The stock market regularly makes headlines, especially with the wild swings weve experienced lately. But volatility among stocks is nothing new. What investors should really pay attention to, experts warn, is the bond market.

Long considered a secure, steady way to earn income and hedge retirement savings against risk, bonds likely wont be such a haven for much longer. The volatility that we may experience in the bond market could easily exceed the volatility thats normally associated with the stock market, said Ric Edelman, a financial advisor, author, syndicated radio host and co-founder of Edelman Financial Engines. And the worst part is, it will hit the very investor whos least able to sustain the volatility: the conservative, income-oriented investor who is retired and doesnt have 30 years to wait for recovery.

Investors that went into bonds under the guise of safety could get a rude awakening if interest rates rise.

Interest Rate Risk And Its Effect On Bonds

Rather than focusing on the short-term fluctuations of the stock market, which dont have much bearing on long-term goals, such as saving for retirement, Edelman said investors should be more concerned about interest rates and their effect on the bond market.

Nobody expected that interest rates would stay so low for so long or that we might experience zero or even negative interest rates, Edelman said. That means investors need to recognize the notion of interest rate risk.

The 1970s are considered by many to be one of the worst economic periods in modern American history. Folks who are old enough to remember can fondly recall the days of 15% CD rates and can also lament the days of 21% mortgages, Edelman said. Interest rates were at all-time highs until Ronald Reagan took office in 1982, at which point interest rates began to come down (you can argue the degree to which Reagan was responsible for this).

Considering that the average investor is in the market for about 40 years, according to Edelman, most investors today have only ever experienced consistently falling interest rates with a few upward fluctuations here and there. It also means theyve only ever experienced a rising bond market, since interest rates and bond yields have an inverse relationship.

It has caused many investors to conclude that this is the way bonds always behave because, in their individual memory, thats the way bonds always did behave, Edelman said.

What people may not realize is that at some point interest rates will have to rise again, which means bond yields will fall in value. They are on opposite ends of a seesaw: When one goes up, the other goes down, Edelman said.

Today, that ratio is about 1-to-7, meaning for every 1% change in interest rates, theres a 7% change in bond values. If interest rates go from 2% to 4% a 2% increase bonds could lose 15% of their value... and the majority of bond investors, I fear, are not aware of this risk, he said.

Is It Time To Ditch Bonds?

Greg McBride, a chartered financial analyst and senior vice president at Bankrate.com, agreed with Edelmans sentiment. There is a ton of risk in the bond market, concentrated among long-term bonds, he said. And a lot of investors that went into bonds under the guise of safety could get a rude awakening if interest rates rise and the value of those long-term bonds plunges.

Of course, experts have been claiming for the last 10 years that rates are going to go up. When they have risen, theyve done so modestly, only to move right back down. A skeptical investor might think this is crying wolf, McBride said. But just because it hasnt happened yet doesnt mean its not going to happen.

The whole idea of going into bonds for less volatile returns and predictable income is no longer a guarantee. You are getting very little in the way of income, and youve got a risk of significant downside volatility at this point, McBride said. Investors would be prudent to take a little money off the table now and lighten up on bonds.

That doesnt mean you should ditch them entirely, however. Edelman advised that investors simply shorten the maturity. We are recommending that you hold short-term and intermediate-term five- to seven-year maturities for the most part rather than predominantly 20- and 30-year maturities, he said. This will insulate you to a great degree against the risk that interest rates might rise. Edelman pointed out that since interest rates are now very low across the board, the difference in yield between a seven-year Treasury and a 20-year Treasury is not all that significant. So youre not sacrificing much income in order to obtain a higher degree of safety.

McBride added that for investors who still have a long time horizon before retirement, quality dividend-paying stocks are a much more attractive option. The valuations are reasonable, the income stream is poised to grow over time (unlike a bond, which stays static) and youre earning yields that are above what youre going to get on bonds, he said.

McBride recognized that this understandably might seem counterintuitive to investors. The reality of it is you can generate income and should generate income across your portfolio, he said. Not just in bonds and fixed-income, but from equities, real estate investment trusts, master limited partnerships... some of those investments that are riskier in the short-term are a much better hedge against inflation and preserving your buying power in the long-term.

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Bonds Are About To Become A Risky Investment, Experts Warn - HuffPost

Billionaire Mark Cuban is known for his tech investments but on Sunday's "Shark Tank," Cuban diversified in a unique way.

Cuban invested six figures in Eterneva, a business that turns human or animal ashes or hair into diamonds.

"What we do is grow real diamonds from the carbon in someone's ashes," Garrett Ozar, who co-founded the company withAdelle Archer, said during the episode. "But really, we're in the business of celebrating remarkable people. Our diamonds give you something positive to look forward to."

According to Archer and Ozar, customers receive a "welcome kit," which includes a small container for a half-cup of ashes or hair. Customers then send that back to Eterneva. Customers also pick the diamond of their liking.

Then "we extract carbon from a half a cup of ashes or hair," Ozar said during the episode. "Once we have carbon, we then use high pressure, high temperature to grow a diamond."

The prices of these diamonds range from $3,000 to $20,000, according to Archer. She said the average order value is $8,000, and customers "pay upfront, in full."

"That's smart," Cuban said.

It takes 10 months to make the diamond, and it costs Eterneva between $3,000 to $5,000 to make.

