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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The Bitcoin (CRYPTO: BTC) boom isn’t over yet, as the cryptocurrency continues its upward trend. Since the beginning of the year, Bitcoin’s price has jumped nearly 100% as investors scramble to get involved in the digital currency mania.

Despite its popularity, though, it’s still an incredibly risky investment. While some investors believe it’s a gamechanger, others aren’t as optimistic about its potential. It’s also experienced extreme price fluctuations, dropping by roughly 20% on three separate occasions since January of this year.

Nobody knows what the future has in store for Bitcoin, and not everyone can stomach the risk involved in investing in the cryptocurrency. However, if you’re determined to invest in Bitcoin, there are ways to limit your risk to better protect your money.

1. Make sure you have a well-diversified portfolio

No matter where you choose to invest, it’s always wise to have a well-diversified portfolio. However, if you’re considering investing in Bitcoin, a healthy portfolio is especially critical to limit your risk.

The more diversified your portfolio is, the less impact Bitcoin will have on your overall investments if it takes a turn for the worse.

Aim to invest in at least 10 to 15 different stocks from multiple industries if you’re choosing to invest in individual stocks. Or you can invest in index funds or ETFs, which provide instant diversification because each fund includes hundreds or even thousands of stocks.

Also, it’s a good idea to make sure your core portfolio is as stable as possible. For example, you could choose to invest the bulk of your money in S&P 500 index funds, then invest a very small amount in Bitcoin. That way, even if Bitcoin doesn’t perform well, most of your money is still safe.

2. Invest through an ETF

Investing in Bitcoin directly is possible, but it can be a hassle. Cryptocurrencies trade differently from regular stocks, and to invest directly in Bitcoin, you’d need to create a digital wallet and sign up on a cryptocurrency exchange. This can also be a security concern because if you lose the password to your digital wallet, you can’t access your investments.

A Bitcoin ETF would mimic the price of the cryptocurrency, but you wouldn’t be investing in Bitcoin directly. In other words, the ETF would make it so that you can invest in Bitcoin like you would any other stock through a traditional exchange.

Currently, the Securities and Exchange Commission (SEC) hasn’t approved any U.S.-based Bitcoin ETFs. However, Bitcoin ETFs do exist in Europe and Canada, and some experts believe the SEC will start allowing them in the U.S. within the next year or so. If or when that happens, it will make it easier (and safer) for Americans to invest in Bitcoin.

Keep in mind, though, that even if you do invest in a Bitcoin ETF, it’s still important to have a diversified portfolio. Just as you would by investing in Bitcoin directly, make sure the bulk of your money is spread across a wide variety of stocks in addition to a Bitcoin ETF.

3. Consider crypto stocks

Perhaps the safest way to invest in Bitcoin doesn’t involve investing in Bitcoin at all but instead investing in crypto stocks.

A crypto stock is a company that is involved in the cryptocurrency market in some way. Examples of crypto stocks include:

• Tesla: CEO Elon Musk recently announced a $1.5 billion investment in Bitcoin, and the company also allows payment in the form of Bitcoin.
• Square: The company allows users to offer cryptocurrencies, including Bitcoin, as a form of payment. It has also purchased more than $200 million worth of Bitcoin since October 2020.
• Salesforce: Although not directly involved with Bitcoin, the company builds blockchain solutions — which is the technology behind cryptocurrencies. If Bitcoin becomes mainstream, Salesforce could benefit from it.

The key to investing in crypto stocks is to invest in them because they are solid companies — not solely because they’re involved in cryptocurrencies. Strong companies will do well over the long term regardless of what happens with Bitcoin. But if Bitcoin does turn out to be a life-changing investment, these stocks may experience even higher returns.

Is it time to invest in Bitcoin?

There are a variety of ways to invest in Bitcoin, with some safer than others. Keep in mind, though, that at the end of the day, Bitcoin is still a highly volatile investment. Even if you try your best to mitigate your risk, only invest money you’re prepared to lose.

