Last Novembers news about AstraZeneca launching a $1 billion venture fund with China International Capital Corporation (CICC) to invest in up-and-coming players was widely viewed as illustrative of the British drugmakers ambitions in China. As it turns out, its just as much about CICC Chinas largest investment bank and its plans in biomedicine.

Days after announcing the AstraZeneca fund, state-backed CICC disclosed that its teaming up with 11 domestic firms to raise a fund dedicated to innovative drugs, in vitro diagnosis, medical technology and health IT. Its now closed at $229 million (RMB$1.6 billion), according to a statement.

Branded as Chinas answer to Goldman Sachs since it was launched in 1995 with Morgan Stanley, CICC has underwritten several biotech IPOs in recent years including those of I-Mab, Junshi and Henlius.

CICC Capital, its private equity arm, is in charge of managing the new fund. With close to $43 billion (RMB$300 billion) in assets, CICC Capital has made biomedicine one of three pillars of its direct investment portfolio alongside IT and consumer business. Cancer drug developer Abbisko and wound care specialist Tenry Pharma are among its bets.

Notably, its also channeled its money into VC funds giving it a stake in big-name healthcare-focused players such as Lilly Asia Ventures, Qiming Venture Partners, HighLight Capital and LYFE Capital.

For the new fund, its chipped in around $2.9 million, while Shenzhen-listed Pharscin Pharma, Hebei Port Group, Xiamen Fig Group, Fujian Sunner Group, Huirong Qide Investment, Xian Huirong, Xinwen Venture Capital (a subsidiary of Sichuan Daily Press Group) and others provided the rest.

No announcement about funding biomedicine these days is complete without alluding to the coronavirus outbreak out of Wuhan. CICC Capital devoted a considerate portion of its brief statement to highlight that its been in contact with multiple companies to help accelerate development of nucleic acid diagnostics, therapeutic antibodies, antivirals as well as vaccines.

It also said its new biomedical fund is the first investment fund to have gone through a new financial registration pathway set up earlier this month specifically for funds geared at prevention and containment of the coronavirus outbreak.

Not only does the Chinese biomedical industry shoulder great innovative challenges under the epidemic, its also ushered in a rare development opportunity, the firm stated.

See the rest here:
AstraZeneca's Chinese investment bank partner raises $229M for its own new fund and it's all about the coronavirus - Endpoints News

The price of gold is firm and higher by 0.67% on the day so far, having travelled from a low of $1,556.60 to a high of $1,578.30. Worries with the coronavirus taking a turn for the worse on Wednesday night, following the announcements by the Chinese health officials in the Hubei province reporting242 new deaths and 14,840 new cases of the flu-like virus, dentedrisk appetite.

The worldwide death toll is up toat least 1,357 and the number of confirmed cases to more than 60,000. The uncertainty of the situation is supporting safe-haven asset classes due to theeconomic ramifications that a full breakout into a pandemic would have on the global economy. However, considering the means in which theChinese health officials have changed the method of diagnosing cases of the illness and as such,there was a sevenfold increase in the number of new cases of the virus, based on a new diagnostic protocol, according to Chinas National Health Commission.

Analysts at TD Securities explained that goldis a crowded trade, although the marginal day-to-day flow appears to be driven by the change in risk sentiment as it relates to safe-haven demand.

"The bull market narrative is widely acknowledged, which translates to an above-average number of traders holding a long position, although the average trader's position size is not excessive. But, when periods of haven buying drive prices to the upper-bound of the recent range, the position sizing per trader becomes more of a worry, making short term shakeouts a more prominent risk."

The analysts still expect that investment demand for the yellow metal will grow in 2020, as asymmetry from the Fed and the suppression of real rates across the globe will keep thegoldbug alive. "That being said, we expect only marginal flows fromCTAsas algorithmic trend followers remain well-positioned for the precious metal bull market."

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Gold holds firm in positive territories, investment demand to grow in 2020 - FXStreet

Another change in the broadcasting world appears to be on the horizon. Univision (which owns 65 local Spanish-language TV stations across the U.S., plus 58 local radio stations and national networks like TUDN and Fusion) has been holding sale talks for the last few months, and those now seem to be nearing a conclusion. Benjamin Mullin and Dana Cimilluca ofThe Wall Street Journal reported Friday that Univision was in exclusive talks with a group involving former Viacom executive vice president and chief financial officer Wade Davis, with a possible valuation of around $10 billion including debt, and that a deal for the broadcaster might finally be at hand.

