Give your investments the technological edge

Once thought of as the prerogative of the upper crust, wealth generation has been turned on its head by the advent of telecom. Physical distance, lack of information and other barriers to entry have been erased by innovations that have made a plethora of facilities and knowledge available at the click of a button.

And while online trading has been a game-changer, it is far from the only way in which technological innovation is redefining how we view prosperity. Here are a few more ways in which investors can give their money a leg up over the rest, using technology:

Understanding Investment
          Gone are the days when retail investors blindly made decisions based on their financial planners’ recommendations. And while the mandates put in place by SEBI do make seeking out an advisor the more viable option, it’s only natural to want assurance that we aren’t being misled. This is now easier than ever, owing to all the data available at the retail investor’s fingertips.

Staying on Top of Your Investments
          Between wealth management apps, trading apps and consolidated account statements, staying aware about one’s money is now a piece of cake. And while that is certainly necessary, it’s important to remember that there is such a thing as being overly vigilant, especially if the bulk of your money is parked in equity funds. Most financial planners advise against evaluating your portfolio too often, since fleeting events and volatility can cloud investors’ vision and make them take decisions that are harmful in the long term.

          Annual reviews should suffice for most people, although this rule can be broken when a life milestone or big purchase is on the horizon. If it isn’t, just remember the golden rule: the secret to prosperity is time in the market, not timing the market. Be patient and allow compounding to work its magic!
 
Eliminating the Middleman
          The world today is a far cry from the days when going through a broker was the only feasible option for a retail investor. Data and news are now at the layperson’s fingertips, allowing them to make the most informed decisions possible.

          It should be noted, though, that there is no substitute for the knowledge and understanding of markets, companies and other economic variables that financial planners are armed with. However, dedicated investors will find that saving brokerage charges is a lot more doable today than it was just a decade ago.

Striking While the Iron’s Hot
          It’s impossible to discuss technology’s impact on any aspect of life without bringing up how much faster and more convenient it has made things. This is also true for investment, which now takes place at lightning speed. The unprecedented growth of 4G and smartphones in India have made it possible to create wealth on the go, freeing people from the physical constraints of a home or office. Using tools like notifications and mobile apps to your advantage can be the game-changer that helps you maximise the return on your investment. 

Getting the Best Number-Crunchers on Your Team
          If you don’t want to get a financial advisor, or just don’t have enough assets to warrant one, robo-advisors may be a good alternative. As the name suggests, robo-advisors are software products that can automatically build and manage your portfolio at little to no cost.

          While they’re not for everyone, robo-advisors are ideal for DIY investors, who prefer not to seek a professional’s counsel, but would still like to reap the benefits of an objective third party’s opinion. Additionally, the automation greatly reduces the pressure to track every little movement in the market, while also keeping people from making impulsive emotional decisions that will hamper their portfolio.

Experiencing the Joys of Automation
          Sometimes, even seasoned investors refrain from dabbling in the stock market because of the possibility of losing money. And while that is a completely rational fear, there now exist tools that can help you maximise your gains and minimise your losses.

          Options like stop-loss orders and setting purchase limits let you get a stock at the price of your choosing, without having to manually keep track of it. You can also opt to have your stocks automatically sold at a price threshold to mitigate any potential losses. These tools are especially useful for short-term investors, who will be able to meet their goals without the constant stress that comes with tracking every stock.

These are just a few of the ways in which investors leverage technological innovation to take their investments to the next level.

Higher Chance of Fed Cutting Next Month on Tariffs

Economists now see a greater chance that the Federal Reserve will lower interest rates in September after Donald Trump threatened to impose new tariffs on Chinese goods.

"We now see a 70% chance of a 25 basis point cut, a 10% chance of a 50 basis point cut, and a 20% chance of no policy change in September," the bank’s economists led by Jan Hatzius wrote in a note.
They had previously pegged a 55% chance for a quarter-point cut next month.

Trump’s sudden announcement Thursday of 10% levies on $300 billion of Chinese goods -- expected to include smartphones, computers and clothing -- is likely to pile downward pressure on the world economy, forcing central banks to respond.

Chairman Jerome Powell this week partly attributed the Fed’s first interest rate cut since the financial crisis to the effects of the U.S. and China trade war.

"We now see a 90% chance of at least one additional cut (beyond that announced on Wednesday) at some point this year (vs. 80% previously)," Goldman’s economists wrote. "We have not changed our baseline forecast that the Fed will cut by a total of 50 basis points, but the announcement tilts the risks toward deeper cuts."