do and how long  it’s going to last with these new  variants popping up.

How Democrates and republicans feel?

 it’s a  house divided some democrats really want  to see another extension some want just  a blanket student loan cancellation for  everybody and then there are others who  are just not into it at all in fact  representative virginia foxx of north  carolina said that ”president biden’s  latest extension is a troubling trend  toward blanket student loan forgiveness’‘  which would be a massive mistake with  major consequences for borrowers and  taxpayers.

Broad students loans forgiveness

A broad student loan  forgiveness can only be authorised by  congress this cannot go through just a  loan executive order from president  biden. There really has to be approval  from congress and who knows if we’ll  ever see that happen so the path forward  may be based off of some political  decisions and that really kind of is  unfortunate because  i think the decision should be based off  of how many people how many borrowers  this actually impacts.

What borrowers can do in Student Loan Pause?

what can  you do as a borrower right now well we  know in fact that this extension is  going to end may 1st 2022.  There’s a couple of ideas that you can  play around with if you have no  emergency fund and you have high  interest debt  perhaps you focus on those as a goal  first paying down that high interest  debt while this debt is just dormant and  on a freeze until may focus on setting  aside extra money for an emergency fund.  God forbid you lose your job you  experience an accident your cell phone  breaks you have the funds set aside that  prevents you from going into debt.  You’ll also want to focus on high  interest debt such as credit cards  because we know that interest is  accruing very rapidly whereas the  student loan debt is just dormant and  you can focus on that when the time  comes you can also sock away cash so  that when the payments come back into  play. you already have some cushion to  kind of ease yourself back into making  those monthly payments again  next you’ll want to focus on your budget  know exactly what income is coming in  what expenses are going out including  your debt payments you’ll want to make a  written list of all of your debt and all  of your fixed and fun expenses so you  know exactly what to calculate and  budget for accordingly.

Will the Student Loan Pause Extension actually happen?

 i don’t think you  can really bank on broad student loan  forgiveness just yet and i don’t think  you can bank on there being truly an  extension until it happens. so always  plan for worst case scenario and hope  for the best maybe it will happen and  then you’ll be that much further ahead  because you’re planning for worst case  scenario if you are needing more  assistance and financial relief with  your student loans, be sure to check out  our free resources all about student  loan debt and how you can advocate for  yourself at  thecollegeinvestor.com and we’ll catch  you in the next one.

How Democrates and republicans feel?

it’s a  house divided some democrats really want  to see another extension some want just  a blanket student loan cancellation for  everybody and then there are others who  are just not into it at all in fact  representative virginia foxx of north  carolina said that ”president biden’s  latest extension is a troubling trend  toward blanket student loan forgiveness”  which would be a massive mistake with  major consequences for borrowers and  taxpayers.

How many PSLF viewer are in Student Loan pause?

There’s  also a limited public service loan  forgiveness waiver that’s extended  through october 31st of 2022 and because  this modification was allowed because we  have a national emergency. It may  indicate that the biden administration  will also push and extend this waiver  one more time for everybody with federal  student loans until october 31st of 2022. But this really is all up to president  biden and whether or not he will  continue this for a sixth time.

Will The Student Loan Pause Payment Be Extended Again?

ELON MUSK just bought Twitter| Elon Musk takes 9% stake in Twitter

Elon musk bought share of twitter

ELON Musk just bought part of twitter literally a huge position in twitter. Twitter shares soared more than 25 after Elon musk takes nine percent stake in social media company we know elon musk absolutely positively loves twitter. okay that man’s on twitter as much as not more than i’m on discord. That man loves twitter like it’s nobody’s business has gotten him in some trouble before and here he is buying up twitter.

This is incredible now the elon musk net worth is 267 billion dollars as of today every time a tesla stock goes up that manager gets a whole bunch richer and if spacex ever raises money you know he gets a lot richer. ELON MUSK net worth has increased exponentially over the past five ten years has been is something amazing to kind of see as far as that goes now. This is an important number to remember this 267 billion dollars and the reason that’s an important number to remember is twitter’s entire market capitalization.

As of right now is 31 billion dollars and we’re going to talk for just a moment if i’m going to be buying a twitter stock on the back of this and what this could make you know for a change for tesla stock. But think about this for a moment right ELON musk net worth as of today is what about 9x roughly what twitter’s entire market at capitalization is. Which is just crazy to think about right and so here we are with twitter’s talk making just an epic app move and if you want to talk about something that’s going to be all over twitter tomorrow and all over the business community this is it okay this is it and i mean if elon musk really wanted to make a splash out there.

Did he just make a splash that is going to get him talked about everywhere in the next 20-4 to 48 hours this is going to be incredible. now this is also moving tesla stock simultaneously not much but it’s still you know it’s already up one percent. And don’t be surprised if tesla ends up going up on the back of this this has almost nothing to do with tesla other than it’s something involved with elon musk right.

But i can almost guarantee you elon musk isn’t buying the stake to somehow incorporate into tesla something like that but you know how these things are they can kind of build into little mini hype cycles that could end up potentially moving you know tesla stock even on the back of this. But this what you’re finding here this is going to be talked about everywhere tomorrow no will i be doing anything with twitter stock no as a long-term investor.

ALSO READ: Why Paytm Stock/Share is Falling?

i’m not looking to get involved in this at all however i will not be surprised at all if uh you know these gains end up holding and maybe even go up more tomorrow and the reason being is like i said this is going to be the most talked about thing on the internet when it comes to business community not just tomorrow but probably this entire week this is such like earth shaking news and like i said there’s no information about but there will be a whole lot more information tomorrow. And with something like this happening guys yeah you know this is crazy this is crazy epic big and elon musk knows how to get some attention and man is this an attention attention-grabbing move and what his ambitions are there we’ll have to see and sort all that out all i know is this is literally breaking news as of right now.

Elon musk bought share of twitter

Don’t Do These 7 Things When You Get Paid | How to save money after getting Salary

money saving guide Don't Do These 7 Things When You Get Paid

In this Article we’re taking a look at how to save money at atlantis how to save money at cheesecake factory how to save money at lush how to save money for a nose job how to save money on dental implants how to save money on pool chemicals the Don’t Do These 7 Things When You Get Paid | How to save money after getting Salary seven things that you shouldn’t do  with your money after you get paid. And today we’re flipping around and talking  about those things that you might want  to avoid and look we all know the  obvious ones like don’t spend too much  money or don’t gamble your money at a  casino. Those are very obvious things  that you should not be doing and  hopefully you’re not doing at the moment.  When you get paid let’s talk a little  bit more in depth hopefully some of  these are going to be things that maybe  just haven’t crossed your mind or you  haven’t heard of in quite some time so  let’s just get started with this Article…..