Meg James of The Los Angeles Times added more confirmation on this:

Univision Communications, the nations largest Spanish-language media company, is nearing a sale to an investment group led by former Viacom executive Wade Davis, according to two people familiar with the matter.

Univision is in advanced negotiations to sell itself to the Davis group, which includes the private equity firm Searchlight Capital Partners, according to the sources, who were not authorized to comment.

A deal could happen as early as next week, but the two sides continue to hash out key provisions of the deal.

While this isnt closed yet, the valuation of around $10 billion is close to what Univision has reportedly been seeking. And that marks a substantial drop from the $13.7 billion billionaire Haim Saban and his private equity partners paid for the company back in 2007.

Of course, Univision has had some setbacks since then, including losing audience share and even World Cup rights to Telemundo. And their foray into English-language digital media with Gawker and The Onion didnt appear to work out well for them; they bought the former Gawker sites for $135 million in 2016 in a bankruptcy auction, and also bought into The Onion and its associated properties that year for less than $200 million for a 40 percent stake, then sold those sites to Great Hill Partners last year for much less than what they paid. Theyve also had some carriage challenges, including a dispute with Dish, and thats hurt their revenue. But theyve still found some success on other fronts, especially on the sports front with various soccer programming (including the UEFA Champions League, Liga MX, and MLS) and with Combate Americas. Last summer saw Univision team up more closely with Mexicos Grupo Televisa to rebrand Univision Deportes as TUDN, sharing content and expanding their sports programming.

Its unclear what a change in ownership could mean for Univisions sports content, as a lot depends on what the new owners decide to invest in. But sports programming, and soccer in particular, appears to be one of the better-performing parts of Univisions current approach, and it remains to see if their focus will pivot following a sale.

[The Wall Street Journal,The Los Angeles Times; photo of Univisions LA headquarters from biorealty.com]

Read more:
Univision reportedly "nearing a sale" to investment group - Awful Announcing

NEW YORK (Reuters) - Owning a piece of art is not just for the ultra-wealthy anymore.

Masterworks, a two-year-old startup, buys artwork with profit potential then sells shares in it to its customers using its online platform.

Our fundamental belief is that this is a very interesting asset class, which historically has been traded by the ultra-wealthy for hundreds of years, said Scott Lynn, a 40-year-old founder and chief executive of Masterworks.

But the only way to really invest in art has been to purchase a painting. Masterworks is the first platform that allows anyone to really invest in these great works of art.

Customers sign up, pick a piece of art, and decide how many shares they want to buy in it, with minimums starting at $1,000.

For instance, Monets Coup de Vent painting, valued at $7 million, has a couple of thousand investors right now, according to Lynn, who expects more interest by the time Masterwoks decides to sell it to a collector and then shares profits with its clients.

Masterworks, based in New York, divides the art market into two segments, Lynn said. One, called blue chips, includes bankable artists like Monet, and performs with high-single-digit or low-double-digit returns, with low risk.

Another is defined by mid-career, living artists, whose work can yield investors a return of roughly 12% to 20% a year, with moderate risk, Lynn said.

Reporting by Mark Porter and Aleksandra Michalska; Editing by Tom Brown

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Investing in the art world is now just a click away - Reuters

Provided by CNBC Jack Washington in his home near Dallas, Texas.

Watching extended family members and friends lose their homes during the Great Recession had a profound impact on Jack Washington. Though his own family made it through the financial crisis mostly unscathed, Washington began to realize from a young age how important it was to put money away and never owe anything to anyone.

So he started saving. His ultimate goal: Put away as much as he could, so his home couldn't be taken from him.

This savings mentality has manifested from the time Washington was in high school, when he began considering what he wanted for his future. The now-33-year-old received his bachelor's and master's degrees without taking on any student loan debt, thanks to a combination of scholarships and working as a residential advisor.

He pursued degrees in business and forged a career in human resources to ensure he would make good money right out of school, and have ample career opportunities.

