Biotech news related to the coronavirus has catapulted the whole stock market. Some of the most significant swings on the stock market revolved around coronavirus and biotech companies. Since May 18 when US biotech Moderna announced some positive data for coronavirus treatment, the biotech stocks continue to spike. 

With the hope of profiting on the first cure for Covid-19, investments in young, innovative biotechnology companies have seen strong growth in recent months. But beware of the scrapping, the biotechnology market is one of the riskiest. 

The race for the Covid-19 vaccine is fueling the price of biotechs 

Biotech companies have experienced a real boom in the financial markets in recent months. The Covid-19 pandemic is prompting many investors to bet big on young companies likely to find a cure for the virus.

Thus, American biotechs have raised more than $ 9 billion on the stock market in recent months, against “only” $ 6.5 billion in the whole of 2018, according to data from Dealogic. From May 18, when Moderna announced positive results, Nasdaq spurred to a 2.4% gain and the  S&P 500 to  3.2%. 

This blind race for the drug or miracle vaccine risks leaving individual investors behind since biotech is one of the most volatile markets. Biotech companies often have only one or two product candidates for treatment in stock, and often none on the market.

They must therefore finance their research and development, without yet having a significant income. Even as a specialist, you need a very fine-grained diversification and risk assessment approach. 

Wave of IPOs 

From Bio World’s report, we could see there were 495 experimental treatments for coronavirus as of July 23, 2020, with 158 potential vaccines in development. Moderna’s innovative technology is one of them. The American biotech has seen its share price go from nearly 19 dollars in January 2020 to nearly 70 dollars at the end of August, for a valuation of more than 26 billion dollars. 

These numbers are in correlation with the Operation Warp Speed. It has been initiated by the Department of Health and Human Services in aim to deliver 300 million vaccine doses by January 2021. 

But the promises of its biotechs are too good not to attract investors, eager to generate a quick profit. It’s evident that there is a positive interconnection between daily Covid daily cases and the Nasdaq Biotech Industry Index. Young companies benefit from this.

The number of IPOs of young biotechs has increased; each of the new entrants has seen their prices rise. This is the case of the German CureVac, introduced on Wall Street on August 14 and whose market capitalization is around 10 billion dollars.  

States are also joining the fight. The US government has signed a $ 1.3 billion contract with Moderna to purchase one million doses. Its contender for the vaccine is among the most advanced in the world.

It is in phase 3 clinical trials, just like that of the alliances between the University of Oxford and AstraZeneca or Pfizer BioNTech. But the inflows of money by states do not mean risk reduction. 

In Conclusion  

The stock market that is causing young biotechs’ prices to soar raises the risk of a small financial bubble bursting. 

Biotechs that fail before they are put on the market – that is to say, the vast majority of them – will see their value drastically reduced. Such risk for a professional financial actor remains, in general, under control because it is diluted with other values.

Thus, if you want to be a biotech investor, the most important skill to have is looking beyond the headlines and risk management. 

Equity release is available to people over the age of 55 who own their property outright. There are two options for equity release: lifetime mortgages and home reversion. Below, we’ll take a closer look at each and why you might want—or not want—to release equity from your home.  

Lifetime Mortgages

A lifetime mortgage is a loan you take out against the value of your property, while retaining ownership of it. Typically, the maximum amount you can withdraw is 60% of your property’s value, either as a lump sum or in smaller increments. However, the younger you are, the less equity will be available to you. For example, 65-year-olds can generally borrow 25% or 30% of their home’s value.  

Additionally, the younger you are, and the longer you live, the more expensive the loan will be. This is because, with traditionally lifetime mortgages, you won’t make any repayments on the loan while you’re alive, so the amount owed will grow as the unpaid interest ‘rolls up’ (is added to your loan). This means the loan amount can escalate quickly. There are now some lifetime mortgage products on the market that allow you to pay off the interest over the term of the loan, however. 

Interest rates on lifetime mortgages are either fixed for the lifetime of the loan or variable. If they’re variable, there will be a cap, or upper limit. 