Don’t accept initial Salary

 let’s talk about the first one  which is don’t accept the initial salary. that’s offered to you ,When you’re  applying for a job now there’s a couple  of reasons for this and look if you  already have a job. You also can consider asking for a raise, We’ll talk about both of those in the  next 30 seconds here but when it comes  to getting jobs especially in America, the unemployment rate at the moment it’s  3.7 percent that’s the lowest has been  in about 50 years so what this means is  that there’s a lot of employers looking  for employees but not enough people to  fill those jobs because it’s such a low  unemployment rate which means that  people like you and me we have the upper edge when applying for jobs at the  moment in a very good economy. So what  this means is that we can ask for a  higher salary than what they might offer  us and I think a lot of people just kind  of get off and say that you get offered  $42,000 per year for a job. And they just  automatically take it now unless it’s  this case where there’s no other jobs in  a 100 mile radius you absolutely need  this job or you want this job because  you love what they’re doing here then  maybe just consider accepting the job  but in other cases you can kind of pick  companies against each other and say you  know what you’re offering 40 mm. I need  44, I need 45 thousand, maybe I need more  vacation days so you start to negotiate  a little bit more when applying for jobs. And if you already have a job which  chances are you probably do then  consider asking for a raise it’s  incredible how many people I meet. When I  ask them “I say once the last time you  got a raise from your job” and sometimes  it’s been five years ten years even 15  years  people don’t get raises because they  just don’t ask for them and there’s that  comment saying that if you don’t ask for  it you don’t get it or something I don’t  know what the words are behind it but  it’s very true  look so consider going into work  tomorrow or sometime this week and just  saying hey I’d like a raise I think I’ve  been working pretty hard around here I  think I’ve been producing a lot of stuff  for the company so can I have a race  maybe a dollar now or two dollars now or  more per hour and you’ll see just how  many times people actually get raises  simply from just asking for a raise now  chances are you’re probably not gonna  get fired. You have very little to lose  when asking for it  if you do get fired I’m sorry this is an  advice this is just an opinion here this  is just some ideas but that’s something  that you might want to consider doing  actually before you get paid is asking  for a raise and negotiating your salary. In terms of your salary and your  employment with your employer let’s talk  about the next one here it’s one that’s  fairly predatory. I really don’t like  this and people should try to avoid this  at all costs and that is by taking  advantage of predatory loans which would  be something like payday loans.

Payday Loans

Payday loans the problem with this and  look I see these ads everywhere maybe  you see these two where maybe there’s an  ad of somebody at a gas station and  they’re they’re saying hey I’m buying  gas. Now but I don’t get paid till Thursday,today’s ,Monday but I’m buying  gas with my paycheck that I got a payday  loan from this fancy little app we’re  not going to name brands here but  essentially this is a very very poor  financial decision you’re essentially  getting someone to front you money for  money that you should be making on that  specific day. So if you get paint on  Thursday but you’re buying something on  Monday because you had to get a loan for  it it’s just not a good decision all  around the board you’re probably getting  some money shaved off the top of that  and look if you can’t afford to buy  something now because you have no money  in your bank account. then a payday loan  it’s just such a short-term solution.  it’s not going to help you in the long  term it’s going to make you even poorer  than you what you may be at the moment. So if you want to go to a football game  this weekend but you have no money in  your bank account so you get this payday  loan app like I said we’re not going to  name companies here and you can get your  paycheck upfront that you’re supposed to  get in a week or in two weeks and  they’re gonna shave some money off the  top of that you want to go to the  football game $150 for a ticket. Maybe  you just shouldn’t go to the game maybe  you should find a way to start saving  money so that you can go to the next  game instead of using this simple quick  solution of  payday loan so just try to avoid those  at all costs I really don’t like them. I  feel like they’re fairly predatory and  they’re just not a good thing to be a  part of so the next one here that I want  to share with you is just spontaneous  purchases.

Spontaneous Purchase

So the next one here that I want  to share with you is just spontaneous  purchases all around. So what I like to  do here in most cases is let’s say that , You get paid $2,000 every other week so  you make it fifty two thousand dollars  per year you get $1,000 per week but  it’s paid every two weeks on a Thursday. Let’s say I don’t know why they’re  always on Thursdays but a lot of people  get paid on those days so let’s say that  you get your money two thousand dollars  lump sum in your bank account. A lot of  people will go out and they’ll start  buying these big things maybe they buy a  season pass to a ski resort or they go  out and buy a snowboard try not to make  these spontaneous purchases. When you get  this money but rather spread it out over  the next couple of weeks that you’re  using this money until you get your next  paycheck a lot of people run into those  problems where they just make these  spontaneous purchases the best way to  combat this is to use something that we  call the 24-hour rule it’s so simple but  it really does save so much money. I use  it all the time where let’s say that you  want to maybe buy a season pass to a ski  resort . I know winter’s coming up here and it’s  a it’s a very large amount of money I  say it’s a thousand dollars for the  season pass it’s a really nice resort  thousand dollars you want to buy it  think about it for at least 24 hours  maybe 48 hours and then you might change  your mind on it. I know for myself I  found myself once I stopped myself from  making spontaneous purchases especially  online it’s it’s so easy to make  purchases online you can buy a new  laptop in the next 30 seconds right now. After this Article if you wanted to by  just putting in your credit card  information go on Amazon and you’re done  right so just try to think about this  for a little bit longer at least 24  hours and then you might start to change. Your mind say wow what was I thinking  yesterday about trying to buy this  thousand dollar item I can’t afford that  probably not a good financial decision  for the long term so just make sure that  you’re doing that all right so another  thing that you should not do when you  get paid is signing on the dotted line  too quickly.