In the first five years after he graduated, he saved over $300,000. His next step: buying a house. He closed on his 1,600-square-foot home in Richardson, Texas just outside of Dallas at the beginning of June 2019, and paid off the mortgage by the end of August.

For the human resources manager, owning a home outright was more important than any potential stock market gains his savings could have accrued. So important, in fact, that he paid off his $300,000 home in around three months, cashing out around $225,000 from a brokerage account rather than keeping the funds invested for retirement. He took the rest from more conservative investments, like CDs and liquid savings accounts.

Washington's decision to pay off his home decades early comes from a deeply-held conviction that it's better to be completely debt-free than owe money to anyone, regardless of if it's "good" debt or not.

His family and friends "loved the idea," he says. But the bank and his financial advisors were less than thrilled, warning that he'd potentially lose out on some serious stock market returns.

"I wanted financial stability and security. I wanted somewhere we could set down roots," Washington tells CNBC Make It. "I look at it as a utility, not an investment."

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With no mortgage payment, here's how his home costs break down each month:

Washington's salary is $120,000 per year, but he managed to save over $300,000 while earning between $85,000 at his first job out of business school and around $100,000. Though he lives with his wife, LaTaya, Washington paid off the full amount of the mortgage with his own investments and savings.

Washington was able to save so much by living a "generally frugal lifestyle" on an above-average salary: He's driven the same car since college, significantly scaled back his and LaTaya's wedding and cuts his own hair. Each year since he started working full time at 27, he's set "mini goals" for himself to slowly scale up his savings.

He acknowledges that not having student loans gave him a "leg up," though he intentionally went to schools that would give him scholarships and worked as a RA so that he wouldn't have to take any on (LaTaya graduated with around six figures in student loan debt, but has been aggressively paying it off with her own salary).

With his business degree, Washington knew he'd get ample job opportunities with higher-than-average salaries, and having a partner with a similar, though not identical, money mentality has made saving and working toward his financial goals easier.

It was this combination of strategies that worked for Washington. "That's my approach to building up wealth and money," he says. "It's not one big thing that helps you get to a good place, it's a million little things and the choices that you make every day that add up."

He credits his money mentality to his parents: His dad worked at a transit company in Chicago and his mom was a secretary. "They never made a ton of money, but they had good sense," he says. "They paid their home off in about 15 years. I make more now individually than they do collectively."

Peace of mind isn't the only benefit to paying off his mortgage so quickly. It also gives him the freedom to pursue a secondary long-term financial goal: Leaving the workplace at 40.

By having one less bill to worry about each month, Washington reasons, taking a break from the corporate world relatively early in life will be more manageable. He intends to work and his wife has no plans to leave her full-time job but just not continue the "grind." He's dreamed of that kind of independence since high school.

"I felt like my family and friends and older people that I knew were always talking about how hard they were working," he says. "They didn't have work life balance, and I knew that I did not want that to be me."

While he liquidated almost all of his savings to pay off his home, he's rebuilt it over the past year (not having a housing payment every month helps) and says he now has around $140,000 socked away in various accounts. That's his focus going forward.

Washington's goal is a different take on the financial independence movement, which typically evangelizes saving and investing as much money as possible in order to retire early.

Obviously, having a partner who will continue to work full-time makes taking a break from the workforce easier to manage; he will likely join her health insurance plan, and her salary will, hopefully, cover any surprise expenses that crop up. But Washington plans to save aggressively in the years to come to cover as many expenses as he can on his own. Not having a housing bill which is the typical American's top monthly cost gives him more freedom.

Despite the other goals Washington is now able to pursue without a mortgage payment, pulling his money out of the market was a big sacrifice. He acknowledges that most financial advisors would say he should have kept the $240,000 beyond the down payment invested in the stock market, but he's okay with what might not be considered the most prudent financial move. Paying off the balance gives him the stability he's craved, and, mentally, that is worth more than any potential investment gains.

"If you look at it from a purely financial point of view, okay, they might be able to convince me to keep it in the market," he says. "But peace of mind was the main motivation to pay the house off."

But is it advice others should take? There's no easy answer, Danielle Schultz, an Illinois-based certified financial planner, tells CNBC Make It. A major downside is that he has "completely lost the value of compound return," she says.

