Financial Planning, Investments, My Life, Trading Secrets, Women Empowerment, World economy & politics
See original article at “Scrappy Women in Business”

Never give up! by Inna Rosputnia

SS 2016 KW Inna Rosputnia pic2

Inna Rosputnia was born and growing up in Ukraine at a time when it was a battleground between communism and democracy. A personal experience of this conflict, including poverty, struggling and intolerance — as well as a personal fascination with philosophy shaped Inna’s thinking in later years and influenced her successful strategies in both finance and philanthropy.

Inna graduated from 2 Universities and have Master Degree in Economy and International Relations. She began her career in finance field in 2007. In 2008 Inna became a Head of Financial Risk Insurance Department at Alfa Insurance IC (Ukraine) that is a part of Alfa Group Consortium – one of Russia’s largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments. Inna began trading futures, commodities, and stocks in 2009. She is working with individuals and families as well as institutions and corporate clients. Inna also makes investments in commercial real estate in different countries. Her real estate portfolio includes office centers and hotels.

Inna has been active as a philanthropist since 2013, when she began providing funds to help women in Africa to attend Universities and start own business. In 2016 Inna joined Cherie Blair Foundation for women, where she is working to promote gender equity, the values of open society, human rights, transparency and empower women.

Inna is the author of a book “Basic Instinct of Woman-Trader”, published in Russian and English languages in 2016. Her articles and essays on markets, financial planning, politics, society, and economics regularly appear in newspapers and magazines, like The Business Woman Media, Financial Magnates and other.

ABOUT THE AUTHOR: Inna Rosputnia – A futures trader and wealth manager, working with individual and institutional clients; founder and CEO of Lady F Wealth Management. I graduated from two universities and has a Master degree in Economy and International Relations.

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Financial Planning, My Life, Women Empowerment, World economy & politics
See original article at “Leaders in heels”

Everyone wants to get rich, but not so many people know what they need to do in order to get wealthy. Some people became rich by making one smart investment, but there are also others, who changed their mindset, habits and lifestyle to build their wealth.

Getting rich is not easy, but it’s definitely possible. Building wealth takes serious willpower, long-term vision and discipline.

Firstly, be honest with yourself and answer an easy question “Why do you want to be rich?” Just think about it. Do you want to travel? To have a luxurious lifestyle? To buy a big house? Money is only an instrument to reach some of your goals. That’s why it is really important to know what you want and what your true goal is.

Here are my tips that will help you become wealthy – or at least start you off on the right path:

