Category: Blog

BTC Trading Inc Review: SBI, Bakkt and Fidelity Start Custody Trading March 2019

Bakkt and Fidelity are on schedule and will start custody trading in March 2019. SBI VC also will start trading in March. This means crypto will see a huge bull run. Fidelity is a $ 7.3 trillion market!!! Huge news.

Read this news:

Fidelity Is Said to Plan March Launch of Bitcoin Custody Service

Fidelity Investments is targeting a March launch date for its Bitcoin custody service, according to three people with knowledge of the matter, as the mutual-fund giant moves forward with a plan that could help ease fears of trading cryptocurrencies.

In October, the Boston-based firm announced it would offer a range of crypto products designed for large investors like hedge funds. Bitcoin storage will be the first one available, according to employees of three firms that spoke with Fidelity in the past several weeks and asked not to be named discussing plans that are still private. Ether custody is expected to be next, they said.

“We are currently serving a select set of eligible clients as we continue to build our initial solutions,” the company said in a statement Tuesday. “Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”

Custody, a commonplace practice in conventional financial markets like stocks, involves a third party holding onto securities to reduce the risk they’ll be lost or stolen. But while a number of startups have sought to offer the safekeeping service, many Wall Street professionals have longed to work with a large financial services firm, a role Fidelity may fill. Others including Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp. have explored entering the field. Meanwhile, digital coins are constantly stolen, underscoring the need for better safeguards.

For the full news go to https://www.bloomberg.com/news/articles/2019-01-29/fidelity-is-said-to-plan-march-launch-of-bitcoin-custody-service

BTC TRADING INC. SEOUL: SECTORS PERFORMING NOW

Published: November 25, 2018 | Blog Post

The stock market has been volatile for most of the year. 2018 has been defined by market volatility and the sectors are going through a realignment. As BTC Trading Inc. clients approach their yearend portfolio reviews, they can expect some realignment in their U.S. holdings. The three sectors favored in our Seoul office to hold steady going into ongoing choppy markets are technology, materials and consumer discretionary stocks. Yearend earnings are expected to be strong across the board and the bull market has every reason to continue. Within the broader market, it’s normal and healthy for sectors to have cyclical rotations. Telecoms and consumer staples stocks are showing relative weakness.

Technology stocks are by and large expensive. But they represent future growth and investors are willing to pay a premium. They have the benefit of a longer time horizon and business cycle. Short term they are showing good relative strength.

Materials sector stocks are trading near the low end of their traditional 10-year cycle and present better value. Industries in this sector include mining, metals, forestry, chemicals and packaging. This sector is vulnerable to economic cycles since companies’ revenue is dependent on demand for goods and services by people and other companies. If the economy is expanding and money is being spent, this sector does well. In recessions the opposite holds true.

The consumer discretionary sector sells non-essential goods and services and is also sensitive to the overall economy. This includes the automotive industry, hotels and entertainment, restaurants, household durable goods and clothing. Unemployment rates are at historic lows in the United States and heading into the annual shopping season these stocks should continue to hold their own.

South Korea chemical and steel companies held their own during recent sell offs on the Seoul KOSPI. However the bellwether Samsung Electronics has taken a beating recently and pulled the overall market down.

BTC Trading takes a long term view and builds individual client portfolios to weather financial storms. Whether the market is up, down or sideways the best long term returns are with good quality stocks. Market volatility can be unnerving and can be remedied in most cases by regular communication with your advisor and a good bottle of scotch.

BTC TRADING INC: SECTORS & INDUSTRIES

Published: October 9, 2018 | Blog Post

Part of the process new clients go through at BTC Trading is developing a personalized investment plan, which generally includes a breakdown by asset class and sector. Novice investors often ask what the difference is between a sector and an industry. This is a simple yet important concept to understand to effectively participate in the investment decision making process.

Stock markets and economies in general are broken down into eleven major categories that are called sectors. A sector is an area of the stock market or the economy with companies engaged in similar types of businesses. Dividing markets and economies into sectors allows for better analysis of what is happening in the stock markets and general economy. Sectors are then broken down into industries. Industries are sub-sectors engaged in even more closely aligned products and services. Businesses within the same industry are likely to be in competition with one another.

The research analysts at BTC Trading, like most brokerage firms, will generally specialize in one or two sectors of the market. From there, they will select individual recommendations from the industries within their chosen sectors. There is a lot to understand about an industry in general in order to properly analyze individual companies, and this is standard practice within the investment community.