Bitcoin has the potential to be a lucrative investment, but it’s not right for everyone. If you choose to invest in Bitcoin, be sure you’ve done your homework and invest wisely to keep your money as safe as possible.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• ASX stock of the day: The Greenland Minerals (ASX:GGG) share price is up 18% today
• Why ASX travel share prices are slipping today
• Leading brokers name 3 ASX shares to buy today
• What’s happened to the Freedom Foods (ASX:FNP) share price?
• Santos (ASX:STO) share price rises on latest CEO pay arrangement

Katie Brockman has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Greenland Minerals Ltd (ASX: GGG) share price is having another corker of a day today. Greenland shares are up 18.18% at the time of writing to 13 cents a share after closing at 10 cents on Friday and opening at 12 cents a share this morning.

The Greenland Minerals share price is now up a lofty 44.44% since last Thursday. However, the picture is less rosy for Greenland shareholders if we zoom out a little. This was a company trading at 34 cents a share back in January. In fact, Greenland was asking 18 cents a share just last week. 

So what is this company? And why are Greenland shares bouncing so hard off such a sudden low today?

Greenland far from home

Greenland Minerals is a rather interesting company. It’s an Australian miner that has operated exclusively in the Danish province of Greenland since 2007. Its major asset is the Kvanefjeld rare earth project in southwest Greenland, which houses a significant deposit of the minerals collectively known as ‘rare earths’.

Rare earths are a series of elemental metals, including yttrium, lanthanum and neodymium. These metals have a wide range of modern manufacturing applications, most prominently in rechargeable batteries, electric motors, magnets, renewable energy generation and smartphones.

They are so central to today’s economy that governments worldwide are scrambling to secure supplies for the future. We have seen this in action with the ASX’s fellow rare earths miner Lynas Rare Earths Ltd (ASX: LYC).

Last year, Lynus signed a supply contract with the US Department of Defense, which underscores the importance that countries like the US are placing on rare earths.

Greenland Minerals’ Kvanefjeld project houses many of these rare earths, as well as deposits of uranium, fluorspar and zinc.

The project will consist of a mine, a concentrator and a refinery for processing these minerals. Once up and running, the company expects rare earths to make up 80% of Kvanefjeld’s revenues, with the remaining 20% coming from uranium, zinc and fluorine.

What’s with the Greenland Minerals share price?

As we touched on earlier, this company has had a wild ride over the past few weeks. Most of this volatility came last week when the Greenland share price plummeted 45% in one day.

As we reported at the time, this was a result of a recent election. The environmentalist Inuit Ataqatigiit party reportedly won 37% of the vote. One of its election pledges was to halt the mining project on the basis that it would cause environmental pollution, especially that from uranium, which is radioactive. 

As such, the path forward for Kvanefjeld looks to be in tremendous jeopardy.

However, today’s Greenland Minerals share price performance appears to be a continuation of a ‘bounce back’ the company has been enjoying since 9 April. On that date, Greenland Minerals released a market statement addressing investors’ concerns. 

All is not lost

In this statement, Greenland Minerals highlighted that the Inuit Ataqatigiit would still need to form a coalition government seeing as it did not obtain an outright majority. 

It also stated the following:

Uranium at Kvanefjeld occurs at relatively low grades compared to most primary uranium mines. However, it can be recovered at low incremental cost during rare earth production. It is not of great economic significance to the Kvanefjeld Project.

However revenues along with those from other by-products would serve to reduce rare earth production costs. In the leadup to the election, the IA Party leadership expressed an anti‐uranium position and has reaffirmed this position since the election win…

Greenland Minerals Ltd has operated its 100%‐owned Kvanefjeld rare earth project effectively under all successive Greenland Governments since commencing operations in 2007. The company looks forward to engaging with the new government once it has been established.

As such, it looks as though Greenland Minerals is implying it can make modest adjustments to the mines’ operations that will result in Kvanefjeld remaining online and viable.

We will have to wait and see how this unfolds. But judging by the Greenland Minerals share price performance today, it appears as if investors are keeping an open mind.

On the current Greenland Minerals share price, the company has a market capitalisation of $174.4 million. 

More reading

• Why the Greenland Minerals (ASX:GGG) share price is rocketing 17% today
• Why Aurelia Metals, Brickworks, Greenland Minerals, & Resolute are tumbling lower
• Why the Greenland Minerals (ASX:GGG) share price is crashing 45% lower today
• The new race between US and China is good news for these ASX shares
• The Lynas (ASX:LYC) share price is bouncing back, what’s next?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) share prices are sinking today after Deloitte Access Economics’ quarterly business outlook predicted full overseas travel would not return until 2024.