  1. Monetise your talents and passions It’s great that you are good at something. I believe you are! If you want to become rich and you have a valuable skill, the best and smartest you can do is to create your business around your talents and passions. Remember, you signed up for something that you know in your heart and in your head that you love. If you love what you do, you are enthusiastic and optimistic about your project or business, you are happy to go the extra mile to make sure you reach your goals. Use your skills and passions to make money.
  2. Always promote yourself Promotion is one of the most important and most crucial part of any business.  Do not be scared to open your mouth. You need your voice to be heard. Feel comfortable to get your name out in social media, local advertising and other marketing methods. Don’t be shy! Focus your attention on your people, who love what you do and feel free to write off those who wouldn’t ever think about supporting you. Do your best and your satisfied clients will be your best promotion and promoters!
  3. Get a mentor One of the most important keys to success is having a good mentor. It’s a great opportunity to learn from your mentor’s mistakes and avoid making them yourself. Your mentor may notice potential in you that you might not see in yourself. Besides, you can get new network contacts or connections. How can you find a mentor?  Just identify successful people in your industry and ask for their advice. Before contacting your future mentor decide what skills or knowledge you would like to develop with your mentor’s assistance. You should always know your goal!
  4. Set goals Stop dreaming and wishing – define goals instead. Goal setting provides you with a benchmark for determining whether you are actually succeeding and allows you to take control of your life’s direction. Make your goal real – write it and you will not forget about it. You can also post your goals in visible places to remind yourself every day of what it is you intend to do. Set some goals for a week, month and year and write steps you should be taking to achieve them. Making an action plan is very important in goals setting. You need to write out the individual steps, and then crossing each one off as you complete it, you’ll realise that you are making progress towards your ultimate goal. Your goal should motivate you!
  5. Feel comfortable to ask and communicate Desire to learn and grow is the engine of all wealthy people. Always ask questions and learn from other people’s experience and mistakes. Know what you want to ask and why. Ask yourself what outcome you want to achieve and the impression you want to leave. Begin by making eye contact. You inspire trust and confidence when you look a person in the eyes when you speak.
  6. There is no such thing as failure “Failure is success in progress,” Albert Einstein once said. Any failure and any mistake is your experience that makes you smarter and stronger. Failure can act as a seed for a springboard to growth. Use it as a mechanism to reset your perspective, make a mental change or embark on a new, much-needed direction. Besides, failure keeps you down to earth, keeps you realistic that results in an explosive energy that breaks you out of constriction and into a highly energetic, creative state when things become clear and new insight is gained.
  7. Your money should work for you It is such a common personal finance piece of advice that it borders on being cliché, but that’s certainly one of the main rules of all rich people. Here are a few suggestions for your money:
  • Open a high-yield savings account.
  • Invest it in the market – stocks, futures etc.
  • Store it in retirement accounts.
  • Choose credit cards with rewards you’ll actually use.
  • Invest in real estate.
  • Pursue a professional degree or certification.
  1. Accept criticism Sometimes it is difficult to accept criticism, but think about it as a form of communication, that helps to make your product or services stronger. Do not take it personally and avoid getting into an argument. Turn your words into action to show that you can listen to feedback, respond in the correct way and still get the job done. Use critique to perfect your business model.
  2. Build relationships with other successful people. It’s one of the best ways to widen a customer base, learn about wealth and business. If you want to succeed, make relationship building a habit. Think of ways to connect with all the people you meet, even if there’s no immediate gain involved. In the long run, this approach will empower you to build mutually beneficial relationships with all kinds of people.
  3. Don’t forget to give Our greatest successes in life are often found in helping others succeed. Our most lasting and fulfilling achievements are often earned by helping others fulfill theirs. Be open to the people – help by volunteering, being generous, truly listening. Share your success with other people and be sure you will feel real happiness. Enjoy it!
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Trading Secrets

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.

Derivatives either be traded over-the-counter (OTC) or on an exchange. OTC derivatives constitute the greater proportion of derivatives in existence and are unregulated, whereas derivatives traded on exchanges are standardized. OTC derivatives generally have greater risk for the counterparty than do standardized derivatives.

BREAKING DOWN ‘Derivative’

Originally, derivatives were used to ensure balanced exchange rates for goods traded internationally. With differing values of different national currencies, international traders needed a system of accounting for these differences. Today, derivatives are based upon a wide variety of transactions and have many more uses. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region.

Because a derivative is a category of security rather than a specific kind, there are several different kinds of derivatives in existence. As such, derivatives have a variety of functions and applications as well, based on the type of derivative. Certain kinds of derivatives can be used for hedging, or insuring against risk on an asset. Derivatives can also be used for speculation in betting on the future price of an asset or in circumventing exchange rate issues. For example, a European investor purchasing shares of an American company off of an American exchange (using U.S. dollars to do so) would be exposed to exchange-rate risk while holding that stock. To hedge this risk, the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into Euros. Additionally, many derivatives are characterized by high leverage.

Common Forms of ‘Derivative’

Futures contracts are one of the most common types of derivatives. A futures contract (or simply futures, colloquially) is an agreement between two parties for the sale of an asset at an agreed upon price. One would generally use a futures contract to hedge against risk during a particular period of time. For example, suppose that on July 31, 2014 Diana owned ten thousand shares of Wal-Mart (WMT) stock, which were then valued at $73.58 per share. Fearing that the value of her shares would decline, Diana decided that she wanted to arrange a futures contract to protect the value of her stock. Jerry, a speculator predicting a rise in the value of Wal-Mart stock, agrees to a futures contract with Diana, dictating that in one year’s time Jerry will buy Diana’s ten thousand Wal-Mart shares at their current value of $73.58.

The futures contract may in part be considered to be something like a bet between the two parties. If the value of Diana’s stock declines, her investment is protected because Jerry has agreed to buy them at their July 2014 value, and if the value of the stock increases, Jerry earns greater value on the stock, as he is paying July 2014 prices for stock in July 2015. A year later, July 31 rolls around and Wal-Mart is valued at $71.98 per share. Diana, then, has benefited from the futures contract, making $1.60 more per share than she would have if she had simply waited until July 2015 to sell her stock. While this might not seem like much, this difference of $1.60 per share translates to a difference of $16,000 when considering the ten thousand shares that Diana sold. Jerry, on the other hand, has speculated poorly and lost a sizeable sum.