The Global Industry Classification Standard was developed by the S&P and the MSCI to standardize coding throughout the financial industry. This is important for trading and market statistics publication as well as analysis. BTC Trading recommends that portfolios should be diversified among as many sectors as possible, which is why it’s important for investors to understand the difference between sectors and industries, which are simply sub-sectors. Markets are broken down into 11 broad sectors:

• Consumer Discretionary
• Consumer Staples
• Energy
• Financials
• Health Care
• Industrials
• Information Technology
• Materials
• Real Estate
• Telecommunication Services
• Utilities

Examining sectors and industries helps one understand how businesses interact with each other, and how something impacting one area can affect another area, which is a good way to look for opportunities. Let’s say for example that the price of oil is dropping. Oil stocks are in the Energy sector, so this may not be bullish for oil stocks. But if the price of oil is lower, this would be good in general for transportation stocks and so one might take a closer look at related companies. The transportation industry falls within the Industrial Sector. Given the assumption about oil prices, a comparison among industries may yield an investment opportunity with more upside. It always pays to look at the bigger picture.

INDIVIDUAL SECTOR BREAKDOWN
For illustration purposes, the S&P Industrials sector is further broken down into 12 Industries (with examples), listed in descending order of size. These are not to be taken as recommendations:

1. Aerospace and Defense – Boeing (NYSE: BA)
2. Industrial Conglomerates – General Electric (NYSE: GE)
3. Machinery- Caterpillar (NYSE: CAT)
4. Road and Rail – Union Pacific Corporation (NYSE: UNP)
5. Air Freight and Logistics – Fedex Corporation (NYSE: FDX)
6. Airlines – American Airlines Group (NYSE: AAL)
7. Electrical Equipment – Emerson Electric Company (NYSE: EMR)
8. Commercial Services and Supplies – Cintas Corporation (NASDAQ: CTAS)
9. Professional Services –Equifax Inc. (NYSE: EFX)
10. Trading Companies and Distributors– W.W. Grainger, Inc. (NYSE: GWW)
11. Construction and Engineering – Jacobs Engineering Group, Inc. (NYSE: JEC)
12. Building Products – Masco Corporation (NYSE: MAS)

Different sectors of the market perform differently over time. Some sectors perform better over the long term, some perform better during periods of growth and some in periods of recession. For example, consumer discretionary sector stocks tend to perform better during a bull market. People feel more confident and they spend more money. Conversely, Consumer Staples stocks do better in a bear market. So go long Tiffany & Co. at the beginning of the Bull Run, and buy BUD when the bear starts to growl.

BTC TRADING INC: THE SAGE OF OMAHA

Published: September 30, 2018 | Blog Post

Warren Buffett is a guru of common sense. People examine everything he says and does looking for an edge making money and in actual fact, his wisdom can be applied to the general practice of living a good life. He is revered both for his old-fashioned values and general wisdom, and respected for his down-to-earth values. He’s a likeable guy.

He’s also one of the most successful investors in the world. His annual Berkshire Hathaway report is eagerly anticipated every year in the financial community and his words and transactions are closely scrutinized. His common sense investment wisdom is both an ideal primer for novice investors and much enjoyed at BTC Trading Inc. Buffet’s classic quotes summarize great wisdom.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Following the crowd feels safer, but it’s not generally the smart way to make investment decisions. BTC Trading advisors refer to this as the ‘herd mentality’. Buffet cautions investors to be like the shepherd, not like the sheep. He avoids most tech companies and anything he doesn’t understand. He’s patient about holding cash and has the confidence to buy in a period of economic downturn, a strategy that has made him and Berkshire Hathaway shareholders very wealthy over the long term.

A classic example of the herd mentality was the dot-com bubble of 1995-2000. Stock valuations of companies that few understood were trading at obscene prices; investors were so afraid of missing the boat that they kept buying and buying regardless of price. Many small investors who couldn’t afford big losses got in at the last minute just before the bubble burst, only to watch the NASDAQ lose 75% from its peak over the next two years.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

Warren Buffett is a notoriously steady man. He keeps his eye on long term objectives without getting caught up in day-to-day economic dramas or market fluctuations. He advises people to plan today for what can and will occur in the distant future, because eventually the future will become the present.

Along with his folksy manner, he is famous for holding his investments indefinitely. He likes to remind people to “look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” Investors should take the time to make good decisions, and then not pay much attention to the market on a day to day basis. The current 24 hour news cycle can turn a healthy and normal 4% market correction into a catastrophe that sends investors into an irrational panic. Like any good driver, investors need to keep their eye on the horizon, not on bird droppings directly in front of the car.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Buffet prioritizes looking for quality over chasing the lowest price. Regardless of the price, an investment is never a good deal if it has no long term value. As an old-school BTC trader was fond of saying, “garbage is garbage, even if it’s free”. Buffet is a classic value investor. He favors established companies with a strong footing in the overall economy that generate long term above-average returns for investors. He eschews highly leveraged companies and those with an over reliance on debt financing. He does his research himself, looking for fiscally healthy, well-run companies that grow through capital reinvestment and he only invests in businesses he can personally understand. Buffet, through his conglomerate, will pay for quality where he is convinced that it will generate a higher return on investment over the long term.