At the time of writing, Qantas is down 2.48% at $5.32, and Webjet is down 1.48%, also trading at $5.32.

In an AAP report, Deloitte economist Chris Richardson’s predicted that incoming travellers from at least some parts of the world would face incoming quarantine restrictions for years to come.

“That keeps international travel – both inbound and outbound – pretty weak in 2022, and it may not return to pre-pandemic levels until 2024,” he said.

How have ASX travel shares fared?

The Qantas share price has been increasing substantially recently, up 12% in 2021 and 53% over the past 12 months. Despite the lack of airline travel, it’s also beating the industrials sector by 37% and the S&P/ASX 200 Index (ASX: XJO) by 23%.

The Webjet share price has also posted substantial gains, although has been a little more volatile of late. Despite losing 11% so far this month, its up 83% over the past 12 months and has risen by 6% in 2021 so far.

Shares in both companies are now trading higher than $5, a $2-$3 rise above their respective share prices 12 months ago near the beginning of the coronavirus pandemic’s impact on Australia.

A slow broader economic recovery expected

Deloitte’s report was published before the Australian government changed its stance on the AstraZeneca PLC (LSE: AZN) COVID-19 vaccine after it was found to cause blood clots in receivers. The government now only recommends it for people over 50-years-old.

Australia has ordered an additional 20 million doses of the Pfizer vaccine, but they’re not expected to arrive until later this year at the earlier.

Richardson praised the “pedal to the metal” approach of Australia’s central banks in lowering interest rates, also saying that the economy’s “fundamentals are moving pretty fast off the back of that”.

Deloitte also doesn’t expect interest rates to reach the Reserve Bank’s 2-3% target range until 2023/24.

“A sustained lift in inflation requires a conga line of things to happen,” Richardson told AAP. “This is going to be a slow-moving train, not a fast one.”

More reading

• ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher
• Fund managers have been buying Webjet (ASX:WEB) and this ASX share
• Brokers name 3 ASX shares to buy today
• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• Why EML, NextDC, Qantas, & Recce shares are racing higher

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BlueScope Steel Limited (ASX: BSL)

According to a note out of Ord Minnett, its analysts have upgraded this steel producer’s shares to a buy rating with an improved price target of $26.00. The broker made the move in response to higher steel price estimates. Ord Minnett notes that BlueScope’s steel spreads continue to widen, which it expects to lead to a guidance upgrade in the near future. The BlueScope share price is trading at $20.40.

Tabcorp Holdings Limited (ASX: TAH)

A note out of Credit Suisse reveals that its analysts have upgraded this gaming company’s shares to an outperform rating and increased the price target on them to $5.70. According to the note, the broker believes that the company’s lottery business is performing very well and has upgraded its earnings to reflect this. In addition, the broker has been looking at its strategic review options and suspects a demerger of some assets could happen. This has the potential to create value for shareholders. The Tabcorp share price is fetching $4.93 today.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this accounting platform provider’s shares to $153.00. According to the note, the broker was pleased with its acquisitions of Planday and Tickstar and believes they will accelerate Xero’s platform strategy. Goldman also notes that they provide a platform for Xero to launch its core accounting product in Scandinavia, where there is a total addressable market (TAM) of 2.2 million subscribers. The Xero share price is trading at $141.43 today.

More reading

• ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher
• Why the Xero (ASX:XRO) share price can go even higher from here
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• 5 things to watch on the ASX 200 on Monday
• Why it looks like a V-shaped recovery for the Xero (ASX:XRO) share price

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Long-term shareholders of ASX health foods company Freedom Foods Group Ltd (ASX: FNP) received a rude shock last month. The embattled company’s shares resumed trading in late March after a months’ long hiatus triggered by the resignation of former managing director and CEO Rory Macleod in June of last year.

Unfortunately for investors, the Freedom Foods share price opened around 90% below the price it was fetching back in June when shares were originally suspended.

Why did the Freedom Foods share price plummet?

You may have missed it in amongst all the COVID-related news over the last 12 months, but 2020 was not a good year for Freedom Foods. And not just because of the business headwinds created by the pandemic.

In June, Freedom Foods announced it had been forced to write off $60 million worth of inventory. This included obsolete and out-of-date stock dating back as far as 2017. Not only that, but the company was also forced to raise significant doubtful debts provisions, as well as reverse some revenue already recognised in prior periods.