Traditionally, financial advisors say it does not make sense to pay off loans with interest rates lower than what you could earn in the market. That varies, of course, but a good rule of thumb is to focus on investing, rather than loan repayment, if your loan has an interest rate below 5%, says Schultz.

Another reason you're typically advised not to pay off your mortgage early: The mortgage interest deduction lets couples filing jointly deduct the interest paid on a mortgage up to $750,000, with some restrictions. Washington doesn't qualify for that tax break now.

Washington also had to pay capital gains tax on his withdrawal from the brokerage account. Had he taken the money from a retirement account, he also would have been hit with an early withdrawal penalty.

That said, there is a significant emotional benefit to having a house completely paid off, particularly for those nearing retirement, Schultz says. "If it makes you feel better, I say go for it, but only if the value of the house is no more than one-third of your total net worth," she says. "You need most of your investments to be generating income in retirement."

It's the emotional weight that Washington is happy to have lifted.

"I can't beat the feeling and security of not owing anyone anything, regardless of market performance," he says. "I always wanted to have that stability ... As long as we can scrape up $6,000 per year for property taxes, we're fine."

It makes sense for him. "It's mine," he says. "You can't take it away."

Don't miss: How a 25-year-old used $40,000 in down-payment assistance to buy her first house in Atlanta

More:
This 33-year-old paid off his $300000 house in 3 months here's why he didn't invest the money - msnNOW

Theresa Reno Weber and Sarah Davasher-Wisdom, Opinion contributors Published 4:30 p.m. ET Feb. 14, 2020 | Updated 5:53 p.m. ET Feb. 14, 2020

Policymakers in Frankfort have taken great strides to secure a better future for Kentucky by investing in our children. We have seen improvements to early learning opportunities, reforms to child welfare systems, and increased funding for K-12 education. Policies like these lead to stronger communities and a stronger Kentucky economy.

But we know that much more remains to be done.

Consider these statistics:

Nearly 50%of children in Kentucky enter kindergarten unprepared.

Half of all Kentucky families live in child care deserts areas either without child care providers or an insufficient number of child care slots.

Kentucky preschool enrollment of 3- and 4-year-olds fell from 24th nationally in 2008 to 41st in 2018.

In 2016, more than 30,000 Kentucky parents quit a job, did not take a jobor modified their job due to lack of access to child care a startling statistic given that Kentucky currently has 15,000 more open jobs than individuals seeking jobs.

We miss out on $939 million in economic activity from parents kept out of the workforce by child care costs.

The data shows that Kentucky families are not finding the support they need. The commonwealths economy is suffering as a result.

More: America's parents want paid family leave and affordable child care. Why can't they get it?

Kids from a Louisville preschool attended Children's Advocacy Day at the Capitol.(Photo: Deborah Yetter)

In 2020, Greater Louisville Inc. and Metro United Way are urging lawmakers to make Kentucky a leader in early childhood success and remove child care as a barrier to employment. Kentucky must strategically increase access to high-quality child care through a mixed-delivery model that relies on both public and private partners. This would ensure that more Kentucky children enter the K-12 system ready to excel, and more parents participate and advance in the workforce. Increased investment in early childhood would also have a strong economic return. Every $1 invested in early childhood will yield a $5 return to our economy.

Together, GLI and Metro United Way have outlined a series of shared legislative and budgetary priorities:

Increase Child Care Assistance Program (CCAP) reimbursement rates and incentives for serving infants, toddlersand young children in high-quality child care centers and family care settings.

Increase per-child funding for public preschool.

Increase eligibility for both the Child Care Assistance Program and public preschool to 200% of federal poverty level.

Pass House Concurrent Resolution 52, sponsored by Reps. Josie Raymond and Steve Sheldon, to establish a task force to study early care and education programs in Kentucky to improve access and quality for children and families.

Read this: Forest preschool? Outdoor learning trend makes its way to Louisville

Both of our organizations are confronted regularly with the reality that too many Kentucky children are not being given the opportunities they need to succeed and too many Kentucky parents are forced to choose between their careers and caring for their children. Proposals like the ones we are advocating for in 2020 can help address these issues, develop our workforce, and ensure a brighter future for the commonwealth. We encourage all members of the greater Louisville community to join us in advocating for increased investment in our children and in Kentuckys future.

