Tag Archives: LOM Financial

Transcontinental countries: How economically significant are they?

There are several transcontinental states in the world – and their characteristics of being geographically linked to more than one continent make them economically unique from the rest of the world. However, while some transcontinental countries benefit from this, others suffer from its disadvantages.

Russia

Image source: imanet.org

Russia is the largest country in the world and is located between Asia and Europe. With a GDP of over $1.28 trillion, it is one of the world’s most powerful economies. Aside from leading the race in oil and natural gas production, Russia is also a top exporter of important metals like aluminum and steel. One of the BRICs, Russia has strong potential to become among the four most dominant economies by the year 2050, alongside Brazil, India, and China.

 

Turkey

Image source: hometurkey.com

The Republic of Turkey is set at the junction of Asia and Europe. Because of its strategic location, the United States consider the country as a high-priority market and is recognized as an important economic hub in the entire region. Turkey’s GDP as of 2016 reached $857 billion. However, in 2017, analysts have observed an increased rate of both inflation and unemployment because of their currency’s depreciation against the U.S. dollar.  For an insightful analysis on Turkey’s current economic landscape, read this article by LOM Financial.

 

Panama

Image source: 100resilientcities.org

The country is dubbed as a bridge between two continents: South America and North America. Panama’s economy is actually dollar-based, and its services sector makes up a large percentage of its GDP. Panama is also a Free Trade Zone and hosts several sectors such as offshore banking, logistics, and tourism. Furthermore, the GDP value of Panama covers 0.10% of the world economy.

 

Egypt

Image source: ingleinternational.com

Egypt can be found in both Africa and Asia, with an economy that relies on agriculture, tourism, and other from industries and services. Uncertainties in the country’s political state have caused several economic woes, including a slower growth in 2011. Egypt’s Gulf allies helped the country recover, bringing in an increased in foreign investment. In 2016, Egypt reported a GDP of $336 billion.

Latin American economy’s rise from the rubble

Image source: pixabay.com

Several nation-states compose the entirety of Latin America: Central America, the Caribbean, and South America. While these countries are geographically close to one another in the same region, they actually have varying levels of economic complexities.

Overall, the Latin American economy is considered major performer as an export-based economy, but previous recessions led the region to a devastating slowdown. While their road to recuperation is already in sight, economic experts and investment firms suggest that the only way to fully recover is to find newer engines that can jumpstart economic growth and finally boost prosperity further into the future.

According to a recent report by the International Monetary Fund, the Latin America and Caribbean (LAC) region was predicted to enjoy growth by 1.1% in 2017. This year, the region is looking at a 1.8% of growth, and another 2.3% in 2019. The main drivers for these improvements are credited to LAC’s biggest economies in Argentina and Brazil. Additionally, Mexico is also doing its part, bringing in optimistic growth forecasts for the region, with Central America boasting a healthy pace of recuperation by 3.9% in 2017 alone.

There are still much to do in order to achieve more positive long-term effects, and these include focusing on investing, exports, savings, and most importantly, promoting the development of the private sector. Moreover, acknowledging fiscal and external imbalances should also be a priority not only to stabilize economic integration but also to strengthen it.

However, the biggest changes that are set to promote a huge leap in LAC’s economy, according to experts, is for these nations to address inequality and to invest in people, especially those who live in poverty.

How urban planning transforms a city’s economic landscape

Image source: pixabay.com

When talking about sustainable development for the world’s modern cities, urban planning presents the most practical and strategic scenario – and this is true especially when developing economically progressive communities of the future.

Any city planned and prepared to provide the necessary infrastructure to its residents, balance demands of the population, and present a friendly environment for investors can easily withstand the challenges of social and economic demands of modernizing communities.

Urban planning directly fuels the generation of employment and boosts wealth and productive growth among its workforce. Well-planned city centers, for instance, empower local and the national economy to achieve greater heights in terms of production and economic output to compete on a global scale.

Job creations and revenue generation from the city’s different sectors in trade, finance, transport, manufacturing, and communication and so on, are just some of the many direct economic impacts of proper urban planning.