The total impact of these adjustments on FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) was a negative adjustment of $10 million (this was in addition to $4 million worth of doubtful debt provisions that had already been raised earlier in the year).

At the same time, the company announced it was seeking to suspend trading in Freedom Foods shares pending further investigation into its financial position. And then, less than a week later, it was announced that company CEO Rory Macleod – who had been on leave – had resigned.

Now what?

The Freedom Foods share price suspension went on, and on, and on. In the meantime, a number of class actions were launched against the company and it also got itself into a nasty dispute with one of its suppliers, US-based Blue Diamond Growers. It also sold off its cereal and snack assets to the Arnott’s Group for $20 million in cash.

For its part, Freedom Foods has ploughed on with an extensive recapitalisation plan and board management shakeup. The company is raising up to $265 million in new capital, comprising $130 million of convertible notes to wholesale investors, and a further $200 million from its majority shareholder, investment company Arrovest.

In addition, senior lenders National Australia Bank Ltd (ASX: NAB) and HSBC will provide further funding through a number of debt facilities, the size of which will depend on the exact amount of proceeds raised through the company’s other capital raising initiatives.

Recent financials

In the midst of all this other activity, Freedom Foods released its first-half FY21 results. The company reported a 15% jump in revenues from continuing operations (versus its restated first-half FY20 result) to $291.4 million, while total revenues came in at $317.3 million. Adjusted EBITDA from continuing operations came in at $21.7 million, an increase of $48.2 million over its restated first-half FY20 earnings loss of $26.5 million.

New CEO Michael Perich commented on the result, stating that “while there remains a lot of work to be done to ensure Freedom Foods Group can meet its full potential”, the recapitalisation plan will give the company the capital structure that will allow it to “continue to focus on delivering on [its] turnaround strategy and restore the Group to sustainable and long-term profitable growth.”

Investors will be hoping that this translates to a recovery in the Freedom Foods share price, which is now down 90% over the last 12 months. At the time of writing, the company’s shares are also trading 4.26% lower at 45 cents so far during Monday’s session. 

More reading

• Airtasker and Zip were among the most traded ASX shares last week
• ASX 200 climbs, Crown soars, Mineral Resources drops
• Why Fortescue, Freedom Foods, QBE, & Singular Health are sinking
• How much have investors lost on the Freedom Foods (ASX:FNP) share price?
• These are the 10 most shorted shares on the ASX

Rhys Brock owns shares of Freedom Foods Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends HSBC Holdings. The Motley Fool Australia has recommended Freedom Foods Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price is up today. The positive price movement comes as the oil and gas producer announced a new incentive pay scheme for its CEO.

At the time of writing, the Santos share price was trading for $7.11, up 0.57%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.31% lower.

Let’s take a closer look at today’s announcement.

Santos share price and CEO pay up

Santos announced its board has agreed to provide CEO Kevin Gallagher a “once-off growth projects incentive” to ensure he “sees through the successful delivery of Santos’ major growth projects and energy transition strategy to 2025”.

In today’s statement, Santos credited Mr Gallagher with turning around its business since his arrival in February 2016. Investors seemingly agree. The Santos share price surged from a base of $2.92 in 2016 to trade at $9.00 just before the 2020 COVID-19 market crash. Post-crash, the share price is still 142.47% higher than it was on Mr Gallagher’s first day.

According to Santos, shareholders have received a 159% return on investment during the CEO’s tenure, when dividends are taken into account.

What’s the incentive?

The incentive scheme has a face value of $6 million. It will be delivered in the form of share acquisition rights, “subject to strict performance hurdles related to the successful delivery of major growth projects, the energy transition strategy and continued employment,” according to the company.

Santos listed the Barossa, Dorado and Moomba carbon capture and storage projects as areas of major growth. The company also wishes to become carbon-neutral by 2040. Santos is factoring in the achievement of this commitment as part of Mr Gallagher’s incentive.

According to a recent study, ASX shareholders have been pushing for CEO compensation that includes incentive packages, such as this one.

Management commentary

Santos chair Keith Spence said Mr Gallagher had a clear track record of delivering for shareholders:

Kevin is critical to the successful delivery of the company’s strategy, major growth projects and driving the energy transition over the next five years.