The Sharks were impressed with Eterneva's business model.

"First year in sales we did $913,000, and we're projecting to do $2.7 million this year," Ozar said during the episode. "We're doing three-and-a-half times the volume of all our competitors in a year and a half," Archer added.

Archer and Ozar asked the Sharks for a $600,000 investment in exchange for a 5% stake. However, once the Eterneva duo revealed they currently have investors, previously raising a "$1.2 million round in a $10 million valuation," the Sharks were concerned that they did not really need a Shark investment.

"You come on here knowing you have to negotiate, but that puts a cap on what you're able to negotiate," Cuban said during the episode.

Shark Daymond John was not happy with the Archer and Ozar's decision to appear on "Shark Tank."

"Tens of thousands of people apply to stand on this rug. And every person that takes this carpet that has the money, they took the chance away from somebody that desperately needed help," John said during the episode. "Do you understand where I am seeing this as a problem?"

Cuban then added, "what he is asking is: are you happy with the commercial that we're making you right now?"

Despite this, Cuban thought the company was worth an offer, revealing why he was sold on the business.

"I love the idea. You're a celebration company," Cuban said during the episode. "Whether it's death, whether it's human, whether it's pet, whether it's birth. I would have loved to take a hair from my kids when they were born and put it in a diamond and give to my wife as a gift, even if it took 10 months. I love what you're doing."

Cuban first offered $600,000 for a 15% stake in the company during the episode. But after some back-and-forth, including some competition from Sharks Robert Herjavec and Kevin O'Leary, the Eterneva co-founders went with Cuban's final offer: $600,000 for a 9% stake.

"I knew you guys were smart," Cuban said.

"Now that Mark is a part of the team, sky is the absolute limit," Archer said.

Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank."

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'Shark Tank': Why Mark Cuban invested $600,000 into a business that turns human ashes into diamonds - CNBC

Caution: Men Working. Repairs are underway at the Khurais oil field in Saudi Arabia.

Saudi Aramco may be the worlds most profitable company, with more than $200 billion of pretax income over the past year. But even if the Kingdom manages to launch its IPO of the company, prudent investors should stay away, at any price. Heres 10 reasons not to invest:

Geopolitical risk. A September 14 cruise missile strike disabled two of oil giant Saudi Aramcos crown jewels, the Abqaiq oil stabilization plant and the Khurais oilfield. It used to be that the threat of disruption to oil flows from Saudi Arabia would be good for at least a few dollars pop in the price of oil. Not anymore. After jumping 20% when trading commenced following the Abqaiq attack, crude has since slumped to $60, lower even than before the attacks. Amid heightened tensions, President Trump appears tired of holding Uncle Sams umbrella of protection over the Kingdom, and the slog in Yemen should give no comfort that the Saudis could defend itself and its oilfields in a war against Iran. The possibility of future attacks now hangs over the market, says Amrita Sen of consultancy Energy Aspects.

No growth. In a commodity business you need scale in order to compete. But once youve achieved that scale, growth is anchored by the law of large numbers. A small company can rapidly double in size and value. Aramco sure cant. Its output has been flat, around 10 million barrels per day since 2014. And even prior to the attack on Abqaiq the company was being forced to run at less than 90% of capacity in order to satisfy OPEC volume reductions.In the first half of 2019 Aramcos net income and capital investment both fell 12% to $47 billion and $14.5 billion. According to analysis by Bernstein Research, Aramco will not have enough funds this year to pay its dividends out of free cash flow and so will have to borrow to make its payouts.

No autonomy. The companywhether active in OPEC or notacts as the primary lever of Saudi oil policy, with the king, not the board, calling the shots, says Bill Farren-Price, a director at RS Energy Group.In preparation for the IPO, King Salman in 2017 lowered Aramcos tax rate from 80% to about 50%, such that in 2018 the company had to hand over only $100 billion in taxes to the kingdom. Aramco says that upon going public it will promise dividends of at least $75 billion a year to shareholders, but with the kingdom running a budget deficit, if money gets tight that dividend could be cut by royal decree.

About that valuation. Prince MbS regularly touted $2 trillion as his valuation expectation for Aramco. This has always been too high. The worlds biggest and best-managed oil companies currently trade at a dividend yield of around 5% (Exxon 5%, Chevron 4%, Shell 6.5%, Total 5.6%, Sinopec 8%). To generate a 5% yield from $75 billion in dividends implies a market cap valuation on the order of $1.5 trillion. On a price/earnings basis, applying the average megacap P/E of 15 to Aramcos ~$100 billion of net income gets the same $1.5 trillion valuation.

Too many alternatives. Even $1.5 trillion is likely too high, considering that the world really doesnt need any more bloated, state-controlled, publicly traded oil giants. For instance, Gazprom, PetroChina and Petrobras, have each suffered corruption scandals and are down at least 40% in the past decade. Equinor, the Norwegian oil giant formerly known as Statoil, is considered the best-run of the state-owned giants; it has lost just 20% in the past decade and has made great strides in reducing the carbon intensity of its operationsa clear competitive advantage.