“Do not save what is left after spending; instead spend what is left after saving.”

Buffet has always advocated saving first and spending second. If all you can budget is $50 a month, then that’s what you do. He reminds us that people build wealth based on their saving habits, not their spending habits. This most famous investor believes in budgeting and advises people to make a budget that ensures all essential household needs are met, pay the bills and then save what is extra. It’s a simple and effective plan that applies to people in all income brackets, yet one that many neglect to follow.

He is also a fierce advocate of fiscal responsibility, both corporate and personal. He lives below his means, and shuns the idea of borrowing money to finance fancy homes and cars. As it is well known, he lives in Omaha, Nebraska in a home he bought in 1958 for $31,500. The headquarters of Berkshire Hathaway take up only one floor of an understated office building. His personal office has a landline and no computer.

BTC TRADING INC.: OFFSHORE INVESTING

Published: September 24, 2018 | Blog Post

The term offshore investing refers to a situation in which an investor holds assets outside of the country in which they reside. In the past this was a practice used primarily by wealthy investors and large corporations, but with costs decreasing and other barriers to entry lowering, it is becoming an increasingly common investment option for private individuals. The term “offshore” can refer to any type of asset held in a different jurisdiction, including banks, investment accounts, real estate and corporations. Traditional offshore financial centers included Switzerland, Cayman Islands and Bermuda but with the ease of moving money in today’s world, competition is wide open and as we like to say at BTC Trading, competition always benefits the client.

BENEFITS OF INVESTING OFFSHORE

Private individuals are realizing that investing offshore provides diverse benefits. They have greater freedom and a wider range of opportunities. The flexibility inherent in private overseas investing gives individuals more control in achieving their investment objectives. BTC Trading Inc. manages wealth for an international clientele from all corners of the globe. They seek a variety of benefits from holding assets offshore:

LOWER GEOPOLITICAL RISK: Ten years ago Venezuela and Syria were stable countries. Things can change very quickly and it pays not to have all your eggs in one basket. A seemingly benevolent socialist government can send inflation rates soaring and wipe out the value of previously substantial wealth. Greece is another recent example, where people found their bank deposits suddenly frozen, albeit for a short period of time. Never say never.

ASSET PROTECTION: Courts and governments can order assets frozen for many reasons, including professional litigation and divorce. There are many ways to legally shelter investments, including numbered companies and trusts. For maximum protection, hold assets where one’s country of residence does not have jurisdiction or a tax exchange treaty.

CURRENCY DIVERSIFICATION: This is achieved simply by holding assets that are priced in different currencies, for example by owning stocks listed in different countries. One does not have to be a sophisticated forex trader. Currency diversification is an automatic hedge against fluctuating investment cycles, inflation and other geopolitical risks.

HIGHER RATES: Stable, industrialized nations have historically low interest rates. They are starting to rise again but not to any significance. Higher rates of return can be found in smaller economies like New Zealand and Australia and in corporate fixed income products, without incurring great risk.

PRIVACY: There are many legal and legitimate reasons for someone to want fiscal privacy. These include previously mentioned issues like litigation and divorce, in addition to a multitude of others. An innocent example could be the surgeon general of a country wanting to invest in tobacco stocks to ensure his family’s financial future. Hedge funds are also notoriously private, wanting to protect their edge against the competition.

SECURITY AND PEACE OF MIND: Having money in a foreign jurisdiction allows one to rest easy. It is reassuring to know that one has access to funds, regardless of what comes at you in life. If an aggressive tax auditor has restricted one’s access to cash at the same time as one’s spouse needs sudden medical care, it’s nice to know one has access to funds at any time.

FREEDOM: Having assets in an offshore jurisdiction gives one the freedom of movement and the freedom to optimize many aspects of one’s decision making in life, not the least of which is to find the best investment opportunities.

TAX EFFICIENCY:There are many legal ways to minimize one’s tax obligations. Offshore investment centers are tax havens with many specialists engaged in helping people and companies establish trusts and corporations in order to minimize taxes and maximize wealth protection. Minimizing estate taxes is an important aspect of this industry.

HIGHER RETURN ON INVESTMENT: In addition to gaining access to investments in countries with higher interest rates, working with an offshore wealth manager opens up the door to an entire world of opportunity in comparison to being restricted to one’s local market.

INCREASED MARKET ACCESS: Investing offshore provides greater flexibility to invest in undervalued markets, companies and currencies. It allows investors to get the jump on emerging sectors, IPO’s and many alternative investments.