– I have a bearish outlook on global equity market especially after
President Trump has imposed tariffs on all the U.S. trading partners. Below
are my questions:
1. What is your opinion on Hive shares? Since last year, I have lost more
than 75% of its value.
2. I have around $5,000 to invest, and I would expect to get at least 7%
annual return on it. Where and what can I invest in? – Hasnain H.
– I assume you are referring to
Hive Blockchain Technologies, which trades on the Toronto Venture Exchange under the symbol HIVE. I
have never recommended this security, and a look at its chart shows it has
been a very bad investment. It has dropped from a high of $6.75 last
November to around $0.80 as of the time of writing.
The company website describes it as follows: “HIVE is strategically
partnered with Genesis Mining Ltd., the world’s largest cloud mining
company, to build the next generation of blockchain infrastructure. HIVE
currently operates a total of four facilities (two in Iceland and two in
Sweden) and are currently working on an additional two facilities in
Sweden. Our facilities are capable of mining cryptocurrencies, like
Ethereum, around the clock and will add our first Bitcoin mining facility
by September 2018.”
This description tells us this is a highly speculative stock that operates
in a fledgling and uncertain market. Perhaps at some point it will make a
breakthrough, and the stock will move higher, but it is not the type of
security I would ever recommend.
In regard to your second question, there are many securities that have the
potential of giving you a 7% return. The question is now much risk you want
to take. You won’t get 7% from a low-risk investment like GICs or
government bonds. So, you need to look at stocks, ETFs, or mutual funds. I
have offered many ideas about securities that could generate returns or 7%
or more to discuss with your advisor, but all come with some degree of
risk. Right now, I would look at stocks or ETFs that focus on U.S.
healthcare or technology companies.
is one of Canada’s best-known personal finance commentators and
investment experts. He is the publisher of
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Notes and Disclaimer
© 2018 by The Fund Library. All rights reserved.
The foregoing is for general information purposes only and is the opinion
of the writer. Securities mentioned carry risk of loss, and no guarantee of
performance is made or implied. This information is not intended to provide
specific personalized advice including, without limitation, investment,
financial, legal, accounting, or tax advice. Always seek advice from your
own financial advisor before making investment decisions.
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