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The top 3 sectors when economic growth is strong

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US President Donald Trump’s aggressive tax cuts has been seen as the catalyst for world economic growth. The IMF (International Monetary Fund) predicts the world’s economic growth to be 3.9 per cent in 2018 which is the largest move in 8 years.  If the world is set to experience high levels of synchronised economic growth, then these are the 3 main sectors that need to be on your radar: 1.Industrials Sector This cyclical sector performs well when the economy is …

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10 Ways to have the Mindset of the Successful Trader

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Having good fundamental analysis and sound technical analysis is important in trading but it is also essential to have the right mindset to be a successful trader. There are 10 ways to have the mindset of a successful trader: Keep your day job Avoid losses Admitting you are wrong Don’t be too greedy Keeping to your plan Patience Have realistic expectations Ability to learn from mistakes Flexibility Take calculated risks   1. Keep your day job Statistics are not positive …

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What is OPEC and its Impact on the Economy

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What is OPEC? OPEC stands for Organization of Petroleum Exporting Countries. It is a cartel which consist of 12 oil-producing countries. They include Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, The United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola and Equatorial Guinea. OPEC is a permanent intergovernmental organisation which is headquartered in Vienna Austria. The organisation controls 78 percent of the world’s oil exports. As these OPEC nations produce such a significant portion of the world’s oil supply, …

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The Basics of an Initial Public Offer (IPO)

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IPO Definition An initial public offering (IPO) is when a private company first offers stock to the public as it becomes a publicly traded company. These companies undergo IPOs to grow their business, and they need to raise capital to do so. IPOs are also a cost-efficient way to finance growth objectives. When companies sell shares to the public, they increase their equity. This improves the company’s debt to equity ratio, which will improve their ability to borrow funds if …

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7 Factors the RBA Uses to Evaluate Interest Rates

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The current cash rate of 1.5 per cent is the lowest we have had in Australia. The Reserve Bank of Australia (RBA) has had rates on hold at 1.5 per cent since 3 August 2016. There is always a debate in the market about whether the next move in interest rates sees the rate head higher or lower, and in what time frame. So what are the factors that the RBA evaluates when determining interest rate rises or cuts? RBA …

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