The focus on planning cities provides access to urban objects such as commercial centers, airports, sports stadiums, railways, and other infrastructure that contribute to the overall economic and social well-being of the communities that they serve. The availability of such development projects and accessibility to these resources further contribute to advantages that can be measured in terms of income, employment, leisure opportunities, and gross national product.

The boom in these primary sectors will usher a corresponding growth in business, tourism, real estate, hospitality, agriculture, and other sub-sectors that benefit from healthy and more dynamic economic activities within cities. Naturally, they become a major economic consideration for many international companies, investors, as well financial institutions such as banks and investment firms (like LOM Financial).

The end product of urban planning can achieve the ultimate purpose of why governments should focus on creating and planning sustainable cities in the first place: to promote the welfare and provide a better quality of life for its local population.

The Power of Balance of Trade (BOT) over currency values

Image source: pixabay.com

In definition, a balance of trade (BOT) is the difference, in terms of value, between a country’s exports and imports over a particular period of time. For instance, if a country’s value of imported products is more than its exported goods, this leads to what experts call, a “trade deficit.” On the other hand, if there is a bigger value for exports than its imports, a positive balance or a trade surplus is said to occur.

Such movements and fluctuations in values of the factors mentioned above directly affect a country’s overall performance in the world market – and these effects are quite visible on how BOT determines the value a nation’s currency. As such, they are an important consideration for the investment decisions of wealth management experts, including offshore investment companies such as LOM Financial.

Basically, a trade balance has a major effect on currency exchange rates because of how the former influences supply and demand, especially on foreign exchange. What happens is, when a country’s transaction has more numbers of their exports and less on their imports, a resulting higher demand for goods directly causes a higher demand in its currencies.

If, on the other hand, the opposite happens, the basics of economics tell us that producing more imports rather than an increase of exports, directly causes less demand for that country’s currency, eventually depreciating that currency’s value against other currencies.

These relationships and how the value of one affects the other are based on the idea that the market has the power to determine the value of a country’s currency as well as how it interacts with other countries’ currencies. However, it doesn’t mean that imbalances on trade can readily cause currency depreciation. If a particular currency is pegged (or fixed) to another currency, their exchange rate will remain unaffected.

Creating a diversified portfolio can help you survive your first year in investing

Image source: pixabay.com

Once you’ve finally decided to manage your finances and invest, the next step that you have to take is to create a more diversified portfolio. Regardless of how new you are to the world of investing, this move will determine whether or not you’ll survive your first year. Why?

There are several reasons why many financial experts—including offshore portfolio management firms like LOM Financial—will suggest relying on different asset classes and investing in securities of a variety of issuers. One of them is to make sure that the fall of a single asset class will not totally affect your entire investment performance.

It is important to understand that even the most competitive industries fail, and focusing your resources on a single asset can result in an equal failure. This is because, as societies grow and turn to newer and more advanced resources, disruptions—especially through technology—create an environment where even the most established corporations can be run over by emerging startups.

The only way to fully protect your assets without worrying about such terrifying unpredictability is portfolio diversification.  Asset allocation, for instance, means combining several investment classes under one financial roof: bonds, cash, stocks, commodities, and even precious metals like gold and silver.

Asset allocation is a strategic type of diversification that provides a fail-proof environment even for neophyte investors. For instance, the fall of stocks directly triggers bond prices to rise. In other words, you’ll be bulletproof.

Ultimately, the reason for diversification is to lower one’s overall risk especially during political unrest and its resulting economic woes. Spreading your assets means building several forts that can protect your financial territory. Even if one falls to the ground, you’ll still have other “defenders” to protect your wealth.

Most importantly, diversifying one’s investment portfolio is not just a passive defense against risks—it’s also a powerful method to find more investment opportunities and help them grow.

The Cayman Islands: A rising powerhouse for offshore business deals

Image source: LOM Financial

From its humble beginnings as a barter economy in the 1960s, Cayman Islands have accomplished a huge transformation as one of the world’s leading offshore financial centers. What was once a remote island where sailors dock their vessels to rest, the three-island nation now serves as an international haven for telecommunication, business, and finance (especially offshore portfolio management).