Signing on Dotted line Too Quickly

another  thing that you should not do when you  get paid is signing on the dotted line  too quickly and now when I say this  maybe you think about car loans maybe  you think about some type of home  mortgage just signing away on a legal  document but I’m also referring to  things like say you’re renting a home  somewhere and your landlord presents you  with a 40 page lease that you have to  sign most people  we’ll just breeze through it sign the  line because they just don’t feel like  reading through all the technicals of  this entire packet of this legal  document but this is a legal binding  document that you need to be very aware  of what’s inside of there I’ve seen  landlords slip in some very very clever  tricky clauses within there that can end  up really screwing you over you’re  shooting yourself in the foot by not  reading it over so make sure that  whether you are gonna rent something  you’re gonna buy something any type of  legal document maybe should maybe just  make sure that you are not just breezing  through it very quickly but make sure  that you’re actually reading what’s  inside of there and if you’re getting a  car loan I’m not a big fan of car loans  but they’re generally pretty low three  four five percent sometimes even lower  but if you’re gonna get a car loan make  sure that you’re understanding  everything behind that the interest  rates behind that instead of just the  payment a lot of car dealerships will  just present you with the monthly  payment instead of actually talking  about the interest rate so make sure  that you’re just reading all of that  over very very carefully and it’s gonna  end up saving you a lot of headache in  the future trust me  I’ve signed leases in the past where I  was just too lazy or I was in a rush I  said you know what I don’t have time to  read over this but I trust you the  landlord to make sure that it’s fine so  I just signed away and I ended up really  hurting myself and losing a lot of money  I mean a couple hundred dollars but it  was still a lot of money to me when I  was in college so that’s something you  want to be very aware of and the next  one here is actually just eating out at  restaurants

Eating Out

So once you get your  paycheck if you go out to restaurants  and I actually Read a Article. Just the  other day I think it’s from two cents  from PBS a very good channel but they  talked about how eating out keeps you  poor and you know there’s actually a lot of things to this Article. There really is  that if you go out to a restaurant so  you go out once a week you spend seventy  dollars per week eating out at a pretty nice restaurant maybe with your family  with your friends there is certainly  something nice about that it’s nice to  have the atmosphere to get very nice  food made for you. But if you’re doing  that too often especially if you find  yourself in a financial pinch or in a  position where you’re not able to save  as much money you’re kind of wondering  where you can start cutting back on  think about cutting back on food that  you’re going out to eat because this is  really a depreciating asset. Once you eat  your food it’s totally gone and you’re  not going to have any value after that  so that that’s just something that you  do want to be very careful of how often  you’re actually eating out versus how  much food you’re making at home. I can  end up  spending 30 or 40 dollars per week on  groceries for the entire week because  I’m buying the right things that I’m  able to really stretch pretty far  without sacrificing health without  sacrificing the amount of food that I’m  eating just by simply going to the right  stores buying the right foods and  getting them for relatively inexpensive  amounts of monies…

OverPriced Information

So number two is  paying for overpriced information now we  could refer to a variety of different  things within this point here one of  them being online courses that are  multiple thousands of dollars. You’re  paying two thousand dollars for an  online course or a digital program that  shows you how to save money when you  could just go to your free local library  and learn as much as possible from that  for totally free you could watch Articles  like this you can read blog post there’s  so much free information out there I  just don’t like spending money on  education now college is obviously  something that’s very expensive in the  United States that I paid quite a bit of  money for but there’s still cheaper  options for college as well what I did  is I tested it out on a lot of subjects  and got credits for that using it’s  called the club CLEP for testing out of  college classes and getting credits for  it. And there’s a lot of different things  you could do to save money on education  I just really don’t like paying for  information there’s so much out there  for absolutely free but you’ll never be  able to get to all of it I mean there  are thousands of book books in the  library and you’ll never be able to get  to all of them so that’s why I just  don’t pay for anything that’s why we  don’t sell any thing on this channel we  don’t sell online courses programs  anything because I just don’t believe in  them I don’t think that they are in most  cases I don’t think that they’re worth  it now there are some that maybe if  they’re showing you how to do something  that’s really difficult to find exactly. how to do it say some people like Graham  Stephan some really good courses meet  Kevin some really good courses on real  estate then maybe that’s something that  you could consider spending a little bit  of money on a couple hundred dollars on  but I think the ones that are thousands  of dollars I’m just not a big fan of  them this is somewhat opinionated maybe  you’ve bought them in the past and  you’ve done really well with them but I  think one of the best ways to learn is  just through your own experience and  through free information because there  is so much of it out there and the final one here maybe you have heard of this  one before and we tend to end a lot of  her Articles like this but it’s just so  important it’s just thinking about every  item that you’re purchasing what’s the  value of that item in the  a couple of years and how much value  does it hold.

Asset that RUST, Rot or Depreciate

So looking at depreciating  assets anything that rust rot sword  appreciates I try to avoid buying those  now obviously you have to buy food and  you know if you spend $100 this week on  food next week that foods gonna be worth.  Nothing because you ate it or it went  bad or it rotted so it’s not going to be  good anymore right you have to make  those purchases but there’s other things  in life where maybe you’re thinking  about should I buy this car, should I buy  this snowboard , should i buy this this  jet ski? right what’s the value of it  this is what I do every time I make a  purchase especially a purchase that’s  over say a couple hundred dollars all  kind of track the the value of these  items and say well you know if I buy  this car today what’s it gonna be worth  in five years and chances ought to be  worth about sixty five percent less than  what it’s worth today so if I pay twenty  thousand dollars for a car today, it  might be worth about thirteen thousand  dollars if I did that math right  thirteen thousand dollars in the next  five years so just kind of make sure  that you’re able to find which items are  depreciating and which ones are not  depreciating. if you’re buying say you’re  buying something that’s a gold bracelet  that’s a 24 karat gold bracelet that you  might pay $1,500 for today what’s the  value of that going to be in five years  probably it’s Moe in most cases it’s  going to hold its value better than  something like like something that  depreciates very very quickly.

money saving guide Don't Do These 7 Things When You Get Paid

Why Paytm Stock/Share is Falling?|Paytm’s Business case study

Why Paytm Stock is falling

Why Paytm Stock/Share is Falling?|Paytm’s Business case study Paytm IPO paytm IPO falling What is Paytm’s Business Model? And what are the problems with it? Where is Paytm burning cash? And what will be its impact on the company? 3) What is Paytm’s profitability plan? And is the plan worth it?

Intro to Paytm And its Owner

One night on this February, a Land Rover crashes DCP’s car, And then one guy is arrested. That guy was none other than – Paytm’s Founder – Vijay Shekhar Sharma After his arrest in Feb, problems with him are not stopping. With 18 Billion Dollars of valuation, a startup that was one India’s Most Valuable Startup Today the people who invested in this startup are now facing 70% loss. Vijay Shekhar Sharma always wanted to do something big. And with this motive, he started PayTM. Had anyone thought that a guy who can’t speak English properly, Today that guy will create a company that will create India’s largest IPO? Paytm’s 15,000 Crs IPO was India’s largest IPO after Coal India. Interestingly, the people who invested in this IPO are now going at loss. The question is Why did all this happen with paytm? The company whose stock was at 2150 Rs during listing, What happened that after 6 months its value is hardly 550 Rs? What happened with Paytm that today it is failing so badly? Was Paytm’s stock overvalued? Had Vijay Shekhar Sharma done any scam? Is something going on in the company which we don’t know? Let’s Know…

Complete case study Why Paytm is Falling?

