Archive for November 2012

3 Ways to Invest in Ecommerce

The percentage of consumers who has made a purchase online is breaking new records each year, with tablet and smartphone usage leading the way. Over 75% of all consumers have made an online purchase, with many making them regularly. Retailers have pushed to offer their services online, and ecommerce start-ups are seeing significant profits as a result. If you are looking for an area to invest in, ecommerce is a good one. However, finding ecommerce stocks to invest in can be a daunting task, as there is no official ecommerce sector or list of stocks out there. There are several ways to invest in ecommerce. The following are three of the most promising.

Ecommerce Stocks

If you wish to invest in ecommerce stocks, the first step is to compile a working list of the top stocks out there. This will involve some time and research, using online stocks lists to comb through multiple sectors. Common sectors to find ecommerce stocks in could include technology, retail, and services. Another way to go about this is to think of your favourite ecommerce retailers, or to research sales figures to find out who has made a strong showing in the past quarter. Review daily charts, and compare individual stock charts to the NASDAQ. In addition to sales figures, take a closer look at the ecommerce website. Do they have a large social media following? Do they have easily integrated payment gateways to enable sales? These are just a few factors to consider when picking and choosing stocks to purchase. Read more

Eurozone Crisis Update – France’s Suffering is Good for Shares

As they say, one man’s plight is another joy. Recently Moody downgraded France to Aa1, on concerns that the public deficit of 90% of GDP might slow growth considerably. My first reaction was – “What growth?”. In France, this is a long term discussion, yet there is no end in sight – neither is there a program for sustained growth in this country.
As a consequence, most French companies are now eying major cost reductions. It is well known that France lags behind the other major Eurozone economies in terms of productivity – the 35 hour workweek, together with the increased power of unions for sure cannot help here.
As said, this was good for shares. Global European Indices went up – “the FTSE Eurofirst 300, which had its biggest one-day gain for 10 weeks on Monday, recouped most of its early losses and was down 0.1 per cent at 1,089.71.” (quoted from Financial Times). This is only natural – if government bonds are not longer trustworthy, it means that money will flow to other investment vehicles, the most in hand being shares. Companies are also much more likely to reduce costs than the socialist Hollande government, which now faces more and more tough demands from both its electors and from the companies, all in suffering. And by the way, Moody’s threatened it can downgrade further France’s investment rating, if it fails to implement reforms.

Eurozone Crisis – Greece Relieved with a 5 Billion Loan

Good news hit the markets as fast as bad news and this is what happened with the recent announcement that Greece managed to secure another EUR 5 billion loan these days via a public auction. Not great, but critical news were these. Without the new bonds issue, Greece would have defaulted the next week’s repayments.
Unfortunately, the story is far from over. The Eurozone decision makers have failed to reach an agreement on how to tackle Greece’s huge debt. Some minister’s proposal to cap the public debt at 120% of the country’s GDP was strongly opposed by other countries (mostly the Nordics), especially because this would mean a haircut on the loans. Borrowers never want to lose money. Read more