Capital is mistreated. In late 2017 Prince MbS arrested dozens of Saudi billionaires and tycoons and installed them in fancy prison at the Ritz-Carlton Riyadh. The captives included famous capitalists like Prince Alwaleed bin Talal, long praised as the Arab worlds Warren Buffett for decades of shrewd investments. MbS shook down his guests for $100 billion in assets with no legal due process whatsoever. You will no longer find any Saudis on Forbes list of Global Billionaires. Prince Alwaleed reportedly said the price of his freedom was $6 billion. Once a fixture on CNBC, he has hardly been seen since.If this is the treatment that successful Saudi entrepreneurs (legit or not) receive in the kingdom, why bother? Capital only flows to places where it is treated well and protected by the rule of law. In 2016 Saudi Arabia attracted $7.4 billion in Foreign Direct Investment. In 2017 FDI plunged to $1.4 billion, recovering somewhat last year to $3.2 billion.The World Bank ranks Saudi Arabia 92 out of 190 countries on ease of doing business. Theres too many better places to set up shop.

Behold the power of Americas frackers. If you absolutely must own oil and gas assets, wouldnt you rather they be in politically stable places like Texas or New Mexico, where property rights are sacrosanct, contracts upheld by the rule of law and the likelihood of Iranian missile strikes vanishingly low? Americas frackers have unlocked enormous onshore reserves over the past decade, and theyre now on sale, with many names down 50% or more in the past year. Apache Corp. is down 50%, Occidental Petroleum down 44% and EOG Resources off 17%, from year-ago levels. All have far more room to grow than Aramco and are not burdened with the pressure of being a royal piggybank.

The traditional niqab and black abayas are common, even in more liberal Jeddah, as seen in this 2018 ... [+] photo.

What human rights? The murder of Washington Post columnist Jamal Khashoggi last year still gets headlines, but you cant believe for a second he was the first dissident killed and dismembered by a team of Saudi hitmen. Though Prince MbS may think he can placate calls for liberalization by granting women permission to drive, he has imprisoned driving activist Loujain al-Hathloul for more than a year. Women remain second-class citizens and must cover their heads in public. There is no religious pluralism, no freedom of assembly or expression. Alcohol is prohibited. But hey, now you can get a tourist visa to come see for yourself how this absolute monarchy keeps its 30 million subjects in line.

Absolute power corrupts absolutely. In a country that outlaws all political opposition, when change finally does come to the kingdom it will not be orderly. In a conversation in late 2017, Khashoggi told me he wasnt a revolutionary. Im not against the system. Without the monarchy the whole country would collapse, he said. What he wanted most for Saudi Arabia were the freedoms we take for granted in the United States. I would wish for freedom of expression.If only that werent such a high bar.

The oil age is ending. The world has never used more oilabout 101 million barrels every day. And theres plenty more where that came from, thanks to advances in directional drilling and hydraulic fracturing. The world is glutted with oil right now even after the near total collapse of Venezuela (which has even more of the stuff than Saudi Arabia) and the blockade on Iranian crude. When Peak Oil comes sometime in the next 25 years, it will be a function not of inadequate supply, but lackluster demand, driven by electric vehicle adoption. That will gut the price of oil and, with it, the value of Aramcos reserves. Considering that Aramco currently pumps about 4 billion barrels per year, Saudi claims of 260 to 300 billion barrels of proven oil reserves should be met with eye rolls. There is zero present value to a barrel of oil in the ground that no one will get around to drilling for 50 years.

See more here:
10 Reasons Not To Invest In The Saudi Aramco IPO - Forbes

Spearhead, an investment fund launched by AngelLists Naval Ravikant and Accomplices Jeff Fagnan, plans to raise roughly $100 million for its third fund to provide founders $1 million each to invest in technology startups of their choosing.

The firm, created in 2017, initially provided founders $200,000 in investment capital sourced from Spearhead I, a $25 million vehicle, followed by Spearhead II, a $35 million vehicle. The group now plans roughly $100 million to give its founders 5x more capital to play with.

Each founder is allotted 15% carry in his or her fund, while Spearhead holds on to 5%. This time around, says Spearheads Jeff Fagnan, standout leads, or those tapped to deploy capital from the fund, will also have the opportunity to receive another $10 million to invest at the end of the two-year program during a culminating demo day-like event.

Spearhead is designed to train founders, who tend to be well-connected to the tech ecosystem and knowledgeable about startups, to be effective angel investors. Previous Spearhead leads include Shippo co-founder and chief executive officer Laura Behrens Wu, Scale AI founder and CEO Alex Wang and Rippling co-founder and chief technology officer Prasanna Sankar. To date, 35 founders have completed the program.

Applications to join Spearheads third cohort will become available this week. Those who participate will be encouraged to write checks at the pre-seed stage.

Theres starting to be gap opening up again at the pre-seed, Fagnan tells TechCrunch. Founders are the right way to fill that gap. Founders backing their most talented friends founders backing founders is the right way for this to go. We need to redefine who thinks of themselves as an angel investor.

To be eligible to become a Spearhead lead, you must live in San Francisco, Los Angeles, Boston or New York City and run, or very recently have run, a startup. The firm plans to accept around 15 applicants.

We are trying to build an active community within the leads and weve found smaller equals better; fewer people coming together and taking deeper accountability, Fagnan said.

Spearhead leads can invest their capital in any tech startups, so long as theres no existing equity relationship. Existing Spearhead investments include ZeroDown, Altitude Networks, Scythe, Air Garage, Cloosiv, Height, O.School, PopSQL, Superplastic and Sword Health.