So the story starts in 2010, When Vijay Shekhar Sharma creates One97 Communications company. He never thought that a company started with a small idea will become India’s most valuable startup. The Paytm which we all know today was hardly used by anyone before 2016. Then Demonetization came and everything changed for Paytm. Between Paytm’s IPO announcement date and listing date, Paytm’s stock was trading with 20% Premium in Grey Market. I know you would be thinking that Why did this share fall 27% after 2 days of its listing? Well, To understand this we need to understand these 3 things properly. 1) What is Paytm’s Business Model? And what are the problems with it? 2) Where is Paytm burning cash? And what will be its impact on the company? 3) What is Paytm’s profitability plan? And is the plan worth it?

Startup journey of Paytm

Just imagine that you made an application that processes transaction between 2 persons Then tell me in the comments section how will you generate revenue from it? Any payment aggregator platform will generate revenue from any or from all of these 3 methods.

1) Transaction Fee When anyone will do any transaction through your platform, Then you will charge a transaction fee from him This thing is done by Razorpay as well as Paytm from merchants.

2) Loan Instruments The money taken from depositors will be given as loan to other people or merchants And they can earn revenue from their interest.

3) Advertisements Many companies run their advertisements on a platform like Paytm to sell their products or services.

In return for this, they have to pay some money to the aggregator platforms. Interestingly, Paytm earns revenue from all these 3 ways. In 2020, Paytm generated 3,300 Cre revenue using these 3 ways. But in payment aggregator platforms like Paytm, PhonePe or GooglePay Their biggest expense is their Tech Infrastructure and User Acquisition. The cost to acquire 1 user is 350-400 Rs for Paytm. And what to say about its tech and data storage expenditure. Paytm has raised almost 19,000 Crs in which 13,000 Crs are their losses. After all these losses, only one question arises What about Profitability?

What is the business model/Future of Paytm?

What is the roadmap of the company for profitability? What is the company doing that it can turn profitable in the future? On today’s date, only one this thing is giving Paytm profits. And that thing is – Paytm Payments Bank. Paytm made 29 Crs profit through Paytm Payments Bank in 2020. And in 2021, it became 37 Crs. All this was going but then enters RBI. And RBI bans Paytm Payments Bank. According to RBI’s ban, Paytm can onboard new customers after the ban is removed. The thing which was going to make Paytm profitable is now very slightly possible. So if Paytm had so many drawbacks then why investors were so excited about Paytm’s IPO?

So the answer is hidden in people’s Investment Mentality and Consumer Behavior. Paytm, PhonePe, GooglePay, and in fact BharatPe All these Fintech Startups are more focused on changing consumer behavior rather than profit. Rather than FDs, Stock and Real Estate People are moving towards alternative investment opportunities. Similarly PhonePe, GooglePay and Paytm All these companies wanted to move a consumer from cash to cashless transactions. Once let consumers make a habit of digital transactions, Then we will make profits anyhow. In past, when we used to go out, we carried cash And today we just carry our phones and all transactions are done. Today our consumer behavior has changed. And to change this consumer behavior, all the investors had given them Crs of funding. B’coz if you change one’s consumer behavior then it’s very easy to make profits. But this was not the case with Paytm. We were Savers but now we are investors, which is a good thing. But do you know what the problem is? We copy each other to get high returns.

What are the problems with Business model of Paytm?

The reason is Unjustified Valuation. When PhonePe and GooglePay were not popular at that time, Paytm was the only Fintech King. But as PhonePe and GooglePay started growing, Paytm’s UPI market share started decreasing. Today Paytm is at 1700 Cr loss. Paytm is not able to make profits from Payments Bank or any other thing. But interestingly, the fall in the share price of Paytm is not due to it’s loss. The actual reason behind that is something different. The reason is Unjustified Valuation. Lets Understand it…

Business Analysis of Paytm

So understand this very carefully. During IPO, Paytm’s valuation was 1.39 Lakh Cr Rs. But their revenue was just 3300 Crs. As Paytm is a loss-making company, so you can’t find Price to Earning ratio. In this condition, we need to find Price to Sales Ratio.

Why Paytm is Loosing in Stock Market?

With 3300 Crs revenue and 1.39 Lakh Cr Rs valuation, It’s Price to sales ratio comes out to be 35 i.e. actually very large. Let’s assume Paytm becomes profitable and makes 10% profit, It means from 3300 Cr revenue, Paytm is making a profit of 330 Crs. But interestingly, after 10% profit also, Paytm’s Price to Earning ratio is 400+. So if Paytm wants to give good returns to its investors, Then they have to grow at more than 440% growth rate And this is close to impossible. And if you will see Paytm’s last 2 years’ performance, Then what to talk about 400%, company’s growth rate is hardly 15% Interestingly, Paytm has lots of people’s financial data. For that competitive advantage, Paytm had burned lots of money Is now snatched away by RBI. Recently RBI had launched Account Aggregator Network Initiative. The data collected by any Fintech Company is available to all Fintech startups. It means that any data collected by Paytm can be used by any Fintech Company. Whatever may be the hype of any startup, But we has an investor should know that the public sector market i.e. Stock Market is different from private sector. Whatever be the valuation of any company in the private sector, It can sustain that valuation in public sector only if its fundamentals are strong. Otherwise, Zomato, CarTrade and Paytm are live examples. The people who invested in Paytm’s IPO are now facing 70% loss.

Why Paytm Stock is falling

Complete case study Why Paytm is Falling?

So the story starts in 2010, When Vijay Shekhar Sharma creates One97 Communications company. He never thought that a company started with a small idea will become India’s most valuable startup. The Paytm which we all know today was hardly used by anyone before 2016. Then Demonetization came and everything changed for Paytm. Between Paytm’s IPO announcement date and listing date, Paytm’s stock was trading with 20% Premium in Grey Market. I know you would be thinking that Why did this share fall 27% after 2 days of its listing? Well, To understand this we need to understand these 3 things properly. 1) What is Paytm’s Business Model? And what are the problems with it? 2) Where is Paytm burning cash? And what will be its impact on the company? 3) What is Paytm’s profitability plan? And is the plan worth it?

What is the business model/Future of Paytm?

What is the roadmap of the company for profitability? What is the company doing that it can turn profitable in the future? On today’s date, only one this thing is giving Paytm profits. And that thing is – Paytm Payments Bank. Paytm made 29 Crs profit through Paytm Payments Bank in 2020. And in 2021, it became 37 Crs. All this was going but then enters RBI. And RBI bans Paytm Payments Bank. According to RBI’s ban, Paytm can onboard new customers after the ban is removed.

What are the problems with Business model of Paytm?