Forward contracts are another important kind of derivative similar to futures contracts, the key difference being that unlike futures, forward contracts (or “forwards”) are not traded on exchange, but rather are only traded over-the-counter.

Swaps are another common type of derivative. A swap is most often a contract between two parties agreeing to trade loan terms. One might use an interest rate swap in order to switch from a variable interest rate loan to a fixed interest rate loan, or vice versa. If someone with a variable interest rate loan were trying to secure additional financing, a lender might deny him or her a loan because of the uncertain future bearing of the variable interest rates upon the individual’s ability to repay debts, perhaps fearing that the individual will default. For this reason, he or she might seek to switch their variable interest rate loan with someone else, who has a loan with a fixed interest rate that is otherwise similar. Although the loans will remain in the original holders’ names, the contract mandates that each party will make payments toward the other’s loan at a mutually agreed upon rate. Yet, this can be risky, because if one party defaults or goes bankrupt, the other will be forced back into their original loan. Swaps can be made using interest rates, currencies or commodities.

Options are another common form of derivative. An option is similar to a futures contract in that it is an agreement between two parties granting one the opportunity to buy or sell a security from or to the other party at a predetermined future date. Yet, the key difference between options and futures is that with an option the buyer or seller is not obligated to make the transaction if he or she decides not to, hence the name “option.” The exchange itself is, ultimately, optional. Like with futures, options may be used to hedge the seller’s stock against a price drop and to provide the buyer with an opportunity for financial gain through speculation. An option can be short or long, as well as a call or put.

A credit derivative is yet another form of derivative. This type of derivative is a loan sold to a speculator at a discount to its true value. Though the original lender is selling the loan at a reduced price, and will therefore see a lower return, in selling the loan the lender will regain most of the capital from the loan and can then use that money to issue a new and (ideally) more profitable loan. If, for example, a lender issued a loan and subsequently had the opportunity to engage in another loan with more profitable terms, the lender might choose to sell the original loan to a speculator in order to finance the more profitable loan. In this way, credit derivatives exchange modest returns for lower risk and greater liquidity.

Another form of derivative is a mortgage-backed security, which is a broad category of derivative simply defined by the fact that the assets underlying the derivative are mortgages.

Limitations of Derivatives

As mentioned above, derivative is a broad category of security, so using derivatives in making financial decisions varies by the type of derivative in question. Generally speaking, the key to making a sound investment is to fully understand the risks associated with the derivative, such as the counterparty, underlying asset, price and expiration. The use of a derivative only makes sense if the investor is fully aware of the risks and understands the impact of the investment within a portfolio strategy.

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Weekly Market Outlook

European stocks fell for the first time this week amid concern over the outlook for economic growth while a dollar rally ran out of steam before signals on the likely path of U.S. interest rates.

Equity markets retreated in Europe as an unexpected drop in German business sentiment signaled companies remained cautious after Britain’s decision to quit the European Union. Iron ore fell on the prospect of shrinking steel production in China and crude oil traded near a one-week low. The Bloomberg Dollar Spot Index snapped a four-day winning streak as investors await comments by Federal Reserve Chair Janet Yellen at a symposium in Jackson Hole, Wyoming, on Friday.

A rally that’s driven global equities to their highest level in a year has petered out as the prospect of higher U.S. rates risks thwarting efforts by other central banks to stimulate growth by cutting borrowing costs. While German business confidence dropped to the lowest level in six months in August, a U.S. report on Thursday will probably show a pickup in durable goods orders.

“There is renewed caution ahead of Yellen’s appearance at Jackson Hole tomorrow,” said Michael Ingram, a market strategist at BGC Partners in London. “It won’t take a great deal for sentiment to turn from glass half full to glass half empty.”

Stocks

The Stoxx 600 slid 0.7 percent at 10:33 a.m. in London. Glencore Plc and Anglo American Plc led a gauge of miners to the worst performance on the equity gauge as iron ore retreated. Total SA dragged energy producers lower as oil held near its lowest close in a week.