View post:
Spearhead will give $1M to 15 founders to invest freely - TechCrunch

CAIRO 20 October 2019: Kuwaiti Prime Minister Jaber Al-Mubarak Al-Hamad Al-Sabah's two-day visit starting Sunday is set to strengthen the bilateral ties between the two countries especially at the economic level and investments.

Sheikh Jaber Al-Mubarak, will be accompanied, during his visit to Egypt, with a large delegation comprising a number of ministers, representatives of Kuwait Chamber of Commerce and Industry, and businessmen, local media reported.

The Kuwaiti prime minister and his delegation are scheduled to meet with Egyptian President Abdel Fattah al-Sisi and Prime Minister Mostafa Madbouly.

During the meetings, the two sides will sign several agreements covering some areas of cooperation between the two countries, especially the investments sector.

The Egyptian-Kuwaiti relations are based on cooperation and understanding on all issues.

According to the Kuwaiti newspaper Al-Qabas, economic relations between the two countries have witnessed a steady growth throughout history. Kuwaiti investments in Egypt rank high among existing investments as it exceeds $15 billion.

Tourism and aviation between the two countries have witnessed a similar growth reflected in the increase in the number of Kuwaiti tourists to around 200,000 tourists on 64 weekly flights between.

A large Kuwaiti community is also inhabiting Egypt, including about 20,000 Kuwaitis, mostly undergraduate and post-university students. In return, Kuwait hosts around 700,000 Egyptian nationals.

In the investment sector, Kuwait is Egypt's third largest trading partner in the Arab world after the UAE and Saudi Arabia. Deputy Prime Minister Sabah Al-Khalid Al-Sabah said in the 12th session of the Kuwaiti-Egyptian joint committee that investments exceeded $15 billion.

The volume of Egyptian exports to Kuwait between 2010 and 2018 amounted to about 984.2 million dinars (about $3.2 billion), while the volume of Kuwaiti exports to Egypt reached 165.3 million dinars (about $543 million), according to statistics of Kuwait's Central Statistics Bureau.

The Kuwaiti prime minister's visit comes in the context of continuous visits between the two countries to enhance bilateral cooperation.

The Kuwaiti Fund for Arab Economic Development has covered most of the developmental fields in Egypt during the past years, according to Al-Qabas. The total number of projects financed by the Fund in Egypt since its establishment until September 30 this year is about 50 projects with a total cost of one billion dinars (about 3.4 billion dollars), while the number of grants and technical assistance amounted to about 18 grants worth 17.3 million dinars (about 56 million dollars).

The various projects financed by the Fund in Egypt included development of maritime transport, the pharmaceutical industry, sanitation, power and water plants, the expansion of natural gas networks, and the development of railways.

Read more:
Egyptian-Kuwaiti investments highlighted ahead of PM's visit to Cairo - Egypttoday

In case you haven't noticed, our old friend volatility is back again. Through the first six trading days of October, a historically volatile month for the stock market, the S&P 500 (SNPINDEX:^GSPC) has delivered single-day points declines (when rounded) of 36, 53, and 46.

For those investors fixated on point values rather than percentages, the start of October has all the making of a stock market "plunge." The S&P 500 has shed an aggregate of 83 points in a six-day span, and it's nearly 115 points lower than where the index closed in mid-September. Concerns about weak manufacturing data, the persistent trade war between the U.S. and China, and the inverted yield curve, have some folks talking about the dreaded "R" word: recession.

Image source: Getty Images.

But there are a couple of things you should certainly keep in mind if the latest stock market hiccup has you concerned. First, these "hiccups" tend to be pretty common. Over the previous 70 years, there have 37 corrections in the S&P 500 totaling at least 10%, not including rounding. That's one every 1.9 years. Drops in the market of 5%, similar to what we're experiencing now, are even more frequent. This is the price of admission, so to speak, for long-term wealth creation.

That brings me to the next point: long-term investors rarely suffer lasting damage from stock market corrections. Though you're going to be wrong on some of the individual stocks you buy, it's important to recognize that each and every correction in the stock market has been eventually erased by a bull market rally. Patience, time, and diligence are the keys to succeeding over the long run.

Lastly, it's never a bad idea to have a strategy in place to curb your concerns when these inevitable corrections and hiccups in the stock market pop up. When investor fear builds and emotions drive the stock market lower in the near-term, here are three investment ideas that can thrive.

Image source: Getty Images.

The first consideration for investors is to buy businesses that provide a basic-need good or service that isn't impacted by the ups and downs of the U.S. economy. Some really basic examples include detergent and toothpaste, which are going to be bought by consumers regardless of how well or poorly the economy is performing.

In terms of top-performing basic-need stocks, NextEra Energy (NYSE:NEE) might be worth a closer look as a healthy hedge during times of volatility. NextEra is the largest electric utility in the U.S. by market cap, and also happens to be a global leader in wind and solar energy generation. These renewable projects haven't been cheap, but it's put NextEra on track to be low-cost producer for a long time to come.

On the other side of the coin, NextEra's traditional electric generation business is regulated. This mean NextEra can't raise its prices without the approval of state-based energy commissions. However, it also means that the company isn't exposed to volatile wholesale pricing, and its cash flow is highly predictable.