The reason is Unjustified Valuation. When PhonePe and GooglePay were not popular at that time, Paytm was the only Fintech King. But as PhonePe and GooglePay started growing, Paytm’s UPI market share started decreasing. Today Paytm is at 1700 Cr loss. Paytm is not able to make profits from Payments Bank or any other thing. But interestingly, the fall in the share price of Paytm is not due to it’s loss. The actual reason behind that is something different. The reason is Unjustified Valuation.

When will Stock market Recover (or crash) |Russian Stock market

When will Stock market Recover (or crash) |Russian Stock market Stock market prediction stock analysis when will market recovered Russia vs Ukrain

So the markets are going to recover by 6 April 2022? Precisely. How do I know it? Because it is my birthday and that’s an auspicious day for the markets to recover. Okay, just kidding. Basically, the point of this bad joke is that no one knows when the markets are going to recover. But through this brief Article, I will share five specific logic driven points that will help you understand when our markets likely to recover fully and what the recovery might look like. And what are some of the challenges that might interplay during this time. If you read this Article carefully, you will get a very clear understanding as to what you should be doing in the market right now. Should you be buying, not buying in case the markets fall below, what is it that you should be doing? Understanding these macro steps is going to help you strengthen your portfolio. So please read This article very carefully and make notes.

I will speak in five very simple, easy to understand points. Point number one. It is very important for us to understand to what levels markets can fall.

Also read : How To Start a BILLION-DOLLAR Startup | How To Start A Start-Up

what levels markets can fall?

Now, very quick theory here that there are three types of corrections in the market. One is called as a minor correction. These keep on happening very frequently. These would usually be categorized as less than seven to 8% correction. Major corrections are usually between 10% to 20%. And then we have deep connections which indicates the start of a BEAR run. And here the corrections usually are more than 20%. So if we check the data for the US and Indian market, let us see what we find. So here is the chart for SNP 500. It indicates what is happening in the US market and you will see that the market fell by roughly 14.6%. So this was a major correction and then the market started recovering and it is backed up by roughly 7%. So the fall was 14 and a half percent back up by 7%.

Indian Stock market during Russia Ukraine conflict

Okay, so if we check the Indian markets fell by roughly 13% and they recovered by roughly 3.7%. Now why am I telling you these numbers? There is a method behind this madness and I would want you to take a look at this particular chart. Now, the source of this data is Goldman Sachs and what it indicates are the market corrections since World War II.

Now why am I telling you these numbers? There is a method behind this madness and I would want you to take a look at this particular chart. Now, the source of this data is Goldman Sachs and what it indicates are the market corrections since World War II. So this is a macro data and it indicates a range of things. For example, there are 26 corrections that have happened. Corrections? What type of corrections?

These are usually major corrections and the average decline of these corrections have been 13.7%. And these corrections have roughly lasted for around four months. Very important data point. Why? Because I telled you about the Indian index and US index.

Both were having around in terms of corrections by around twelve to 14%. And the markets have not been doing too well over the last few months. Now, please note that these are corrections. I’m not talking about the bear market scenario. I will show that to you in a minute. Right now, what we are going through in the market over the last few weeks, these are minor or major corrections. And the important point to note here is very simple that major corrections are usually around 13.7% average. We have hit that average. So prediction number one is that we are bottoming out.

Can the market solve further?

Of course they can fall further, no doubt about that. But the data tells us that we are very close to bottoming out and you should not try to time the market. Now, if you want to take some positions, now might be a good time to invest. Again, not investment advice. I’m just sharing what the data says. Now this brings us to prediction number two. Can the markets fall further? Because you will say that, Shivam, from the previous point, you established the fact that markets usually correct by 12-13 percent in a major fall. It has already happened. So

Can the stock market go down more?

The short answer is yes, it can, and it depends on a range of scenarios, especially around Ukraine Russia crisis. And here is a great chart for you. And this data has been provided by Bloomberg. If the essence of the story is that if the Russia Ukraine crisis further deepens, if the European countries act more sternly against Russia and Russia retaliates, that can hold the world trade and lead to bad, bad stuff in the macroeconomy, and that can further deliberate the market. So the word of the day today is deliberate date. So let me know, what does that mean?

So essentially, let us take a look at few key scenarios and you can Zoom out and read all the possible scenarios. One of the key scenarios that is being played out in the market is this, that European countries are going to put maximum sanctions on Russia. Russia will retaliate and they will cut off the European countries from its oil supply. Why is this such a major issue? Because if this thing escalates, it can create a lot of trouble in Europe and it can have spillover effects all across the globe. So let us very quickly understand this point. That is it likely to happen?

Not likely to happen, and the gravity of the situation. So there are two, three key areas I will point you to. One is take a look at this particular snippet. It categorically points out that Europe depends quite excessively on Russia for its gas supply. European Union relies on Russia for approximately 40% of its gas. At one point in time, it used to have other sources of gas procurement, but now it is heavily dependent on Russia. Germany, the largest economy in Europe, relies on Russia for more than half of its gas. Again, extremely dependent on Russia. And this is one of the key reasons why countries like Hungary, Italy, Germany are not imposing strict sanctions against Russia. So the point of this discussion is twofold.

Number one, it looks unlikely that major economies in Europe are going to impose strict sanctions against Russia. They cannot cripple Russia because Russia has a lot of ammunition in terms of retaliating. So therefore, my prediction is that the market should not fall too much. But in case any of these red scenarios happen right again, Zoom in and try to see this grid. Any of these scenarios highlighted in red pink. If these happen, then of course the stock market fall will be more.

How much more Stock market will fall?

How much more? This brings me to my third prediction. Now, since we are already in a major correction and roughly 13% correction has already happened, a deep correction is likely to exhibit in case any of those pink slash red scenario play out. So we are likely to see another 17% fall. Now, how did I reach that number? There is a chart for you and this data comes from Goldman Sachs and it indicates the bear market.Since World War II there have been twelve bear markets. So bear market means that more than 20% correction or deep connection has happened from its recent top. So the average decline has been 30% over a 14 month period and it takes 24 months to recover. So since we had a loss of 13%, if we have to move to the 30% Mark, we need another 17%, roughly speaking, as the fall. So the markets might fall by another 17% in case a red scenario occurs. And it’s very evident to the world that a recession is going to start only under that circumstances. I feel the markets are further going to fall by another 17-20%.

Now you’ll see Shivam scaring us. You’re talking about such end of the world scenario. No, I’m talking about all the possibilities and different prediction scenarios. And here is the good news. And let me go to the chart and try to explain this point to you. That when bear run happened in 2008, there was another bear run that happened here. You will see that this 2008 period had a W shaped recovery. It’s one point that the market fell, but how soon it recovered is another part of the equation.

