Money Tips Daily by Charles Kelly, former IFA and author of

6 Trump tweets wipe $500 billion off U.S. stocks in one day - $83 billion a tweet!

The stock market lost over $300 billion in value in 15 minutes due to six tweets from President Trump. He even joked about the Dow being down later in the day as investors lost over $500 billion on Friday.

The Dow Jones closed 623 points down on Friday following the Trump tweets calling Fed the “enemy” and imposing new tariffs on Chinese imports from September.

Forbes reported that in the course of 2 minutes on Friday President Trump unleashed 6 tweets about Fed Chairman Powell’s speech at the central bank’s Jackson Hole annual economic policy symposium and China announcing that it would impose 5% to 10% tariffs on $75 billion of U.S. exports to China. The stock market reacted immediately and intensely negatively to Trump’s first set of tweets sending the Dow Jones 30 Industrials down about 400 points in 15 minutes and 500 points within an hour.

While the Dow and other indexes were essentially flat to up a bit during and after the Fed Chairman’s speech, the 120 seconds of tweets erased over $300 billion in value in those 15 minutes and the markets fell further during the day. Trump followed up with 4 more tweets later in the day, one of which was joking about the Dow dropping 573 points as investors had lost almost half a trillion dollars. For the day over $500 billion in equity was erased.

That’s $83 billion per tweet!

As the trade war escalates like a high-stakes poker game, shares started to tumble around the world and could be the trigger for another black Monday when markets open in Asia and then Wall Street. London will be closed for a public holiday on Monday 26 August.

Although markets had settled after earlier steep falls, Money Tips predicted that this would not be the end of market turbulence.

Word of the Day

Correction

What Is a Correction?

According to Investopedia, ai the world of investments, a correctionis generally defined as a decline of 10% or greater in the price of a security from its most recent peak. Corrections can happen anywhere including individual stocks, the indexes that follow stocks or sectors, the commodities and currency markets, or any asset that trades on an exchange.

· A correction is a decline of 10% or greater in the price of a security, asset, or a financial market.

· Corrections can last anywhere from days to months, or even longer.

· While damaging in the short term, a correction can be healthy, adjusting overvalued asset prices and providing buying opportunities.

A Stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are triggered by panic or an event, as much as by underlying economic factors. They often follow speculative stock market bubbles or long bull runs.

Significant crashes occurred in 1929, 1987 and 2008, but smaller crashes have happened in between those dates.

If you would like to learn how to invest in the stock market and make money whether the market is going up or down, drop me a line on FB or at [email protected].

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

Universal credit is responsible for tenants on benefits falling behind with rent, according to the Residential Landlords Association (RLA).

The RLA said 54% of landlords had reported tenants on the benefits go into arrears in the last year.

The BBC reports that Debt charity Turn2Us warned universal credit will lead to "more rent arrears, more evictions and more homelessness".

The Department for Work and Pensions (DWP) said landlords had reported seeing fewer claimants in arrears in the last year.

David Smith, policy director for the Residential Landlords Association (RLA), said it was taking too long for people struggling on universal credit to get the help they needed.

"The system only provides extra support once tenants are in rent arrears. Instead, more should be done to prevent tenants falling behind with their rent in the first place.

"Only then will landlords have the confidence they need that tenants being on universal credit does not pose a financial risk they are unable to shoulder."

Tenants have also experienced difficulty if finding landlords who will accept benefits claimants.

David Samson, welfare benefit specialist at Turn2Us, said the large number of people on universal credit in rent arrears was "a devastating example of the crippling issues with the benefit".

"The five week wait for universal credit married with the reality that it is just less generous than previous benefits will only conclude with more rent arrears, more evictions and more homelessness unless the government takes immediate action to fix some of the glaring problems."

Chris Town, a landlord in Yorkshire for 31 years, told the BBC that his tenants are "all worried about universal credit; they're terrified they're going to lose the benefit".

The experienced landlord said the introduction of the benefit since 2018 had caused many problems.

"You give people time to sort things out, but I'm waiting three months for arrears in some cases."

He added that there are problems getting access to information. "Up to now with housing benefit we've dealt with the local authority directly which means information was easy to access.