Since homeowners and renters don't change their electricity usage much as a result of fluctuations in the economy, NextEra is the epitome of a defensive basic-need stock that can thrive in a volatile market.

Image source: Getty Images.

Admittedly, not every company provides a basic-need good or service. However, that shouldn't disqualify brand-name stocks from being purchased during periods of heightened volatility. Businesses that provide steady profits, pay a dividend, and offer low volatility can be especially profitable when the tide turns.

Take telecom giant AT&T (NYSE:T) as an example. I simply say the name AT&T and investors worldwide yawn. It's a relatively boring business model with a low-to-mid-single-digit growth rate that's buoyed by its wireless division and content options, such as DIRECTV. But during periods of heightened volatility, and over the long run, boring is beautiful.

The barrier to entry in the wireless space is exceptionally high in the U.S., meaning AT&T only has a few major competitors and pretty healthy market share. Its wireless division is also looking at an exciting infrastructure upgrade cycle that'll see the rollout of 5G networks really ramp up in 2020. Since data is AT&T's margins driver, 5G networks could provide years of higher-margin growth. Assuming AT&T can also monetize its Time Warner acquisition into juicier advertising rates and more streaming subscribers, this boring business could be on the verge of getting considerably more exciting.

And did I mention it offers a 5.4% yield, which is more than triple the current yield of a 10-year Treasury bond?

Image source: Getty Images.

A third way to thrive during a stock market correction is to buy a safe-haven asset stock. For instance, when uncertainty or worry build in the stock market, investors will often turn to gold as a store of value. This is why it's known as a safe-haven asset.

But buying gold, or any commodity for that matter, tends to underperform the stock market over longer periods of time. Plus, physical assets like gold don't offer a dividend. That's why it might be a smart idea for investors to consider buying a company that produces a safe-haven asset, such as gold.

As an example, British Columbia-based SSR Mining (NASDAQ:SSRM) is a company that's sitting on net cash of almost $207 million, which is pretty incredible considering that most gold and silver mining stocks are saddled with debt. SSR Mining expects production at its flagship Marigold mine in Nevada to grow by about 30% to 265,000 ounces of gold per year by 2021 or 2022, and has seen its Seabee Mine deliver record gold output year after year.

Also, after recently acquiring Golden Arrow's 25% joint venture stake, SSR Mining also now owns a 100% stake in the Chinchillas silver mining project in Argentina. Though still generating a significant portion of revenue from the gold market, SSR Mining now has recurring silver revenue that allows it to benefit from a robust economy, too.

The next time to stock market "plunges," keep in mind that there are alternatives that can allow investors to thrive.

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The Stock Market Is "Plunging": 3 Investments That Can Thrive - The Motley Fool

LONDON (Reuters) - Royal Dutch Shell (RDSa.L) still sees abundant opportunity to make money from oil and gas in coming decades even as investors and governments increase pressure on energy companies over climate change, its chief executive said.

Ben Van Beurden, CEO of Shell, speaks to Reuters reporters in Canary Wharf, London, Britain, October 8, 2019. Picture taken October 8, 2019. REUTERS/Marika Kochiashvili

But in an interview with Reuters, Ben van Beurden expressed concern that some shareholders could abandon the worlds second-largest listed energy company due partly to what he called the demonisation of oil and gas and unjustified worries that its business model was unsustainable.

The 61-year-old Dutch executive in recent years became one of the sectors most prominent voices advocating action over global warming in the wake of the 2015 Paris climate agreement.

Shell, which supplies around 3% of the worlds energy, set out in 2017 a plan to halve the intensity of its greenhouse emissions by the middle of the century, based in large part on building one of the worlds biggest power businesses.

Still, the amount of carbon dioxide emitted from Shells operations and the products it sells rose by 2.5% between 2017 and 2018.

A defiant van Beurden rejected a rising chorus from climate activists and parts of the investor community to transform radically the 112-year-old Anglo-Dutch companys traditional business model.

Despite what a lot of activists say, it is entirely legitimate to invest in oil and gas because the world demands it, van Beurden said.

We have no choice but to invest in long-life projects, he added.

Shell and its peers have long insisted that switching away from oil and gas to cleaner sources of energy will take decades as demand for transport and plastics continues to grow. Investors have warned, however, that oil companies often rely on forecasts that underestimate the pace of change.

Shell plans to greenlight more than 35 new oil and gas projects by 2025, according to an investor presentation from June.

Oil and gas remain the backbone of profits for Shell, the largest listed company on London's main FTSE index .FTSE.

While oil and gas account for the entirety of Shells free cashflow today, it foresees a gradual diversification over the next two decades. Oil and gas are each still expected to provide a third of free cashflow, however, with the rest coming from power and chemicals.

Many oil and gas projects such as gas-processing plants, deepwater platforms or chemical plants take billions of dollars to develop and operate for decades.

Shell, like many rivals, has become more selective in its investments as the outlook for oil prices and demand remains unclear. It targets new projects that can be profitable at oil prices of $20 to $30 a barrel and which emit relatively low greenhouse emissions. Oil is trading at around $60 a barrel.

We can sustain an upstream portfolio all the way into the 2030s if there is an economic rationale for doing that and a societal rationale for doing that, van Beurden said.

Fortunately enough, we have more of those than we have money to spend on them.

Van Beurden rejected as a red herring arguments that Shells oil and gas reserves, which can sustain its current production for around eight years, would be economically unviable, or stranded, in the future.

