To say the least, global financial markets are off to a bad start in the New Year. Given all of the headlines surrounding China, we thought we would give a market recap and try to untangle recent events, sorting out the clamor from the meaningful developments.
What’s Up With China?
The facts are easy to see. The Shanghai composite is now down almost 16%, only a few trading days into the New Year. Even the large-cap CSI 300 index is down 15%, signaling big outflows from China’s equity markets.
Chinese regulators tried to arrest the fall by implementing ‘circuit breakers’, similar to what is built in to American markets, where trading is halted for a time if stocks fall more than a certain percentage, and then closed for the rest of the day if they fall even more after reopening. The idea is to make everyone take a break and cool off in times of extreme volatility.
Chinese markets have been blowing up these circuit breakers. On January 4, markets lost 7%, triggering the circuit breaker and closing the market for the day. Then on Thursday, January 7, Chinese markets opened sharply lower in the first few minutes. The 5% drop triggered a 15-minute halt, but when trading resumed, the slide resumed as well, again triggering the 7% loss and market close for the day. Thursday’s trading day lasted only 29 minutes.
People all over the internet have been re-posting and talking about a recent analysis done by The Telegraph that found Lego® sets have been a better investment over the past 10 years than savings accounts, stock and even gold! So should savers start hoarding the Danish construction toys to preserve their wealth, instead of gold coins? We will explore this question as well as a more interesting point the article indirectly makes about fiat money and wealth preservation.
Plastic Bricks vs. Gold Bricks
To be clear, the article notes that when talking about Lego sets over the past 15 years increasing an average of 12% per year, they are talking about sets in pristine condition, almost exclusively those bought as collector’s items and kept unopened in the original box.
The numbers come from their analysis of data from Lego price-tracking website brickpicker.com, which in turn gets its data from ebay sales of Lego sets. I have not crunched any numbers myself on this, but I have no reason to disbelieve their analysis. Further, 12% per year is a very impressive number, so are Legos going to become the new retirement savings vehicle?
Join the gym. Stop smoking. Cut out fast food. Be kinder. These are just a few phrases that will be uttered to ring in the New Year. If you’re like me, the resolutions may only last for a short while, but at least you tried, right? Unfortunately for us, change is difficult and it seldom happens that we find a resolution worth keeping. That’s where Anthem Vault’s own John Stuart comes in with his Responsible Resolutions, encouraging you, the reader, to save more money and to make wise investments.
In order to help you become a wise investor and increase profits as a consequence, here are my Top 5 Must-Have Stocks For 2016:
If you don’t know much about this Chinese e-commerce juggernaut, Anthem Vault’s Michael Scott wrote a compelling piece about Alibaba and what he sees for them in the near future. Though 2015 started off slow, there was no greater market presence than Alibaba in the second half of the year. Since the beginning of October, we’ve seen stocks grow by 41% in that short period. Alibaba also happens to be the largest e-commerce site in the world with 1 in 5 Chinese consumers as active shoppers. Alibaba offers a widespread tech market, and with China’s tech-savvy young consumers, they look to increase website traffic and business significantly in 2016. It’s no secret that the buyer is back in control at Alibaba, and with CEO Jack Ma aiming to make the company a global force through the partnerships with tMall, Starbucks and Disney, Alibaba should be one of the top stocks on your watch list.
It’s always a mind-numbing task to review the year that just passed, trying to piece together the puzzle of events – and 2015 was no different. From the investment side, precious metals had a slow and low year. Technology took some massive steps forward with the release of driverless car prototypes, ubiquitous Uber, a wide variety of drone applications, robots, 3D printers… the list goes on.
While technology has been punching away at the world’s troubles, ‘government’ has provided the endless background hum as we approach the 2016 elections. I won’t bore you with the details but amid heated talk of the war against ISIS, it is regulations and taxation that have continued their insidious influence, growing in reach akin to the way the money supply grows in such a speedy and unethical fashion. No, we aren’t here to remind you of the grim realities of the world; just to send some motivation and energy into your day-to-day life, and to ensure you are seizing each day and making it count!
We bring you the #BeResponsible campaign for 2016!