With a lifetime mortgage, you have the right to remain into your property until you die, provided it remains your main residence. The principal and the rolled up interest is paid back after your death or when you move into long-term care, via the sale of the property. You can ring fence a percentage of the property’s value for your heirs, however. Lifetime mortgages come with “no negative equity guarantees,” meaning that when the property is sold, if there isn’t enough to pay off the loan, after estate agents’ and solicitors’ fees have been deducted, neither you or your estate is liable for the remainder.  

When you compare mortgages for equity release, read the terms closely to ensure your money, and rights to the home, will be protected. 

Home Reversion Schemes

With a home reversion scheme, you sell all or a portion of your home to a provider, in exchange for a lump sum or regular income and then remain in your home as a tenant, although you pay no rent. When your home is sold, following your death or move into long-term care, the home reversion provider will pocket their share of the proceeds. 

Typically, with a home reversion scheme you can access between 20% and 60% of the market value of your home—less than the full value were you to sell it. The percentage of its value you receive that may increase with certain providers as you get older or if you have certain health conditions. Most home reversion schemes are only be available to those over 65. 

Is Equity Release A Good Idea?

Equity release can enable you to access the value you’ve built up in your property over decades, to fund your retirement or care. It can be an alternative to selling the property, giving you some of the financial benefits of downsizing without requiring you to move. Equity release schemes can also help you limit your liability for inheritance tax and with ring-fencing, still pass money onto your heirs. 

However, you’ll no longer be the sole owner of your home and the plans can be inflexible if your situation changes. They may not be portable to another property, should you need to relocate, and you may require permission from your lender or provider to have anyone else, including a partner or carer, move into the home.

The amount of money you leave to your heirs will also be substantially reduced, as the provider will receive their share of the sale price of the home. You’re typically also required to keep the building in a good state of repair, to ensure your provider receives a return on their investment in it, and they may carry out maintenance checks to ensure you’re doing so. 

If you’re considering using an equity release product, it’s important to seek out financial advice and to carefully compare all the products on the market. 

Many new investors make the mistake of investing their money in one area. They are then shocked and disappointed when that investment falls through, and they are left with nothing to show for their time and hard work. Some won’t even break even which is a definite issue and one that should be rectified. The benefit of investing multiple areas is that even if one investment fails, the others will hold up your portfolio and hopefully, with the wind in the direction, keep you at a high level of profitability.

The key thing to think about here is where these investments are going to be. And, we do mean that ‘where’ literally. This can be done thanks to a net worth tracker. When you’re thinking about investing your money, you might be planning on staying quite close to home. But there are a few investment possibilities with international features that may just change your mind.

So, let’s look at some of the possibilities and discover why you should be playing an away game with your investments.

Foraging For Forex

Forex trading is simply put, the trade of different currencies. When you’re investing in forex, you will essentially be monitoring the the rates of different currencies and changing where you invest based on the altercations in exchange rates. So, for instance, if the dollar suddenly rose in value tomorrow, you’d be wise to invest in it. Although, arguably it would be even better to invest before it started to rise by recognising the signs.

So, to invest in forex, you need to be able to read patterns. You need to be able to almost predict what’s going to happen based on changes in the economy and as such it doesn’t require a certain level of skill.

You can invest in forex with no knowledge of world deals and issues in the economy at all. But without this type of information, you’re probably not going to gain that much money from your investments. Particularly, if you are not investing that much money, to begin with. Don’t forget that a lot of amateurs use forex as a way to play with small amounts of money.

If you do want to use this for larger investments, our recommendation would be to make sure you use a broker. This is a fairly typical service for investors, and it will certainly help you out if you want to make a lot without risking any money that you decide to put in.

Rising Economies

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You might feel more comfortable playing your cards closer to home with investments. But do be aware that your local economy probably isn’t as profitable as say, China or indeed, India. Both of these economies are growing at a rapid rate, and with it, they are bringing massive potential possibilities for investments. If you want to look at where to invest your money, look at where the big boys are investing theirs. Take Warner Bros. as an example. They just committed to opening a massive theme park to rival Disney World in the UAE, another place where the economy is booming.