So in 2008, it roughly took four and a half years for this recovery to get completed. In 2020, we had something called as a V shaped recovery. Right. So you can see this V figure and it literally took us months for this recovery to get completed. So the point or the moral of the story is that in case we move from this major correction towards the deep connection, there is a very high likelihood that the recovery also will be very fast. So in case you see recession happening. So please keep some liquid money at hand to buy more stuff. And in case a recession is coming, that will be a great time to aggregate a lot of stuff, because that is when you make the maximum amount of returns. But to complete this entire thought process, do I feel that the recession is going to happen? The answer is no.

Now comes my fourth prediction, that what will be the entire impact of a worst case scenario on a country like India.

Image credit Businesstoday.in

What will be the entire impact of a worst case scenario on a country?

So there are two, three key points that we need to understand that in case any of these pink/red scenarios happen, three key things are going to happen. One is that the world growth will suffer. No doubt about that. If Europe goes through a crisis, India, US, everyone will suffer in that crisis, no doubt about that. So the growth of India will also take a hit. This is point number 1.2. The inflation will go up. There is absolutely no doubt about that. This will also happen because of the fact that the quantitative easing will again take place. Government will print more money, interest rates will be cut, and we will move back to that 2020 scenario in India, especially. One negative point would be that because Russia might impose sanctions in terms of supplying gas to other European Nations, the oil prices generally will go up. It will go up high for India. India is a very big net importer of oil. Oil is used in literally every industry.

So industrial growth will also suffer a little bit. And it will have lingering impact on India’s economy, at least in short to midterm. So this brings me to fifth and final point, where I will summarize some of my key predictions and talk about what you and I should be doing as an investor. So point number one, do I see the markets falling? The answer is no, that I do not see it falling too much from this point on. But can I guarantee that? Absolutely not, because a lot depends on what Mr. Vladimir Putin decides, and no one in the world can guarantee what he’s going to do. So let’s assume the worst case scenario, that he further acts in a bad spirit and destabilizes the security of the world. Will we move towards the short term recession? The answer seems like a yes, that we will fall by another 15% to 20%. But the good news is that the recovery should be fast. The reason there is fairly simple. The world cannot afford to have another quick crisis in the making. In 2020, we had a major crisis just two years into it. If we have to witness another major crisis where the economy suffers for a very long period of time, the world just cannot afford it. So a round of quantitative easing will again start. Interest rates will be cut. So what you should be doing as an investor, you should at least go and invest a little bit of money in cryptocurrencies in case that scenario plays out because cryptos always go up whenever quantitative easing takes place. This is a fact not an investment advice. So assuming a moderate scenario where Russia decides to de escalate this entire situation, what is going to happen? We are going to recover very quickly. I think recovery has already started. The market is indicating that the crisis is bottoming out and so are the markets so we are already underway in terms of recovery and I will not be surprised that in the next few months we might be hitting that 18,000 Mark on Nifty again as an investor 2-3 points that I will leave you with. Number one please don’t stop investing. That will be the worst mistake that you might end up making but please keep some free cash at hand that in case some bad situation happens just keep 10% of your money in a liquid format and take some opportunistic bit in case some opportunity presents later. So this is the first key thing. Number two please avoid high debt companies if another round of recession happens high debt companies or companies that have taken a lot of debt a lot of high debt small cap and mid cap companies will go under. Therefore it is very, very important to be particular about the asset quality that you are purchasing.

FAQs Related to Stock market

what levels markets can fall?

Of course they can fall further, no doubt about that. But the data tells us that we are very close to bottoming out and you should not try to time the market. Now, if you want to take some positions, now might be a good time to invest. Again, not investment advice. I’m just sharing what the data says.

How much more Stock market will fall?

How much more? This brings me to my third prediction. Now, since we are already in a major correction and roughly 13% correction has already happened, a deep correction is likely to exhibit in case any of those pink slash red scenario play out. So we are likely to see another 17% fall.

Why TATA Nano Failed?

Tata Nano

Who Don’t know about Launch hype of TATA Nano. Everyone knows that TATA NANO was one of Cars produced by TATA MOTORS. But what were the reasons that Tata could not maintained this hype of tata Nano? Why TATA Nano failed? What were mistakes made by TATA? let know in today’s Article.

10 years ago, we often see banners and posters of TATA Nano on Every roads of India, In house, and also in newspapers and news channels, we were reading ” Tata Nano – World’s Cheapest Car”. But Tata Nano couldn’t converted or unable to convert this hype in Sales.But this slogan affected on people’s mind on opposite. In trying to make Tata Nano world’s most cheapest car designed in india for family, Tata Nano’s reputation got opposite. This slogan started targeting people’s mind and because of this people started calling it a Cheap price car. At that time it was assumed that TATA Nano is for poor people and middle class man who can’t afford a car. And just because of this and to show off their standards and to maintain their Urban-living status people started neglecting Tata-Nano.

Tata Nano

Also read: Why Nokia Failed? business Case Study Of Nokia

This was the first reason why TATA nano failed and let’s talk about second reason of failures of Tata Nano. With this there were a lot of mistakes also made by TATA MOTORS. Tata Nano faced a lot of mistakes during the production time of Tata Nano car. At time of intial production of Tata Nano there were also a lot of technical and issues and stability issues that consumers and buyers disliked. This was one of the major reason of its failures. Even it was also declared unsafe by a lot of agencies.

How facebook/meta makes money|Marketing strategy of Meta/Facebook

How facebook makes money

how facebook makes money meta marketing strategy meta full detail how meta makes money meta stocks Facebook stocks Facebook earning Facebook stocks meta stocks

Facebook is a social network that makes it easy for anyone to connect and share with family and friends online. Today Facebook is the world largest social network with more than 2 billion monthly users worldwide. the platform accounted for 60.68 of all social media site visits in the united states in 2020 and its revenue amounted to roughly 86 billion dollars up from 70.7 billion dollars in the previous fiscal year. But how does facebook make its billion dollars what are meta/Facebook streams of income?

First Facebook/Meta Stream of Income: Advertisement

Facebook currently makes 98.5 of its money from digital advertising mostly ads on facebook and instagram the company posted 84.2 billion dollars in advertising revenue in 2020. A growth of 20.8 during the year through facebook ads marketers pay for ads based on the number of impressions delivered or the number of actions such as clicks undertaken by users ads are displayed on facebook main social networking site as well as instagram messenger and other third-party affiliated websites or mobile applications. The main reason for the success of facebook advertising business model is that users share a large portion of their life on the platform and because of that the amount of time people spend on the so-called news feed is crucial to increase the profitability metrics of the company all the data that facebook collects allows advertisers to find their perfect audience by narrowing down their search to a niche group of people using facebook audience and interest targeting even though each click may not cost that much it quickly adds up to billions of clicks and billions of dollars on the marketer side having access to such powerful advertising tools is very valuable for small to medium-sized businesses which are now able to compete with big companies without having large advertising departments .According to facebook there are now 10 million businesses globally that use their advertising platform same as with the facebook platform the company also makes money from ads on instagram.