As New Year’s Eve looms, people scramble to fit a few more events into the remainder of the dying year and begin making plans for next year. It is the season of New Year’s resolutions. If I’m honest, I’ve never been much for New Year’s resolutions. It seems that most people never end up keeping them anyway, and they often consist of wishful thinking and empty promises. But it doesn’t really have to be that way.
There’s nothing actually wrong with making a New Year’s resolution, and in many cases it could actually be a good thing. My cynicism comes from the past failures I have witnessed, but failure to keep resolutions does not make them illegitimate. So maybe instead of being cynical and pessimistic, or just plain lazy, this is the year to set realistic and responsible goals and then stick to them. Here are a few goals for being more responsible with your money for the coming year.
Save More Money
This is definitely not a very exciting resolution. Saving money takes restraint, patience, willpower and commitment. It can be hard not to touch your money when you know it’s sitting there just waiting to be used. Thinking too much in the present can make it hard to look towards the future.
Spending money comes naturally to most of us. We love things, and what is money for if not to buy stuff? There is a certain amount of truth to that statement, but saving money is about planning for tomorrow instead of blindly thinking only of today. It is perfectly fine to buy things, but it should be done with restraint. Having some wealth stored up for later on can make your life easier and more comfortable in the future. It can provide safety for unforeseen accidents or maybe even help you retire early.
Make Wise Investments
Making investments can also be seen as a way of saving money. One way to save in this way is to invest in gold or silver. Buying precious metals is a way to save money for the future that can offer a better store of value than just stashing your cash under the bed. Keeping your money stored in gold or silver will also keep you from recklessly spending it. It’s not like you can just get up and go to Walmart to purchase some toilet paper with a silver round.
Of course, there are many other ways to invest that actually offer you the chance to make a decent amount of money. That said, investing for profit is not for everybody. It takes a lot of know-how and can be big risk. If you are going to get into investing, you should do lots of research and make sure you really know what you are doing before making any decisions. As you know, many companies will offer their employees 401K or stock options. These are more accessible ways via which the average person can get a foot into the investing door.
These points are all pretty general, but I guess in the end it’s up to you to come up with the specifics. These may not be sexy resolutions, like losing ten pounds. And in fact, you might need to commit to these things for more than just a single year to see a real payoff, but they are goals worth setting. Making a commitment to wisely save money and make good investments should be at the top of everyone’s list with the start of each year.
Season’s Greetings from your gold and silver providers at Anthem Vault, send gold to your loved ones via email for the holidays!
We are so excited to offer our customers an effective last-minute gift option for the holidays. One that will not only be exciting for those receiving it, but you can also rest easy knowing your loved one has begun or is continuing to protect their wealth from inflation.
Gold and silver are popular gifts all around the world. Jewelry, furniture, art, sculptures are given out each year during the holidays. Giving the gift of gold as a form of savings is no different. Christmas Day is right around the corner, and getting your physical gold and silver may be tough this late in the gifting game. However, you can easily send gold or silver via email to a loved one and show the appreciation you have for them in a few easy clicks.
It’s easy! And will surely put a smile on their faces!
Log in to your Anthem Vault account (if you haven’t signed up yet start here), in the righthand corner where it says “Buy Metal”, select the drop down menu and click “Buy Gift Certificate”. This will take you to a page where you can simply plug in your special person’s email and a special message, choose the amount of gold or silver you’d like to send and move forward with the payment process. It takes no time at all and will be a wonderful last minute gift that they will remember forever.
If you have any questions about your gift certificate, feel free to reach out to our support staff at email@example.com or call 1-855-428-2858. Happy Holidays to you and yours! May your holidays season be blessed with love, gratitude, and joy!
Anthem Vault has some wonderful products and services coming in 2016. Be on the look out for updates and if you haven’t joined our newsletter yet, now is the time! Sign up here – it’s free and informative…not to mention some awesome deals are released each month!
This easy gift of gold can be purchased year round at Anthem Vault. The option to purchase on Christmas morning is here! You don’t have to worry about not having a gift in time ever again! Same goes for birthdays, anniversaries, wedding gifts, and other special occasions. Give the gift of gold!