"Under universal credit it's not as accessible and you're not really sure what's going on."

Universal credit has replaced six benefits, including housing benefit, and merges them into one payment. It's gradually being rolled out around the country, but there are concerns that some claimants have seen their overall support cut.

RLA research revealed that 68% of landlords said there was a shortfall between the cost of rent and the amount paid in universal credit.

Are you a landlord with tenants on benefits or a tenant claiming Universal Credit? Money Tips would like to hear your views.

Word of the Day

Fiscal

A term used in public or government financial matters. Fiscal year, fiscal report.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

You must keep on top of your finances and life in general otherwise the weeds will take the garden, as Jim Rohn used to say.

When does it end? When can you relax? Never.

Word of the Day

Tenure

In property terms, it’s the conditions under which land or buildings are held or occupied. Examples of tenure in the UK include, Freehold or Leasehold.

There are more examples and practical steps to getting rich, staying rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

UK has enjoyed a boom in new tech investments from overseas and has attracted £5 billion in the first seven months of this year, the BBC reports today.

Word of the Day

IPO – Initial Public Offering  or stock market launch is a type of public offering in which shares in a company are sold to institutional investors and usually also retail (individual) investors - raising investment using OPM. 

The IPO is underwritten by one or more investment banks, which arrange for the shares to be listed on one or more stock markets, such as the London Stock Exchange or on one of the Wall Street markets.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

 Kylie Jenner – The Entrepreneur who is defying the odds

A 20-year-old near-billionaire who does not have a college degree is in the process of dismantling decades worth of bunk economic theories crafted by those long on degrees, but short on common sense.

Entrepreneur Kylie Jenner started Kylie Cosmetics in 2016 ago with one product - a $29 lip kit. Forbes reported in 2018, that she “had sold more than $630 million worth of makeup since.” 

Jenner owns 100 percent of a company that Forbes estimates is worth more than $800 million. Jenner is on track to become the youngest self-made billionaire ever.

Kylie Jenner the Modern Entrepreneur

Even more remarkable is how Jenner built the billion-dollar business without a large company or major investors and minimal setup costs, staff or infrastructure. She owns 100 percent of her business. Start-up costs were low and she employs just seven full-time and five part-time staff. All the manufacturing and packaging, along with sales and fulfilment, are outsourced.

Making a billion is easier in the digital and social media age. As Jenner told Forbes, “I have such easy access to my fans and customers.” 

Whilst most entrepreneurs in the cosmetics business would have huge marketing costs, Jenner’s got this covered of through her 115 million Instagram followers and even more on Snapchat. 

John Tamny, Director of the Center for Economic Freedom at FreedomWorks, sates in his new book, The End of Work, that Millennials will be the richest generation in the history of the richest nation in the history. Maybe, until Jenner's generation eclipses the Millennials. The young understand and embrace the technology best.  

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

Chancellor Sajid Javid ends speculation that he will make sellers pay Stamp Duty, instead of buyers. Thank goodness for common sense, as the plan was fraught with difficulty..

Stock Markets settle.

Invest in yourself and your education.

Word of the Day

Dividend or Divi.

When you own a share in a business, the board of directors of the company can declare a dividend, or share of the profits, to the shareholders who are the owners of the company. 

If you invest in shares, you can benefit from capital growth (assuming you have done your research, invested in a good company and the share price rises over time) and income from annual dividends, typically 3-5% of the value of the share.

Learn how to invest, and always take independent financial advice.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

What should investors do when the stock market is at an all time high and recession looms?

Fund Managers tell Investors to “stay calm” and stay invested in the market.

On Wednesday 14 August 2019, the US stock marker suffered its biggest one day fall since October and the Dow Jones had its sixth worst day in history. Markets recovered by the end of the week when President Trump deferred a tariff increase on Chinese imports.

As markets reel and recession appears to be around the corner, The Times interviewed leading experts and economists working for fund managers or insurance companies. These are the people who control billions of pounds worth of investments on behalf of millions of savers and investors in pooled managed funds, from pension funds to unit trusts (mutual funds).

Not one expert recommended getting out of the market, even though some admitted that the price of shares could fall.

