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Finance

Jan
12

Gold, silver or copper: What Will Shine Under Trump Presidency?

Jeffrey A. Born

Jeffrey A. Born

In the following post, D’Amore-McKim School of Business Professor Jeffery Born shares his thoughts on the future of mining exchange-traded funds under the Trump presidency.

Recent bullish stock market activity signals that concerns of a near-term recession are low. Given the use of gold in a number of manufactured goods, it is likely that Trump’s influence will bring balance to gold prices.

Copper prices have already jumped in anticipation of stronger demand during the Trump administration. The infrastructure spending that Trump is calling for is going to spill over into demand for industrial metals, and several have already incorporated this into their prices since the election. Thus, I don’t seem much upside in copper.

The ‘sleeper’ since the election has been silver. Silver isn’t the metal of choice when fears start to rise—gold is. Silver is much more of an industrial metal, and I think it is best poised to benefit from the expansion the market expects during the early Trump administration.

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Nov
03

FinTech: Changing the Way We Do Business

Steven Kursh

Steven Kursh

In the following post, D’Amore-McKim School of Business Associate Academic Specialist Steven Kursh discusses how technology will influence the future of the financial and insurance services industries.

We stand today on the precipice of significant changes in the ways that financial and insurance services are provided to businesses and consumers. Many of us are already familiar with Apple Pay or Samsung Pay mobile payments solutions. Some of us may have heard about BitCoin, a peer-to-peer technology for managing transactions between parties; Blockchain, a decentralized database that enables transparency with the potential to reduce fraud; or, perhaps, RoboAdvisors, which automates investment management. And you may well have already made some personal investments through crowdsourcing sites like Kickstarter.

These are all examples of what is broadly called FinTech, an evolution in the financial services and insurance industries that will impact nearly all of us, even consumers and enterprises in emerging economies. [1]    Read more…

Aug
25

Bitcoin: potential investment or waning fad?

Born-J-WebBio

Jeffery Born

In the following post D’Amore-McKim School of Business Professor Jeffery Born shares thoughts on the state of Bitcoin and what you should know before making an investment.

  1. Bitcoin is still here. While there was a lot of buzz about the more than 20 percent increase in price a couple of months ago, as of Aug. 22, the price is now down to $580. In June, bitcoins had spiked up to almost $723. In May, they were trading at $445, so there was a big spike up (nearly 40 percent), followed by a big drop (just over 20 percent). Quite a roller coaster.
  1. Bitcoins do not ‘grow’ (like trees or corn) nor do they pay interest, so the only way that an investor can profit from a Bitcoin investment is through price appreciation. While bitcoins have risen strongly since May, their price is only about half of the high value it reached in November of 2013. During the same period the S&P 500 has risen by about 24 percent, not including the dividends these firms have paid.Bitcoins should be considered a high-risk investment, meaning the investor is prepared to lose virtually everything invested. High-risk investments should be no more than 5 percent of one’s portfolio and I would recommend that one’s portfolio should be worth at least $250,000 before making a serious investment in high-risk assets.

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Jun
02

New Job? Don’t forget to bring your 401k with you

In the following post, D’Amore-McKim School of Business Associate Professor Coleen Pantalone highlights the importance of managing your retirement accounts as you navigate your career path.

Coleen Pantalone

Coleen Pantalone

As people change jobs more frequently, it gets easier to just not worry about rolling over those old 401k accounts. But it is important to take the time to do it.  First, by consolidating into a single rollover IRA, you are able to better manage your retirement money. With all the money in one place, it is easier to make allocation decisions – what percent in stock funds vs. bond funds for example. With lots of little funds floating around, you end up doing a lot of arithmetic to figure out what you have where and what it all means in terms of overall allocations. Read more…