Finance

Small Businesses To Tackle Long List Of Challenges In 2023

Published

2 years ago

2023-02-14

NEW YORK – As 2023 begins, small businesses will face a mix of old and new challenges. A looming recession, high (but easing) inflation and labor woes are just a few issues that small businesses will have to deal with after 2022. There are also new rules, such as a proposal to change how gig workers are classified and the fact that more states are making it a law that pay must be made public. After three difficult pandemic years, what happens in 2023 will significantly impact whether small businesses across the country can stay afloat.

RECESSION ANGER

In some ways, whether or not the economy is headed for a recession is less important for small businesses than day-to-day operations.

According to Nela Richardson, chief economist for payroll company ADP, small business owners should concentrate on larger issues such as Labor and wages.

“For the most part, the recession is an academic question,” she said. “We won’t know for several months until it happens, and no one on Main Street makes that call. It has nothing to do with hiring and turnover.”

Given the economic uncertainty, small businesses will need to keep costs under control and operations running as efficiently as possible, according to Ray Keating, chief economist for the Small Business & Entrepreneurship Council.

Technology, according to Keating, can help with efficiency, and one way to keep costs low is to cast a wider net in terms of suppliers.

BUSINESS INFLATION

Businesses must keep a tight grip on costs because inflation appears to have peaked last summer but remains high. According to the most recent government data, consumer prices rose 7.1% year on year in November, down from 7.7% in October.

According to experts, inflation is unlikely to return to pre-2020 levels owing to higher wages and low employment. According to the monthly employment report released on Friday, wages increased by 4.6% year on year in December, with the unemployment rate remaining at 3.5%.

“We want unemployment to rise because if it doesn’t, wage growth will slow, and not only is there no evidence of that happening, but wage growth is about to get rocket fuel this time of year when wages rise,” said David Lewis, CEO of HR consulting firm Operations Inc.

He expects inflation to remain in limbo.

“I don’t see inflation falling significantly… but I don’t see it is rising above that 8% level,” he said.

LABOR

Hiring and retaining employees is a constant challenge for small businesses. The situation is especially bleak at the start of the year. Because companies typically give raises or bonuses at the end of the year, many employees use mid-January to mid-April to determine whether they need to change jobs.

“Everything we’re seeing or hearing suggests that companies need to look at increases that are double what they used to do in the last, on average, 15 years to keep up with everyone,” said Lewis of Operations Inc. “Unfortunately, smaller businesses have the fewest resources to contribute.”

Because small businesses need help to keep up with raises at larger corporations, they will need to find new ways to retain employees in 2023.

According to Keating of the Small Business & Entrepreneurship Council, more extensive on-the-job training could be one solution for small businesses in 2023.

“Not that they don’t train them now, but they need to go deeper than they have in the past and train across the board. “That’s one of the solutions to these labor issues,” he said.

THE GIG WORKER RULE PROPOSED

The Labor Department has proposed a rule that would make it easier to classify independent workers as employees, contributing to a long-running debate over whether gig workers such as Uber drivers or Instacart delivery workers are contractors or employees.

According to the Labor Department, the proposal will protect workers and “level the playing field” for businesses that correctly classify their employees, reducing the number of misclassified employees.

Employees are eligible for benefits such as the minimum wage and Social Security. However, critics of the proposed rule argue that gig workers only sometimes want employee status and that the new rule will burden small businesses.

The proposed rule is “much too broad, unwieldy, arbitrary, and confusing,” according to Karen Kerrigan, CEO of the Small Business & Entrepreneurship Council. “If enacted, it will drag countless numbers of independent contractors and freelancing individuals into the misclassified pit,” she added.

The proposal only applies to Labor Department-enforced laws, such as the federal minimum wage. Employers and courts, however, frequently use Labor Department rules as a guideline for larger issues.

The final Labor Department decision is expected this year, likely in the first quarter.

CHANGES IN THE MINIMUM WAGE/STATE REGULATIONS

Finally, small businesses should be aware of upcoming regulatory changes, particularly state regulations, that will take effect in 2023.

In 2023, 27 states will raise their minimum wages. In Michigan, for example, the minimum wage is set to rise from $9.87 to $10.10 per hour. California has set the minimum wage for all employees, regardless of employer size, at $15.50 per hour. This is shifting from $15 for employers with 25 or more employees to $14 for employers with fewer than 25 employees.

Pay transparency legislation is also taking effect. California began requiring employers with 15 or more employees to list salary ranges on job postings on January 1. In New York, a salary transparency bill requiring pay ranges on job postings is set to take effect in September.

Minimum wage and pay transparency laws vary greatly by state, so small businesses should stay current on any local laws changes.