Facebook doesn’t have a lot of ads on whatsapp or facebook messenger yet so those platforms don’t contribute much revenue at the moment the ads and the old news feed on facebook and instagram make the most money but ads in the disappearing stories are also becoming much more popular and making more money each year. Interestingly most of facebook revenue now comes from ads on their mobile apps in 2012 facebook launched its mobile ads program which up until then didn’t feature ads the strategy ultimately proved successful and was a big change from the company early days when most of the revenue came from the Facebook official website. Another major improvement happened in march 2014 when the company introduced its three-level advertising campaign structure offering campaigns and ad sets on top of standard ads which was designed to make it easier for advertisers of every size to organize optimize and measure their ads however facebook has been recently rolling out some privacy tools that allow users to prevent some of their data from being used for targeted ads these privacy tools may become a headwind for revenue growth in the future which could make targeted ads less effective and less popular with advertisers the company known advertising related revenues amounted to 1.8 billion dollars in 2020.

How facebook makes money

Second Facebook/Meta Stream of Income: Hardware

Two of facebook hardware products are part of this category oculus it virtual reality headset and facebook portal its video calling smart device. In march 2014 facebook decided to invest in VR by buying oculus for 2 billion which helped to boost consumer awareness of the brand. Zuckerberg is a big believer in the future of digital connection through AR and VR areas where facebook has been investing big oculus has partnerships with major technology companies including microsoft and samsung which places the oculus products in the spotlight of the technology industry. Its current products include the oculus rift headset for pcs as well as oculus go and oculus quest standalone headsets that contain integrated mobile computing hardware and do not require a pc to operate all virtual reality headsets sold worldwide in the fourth quarter of 2020 the oculus quest 2 led the way with more than one million of the vr headsets being sold additionally the company has confirmed that there are over 60 oculus quest games generating more than one million dollars in revenue with six games making over 10 million dollars in revenue but oculus didn’t single out those six games or provide specifics. Yet as i mentioned earlier facebook other hardware product is its facebook portal a smart display developed in 2018 the product line consists of four models that provide video chat via facebook messenger and whatsapp the devices have a screen and video camera that can follow you as you walk around the room while video chatting with a friend or family member.They’re also integrated with amazon voice controlled intelligent personal assistant service alexa but facebook did’t disclose how much money they make from the portal yet.

Third Facebook/Meta Stream of Income: Enterprise Software

Facebook offers a service called workplace which is a way for businesses to manage their internal communications the service was launched in 2016 and it counts companies .Such as spotify and starbucks amongst its clients it competes directly with business communication services like slack and microsoft teams which have respectively 12 million and 145 million daily active users. workplace has a free subscription option but its advanced service costs four dollars per month for each user and eight dollars per month for enterprises there are over thirty thousand businesses and organizations globally that use workplace which today has over seven million paid subscribers.

How Facebook/meta will Make money in Future?

facebook marketplace the craigslist like service where users buy and sell with each other now has one billion users facebook doesn’t charge list fees or take a cut of commissions so for brands approved to list products marketplace is essentially a free organic distribution channel. The platform is growing and has a lot of potential this means that facebook may take advantage of that one day facebook also sees a big market opportunity in digital payments and they recently started rolling out a new service called facebook pay.

Facebook/ Meta is also developing a cryptocurrency called “libra” which has the potential to disrupt the global payment space in the future and that why payments may become a significant revenue source for facebook. One of facebook biggest growth areas is e-commerce with facebook shops and instagram checkout the company is investing heavily in online shopping sees a big opportunity here because people already use their services to discover new products and shop and the number of business profiles is increasing another future monetization opportunity for facebook. Facebook is business messaging on whatsapp on facebook messenger many businesses are already using these messaging platforms to communicate with customers many websites now have facebook messenger chat widgets that customers can use to send messages directly to sales or customer support and for that reason the company is likely to find ways to monetize these features in the future. what do you think about facebook what would be the next move for them to become more profitable? Let me know in Comments.

FAQs Related to Facebook

What is Facebook/meta?

Facebook is a social network that makes it easy for anyone to connect and share with family and friends online. Today Facebook is the world largest social network with more than 2 billion monthly users worldwide. the platform accounted for 60.68 of all social media site visits in the united states in 2020 and its revenue amounted to roughly 86 billion dollars up from 70.7 billion dollars in the previous fiscal year. But how does facebook make its billion dollars.

Facebook Earnings from Ads

Facebook currently makes 98.5 of its money from digital advertising mostly ads on facebook and instagram the company posted 84.2 billion dollars in advertising revenue in 2020.

Why are Cryptocurrencies and Stocks crashing after Russo-Ukrainian Conflict explained

After Ukraine and Russian war, cryptocurrencies and stock market is experiencing a huge breakdown, which has never been experienced before.Why are Cryptocurrencies and Stocks crashing after Russo-Ukrainian Conflict explained This war has affected the world s leading cryptocurrency Bitcoin at large which has plunged down well below than 35000 dollars, along with Ethereum and dogecoin. So, what is happening guys?Let s find out! In this article we are going to talk about why cryptocurrencies are falling after Russian invasion of Ukraine

Bitcoin enthusiasts have long touted the cryptocurrency s value as a safe haven to hedge against inflation and other risks in traditional markets. But hours after Russian President Vladimir Putin ordered his troops to invade Ukraine on Thursday, cryptocurrencies plummeted. The world’s most valuable cryptocurrency fell below $40,000 over the weekend and has continued to slide as the Ukraine crisis intensifies.

According to the data, the currency has lost almost half its value since its November high of $68,990 due to geopolitical tensions, the prospect of interest rate hikes by the US Federal Reserve and curbs by some major economies on digital assets. Bitcoin, the digital asset most often referred to as an alternative to gold, plunged 8% within hours of Russia invading Ukraine, with prices tanking to $34,413 per coin. Along with that, Ether, the native currency of the game-building blockchain Ethereum, has crashed 7% to $2,404 per unit.