Commenting on today’s news, Mr Gallagher said:

It is a privilege to lead Santos. We have made significant progress on our transformation journey, but the job is not yet done.

I am delighted to commit to continuing to drive the delivery of our growth strategy, the transition to a leading clean fuels business and to achieve our net-zero emissions targets.

Santos share price snapshot

The Santos share price has increased 54.01% in the past 12 months. In early March, the company hit a 52-week high of $7.80 as oil prices boomed on OPEC production cuts.

Santos has a market capitalisation of $14.8 billion.

More reading

• ASX 200 energy shares outlook boosted by mega African oil project
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Wednesday
• Why 88 Energy, Chorus, Incitec Pivot, & Santos shares are sinking

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Orocobre Limited (ASX: ORE) share price is fighting back after it got hit with a broker downgrade.

The Orocobre share price tumbled more than 3% in early trade but bounced to be up 0.7% at $5.59 at the time of writing.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) shed 0.3% of its value as mining, energy and property shares weighed.

Why JPMorgan downgraded the Orocobre share price

The positive sentiment towards all-things lithium can’t be easily turned off even as JPMorgan cut its recommendation on the Orocobre share price to “neutral” from “overweight”.

This isn’t to say that the broker has a negative take on the mineral. If anything, it believes supply will quickly tighten as demand for electric vehicles revs up.

The issue is the rapid rise of the Orocobre share price, which surged by over 150% in the past year.

Hard to cool the lithium fever

But perhaps enthusiasm towards the Galaxy Resources Limited (ASX: GXY) share price today is lifting all boats in the lithium bay.

The Galaxy share price charged up 9.1% to a near three-year high of $3.26 during lunch time trade. Shares in the spodumene producer is running hot after management issued a positive update this morning.

Two drivers for the rocketing Galaxy share price

But this may not be the only news boosting the stock. JPMorgan has upgraded its price forecast for spodumene but left its estimates for lithium chemicals unchanged.

“We have increased spodumene prices a further 5-10% with reports of recent trades above US$600/t,” said the broker.

This is good news for Galaxy but has no impact on the Orocobre share price as the latter produces lithium carbonate from brine from its joint-venture Olaroz lithium project in Argentina.

Differences in how lithium is mined

Spodumene occurs as crystals in hard rock and can be used to produce lithium carbonate or lithium hydroxide. The latter is becoming more highly prized by battery producers, reported newagemetals.com.

But regardless of where lithium comes from, most experts agree that global supply will struggle to keep up with expected demand for EVs. We could see shortfalls of the mineral as early as 2023.

This is the main reason why ASX lithium shares have been on a tear, although the speed of their ascend could cause concern.

Foolish takeaway

Few would think a bubble is forming but the risk is rising. Also, we shouldn’t forget the saying in commodity markets – that nothing cures high prices like high prices.

It means that high spodumene and lithium carbonate prices will spur miners to ramp up production via brownfield or greenfield projects.

The undersupply issue may not last as long as some ASX investors believe.

More reading

• Fighting the Fed: The next choice for ASX investors
• ASX 200 energy shares outlook boosted by mega African oil project
• ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher
• Why Anteotech, Credit Clear, Galaxy, & Mach7 shares are storming higher
• The Galaxy Resources (ASX:GXY) share price is on watch. Here’s why

Motley Fool contributor Brendon Lau owns shares of Galaxy Resources Limited and Orocobre Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Most people want to retire rich, or at least with plenty of money to provide financial security and a chance to enjoy life.

Unfortunately, far too many people end up with too little money set aside for their later years. 

If you want to make sure you’re a wealthy retiree, then there are six rules you’ll need to follow throughout your life to get you there — and breaking any one of them could seriously damage your long-term financial prospects.

Here they are: 

1. Don’t spend more than you earn

Earning a high income doesn’t guarantee you’ll end up wealthy in retirement. And earning a low income doesn’t always doom you to struggle. 

The key factor that affects your financial security in retirement isn’t how much you earn, but how much you spend. If you’re consistently spending all of your paycheck — or worse, spending more than you earn and taking on debt — you’re never going to be rich. 

Instead, you need to live well below your means so you can save enough to build a nest egg that will support you once you’re no longer working. Saving at least 20% of your income is ideal. 