Aside from their state-of-the-art infrastructure, the Cayman Islands’ present success can be attributed to its early years as a part of the British overseas territory. Just like other jurisdictions under the former empire, the Cayman was structured and strategically positioned to respond to the demands of the post-war era, especially for public and private business opportunities – and one of its most important moves was the favorable tax policies catered to its early offshore clients.

The fire of the overseas territory’s business success, according to experts, is still far from burning out and the nation continues to defend its place in the global pedestal. Based on recent reports by the World Finance, the Cayman Islands bagged the title as the primary jurisdiction for mergers and acquisition for offshore locations – defeating other offshore financial center powerhouses like Hong Kong and the British Virgin Islands.

According to the same report, among the over 2,771 deals focused on offshore companies in 2017, the Cayman Islands found their busiest year yet and closed 773 offshore business deals. Several sectors dominated the offshore transactions in the Cayman Islands, led by the finance and insurance industry as well as the real estate sector. Other performers such as the software development sector also contributed to this recent success.

Understanding the growing role of Private Banking in today’s financial setting

Confidentiality and personalized services. Perhaps these two factors separate private banking from its typical retail banking counterpart, helping clients make informed and strategic financial decisions that can potentially deliver long-term and short-term profits.

Private banking is a personalized type of financial and banking services that are usually available to high-earning entities who own substantial investment assets. With private banking, these high net-worth individuals (HNWIs) can choose from a wide variety of options that are often customized based on their financial preferences as well as future financial goals.

Clients of private banks have their own relationship managers or a private banker to guide them on how to handle and manage their assets. In addition, they enjoy more sophisticated products as well as a more focused and tailored customer service experience.

One of the primary reasons why HNWIs choose private banking is its dedication to client privacy. Generally, dealings between the bank and its client remain anonymous, promising a high level of confidentiality in every transaction.

In addition, because of HNWIs’ substantial assets, private banks offer generous discounts on their services. For instance, clients involved in an export enterprise can benefit from a more favorable foreign exchange rate.  Not only that, investors are given the opportunity to have an exclusive access to several top-performing hedge funds, just by being affiliated with a private bank.

Although the lessons of the global financial crisis in 2008 made authorities impose a more stringent and often restrictive regulatory setting for private banks, these changes, have actually helped ensure that clients get the best and most appropriate financial advice that they deserve.

For more insights on private banking, consult with an advisor from one of the leaders in the industry, LOM Financial.

Expect a massive global shift to tech-driven economic models soon

Image source: which-50.com

History reminds us how technology not only changed our way of life but has also introduced new ways to increase and diversify production of goods or services. In turn, it has driven the economies of the world to new heights.

According to a recent study based on more than a million patents that we have seen in the past century, the positive impacts of technological feats to the economy have not only brought an optimistic future to this sector but also expanded it beyond recognition by fueling an increase in production for different industries. As a result, technology has contributed to the overall financial health of countries around the globe. One example is how it has boosted the annual U.S. economic output in the recent years. Analysis concluded that this growth correlated to the booming technologically innovative products that has been made available to the market in the past decade.

Image source: iacpublishinglabs.com

As a response to this massive acceleration from a technology-driven change, experts have suggested that economic models should respond to the changes of its global environment by welcoming a newer phase beyond the 20th century economic models. One of these highlighted models is termed as the ‘programmable economy’ in 2014, and it is defined as a form of ‘smart’ economic system which aims to support and manage both goods and services’ production and consumption particularly catered to technology-driven scenarios.

In addition, the heavy spending on product development is naturally helping to pace economic growth. The good news is, innovation is now becoming a commonplace among industries and since technology-based advancements are happening globally, many sectors including industrial, energy, and finance can enjoy its benefits.

Image source: planet-lean.com

Many of the world’s top investment magnets are tech stocks, particularly those that set new trends. The likes of Google, Amazon, Apple, and Oracle are favorites amongst investors and asset management firms—such as LOM Financial—because of their sustainable business models and booming market popularity. In some cases, such as that of Samsung, they are actually considered the prime movers of the national economies they are primarily involved with.