A lack of investment in oil and gas projects could lead to a supply shortage and result in price spikes, he said.

One of the bigger risks is not so much that we will become dinosaurs because we are still investing in oil and gas when there is no need for it anymore. A bigger risk is prematurely turning your back on oil and gas.

Shell plans to increase its annual spending to around $32 billion by 2025 from the current $25 billion, with up to one tenth allocated to renewables and the power business.

The company, the worlds largest dividend payer, plans to return $125 billion to shareholders in the five years to 2025.

On liquefied natural gas, of which Shell is the worlds biggest trader, van Beurden said the market would exhibit oversupply in the near term. But (LNG) demand will continue to grow at a pace that is roughly four times that of oil, he said.

(GRAPHIC: Shell reserves - here)

(GRAPHIC: Shell capex - here)

(GRAPHIC: Shell's share performance - here)

Shell has become a focal point of environmental protests, particularly in Europe, with regular demonstrations outside its London headquarters and the British National Theatre dropping Shells sponsorship in recent months.

At the same time, investors have sharply increased their scrutiny of companies environmental performance.

Amid growing uncertainty over future demand, the share prices of Shell and its peers have underperformed relative to other sectors.

Van Beurden expressed concern that some investors could ditch Shell, acknowledging that shares in the company were trading at a discount partly due to societal risk.

I am afraid of that, to be honest, he said.

But I dont think they will flee for the justified concern of stranded assets ... (It is) the continued pressure on our sector, in some cases to the point of demonisation, that scares asset managers.

It is not at a scale that the alarm bells are ringing, but it is an unhealthy trend.

Van Beurden put the onus for achieving a transformation to low-carbon economies on governments, warning that not enough progress had been made to reach the Paris climate goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels by the end of the century.

Can that happen? I think it can ... Increasingly society is not putting up with the fact we are not making enough progress.

Delaying implementation of the right climate policies could result in knee-jerk political responses that might be very disruptive to society, he said.

Let the air out of the balloon as soon as you can before the balloon actually bursts, van Beurden said.

(GRAPHIC: Shell Q2 2019 profits - here)

(GRAPHIC: Shell annual earnings 2018 - here)

(GRAPHIC: Oil Majors' Carbon emissions interactive - here)

Reporting by Ron Bousso and Dmitry Zhannikov; Editing by Dale Hudson

More here:
Exclusive: No choice but to invest in oil, Shell CEO says - Reuters

For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Time Watch Investments Limited (SEHK:2033) useful as an attempt to give more color around how Time Watch Investments is currently performing.

See our latest analysis for Time Watch Investments

2033s trailing twelve-month earnings (from 30 June 2019) of HK$305m has increased by 4.8% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -3.9%, indicating the rate at which 2033 is growing has accelerated. How has it been able to do this? Well, lets take a look at whether it is solely because of industry tailwinds, or if Time Watch Investments has experienced some company-specific growth.

In terms of returns from investment, Time Watch Investments has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 10.0% exceeds the HK Luxury industry of 5.3%, indicating Time Watch Investments has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Time Watch Investmentss debt level, has declined over the past 3 years from 18% to 14%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 2.4% to 9.5% over the past 5 years.

Though Time Watch Investmentss past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Time Watch Investments gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Time Watch Investments to get a better picture of the stock by looking at:

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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Does Time Watch Investments Limiteds (HKG:2033) Past Performance Indicate A Stronger Future? - Simply Wall St

Until recently, investing was a pain. If you were lucky, youd spend an hour on the phone with a financial advisor. Then, youd cross your fingers until the quarterly report arrived.

With todays best investment apps, all it takes is a few taps. You can receive a tailored portfolio or trade your own stocks, check your portfolios performance, and shift money around without ever talking to a human being. And because both traditional brokerages and fintech startups offer investing apps, youre likely to find one perfect for you.

These 15 apps provide a painless route to investing for everyday investors.

Here are 15 of the best options for everyday investors:

1. Best investment app for high-end investment management: Round

Investment apps are increasingly turning to robo advisors. Although Round uses an automated questionnaire to generate its users portfolios, it works with fund managers like Guggenheim Partners, Doubleline, and Gabelli to provide individual investors with access to institution-grade investments.

Rounds institutional managers lean heavily on alternative assets and strategies, including asset-backed securities, real estate, and merger arbitrage. No matter the account value, Round charges a 0.5% management fee. In the event of a negative return, however, Round waives its monthly fee.

2. Best investment app for minimizing fees: Robinhood

For investors who want to do it themselves and pay as few fees as possible, Robinhood is one of the best investment apps. With no commissions and a $0 account minimum, Robinhood cuts out most of the costs typically associated with investing apps.

Unfortunately, Robinhood users do make some sacrifices. Robinhood doesnt offer any retirement accounts or managed portfolios, meaning all investments made through the app are taxable and self-managed. Its relatively bare-bones for an investing app, but its the best way to trade individually for free.

3. Best investment app for student investors: Acorns

Every investor has to start somewhere. To cater to the fledgling demographic, Acorns provides free management for college students. Unlike most investing apps, it also offers a spare change savings tool, which rounds up purchases users make at select retailers. The difference between the balance due and the next dollar is then invested in the users Acorns account.