Theresa Reno Weber is CEO and president of Metro United Way, and Sarah Davasher-Wisdom is CEO and president of GLI.

Read or Share this story: https://www.courier-journal.com/story/opinion/2020/02/14/investing-preschool-and-child-care-grow-kentuckys-economy/4754231002/

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Opinion: How investing in preschool and child care will grow Kentucky's economy - Courier Journal

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Getting a tax refund is like celebrating a delayed Christmas. But instead of spending money to be happy, you get money.

While there are plenty of ways you can spend your tax refund, there are also ways you can invest in yourself and your future. Here are a few ways to invest your tax refund.

If you've been struggling with old debt, such as credit cards, student loans or medical bills, now is the time to pay them off for good. If you're not sure which debt to pay off first, consider the one with the highest interest. High-interest debt, like credit cards, can compound through hefty interest charges, late fees and other penalties.

You could also use it to get current on late-but-not-yet-outstanding debt. For instance, catch up on your electricity bill or pay down the principal of your student loan. The sooner you pay it all off, the less burden you carry.

If you've been just scraping by with your regular paycheck, you may not have the extra cash for an emergency fund. Luckily, your extra cash can help. Use your tax refund to start an emergency fund. This can be a high-yield savings account you keep separate from your regular checking account. It's not an account that should be dipped into often -- unless there's an emergency -- but you should have easy access to it.

If you already have an emergency fund, this is a good time to give it a boost. An emergency fund should consist of three to six months' worth of expenses, which is different for everyone. If you don't think you'd survive financially if you missed a paycheck, put your tax refund towards your emergency fund.

Investing is different for everyone. It can be as small as microcontributions through an app such as Acorns, using a robo-advisor such as Betterment or managing your investments yourself through an online broker such as Robinhood.

Investing your tax refund is a great way to increase your return. While a high-yield savings account has APRs ranging upwards of 2%, the average stock market return is 10%. While you could stand to lose money in the stock market, you could expect serious gains as well.

Investing comes in many different forms. Before signing up with a company, determine if you're more of a hands-off investor (best for robo-advisors) or a hands-on investor (best for brokerages). Also consider your risk tolerance and when you plan to use your money. Stock market investing is best for long-term investment, or money that isn't touched for at least five years. So if you plan to use your investment money soon, you may want to consider other options, such as a savings account.

Preparing for your future after your career ends is one of the most important financial contributions you can make. If you have a work-sponsored 401(k) plan and don't max out your contributions, use your tax refund to do so. If you're older than 50, use the extra cash as a catch-up contribution.

You can also use it to start or fund your IRA. Whether you have a work-sponsored retirement plan or not, contributing to your IRA gives you an extra cushion in retirement. IRAs also have catch-up contributions, which is helpful if you're 50 years of age or older and don't feel confident you've saved enough for retirement.

A health savings account is a savings plan specifically designed for health-related costs. HSAs are a type of investment account, even though they're called "savings" plans. If you have a high-deductible health plan, you're eligible to open an HSA. HSAs are triple tax-free: Your contributions, earnings and withdrawals aren't taxed.

Whether you've put off going to college yourself or you want to get a head start on your child's education, use your tax refund to save for college. You have a few different options, like a high-yield savings account, an investment account or a 529 plan.

A 529 plan is specifically made for college savings. But it acts more like an investment account. Earnings grow tax-free and as long as you use the funds for education-related costs, you're not on the hook to pay taxes on your withdrawals.

While college is a great self-investment, there are other ways you can use your tax refund for a good cause. If college isn't on your radar, consider taking courses in a field or industry you're interested in. If you've been contemplating a career change, use your money to invest in that switch. If you need capital to start your own business, this could be your chance.

Also consider using it to give yourself a much-needed break. Whether this is a vacation fund or simply money for a massage or spa day, your tax refund can help you recharge, reset and refocus. It's easy to veer into other materialistic things, like shopping for new clothes or shoes, but try to stay focused on what would improve your well-being in the long-term, not a quick fix.

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How to invest your tax refund - CNET

How much do you get for having your money in the bank?

Probably nothing, niets, niente, nada, nista, intet, nic, ei mitn, rien, nicht, nada

And you get nothing only if you are lucky.

