Category Archives: Stock Market Advices

Top 10 Revenue and Profit Generating Industries of 2015

Manufacturing Industry: Plays a vital role in modern society as everything from knitting a jacket, to oil extraction, steel, to diary production falls within this sector. Worldwide Revenue and Profit generated by this industry in 2015 are 19.3 trillion & 2.98 trillion US dollars respectively.

Retailing Industry: All businesses that sell goods and services in small quantities to consumers fall under this sector. It is one of the most competitive industry in the world. The convergence and diversification of this sector requires retailers to innovate, differentiate and grow in highly competitive environment. Worldwide revenue and profit contribution to the global economy are 12.7 & 2.9 trillion dollars respectively.

Agriculture and Food Industry: It is also one of the largest contributor to global economy. It accounts for 24% of worldwide GDP which amounted to 11.4 trillion dollars and contributed a profit of 2.7 trillion.

B 2 B Products and Services Industry: This industry stood 4th in terms of revenue and profit generation. The contribution made this sector to worldwide economy in terms of revenue and profit are 9.6 trillion and 1.97 trillion dollars respectively.

Financial Services Industry: Encompasses a wide variety services ranging from Banking, Insurance, Stock market to Tax consultants and Audit firms. Global revenue and profit produced by this sector amounted to 8.4 trillion and 1.92 trillion dollars

Health and Pharmaceutical Industry: Worldwide revenue and profit generation by this sector was 7.3 and 1.83 trillion dollars. That is why both industries have been named as profit making machine by business people.

IT Industry: Technology is the lifeblood of the digital economy. Advancement in computer processing power, data storage, chip design, enterprise mobility and many other developments that have unfolded in recent years are providing a wide range of opportunities that were once impossible both technologically and economically. Revenue and profit generation by this sector was 6.1 trillion and 1.24 trillion respectively.

Textile or Apparel Industry: Is primarily concerned with the design and production of yarn cloth or garments clothing and their distribution. The raw material may be natural or synthetic using products of the chemical industry worldwide revenue and profit generation was 7.3 trillion and 1.18 trillion respectively.

Tourism and Hotel Industries: Are the world’s largest sectors with a worldwide economic contribution of 4.9 trillion and 0.96 trillion dollars in terms of revenue and profit generation.

Airline Industry: Airline sector remains a large and growing industry throughout the globe. It facilitate economic growth, world trade, international investments and tourism and is therefore play an important role in globalization taking place in many other industries. In the past decade Airline industry has grown by 7% per year. Travel or both business and leisure purposes is growing rapidly worldwide. Scheduled airlines carried 1.57 billion passengers world widely. Global revenue and profit contribution of this industry to economy was 3,72 trillion and 0.86 trillion respectively.

Author of Article: Syed Qamber Reza Kamzi

When Should You Start Investing?

If this question bothers you, then it’s time to relax because the answer is – you’re never too young (or old) to start investing. Of course, investing is pretty much like learning a language – it’s easier to start when you’re young, but don’t be discouraged by your ages.

In most countries, 18 is the age when you are legally old enough to enter into a contract and legally old enough to buy and sell stocks in your own name. If, by any chance, you are younger, maybe you should ask your parents to do the work for you. If you don’t want that, they you should seek for an alternative:

  • Certificates of deposit – these are a common investment made in a child’s name because they are very safe and are meant to be held until maturity.
  • Stocks – bought by parents in the name of minor children.

Top 3 Industries To Invest Your Money In

Technology Stocks:

-Cisco (CSCO): Cisco is a world leader in telecommunications infrastructure and possesses a strong financial position on the market. With a net cash of $30 billion and a P/E ratio of 11X, the company offers 3.2% dividend yield and an alluring payout of 33%. In the past 10 years, the EPS of Cisco has grown by 12 percent along with a 10 percent free cash flow yield.

Apple (AAPL):

Apple has bounced back with its tablets and iPhone 5/5c in 2013. Tim Cook, Apple’s CEO, has announced a new line of products in 2015 including an early launch of iPhone 6s and Apple TV again in the news. The current deal with China can bring up to 700 million customers for Apple and things are certainly looking good for the company. Most of the stock experts believe that Apple will increase significantly for its investors.