But be warned: Acorns flat fees can be stiff for those with smaller account balances. For $1, $2, or $3 per month depending on the users account balance Acorns offers a passive portfolio of ETFs.

4. Best investment app for data dissectors: E*Trade

Through the Power E*Trade app, do-it-yourself investors can buy into a wide range of assets. E*Trades stocks, mutual funds, ETFs, futures, and options are backed by its best-in-class research library. There, E*Trade provides interactive charts and expert studies. Users of the investing app can dig deep into earnings, dividends, company news, and metrics like debt-to-equity ratio.

In exchange for that data, E*Trade does charge steeper commissions, at $6.95 per trade, than many providers on this list. Due to its educational tools and array of assets, this investing app is a smart pick at the poles: Beginning investors will appreciate the help building a risk-aligned portfolio, while veterans will like its professional-grade investment options.

5. Best investment app for banking features: Stash

Like Acorns, Stash is one of the best investing apps for beginners. Where Stash stands out is its account options: For a flat $3 monthly fee, users get brokerage, bank, and retirement accounts. At the $9-per-month level, they also receive two custodial accounts, monthly investment research, a stronger rewards structure, and an upgraded debit card.

Stash requires just $5 to open an account, and users can purchase fractional shares in stocks and ETFs. Unfortunately, though, Stash only offers about 150 stocks and 60 ETF options. To make their holdings more obvious to beginners, Stash renames ETFs with monikers, such as Clean & Green for the iShares Global Clean Energy ETF.

6. Best investment app for customer support: TD Ameritrade

Another brokerage competing in the investing app space, TD Ameritrade doesnt require a minimum investment. It does, however, charge a comparatively expensive $6.95 per trade. Options cost even more, with a $0.75-per-contract upcharge.

Why would users pay TD Ameritrades fees? Because its asset options and customer support are second to none. Traders can choose between stocks, bonds, ETFs, mutual funds, futures, foreign currencies, ADRs, and more. If they need help, they get 24/7 phone, text, and instant messaging support. And if thats not enough, they can stop into one of TD Ameritrades 364 branch locations.

7. Best investment app for parents: Stockpile

Founded by a CEO who wanted to give his nieces and nephews something more substantial than toys for the holidays, Stockpile lets investors buy blue-chip stocks and ETFs via gift cards. Although this investing app makes sense for parents who want to pique their kids interest in investing, beware its fee structure.

For a standard trade, Stockpile charges $0.99. Gift cards, however, cost $2.99 for the first stock and $0.99 after that. And if you buy the gift card with a credit or debit card, expect to pay an additional 3%. Although kids may not care, Stockpile users cant see company balance sheets or portfolio performance projections.

8. Best investment app for overspenders: Clink

If youd rather shop than save, Clink may be the best investment app for you. By linking your credit card and bank account to the app, you can invest a percentage of recreational purchases. Alternatively, you can schedule a fixed amount to be transferred into your Clink account on a monthly or daily basis.

Clink investors currently pay no fees, nor do they need a minimum deposit. Instead, Clink collects receives kickbacks from the ETF sponsors offered. ETFs are currently Clinks only asset option, unfortunately, and theyre only available in bundles based on the users risk tolerance.

9. Best investment app for total automation: Wealthfront

Similar to Betterment and other robo advisors, Wealthfront invests in passive portfolios and charges a management fee of just 0.25%. Though the investing app requires a $500 account minimum, it does support daily tax-loss harvesting or realizing losses to offset taxes on capital gains.The value of tax-loss harvesting is limited for everyday investors, but it remains popular among robo-advisor apps.

To make the most of Wealthfront, though, your balance needs to fall in its sweet spot. Unlike many robo-advised apps, Wealthfront doesnt deal in fractional shares. Serious investors should look elsewhere, too: Although it does offer extras like the Wealthfront Risk Parity Fund to six-figure accounts for an extra fee, theres no human management option or bonus for large balances.

10. Best investment app for human customer service: Personal Capital

Personal Capitals minimum balance may be high, but its featured savings tools are robust. Those who can meet its $100,000 minimum get a combination of human and robo advisors. Accounts over $200,000 are assigned to dedicated financial advisors. Although Personal Capitals management fee is a stiff 0.89%, investors with large balances may pay as little as 0.40%.

What do users get for those fees? A pile of financial planning tools, including ones to track spending, net worth, retirement progress, portfolio performance, and more. Two new features include Personal Capital Cash, a savings-like account with a 2.3% interest rate, as well as a retirement paycheck planner, which lets investors project their withdrawals during retirement.

11. Best investment app for data security: M1 Finance

Claiming to be one finance account that does it all, M1 Finance might be the toughest-to-categorize investing app on this list. A hybrid broker and investment management app, M1 allows for both self-serve and robo-advised investing.

Although M1 does have some drawbacks, as a free platform with no account minimum, its data security measures are strong. In addition to the typical two-factor authentication, M1 uses 4096-bit encryption for data transfer and storage. On the downside, M1 doesnt provide tax-loss harvesting, nor does it offer as many asset types as traditional brokerages.

12. Best investment app for introductory offers: Ally Invest

Catering to both new and experienced investors, Ally Invest has a solid selection of educational materials and a fair fee structure. But the reason its on this list of top investing apps is its bonuses: With only a $10,000 deposit, investors earn $50, plus 90 days of commission-free trades. For larger deposits, that bonus amount goes as high as $3,500.