Playtech Plc rose 3.4 percent after the gambling-software provider reported an increase in first-half revenue and announced a special dividend. Jimmy Choo Plc jumped 5.3 percent after the maker of luxury shoes posted higher first-half revenue and earnings and said it remains optimistic on this year’s prospects. CRH Plc rose 2.6 percent after the Irish construction company posted higher-than-expected first-half sales and profit.

S&P 500 Index futures slipped 0.2 percent, after a late selloff in drugmakers helped drag U.S. equities down 0.5 percent on Wednesday. HP Inc. dropped 6.7 percent in early New York trading after the seller of personal computers and printers forecast fiscal fourth-quarter profit that may fall short of analysts’ estimates.

Currencies

The Bloomberg Dollar Spot Index, which tracks the currency against 10 peers, declined 0.1 percent, after climbing 0.8 percent over the last four trading sessions. Fed funds futures indicate a 54 percent chance of a U.S. interest-rate hike this year, up from 36 percent at the start of August. The yen was little changed at 100.37 per dollar and South Korea’s won gained 0.6 percent.

“The market’s just trying to get through the whole event risk” of Yellen’s speech, said Andy Ji, a Singapore-based currency strategist at Commonwealth Bank of Australia. “But after that, what’s driving the market is back to the search for yield and it’s good for emerging markets in general.”

Goldman Sachs Group Inc. sees the pound, the yen and the kiwi as most vulnerable to a potential surprise from Yellen’s speech.

Commodities

Iron ore dropped 2.8 percent in Singapore after Li Xinchuang, a vice chairman at the China Iron & Steel Association, said falling steel production in China should weigh on prices for the raw material. The price is still up by about 40 percent for the year.

West Texas Intermediate crude was little changed at $46.73 a barrel. It dropped 2.8 percent in the last session as data showed U.S. inventories unexpectedly rose last week.

Gold gained less than 0.2 percent, after sliding 2.1 percent over the last four days.

Bonds

U.S. Treasuries due in two years were little changed with their yield at a two-month high of 0.76 percent. The securities are the cheapest they’ve been relative to 30-year notes since the start of 2008 following a run of hawkish comments from Fed officials including Vice Chairman Stanley Fischer and the heads of the New York and San Francisco branches.

“The Fed is likely to hike this year, with December more likely than September,” said Jarrod Kerr, a senior rates strategist at Commonwealth Bank of Australia in Sydney. “There is some room for short-end U.S. yields to push a little higher over 2017.”

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Weekly Market Outlook

Oil traded near the lowest close in a week as U.S. crude stockpiles unexpectedly increased, keeping supplies at the highest in at least three decades with the peak summer demand period approaching its end.

Futures were little changed in New York after falling 2.8 percent Wednesday. Inventories rose by 2.5 million barrels last week, according to the Energy Information Administration. The median forecast in a Bloomberg survey had projected a decline. Iraq will attend informal OPEC talks next month in Algiers, Deputy Oil Minister Fayyad Al-Nima said in a phone interview.

Oil entered a bull market on Aug. 18, less than three weeks after tumbling into a bear market. Prices surged partly on speculation that informal discussions among members of the Organization of Petroleum Exporting Countries and other producers may lead to action to stabilize the market. U.S. crude supplies remain more than 100 million barrels above the five-year average as the nation’s summer driving season approaches its end on Labor Day, Sept. 5.

“Crude oil imports continue at a strong pace,” said Olivier Jakob, managing director at consultants Petromatrix GmbH in Zug, Switzerland. “If imports do not stop, then stocks will rapidly reach tank top once refineries start their fall maintenance program,” he said, using the term for reaching full capacity at storage tanks.

West Texas Intermediate for October delivery was at $46.73 a barrel on the New York Mercantile Exchange, 4 cents lower, at 9:30 a.m. in London. The contract slid $1.33 to $46.77 on Wednesday, the lowest close since Aug. 16. Total volume traded was about 32 percent below the 100-day average.

U.S. Stockpiles

Brent for October settlement was 16 cents lower at $48.89 a barrel on the London-based ICE Futures Europe exchange. The contract dropped 91 cents, or 1.8 percent, to $49.05 on Wednesday. The global benchmark crude was at a $2.16 premium to WTI.

U.S. crude stockpiles expanded to 523.6 million barrels through Aug. 19, the EIA reported Wednesday. Supplies were forecast to decline by 850,000 barrels, according to the median estimate in a Bloomberg survey of analysts. Gasoline inventories increased by 36,000 barrels to 232.7 million, the EIA said.

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