I recently got a letter from my Dutch bank saying how it will start charging a negative 0.5% interest rate on certain amounts.

ABN AMRO - negative interest rate - Source: Reuters

In any case, 0, negative 0.5%, it doesn't look good! Let's look at other options for investing from Europe (DAX) (EUFN) (EZU) (EUFN) (IEUR).

Investing is pretty simple. Investing fundamentals are always the same and it doesn't really matter whether you are from Europe or not. The most important investing fundamentals are:

Let's apply these simple principles to the biggest investing issues and opportunities for Europeans.

1) What am I already invested in?

Let's reverse engineer investing from Europe and start from what you are already long, already invested in, if you are from Europe. To protect yourself from whatever might await Europe and the euro in the future, you might want to first diversify away from what you already have.

Pension funds

Most Europeans are legally obliged to put part of their salary into a pension fund. Unfortunately, pension funds invest like pension funds. They should offer a safe but small yield over time.

A look at the largest investments of my Dutch pension fund ABP shows that I am long government bonds, some real estate in the Netherlands, and the largest global corporations.

European Pension Fund Investments - Source: ABP

Thus, most pension funds hold a globally diversified portfolio and what we should expect from it is a small yield, hopefully above inflation and management costs if we are lucky. But something should come out of it at some point in time.

Your government - social security

Alongside your private pension fund, when you reach 60, 65 or even 67, if you are still alive, your government will probably give you a pension in the form of social security.

However, demographics are not looking good in Europe due to the aging population, government debts are piling and who knows how will Europe look like in 20, 30, 40 years.

Europe Government Debt Levels - Source: European Commission

While things go well and are stable, all is fine, but when things turn bad, reality might not meet your expectations. Greek pensioners have not been happy with what has been going on there over the past decade.

Greek pension cuts - Source: Greekreporter

We don't know what will be the paying capacity of individual European governments down the road, but that is something, alongside most pension funds already owning government bonds, we are all long.

Home - possibly???

Further, you might be one of those that own a home. Therefore, you might be long European real estate already.

European home ownership - Statista

But then again, your home isn't likely to produce cash flows, which is what you want to get from investing.

Euro - if you have some money to invest

And the last thing you are probably long, the euro, the currency, sitting on your bank account, earns no yield and is surely losing from 1% to 10% on inflation depending on what you are buying. If you are saving for retirement or a home, the inflation rate is much higher.

The above basket of European investments consisting of European bonds, stocks, government exposure, real estate and cash could be considered simply being long Europe with no diversification. If a government gets into trouble, bonds will follow and governments get into trouble when economies slow down, thus the stocks you own would fall too. And, if governments get into trouble, the euro would too be in trouble and your pension fund too, and even real estate might be hit.

We can say that we Europeans are pretty long Europe and every investment is highly correlated, not diversified at all.

So, where to invest and what to do? I'll tell you how am I diversified and hedged (protected from downside) as a European living in Europe and you'll see how that fits your requirements, risk appetite and financial goals.

The core of this article on how to invest from Europe will be diversification and inflation protection. Given the environment, we can't know what will work and because of the money printing going on, inflation is a certainty.

2) Stocks - or better to say businesses

When compared to what you get from your bank on your cash, investing in stocks that represent a part of a business seems a very smart thing to do. The Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) stock gives you a high dividend yield, but it gives you also a risk, 100% related to oil.

Stocks are always very volatile because the majority of people see it as a gambling place and not as an investment place. However, if you look at it from an investing perspective, you can be very well rewarded over time.

My message is simple, have part of your portfolio in good businesses that will keep delivering over time. One example is the Visa (NYSE:V) stock that I recently did. I'll make an analysis about oil soon so please subscribe.

If you manage to not worry about stock prices, but focus on the businesses that you own and the yield those businesses produce over time, you'll do good and much better than by keeping your cash in a bond or on your bank account.

3) Real estate

An option is to invest in is real estate, another asset class that is still comparatively cheap. The naysayers will immediately say how real estate prices can drop and you can lose your money. My answer is that it is definitely a risk, but not a certainty like it is the case with your cash. Plus, as it was the cash with stocks and the businesses you invest, the question is whether you are investing in real estate like a speculation, expecting it to go up, or you are investing in it for the cash flow it will bring you.