This is something worth bearing in mind if you are interested in investing in companies, startups or small entrepreneur projects. While it’s possible that there’s a great investment possibility located just down the road, it’s also possible that there’s an even better one half a world a way. The advice here is to make sure that you are searching far and wide when looking into different investment possibilities. You should not just be immediately gravitating towards the nearest option.

Remember when we’re talking about purely financial investments, it doesn’t really matter where the money is going. These days, it’s easy to handle international financial transactions through services like Paypal. As long as you can trust the project that you’re investing in, there’s no reason not to look further afield. That’s certainly true when thinking about property.

International Property Options

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Why should you look at international properties when deciding to invest in this area? Well, there are a few reasons, and the most obvious would be holiday homes. If you’re new to the property investment industry, one of the safest possibilities might be to invest in a property in or close by to a hotspot for tourism. So, for instance, you could choose to invest in homes in Orlando, Florida, home of Disneyworld and Universal Studios. That would be a safe bet because every year millions of people flock their for fun in the sun. It could certainly be a more appealing option compared to say, a state that people barely ever even hear of in America, where you might reside. Or, a country that sees very little regarding tourism. Of course, there is another benefit to buying in this are and it’s true for other locations as well.

Buying property in an international location can be a damn sight cheaper than what you might be accustomed to. This makes it easier to crack your way into the property market, even if you don’t have the capital that you thought you would need. Once you checkout the exchange rate, some international properties aren’t going to stretch your wallet that far at all. You can get decent investment opportunities for the right price that you would have never dreamed of in the past.

Is that the only benefit? Actually no because you’ll also on some occasions find that regulations, laws and even bills for owning property differ depending on location. So, while in one area you might face a massive tax bill for owning a second property in another country things might be quite different. It’s just another example of how looking a little further afield really could be the best option for you here.

Away From Local Issues

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There is one other reason why you might want to look at international options when checking out your next investment possibility. You can escape the issues with the economy in your country or even your local area. Take Aberdeen as an example here. Aberdeen is a city in the North-East of Scotland that is quickly becoming a ghost town as reflected up on at https://www.theguardian.com/uk-news/2017/. Gradually people are moving away as the jobs dry up because of the Northern sea being drained of oil. There’s nothing to bolster the economy anymore, and if your entire income was based in that area, you could be in real trouble.

But what if it wasn’t. What if instead, you add safety funds in other investments, far from that location? That’s exactly what we’re talking about here. You can make sure that you do have an investment that isn’t affected by what’s going on in your local area. So, while other people have to consider moving or downsizing, you could still be completely comfortable. Now obviously, the pendulum could swing in the opposite direction, but you’d still have your other income as a safety net.

We hope you see now why it is a smart move to look at international options when considering investment possibilities.

The problem is that it is always hard to find the perfect investment.

Investments are volatile, and they change like the weather. One year a certain asset could be lucrative, and the next it could be worth nothing.

The best thing to do is to take it year by year so that you don’t fall into a trap.

For 2023’s investments, take a look at the list below. The following will make you a lot of money this year alone.

Energy Stocks

Thanks to the dip in the oil market due to the influx of oil, energy stocks have dipped in the last couple of months.

However, the savvy investors among you will realize that isn’t going to stay that way for very long. As the world begins to come finally out of recession, the demand for oil will rise.

Plus, the Arab and South American countries can’t continue to subsidize the price for too much longer.

When the oil prices rise, the energy stocks will follow suit. They are low at the minute, which means a high future yield.

Thanks to a swing trading alert system, you can be the first to know when this happens. Keep monitoring the oil markets and get ready to invest in energy stocks at the right moment for a big gain.

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Real Estate

Following the crash of 2008, the property market was in freefall. Thankfully, that isn’t the case anymore. The market is starting to rise from the ashes, and that is a good opportunity.