Although Allys fees are higher than many app-first tools, theyre lower than the other online brokerages on this list. Stock and ETF trades are subject to a $4.95 commission, plus $0.65 for options contracts. If youre an active or wealthy trader, though, those fees drop to $3.95 with an additional $0.50 for options. Thats not bad, especially given Allys intuitive app and resources.

13. Best investment app for socially responsible investing: Betterment

Young investors, in particular, like to support socially responsible companies. To reach them, Betterment offers a best-of-breed socially responsible investing (SRI) portfolio. Compared to its core portfolio, Betterments large-cap SRI holdings score 42% higher on its social responsibility index. The other assets in this investing apps SRI portfolio are mostly broad-market ETFs.

With $15 billion in assets under management, Betterment recently split its services into Betterment Digital with no account minimum and a 0.25% management fee and Betterment Premium. For a $100,000 minimum and a 0.40% fee, Betterment Premium provides unlimited phone sessions with certified financial planners.

14. Best investment app for index investing: Vanguard

One of the oldest and lowest-cost investment providers, Vanguards investing app could admittedly use some work. If you can handle a confusing interface, though, youll find few better options for buying into mutual funds and ETFs.

Vanguard charges no commissions for trading but does receive fees on its own ETFs. Plus, users who receive their account documents electronically pay no account service fees. And believe it or not, Vanguard doesnt require a minimum balance, either.

15. Best investment app for couples: Twine

Saving as a couple that doesnt completely share finances can be tough. If youve got a wedding or vacation ahead but still want to keep separate bank accounts, check out this investing app. Backed by John Hancock, Twine charges $0.25 per month for every $500 invested.

Although that fee structure is on par with other digital investment providers, Twines investment options are not. Twine gives users just three portfolio choices: conservative, moderate, or aggressive. Even more limited is its all-ETF asset mix, covering stocks as well as bonds. Twine is a fair pick for short-term savers who are new to investing.

Investing apps can be a godsend for individual investors who need a painless way to invest in stocks. Not all apps are created equal, but these 15 offer a good place to start.

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The 15 Best Investment Apps For Everyday Investors - Forbes

An investment bank in a report released Monday said the fears among Wall Street of the effects of a potential Warren presidency may be overblown.

RBC Capital Markets's head of U.S. equity strategy, Lori Calvasina, said in a report the negative effects of Sen. Elizabeth WarrenElizabeth Ann Warren40 state attorneys general to take part in Facebook antitrust probe: report Overnight Health Care Presented by Coalition Against Surprise Medical Billing Buttigieg unveils aggressive plan to lower drug prices | Supreme Court abortion case poses major test for Trump picks | Trump takes heat from right over vaping crackdown On The Money: Judge tosses Trump lawsuit over NY tax return subpoena | US, Japan sign trade deals | Trump faces narrowing window for trade deals | NBA sparks anger with apology to China MORE's (D-Mass.) economic policies would be "temporary," according to Bloomberg.

"Any pain from a Warren win is likely to be temporary," Bloombergsaid Calvasina wrote in the report. "Most of the sectors at high risk under a Warren presidency from a policy perspective (Financials, Energy, Health Care, Industrials) are already deeply undervalued versus the broader market.

The biotechnology, for-profit schools and health insurance sectors have developed concerns about Warren's consumer-focused advocacy, the report said, according to Bloomberg.

Calvasina said in the report Warren could back environmental, social and corporate governance investments, and small caps may outreach larger stocks because of a lower effect from Warren's policies.

Stocks would be negatively impacted by any separation of big technology companies, but retailers that couldn't outcompete Amazon could benefit from the potential technology breakups, according toBloomberg's reporting.

The stock market tends to go up over time, regardless of who occupies the White House, Calvasina wrote. Ultimately we think Corporate America and U.S. equity investors would learn to adapt to new political leadership, as they always do.

Wall Street has voiced concern over Warren's economic plans, with Democratic Wall Street donors even threatening to donate to President TrumpDonald John TrumpTrump campaign slams Minneapolis mayor, Target Center for 'attempting to extort' them with rally security fees Susan Rice calls Trump decision to pull troops from Syria 'batshit crazy' Ex-Trump officials met with Zelensky campaign aides at Trump hotel earlier this year: report MORE's reelection campaign if Warren is the nominee.

The Massachusetts senator has been soaring in the polls, competing closely with the main front-runner of the race, former Vice President Joe BidenJoe BidenA dozen House Democrats call on EU ambassador to resign amid Ukraine scandal Ex-Trump officials met with Zelensky campaign aides at Trump hotel earlier this year: report Overnight Health Care Presented by Coalition Against Surprise Medical Billing Buttigieg unveils aggressive plan to lower drug prices | Supreme Court abortion case poses major test for Trump picks | Trump takes heat from right over vaping crackdown MORE.

Warren has pushed for economic changes that work "for all of us, not just the wealthy and well-connected."

I'm fighting for an economy and a government that works for all of us, not just the wealthy and well-connected. I'm not afraid of anonymous quotes, and wealthy donors don't get to buy this process. I won't back down from fighting for the big, structural change we need. https://t.co/nx7GczQhHl

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Investment bank says fears of effects of Warren presidency might be overblown | TheHill - The Hill