Also read : Russo-Ukrainian conflict explained Case Study of Russia vs Ukraine

Etherium crash

Additionally, Ethereum s rival Solana, which is popular among NFT creators, tanked 10% to $83, and Even Shiba Inu, a meme coin which enjoyed logic-defying 49,000,000% growth last year, sank 10%. Apart from the leading cryptocurrencies, smaller cryptocurrencies took an even wilder ride, with XRP plunging 12.6% before recovering to be down just 1.2%. Cardano fell 9.7% before recovering to just 1.0% in the red, while Solana was up 1.9% after having plunged 9.0% in the morning.

According to market tracker CoinMarketCap, the total crypto market lost $160 billion of value in the past 24 hours, plunging 10% since the Ukraine invasion began. However, Bitcoin has been on the roller coaster ride since last year. Over the past year, as more institutional investors piled onto the cryptocurrency bandwagon, the value of Bitcoin and its peers have tracked traditional markets more closely, falling when regular stocks tumble and gaining on broader bullish sentiment.

But of course, crypto isn t the only asset that has tanked on news of Russia s invasion, or even in the buildup to the event, as Europe s benchmark Stoxx 600 index dropped 2% after opening Thursday, while analysts expect the S&P 500 index will trim 7% in weeks to come. But the fact that crypto is falling in lockstep with other assets is counter to Bitcoin s identity as a safe haven. According to Chris Dick, a quantitative trader at crypto market maker B2C2: The correlation between crypto and stocks has been high over the last few months on both inflation-related macro news and the Russia-Ukraine geopolitical situation. This correlation shows that Bitcoin is firmly behaving like a risk asset at the moment not the safe haven it was touted to be a few years ago. In addition to Chris, some industry leaders in the crypto space recognize Bitcoin s gradual integration with traditional markets as a fundamental shift in the coin s value as an asset albeit a shift they can t make sense of yet.

We re probably in a new regime than we ve been in the last year and a half, CEO of crypto marketplace FTX, Sam Bankman-Fried, tweeted Thursday. We ll have to see how things work here. On the flip side, other crypto enthusiasts maintain that the fundamental values of cryptocurrency haven t changed, and that Thursday s slump is an opportunity to #buythedip, encouraging investors to pile into cryptocurrencies now that their prices are low. Vikram Subburaj, CEO of India s Giottus Cryptocurrency Exchange, stated that the current crisis also presents an opportunity to invest in these assets at a lower price. Certainly, Bitcoin might well make a comeback, as it has in the past. Edward Moya, a senior market analyst of the Americas at Oanda, said in a note to clients Thursday that: “many crypto investors have been humbled by the last crash. They are hesitant to increase holdings given the tremendous uncertainty for risky assets,” Moya also predicted that bitcoin would likely continue to “see decent resistance from the $40,000 level as geopolitical tensions will prevent risky assets from mustering up much of a rally.” Cryptocurrency price moves have increasingly become more correlated to movements in other risk assets like stocks, as institutional interest builds and more short-term investors trading bitcoin like other risk equities have entered the market. According to Anto Paroian, chief operating officer at digital asset investment fund ARK36: “The current geopolitical situation will inevitably have an effect on the already elevated prices in the commodities market and aggravate the already-serious supply chain issues which, in turn, could elevate inflation.

This means that the Fed and other central banks may really have no room to reverse their hawkish course and we can expect risk assets and cryptocurrencies to go deeper into the bear market territory.” In addition, during the Russian-Ukraine crisis, Global stocks and US bond yields dived, while the dollar, gold and oil prices rocketed higher as investors scrambled for perceived safe-haven assets. European stocks alone plunged 2.6 percent. “We’ve seen what we’d expect so far – BTC and cryptocurrency markets following stocks,” said Jospeh Edwards, head of financial strategy at crypto firm Solrise Group. “All things tend to correlate in crises, and we’re expecting similar here, so worse is likely to be in store over coming days.” Now let s talk about how the United States is reacting to the war crisis! President Biden on Tuesday afternoon announced new sanctions against Russia as a result of what he called a “Russian invasion of Ukraine,” a response to Russia President Vladimir Putin’s move to send forces into Ukraine’s eastern breakaway regions. Mr. Biden said the sanctions, closely coordinated with allies and partners, will target two large banks in Russia and its sovereign debt. President Joe Biden said that the U.S. will introduce another wave of sanctions against Russia that would limit its ability to do business in dollars, euros, pounds, and yen, in an effort to isolate Moscow from the global economy. The United States and its allies will impose “severe sanctions” on Russia after the attacks, US President Joe Biden said. EU foreign affairs chief Josep Borrell also promised the toughest financial sanctions the bloc had ever imposed. Russia is responsible for 13.6% of the world s cryptocurrency mining, making it the third-largest producer after the US and Kazakhstan, according to data from Cambridge University. On the other hand, Ukraine s role in global crypto mining is negligible. As the Biden administration and European leaders prepare to unveil sanctions against major Moscow financial institutions in response to the invasion, some analysts say the country could further embrace cryptocurrencies as an alternative to the US-dominated global financial system. Therefore, Cryptocurrencies could help Russian companies bypass the big banks when making transactions. Countries subject to US sanctions including Iran and North Korea have used similar measures. Now, not everyone was negatively affected by the war! If we look at stablecoins for instance, which are virtual tokens pegged to traditional currencies such as the U.S. dollar. According to the data revealed, stable coins held gains on Thursday in the midst of a sell-off in risk assets such as stocks and bitcoin after Russia launched a full-scale invasion of Ukraine. Most stablecoins were slightly higher on the day. Their market capitalization was up 0.3% at $182.5 billion, according to cryptocurrency data tracker coinmarketcap.com. According to Joe Dipasquale, chief executive officer at BitBull Capital, which manages crypto funds: “While stablecoins have a much tighter range and less volatility than other crypto assets, in reality their supply is limited. When there is a spike in demand for assets like USDC on exchanges, it’s possible to see their value go up a fraction of a percent, as we’ve seen in the last 24 hours,” So, in conclusion, the Russian invasion has dampened the notion that bitcoin is a safe haven. In fact, the world’s largest cryptocurrency has behaved more like a risk asset. Since the beginning of the year when the Russia-Ukraine crisis started percolating, bitcoin has lost 22% of its value against the dollar. To cope with this, Investors have flocked to Treasuries and the U.S. dollar, and even gold, the asset that has been compared to bitcoin. But perhaps the most damning indictment of Bitcoin s value as digital gold is that while most asset prices have plunged on news of war, real gold actually went up, hitting a 13-month high Thursday, approaching $2,000 an ounce. This is the reason why stable coins held gains during the crisis. However, the major concern for the investors and traders at the moment are those cryptocurrencies that are experiencing continuous loss, and as long as the war goes on, the crypto world will continue to suffer.