IBM:

With a market cap of $203.34 billion, IBM has a dividend plus share buyback yield in excess of 7% plus a free cash flow of 9%. The company has a strong history of offering mid-teen profit margins for the past several years.

Industrial stock:

-Schlumberger Limited (SLB): As of now it pays 1.4% dividend and has a consensus target of $110.

-Danaher Corp. (DHR): The consolidation has helped in boosting share price for Danaher Corp.

-S&P 500 SPDR (SPY): For passive investors, S&P 500 SPDR is the best ETF to put their money and get hefty returns. With a market cap of $174.85 billion and year-to-date returns of 32.31%, it is one of the best places to spend your money.

Consumer Discretionary Stocks:

-Ford Motor Co. (F): Ford has a market cap of $63,39 billion and an EPS of 1.42%. The quick growth in its EPS has helped the company gain market trust.

-Comcast Corp. (CMCSA): This cable company has an excellent reputation in the entertainment industry. The company offers a current dividend of 1.55 with a UBS price target $60.

-J.P. Morgan Chase & Co. (JPM): With a market cap of $219.85 billion, the company offers a 2.6% dividend and a USB price object of $65.

Three Reasons To Choose A Discount Broker

“You get what you pay for” is a sentence that people tend to apply in most life situations they confront. But, when it comes to choosing a broker, going by this rule is the wrong thing to do. Discounted brokers are probably not your first choice, but when you’re in a situation where you don’t have enough money to pay expensive, “brand named” brokers, you’re forced to select the cheaper ones. Cheaper doesn’t always mean “low quality,” and here are three reasons why you should pick a discounted over a more expensive broker.

1. More money for the trade

As aforementioned, hiring a discounted broker doesn’t mean that you have to sacrifice the quality of your trade. These brokers charge lower commission fees, meaning you’ll have extra money available for the actual investment and trade.

2. Quality is preserved

Brand name brokers tend to execute their orders directly. Others tend to outsource this activity, in order to save money. But, sometimes, brand name brokers and discounted ones use the same third party service, meaning that the quality of the trade is the same at both types of brokers. The only difference is the price – brand name brokers will charge you more due to their reputation and well known name.

3. All software is available

Some investors, due to lack of information, fear that discount brokers won’t provide them with the research tools they’ll need to make good choices about their investment. This is false because discounted brokers, just like brand name ones, offer outstanding investment tools to their customers. Real-time data and analysis software are something every broker considers to be their standard offer.

Is A Stockbroker Career The Right One For You?

While there are no formal educational requirements for becoming a broker (as there are to become a CPA or financial analyst), many firms are now looking for brokers who have at least a bachelor’s degree, preferably focused on some aspect of business or finance. It is also becoming increasingly important to be able to pass a strict background check that will examine both the prospective broker’s criminal and financial history.

Full-Service Broker

Working at a full-service firm such as Merril Lynch (NYSE: MER-F, MER-D) or Morgan Stanley (NYSE:MS) is still the most traditional approach to selling investments. Brokers who work for these firms will be provided with a comprehensive training package that includes sales and product training as well as education in administrative procedures and compliance regulations.

Discount Brokers

If you are not a super salesman by nature but would still like to try your hand at managing investments, a discount broker firm such as Charles Schwab (NYSE:SCHW) or Fidelity (NYSE:FNF) might work for you. These firms are geared toward providing effective service for walk-in clients and usually pay their brokers a flat salary (albeit with some minor bonuses or other incentives).

Bank Brokers

Being a broker at a bank is a very different proposition than working at Merrill Lynch or Fidelity. Like most discount firms, many banks also look for licensed brokers with previous experience, but the banking system is so unlike the brokerage world that it usually takes new investment consultants a while to get their bearings. Brokers who work at banks are full-service brokers in a technical sense, but they are often given a lower payout on their commissions in return for having access to the ban’s customer base.