Real estate yields in Europe are still much higher than what bonds offer and rents are usually adjusted up for inflation.

Europe real estate investing yields - Source: Global Property Guide

On top of the yield, given the ECB is printing money hand over fist and it is impossible for it to stop printing because the European economy, European governments and even the population is desperately in need of free money, it is likely that the money supply will continue to grow and that inflation will continue to be present within financial assets. So, owning real estate is also a form of inflationary protection.

ECB bond purchases - Source: ECB

The money the ECB produces through bond purchases and negative interest rates flows towards a higher yield - thus into real estate and financial instruments like stocks.

The result of the above is that home prices in the Netherlands have increased 35% in just four years while prices in Amsterdam surged much more as there is limited supply within the canals and high demand thanks to demographics and tourism.

Real Estate Prices Netherlands - Source: CBS

Perhaps there will be some temporary downturns, but given the "whatever it takes" monetary policy, it is more likely to see real estate prices double in the next 10 to 20 years than to see them fall. So, real estate is a way to protect your wealth and get a yield.

I made a rational mistake of selling my real estate in the Netherlands in 2019, but that was mostly for personal reasons as we took the equity out to buy something new as we moved out of the Netherlands. More about that in my real estate video. We still have the cash, but it will hopefully be deployed during this year.

Just a warning here, investing in real estate has its risks and you really need to do it properly. If you do it properly, you treat it as an investment and you don't speculate. Thus, you focus on the yield from the property and you are happy with it, over the long-term, you'll probably do very well. Also, keep in mind the three core rules when it comes to investing in real estate: location, location and location. Add demographics, supply and demand analysis, tourism, students etc. and you'll get the picture of where to and where not to invest.

And, real estate investing has another little perk.

4) Mortgages or loans (for whom do you think those low interest rates are?)

Central banks are forced to keep interest rates extremely low because governments and corporations are extremely indebted, especially in old fashioned industries or countries where they try to do whatever to keep up with growth stocks or emerging markets.

My brother is looking to buy his first home in the Netherlands and the bank offers him an interest rate of 1.2% variable or a 1.47% fixed for 20 years. Those yields are insanely low where a fixed rate mortgage might give you another hedge against possible inflation given that your payments remain always fixed. If there is inflation of 5% to 10% in the future due to loose monetary policies, imagine how would you feel owning a 20-year fixed mortgage of 1.47%? (unfortunately, available only is some countries).

If you can borrow at 3% while the rental yield is 4% where the rental yield will only go up while your payment remains fixed forever, to me, that is a good risk versus reward investment opportunity.

Keep in mind there is always risk and you never know what can go wrong. The key to lower your personal financial and investment risk is to be diversified. Another way to diversify is to take a look at commodities.

5) Commodities

Commodities are resources where many are of limited supply while demand keeps on growing due to global economic growth. Global consumption of materials just hit 100 billion tonnes and there is not a sign that demand will stop growing in the future.

Global material consumption - Source: Guardian

Also, commodities should give you protection against inflation. Many immediately think of gold, an asset class with special characteristics but there are many other commodities you can invest in from copper, palladium, nickel to fertilizers or salt.

Whatever might be the commodity that best fits your portfolio, the key to understand is that commodities will always be volatile and therefore one has to have a clear strategy before exposing a portfolio to commodities.

If I take the example of gold, it has been extremely volatile over the past 10 years, going from below $1,000 per ounce, getting close to $2,000 in 2011, falling down to $1,000 and going up to above $1,500 now.

Gold price - Source: FRED

Perhaps the best strategy when it comes to commodities portfolio exposure is a constant balancing strategy. Let's say you put 10% of your portfolio in gold, for example, and when it becomes 12%, you sell 2%. In case it falls to 8% you bring it back up to 10%, etc. Given the volatility of the commodity, you'll constantly get a return from trading and give balance to your portfolio. In case gold is expensive while stocks are cheap, you might want to use the proceeds from one to add to the other.

In any case, it is likely that over the long term, a commodity will do better than cash by just preserving its value.

I personally don't have gold or other commodities, but I have businesses that produce them which is a way to combine being hedged with commodities and owning a business. Here is a discussion about investing in copper.