SOURCE – (AP)

Finance

Forex Trading Gains Popularity in Thailand

Published

1 week ago

2024-11-15

PR News

Forex Trading Gains Popularity in Thailand

Recent reports reveal that the Thai government has plans to relax laws on forex trading.

Forex Trading, the buying and selling of currencies has long been considered a game played by a handful of countries with strong financial stability and stronger currencies, such as the United Kingdom, the United States, the UAE, and even Singapore. However, recent reports have painted a very different picture: most forex search acts use the world’s smaller economies.

While this doesn’t mean that they are engaging in forex trading, it does mean that the interest is there and with a little fostering and some education, the forex economy would bloom. Such is the case with Thailand.

Attempting to gain financial independence through forex

As a country with cheap labor and few job opportunities, forex trading is gaining widespread attention as natives gain more insights into the world of forex via social media and the Internet. There are countless TikTok videos on how to become financially independent through trading, specifically forex trading, and these unconventional—but previously inaccessible—ways of making money are generating lots of interest, especially with the younger generation.

The Internet creates accessibility for Thai nationals interested in forex.

Without the rise of smartphones and data plans, forex might not have reached such levels of interest in Thailand. Aside from how information regarding trading opportunities is peddled through social media, the Internet has also created a platform for accessible trading. Thai nationals are able to source international brokers and global platforms instead of relying on national institutions that do not offer support for forex trading.

Thatn’t I forex supported in Thailand?

National institutions don’t support Forex trading in Thailand that don’t support Forex trading in Thailand. There are currency restrictions. In 1977, during the Tom Yum Kung crisis, the country’s mismanagement of the Thai baht caused a withdrawal of foreign investments due to trade deficits.

However, hope is not all lost. As mentioned above, social media is a means for local residents to learn more about their options and finding a reputable โบรกเกอร์ forex broker is by no means impossible. In fact, as long as users steer clear of pyramid schemes, they are eligible to register an account with a foreign currency broker outside of the country, and it is all very legal.

The Future of Forex Trading in Thailand

Recent reports reveal that the Thai government has plans to relax laws on forex trading. According to Chananun Supadulya, the BoT’s Foreign Exchange Administration and Policy Department director, the annual outflow limit will be raised from US$50,000 to US$200,000. This shows promise that Thailand will benefit further from forex, and the economy will boom with the right regulations in place.

Bitcoin Goes Over $80,000

Bitcoin Goes Over $80,000 As Buyers Guess Whether Trump Will Run For President.

Finance

Common Pitfalls to Avoid in Future and Option Trading

Published

3 weeks ago

2024-10-31

Geoff Brown

Options Trading involves buying and selling financial instruments such as stocks, bonds, or commodities to profit from price fluctuations. Understanding common mistakes in this area is crucial to avoid significant financial losses. Hence, seamless trading is essential for maximizing profits and minimizing risks.

Many traders fall into similar traps, leading to preventable errors that could have been avoided with the proper knowledge. This article outlines critical future and options trading pitfalls and provides strategies to prevent them. By reading this, you will be better equipped to navigate the complexities of the market and achieve tremendous trading success.

Overleveraging: A Double-Edged Sword

Overleveraging is a common pitfall that can lead to catastrophic results if the market moves against your position. However, one of the most enticing aspects of such trading is the ability to use leverage. It allows you to control a more prominent position with relatively little capital, potentially amplifying your profits.

This double-edged sword can just as quickly magnify your losses. Many traders get caught up in the allure of potential profits and forget that the same leverage that can boost gains can also wipe out an account in minutes. Setting strict leverage limits and using risk management tools like stop-loss orders can help mitigate this risk.

Ignoring Market Volatility When Trading: A Risky Oversight

Volatility measures market uncertainty, and understanding it can be the difference between profit and loss. Ignoring or underestimating market volatility is a pitfall that can lead to unexpected and often severe losses. The value of options, in particular, is susceptible to changes in volatility, making it crucial for traders to understand and anticipate market swings.

To navigate this effectively, traders should regularly monitor market conditions and use volatility indicators to inform their strategies. Adapting your trading approach to different volatility environments can help you capitalize on opportunities while minimizing risks.

Failing to Diversify: Do not Put All Your Eggs in One Basket

Diversification is fundamental in any investment strategy, yet it is often overlooked in futures and options trading. Focusing too heavily on a single asset or market can expose you to unnecessary risk.

A well-diversified portfolio significantly reduces the impact of poor-performing investments and helps maintain stability; a sudden adverse movement in one sector can lead to a substantial loss if your portfolio is not diversified.

To avoid this pitfall, ensure your trading strategy includes a variety of assets and sectors. Whether you are trading commodities, indices, or equities, spreading your investments can buffer against market volatility and enhance your overall portfolio stability.