Helena Morrisey of Legal and General advised investors to “stay calm”, which is always easier when it’s not your money at risk.

She continued:

“Private investors should resist the temptation to cash in their portfolios” and adds.

By selling in anticipation of possible losses, investors may miss out on the gains that often follow declines in share prices”.

In this volatile market, what would you rather do: miss out on a potential gain, or avoid a potential loss?

James Thomson, the manager of the Rathbone Global Opportunities Fund, astonishingly says:

“I will be sticking with my long-term strategy and not be distracted by market turmoil. I will be using and market dips to top-up some of the positions in my portfolio”. 

This is bullshit.

Who do they think they’re kidding?

Of course they want you to “stay invested” in their funds, because that’s how they get paid – they earn billions from management fees and fund charges on your money.

My advice is simple.

Firstly, take independent financial advice if your adviser tells you to “stay calm” and “stay invested”, find another adviser.

Secondly, take a course and learn how to invest in the stock market yourself, or invest in something else you understand, rather than leaving it to highly-paid fund managers, most of whom do not even beat the market average.

If you would like to learn more about investing in your spare time, email me at [email protected] or message me through our Money Tips Facebook Community.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

What should investors do when the stock market is high and recession looms?

A lot of people say, “you need money to make money”, which is not strictly true.

Yes, some projects do require investment, but I’ve started many businesses with no money and just my efforts. TV money expert Martin Lewis started his Money Saving Expert website for £200 and sold it for millions and describes it has his greatest ever investment. I would say the same about my business investments where my ROI has been infinite.

Assuming you do need money for a project, does it need to be your own money? Of course not!

People have bought and sold businesses, properties and funded projects, expeditions, corporate takeovers for centuries using Other People’s Money (OPM). 

7 ‘no money down’ property strategies

1. JV – joint venture with someone who has cash to invest but not the time.

2. Rent to Rent – control property and rent out for a profit.

3. Refinance – draw off equity by remortgaging your, or someone else’s, property.

4. Crowdfunding – sourcing funds from groups of investors.

5. Lease Options – buy now, pay later with option, but not the obligation to buy.

6. Rent to buy – rent now, buy later.

7. Serviced Accommodation – start a serviced accommodation business with leased properties.

Word of the Day

ROI / Yield

What is Return on Investment (ROI)?

“Investopedia describes ROI as:

Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.”

I say, “what I am getting out of this deal?” or “what will I get back on my investment?”!

ROI is sometimes confused with ROC – Return on Capital.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

What is debt?

The English term "debt" was first used in the late 13th century and derives from "dette, from Old French dete, from Latin debitum "thing owed". 

To the borrower, a debt is seen as a liability. To a creditor, a debt is an asset on their balance sheet.

Change your mindset and use debt as an asset and leverage to acquire assets. 

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

World markets tumble as inverted yield curve signals a recession.

Prepare for recession by eliminating the habit of spending and living off bad debt.

Keep an emergency savings cash buffer of at least six moths worth of outgoings.

If you’re starting a new business, I would advise against renting a shop in the High Street or signing leases for offices. If you must have an office, rent one of the many serviced offices, like Regus or We-Work, with a flexible short-term contract. The rent will be a little higher than a basic office room, but they provide you with telephone lines, answering service, photocopiers, printers, coffee machines, meeting rooms, cleaners and so on. The other advantage of a professional serviced office is that you will immediately look more credible and established.

You can also work from home while using an office accommodation address and answering service. 

The internet has opened up a new world of learning, working, socialising and doing business. We no longer need to go back to school or university to learn new skills. We can work from home, start a business or find a new life partner all from the comfort of our home.

Amazon has also enabled thousands of authors to easily self-publish their books online, as I have with my book, Yes, Money Can Buy You Happiness! See link - http://bit.ly/2MoneyBook

If you want to quit the rat race and work from home, but can't quite replace your income from your paid job, why not try and gradually make the transition over a period of time? 

You can learn how to get started on Amazon or Facebook by following the steps of people who have done all the hard work for you and now want to pass on their knowledge.

For more information on Amazon and Facebook courses email [email protected]