2. Invest an appropriate amount of your assets in stocks

Most people can’t just save their way to wealth because their savings rate would need to be too high.

Say that you define “rich” as having $1 million saved, and you have 30 years to get there. You’d need to save more than $2,500 per month to hit your target if you stuck your money into a high-yield savings account and earned only a 0.5% annual return on investment. 

But if you put some of your money into the stock market and earned an 8% average annual return, your monthly savings target would come down to just over $735. That’s a lot more doable, and that return is consistent with that of the broader stock market over the long run.

You don’t want to put too much into stocks, though, as you don’t want to risk outsize losses. The best option is to develop a personalized investing approach based on your age and risk tolerance. If you don’t want to do that, an easy shortcut is to subtract your age from 110 and use the resulting number as the percentage that you invest in the market. 

3. Watch your investment fees

Investment fees eat away at your returns. You need to watch what you’re paying to invest your money. 

Pay attention to:

• Expense ratios, which are costs of owning mutual funds or ETFs expressed as a percentage of the fund’s assets.
• Advisory fees, which are charged as a percentage of assets under management for actively managed investments. 
• Administration fees, which some 401(k) plans charge.
• Inactivity fees, which some brokerage firms charge. 
• Commissions, which you sometimes pay for purchasing assets.  

Keeping your fees as low as possible can help maximize your returns so you don’t waste tens of thousands of dollars over your investing career. 

4. Build a diversified portfolio

When it comes to your retirement funds, you can’t afford to put all your eggs in one basket. Investing too much in any particular type of asset, any one company, or any one industry could put you at too great a risk of suffering outsize losses.

You can minimize the investing risk you’re taking on by buying a diverse mix of different assets.

If you’re purchasing shares of individual companies, watch the mix of companies you’re buying to ensure you end up diversified. You can also invest in exchange-traded funds, such as an S&P 500 index fund, to make diversification easier.

5. Invest for the long term

Day trading may seem like a good way to make money by capitalizing on market trends. For most people, it’s not.

While you may be able to make a profit sometimes if you get lucky, even financial professionals have difficulty consistently beating the market by actively trading stocks they hold only for short periods. 

Instead of gambling on your instincts paying off, invest in companies you’d be happy to hold on to for at least a decade. This will reduce your risk. And when you’re making a long-term commitment, you’ll have more time to devote to researching options and getting to know the companies and industries you’re investing in. 

6. Invest only in what you understand

Lastly, you can’t afford to chase obscure investments or get-rich-quick schemes with your retirement funds if you want to be wealthy. You need to know what you’re investing in, how it’s supposed to make money for you, and why you’re investing in it.

By following these six rules, you should hopefully end up saving plenty of money for retirement and investing it wisely so it can work for you and help you to build the wealth you need to live the life you deserve as a retiree.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Orocobre (ASX:ORE) share price rebounds from broker downgrade
• Fighting the Fed: The next choice for ASX investors
• The Payright (ASX:PYR) share price is soaring 12%. Here’s why
• Man faces 10 years’ jail for ASX insider trading
• Why is the Alpha (ASX:A4N) share price falling today?

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The phrase ‘don’t fight the Fed’ came into prominence during the coronavirus-induced share market crash last year. And it proved remarkably salient. After all, it is widely accepted that the Fed’s intervention last year helped the US markets (and the S&P/ASX 200 Index (ASX: XJO)) find their bottom after the shortest and sharpest market crash in history. The Fed’s declaration that it would turn the quantitative easing (QE) taps to fully open last year occurred just before the markets started slowly climbing on 24 March 2020.

After this happened, investors started telling each other that you ‘never fight the Fed’ when it comes to investing. In other words, what the Fed says, goes.

Well, fast forward a year (and some) and investors are faced with a strangely similar conundrum. Both the Federal Reserve and the Reserve Bank of Australia (RB) have been trotting out a consistent line over the past few months. That line goes something like this: ‘Interest rates will not be going up until inflation is between 2-3%. That won’t happen until unemployment is low and economic growth is high. And we don’t expect this to occur until 2023 at the earliest’. Indeed, the US Federal Reserve chair Jerome Powell just recorded an interview for the US 60 Minutes program yesterday. Here’s some of what he said on inflation and rates:

Well, what we said was we want to see inflation move up to 2%. And we mean that on a sustainable basis. We don’t mean just tap the base once. But then we’d also like to see it on track to move moderately above 2% for some time. And the reason for that is we want inflation to average 2% over time. And when we get that, that’s when we’ll raise interest rates….