Investing from Europe - diversify and always mind the fundamentals

You cannot know what will happen, so you must always analyse the risk and reward of each of your actions. It is highly likely the euro will continue to lose its value due to political issues, constant money printing, the historical power of the dollar, the growth in other economies while Europe's demographics stagnate at best and most importantly negative interest rates and constant money printing.

We can only imagine how will European politicians and monetary policy makers react when the first real economic issues hit the global economy and push the European economy into a recession - I assume there is going to be a lot of money printing. The best way is to be prepared where if it happens you are ready, if it doesn't happen, you are still ok as you own good investments in the form of good real estate, good businesses and good commodities.

Now, don't diversify just to diversify and buy whatever in Emerging markets. Learn about your options and then invest in what you understand that is better compared to what you have now in Europe and in case Europe gets into a crisis, could be much better. Buying something, without a margin of safety or without good fundamentals just for the sake of diversification might be a costly thing to do. Remember, wherever you are, you have to apply common sense to investing.

For those that prefer watching, here is the video discussing the above.

For more insights into how to invest, how to take advantage of the situation and not be taken advantage of - please subscribe!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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5 Ways How To Invest From Europe In 2020 And Protect Your Wealth - Seeking Alpha

To enjoy a comfortable future, investing is absolutely essential for most people.

Why invest? Investing can provide you with another source of income, help fund your retirement or even get you out of a financial jam in the future. Above all, investing helps you grow your wealth allowing your financial goals to be met and increasing your purchasing power over time.

Or maybe youve recently sold your home or come into some money, then its a wise decision to let that money work for you and grow over time.

You have many ways to invest from very safe choices such as CDs and money market accounts to medium-risk options such as corporate bonds, and even higher-risk picks such as growth stocks, S&P 500 index funds and REITs. Thats great news, because it means you can find investments that offer a variety of returns and fit your risk profile. It also means that you can combine investments to create a well-rounded and diverse that is, safer portfolio.

Click through the gallery above for strategies to consider when investing followed by the 15 best investments of 2020.

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The 15 best investments of 2020 Bankrate - msnNOW

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But theres no question some big-name stocks did much better than others along the way.

One of the market leaders of the past decade was chocolate giant Hershey Co (NYSE: HSY).

Hersheys financial performance and its stock gains throughout the 2010s were mostly consistent and steady. In fact, the biggest headline of the past 10 years for Hershey investors was a failed takeover attempt by Mondelez International Inc (NASDAQ: MDLZ) back in 2016.

In June 2016, Oreo and Cadbury parent company Mondelez made a $23 billion cash-and-stock offer for Hershey valued at $107 per share. However, the charitable trust set up by Hersheys founder more than 100 years ago to control the company and fund a school for underprivileged children rejected the buyout offer. The trust holds more than 80% of Hersheys voting stock. Reports later indicated Mondelez would be willing to pay as much as $115 per share for Hershey, but Hershey would not even enter negotiations for any bids under $125 per share.

Even with the trusts potential approval of a buyout deal, Hershey had a previous $12.5 billion buyout offer by Wm. Wrigley Jr. Co blocked by the Pennsylvania attorney generals office back in 2002 following local community protests.

Mondelez eventually abandoned its buyout bid in August 2016, sending Hershey shares tumbling 11.4%.

Hershey shares started the 2010s trading at around $36. The stock dipped as low as $35.83 in early 2010, its lowest point of the decade. From that point forward, Hershey shares marched steadily higher, reaching $50 by mid-2010 and $100 my late 2013. After more than three years of trading between around $85 and $110, Hershey broke out to new all-time highs in mid-2016 on the Mondelez buyout rumors. The stock climbed as high as $117.79 before dropping when the deal was abandoned.

Hershey finally broke out to new highs in early 2019 and made it as high as $162.20, its high water mark of the 2010s.

Though the stock has since pulled back below $160, Hershey investors did very well in the 2010s. In fact, $100 worth of Hershey stock in 2010 would be worth about $533 today, assuming reinvested dividends.

Looking ahead, analysts expect Hershey to struggle in 2020. The average price target among the 16 analysts covering the stock is $152, suggesting 3.7% downside from current levels.

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Here's How Much Investing $100 In Hershey Stock Back In 2010 Would Be Worth Today - Benzinga