At the minute, it hasn’t fully recovered, which is to say there are plenty of bargains lying around. If you can find houses to fix and flip, you can make a killing. The good thing about real estate is that you don’t need to sell straight away, either.

Renting is also an option and a good one if you want a steady stream of money. Now is a good time to invest because interest rates are low as well as house prices.

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Gold

The one thing about gold is that it preserves its value. Over thousands of generations, gold has preserved the same amount. For example, an ounce of gold would cost somewhere like $40 in the 60s and 70s.

The money would be enough to buy you a new wardrobe, for example. Today, you could still get a new wardrobe with an ounce of gold. The $40, however, wouldn’t get you very far in today’s currency.

Also, it is worth noting that central and federal banks are trying to raise their gold reserves. Whatever the reason, they want as much gold as possible. If you have it, they will pay a very good price to take it off your hands.

Virtual Reality Technology

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There is a reason Facebook invested in Oculus – the future of entertainment is in virtual reality. In the not-too-distant future, the technology to project live events in your front room will exist.

It might sound futuristic, but that is the probability. If you can get your hands on this technology early on, you will make a fortune in the long-term.

Every man and their dog will want a piece, and means you can name your price.

All of the above are great investments for 2016. But, that could change by the end of the year.

It’s one of those things that everyone knows they should be doing, but many people don’t because they’re not sure how, when, or where to invest.

Today, we’ll talk about three solid investment vehicles ordered by risk from low to high, how they work, and why they are profitable.

So, let’s get right to it.

Investing In Bonds

Bonds are great for investors that are looking to make more money than is offered through interest on a savings account, but are not willing to take on much risk.

While the yields on bonds are relatively low compared to other investment types, the risks associated with these types of investments are slim to none.

Bonds are essentially debt. They can come by way of treasury bonds, municipal bonds, and more.

However, they all work in about the same way. When you purchase a bond, what you’re really doing is making a loan.

The company or municipality that you give the loan to agrees to pay you a specific amount of money as interest on the debt as well as pay back the debt at a predetermined time.

These are the safest forms of investments because even if a company does go out of business, they have to pay their bond holders back before paying their stock holders back.

Traditional Stock Market Investing

For those looking for a larger return and willing to take on more risk in order to achieve a larger return, traditional stock market investing is a great way to go.

When purchasing stocks, investors aren’t issuing debt. Instead, they are literally buying a small piece of the company they are investing in.

Therefore, when the company produces earnings, they are entitled to their piece of the earnings. The idea behind traditional stock market investments is to purchase stocks at a relatively low price in a company that the investor believes will grow in value.

As the company grows in value, the stock in the company becomes more valuable as well.

At some point, the investor sells their shares for the current market value, and if the proper research was done before purchasing the shares, the investor will realize gains from the growth in the value of the company.

Using the best stock screeners helps investors to analyze and find the stock that is best suited for their particular situation. Whether it’s looking at the price-to-earnings ratio of a company or researching a company’s competitive position in comparison to other companies in its sector, there are plenty of resources available online to help investors make informed decisions about their investments.

Binary Options Trading

For those that are looking to maximize the amount of money they make from their investments, and of course are willing to take on the high risk associated with doing so, binary options are a great way to go.

Binary options are a derivative investment. This means that the binary option itself has absolutely no value.

Instead, the value in the trade is derived from the underlying asset associated with the trade. When trading binary options, traders make predictions with regard to which way the value of a financial asset is going to go over a predetermined period of time.

If the trader makes accurate predictions, the options will expire in the money and the trader will earn returns on their investments of more than 70%.

However, if the predictions are incorrect, the trader will lose 100% of their initial investment in the option.

It is possible to manage risk because the trader has complete control over the amount of money they are willing to risk at any given time.

So essentially, binary options yield high profits with fixed risk.

Final Thoughts

It’s understandable that many people don’t invest because they don’t know how to invest or where to put their money.

However, the reality is that investing is actually a relatively simple process.

Using any of the vehicles above, you have the opportunity to let your money work for you!

So, what are you waiting for?

Start investing and making your money grow!