I think it’s highly unlikely we would raise rates anything like this year, no. Other members of the Fed board don’t see a rate increase even in 2022.

The RBA has made similar comments in recent weeks.

To fight the Fed or to not… that is the question

What is interesting is that investors are not taking these central banks seriously. As we’ve been discussing for a few months now, long-term government bond yields have been steadily rising over the past two or so months. The rises are telling us that the bond markets are pricing in higher inflation and interest rate hikes much sooner than 2023 or 2024. 

So it appears the old ‘fight the Fed’ adage is losing steam. But here’s the problem for ASX investors. Some investors have indeed been reacting to rising government bond yields. That’s why we have seen immense volatility in ASX tech shares and other ASX growth shares over the past month or two. These investors are ‘fighting the Fed’ by extension because if the Fed is right, and rates don’t move until 2023, the bond markets are wrong. And therefore making investment decisions based on these moves is also misguided. 

It’s an interesting dynamic to be sure, and one all ASX investors might want to keep an eye on. Someone will be right and the other won’t be. And that’s a binary that investors won’t want to be on the wrong side of. 

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Fighting the Fed: The next choice for ASX investors appeared first on The Motley Fool Australia.

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The Payright Ltd (ASX: PYR) share price is soaring today after the company delivered both a record month and a record quarter. The Australia-based buy now, pay later (BNPL) provider released an overview of its results from the quarter ending March 2021 this morning. It was met with enthusiasm from investors.

The Payright share price reached an intraday high of 75 cents, up 15% from Friday’s close, but it has since partially retreated.

At the time of writing, Payright shares are trading at 73 cents, up 12.31% from Friday’s close.

Let’s look closer at the company’s prosperous 2021.

Record breaking performance from Payright

The quarter ending March 2021 was Payright’s best yet, the company announced this morning. Further, it announced that March 2021 saw the company deliver its best monthly performance ever.

Over the quarter, Payright’s gross merchandise value (GMV) rose 38%, bringing in more than $22 million.

The number of customers using the BNPL service increased by 52% to around 47,500. Meanwhile, the number of merchants offering the service rose by 43% to more than 3,100.

The company stated that these merchants now include home improvement retailers Australian Outdoor Living, Stratco and Into Blinds.

Payright’s underlying losses related to credit defaults were similar to those of previous quarters at around 1.64%.

The quarter’s results follow on from positive half-year results. In the six months ending 31 December, Payright posted a 38% revenue increase, reaching $5.8 million. 

Is Bill Smoothing driving the Payright share price?

The Payright share price boomed when it announced the launch of its Bill Smoothing payment option late last month, and the company believes it will underpin further growth.

Bill Smoothing is a direct to customer service. It allows customers to spread the cost of household bills, including utilities, car and home insurance premiums, council rates, and vehicle registrations over longer periods of time.

It allows for payments to be made over three months for bills worth less than $1,000.

Bill Smoothing was launched for existing customers last month. It’s set to launch in the coming weeks to new customers.

Management commentary

Payright joint CEOs Myles Redward and Piers Redward commented on the company’s activities and its successful quarter. Myles said:

We have a very clear understanding and picture of Payright’s competitive positioning and resulting growth opportunities, and we’re focused on playing to our key points of competitive difference, being higher price-point BNPL and a more diversified merchant mix. The operational results achieved over the March 2021 quarter clearly show the success of our strategy in underpinning sustainable growth in a rapidly changing industry.

Piers added:

Our ongoing focus on sustainable growth in customers and merchant partners is paying dividends and, we expect that impetus to continue as we continue to expand our suite of products and enhance the online experience and capability.

Payright share price snapshot

While 2021 has been good to Payright’s business, the same cannot be said for its share price.

Currently, the Payright share price is down by around 26% year to date. It’s also down by nearly 30% over the last 12 months.

Payright has a market capitalisation of around $38.5 million, with approximately 89 million shares outstanding.

More reading

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• Here’s why the Payright (ASX:PYR) share price is soaring 9% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Payright (ASX:PYR) share price is soaring 12%. Here’s why appeared first on The Motley Fool Australia.

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