Neglecting Continuous Education: Knowledge is Power

One of the biggest mistakes traders make is neglecting continuous education. Future and options trading is complex, and staying informed about contemporary trends, strategies, and market news is crucial for success. Ongoing learning ensures that you remain adaptable and prepared for any market conditions.

Investing time in education can significantly improve your trading performance. Attend seminars, read books, follow market analysts, and consider taking courses on advanced trading strategies. The more you know, the better equipped you will be to navigate the complexities of trading.

Seamless futures and options trading enhance financial freedom by ensuring smoother transactions, reducing risks, and maximizing profits. By mastering futures and options trade techniques, you can make informed decisions that lead to financial stability.

To achieve your financial goals, you must acknowledge and rectify the abovementioned mistakes. With the appropriate approach, you can navigate the world of trading precisely. So, stay informed and trade wisely.

Finance

Crypto And Meme Stock Boosters Aren’t Doing ‘Trump Trades’ — They’re Just Doing Trades

Published

1 month ago

2024-10-17

Kiara Grace

Donald Trump Vows to Fire SEC Chair and Revamp Crypto Policies if Re-Elected

Bitcoin bulls and meme stock traders are excited about the prospect of another Donald Trump presidency. Or at least the possibility of conducting some momentum trading in the next 18 days.

Here is the deal: Bitcoin, the world’s largest cryptocurrency, surged briefly to a three-month high above $68,000 on Wednesday, fueled by a combination of signals, including the former president’s statement on X that “crypto is the future” and Vice President Kamala Harris’ nod Monday to regulatory support for digital assets.

At the same time, Trump Media shares were recovering from Tuesday’s inexplicable 10% dip and resumed their meme-stock-like trend of rising without any fundamental cause to do so. The stock closed Wednesday up more than 15%.

Crypto And Meme Stock Boosters Aren’t Doing ‘Trump Trades’ — They’re Just Doing Trades

What do digital currencies and media stocks have in common?

Not much generally. However, in recent weeks, they appear to have shifted in tandem with traders’ estimates of Trump’s reelection chances.

To be clear, these traders do not have a crystal ball; they are simply wagering, with varied degrees of skill, on highly volatile assets.

Crypto traders are ecstatic at the Republican nominee’s apparent 180 on an asset class he previously branded as a fraud. Even if Tuesday’s launch of Trump-backed cryptocurrency platform World Liberty Financial revealed lukewarm interest and numerous technical issues, the former president has spent months recruiting industry billionaires and generally telling devotees what they want to hear.

That enthusiasm skyrocketed Wednesday when Trump extended his lead over Harris on Polymarket, a cryptocurrency-focused predictions website where you can wager on the election outcome. According to those investors, Trump has a 59% probability against Harris’ 41%. (This is drastically out of line with national polls, including CNN’s “Poll of Polls,” which currently show a near tie.)

“As the election approaches, voting estimates may cause market swings,” says Robinhood’s senior director of investment strategy, Steph Guild. Bitcoin may gain from Trump’s improved odds, she said, “given that he is seen as more friendly to crypto in general.”

Aside from the election prediction game, Adrian Fritz, global head of research for crypto business 21shares, tells me that bitcoin, a bellwether for the broader crypto market, is being propelled by other macro tailwinds. Not least, central banks around the world are lowering interest rates, making risky assets such as cryptocurrency more appealing. Plus, it’s #Uptober, a month when digital assets have historically performed well.

“It’s no surprise that it became way more political on both sides,” Fritz points out. “The positive aspect is that it draws attention to the entire space…” We firmly believe that, regardless of who wins, the outcome will be beneficial to the industry.

Trump Media, meanwhile, is witnessing a pre-election spike. However, it is unique in terms of turnover and swings similar to meme stocks.

According to Barron’s journalist Al Root, the equivalent of all DJT shares available for sale has changed hands multiple times in the last week, with investors hanging onto the stock for an average of only two days. For instance, Root observes that Apple shares take more than a year to fully turn over.

Crypto And Meme Stock Boosters Aren’t Doing ‘Trump Trades’ — They’re Just Doing Trades

That level of volatility makes cryptocurrency appear stable in comparison, but it attracts a certain type of iron-stomach trader looking to purchase on the rise and sell before it peaks. (Sounds simple, but your investment adviser might tell you you’d be better off going to a casino, where you could have a great cocktail and enjoy playing cards while losing money.)

Fritz thinks that momentum plays are “absolutely” happening. “This affects both consumers and professional investors. “The basis trade is one of the most popular bitcoin strategies,” he stated.

(In other words, hedge funds are leveraging up to execute complicated trades that take advantage of slight price variations between bitcoin’s spot price and futures market pricing, increasing trading volume even further.)

Bottom line: Bitcoin and Trump Media may get considerably more volatile in the coming weeks as more traders enter the market. However, if analysts or voters are looking to the market for clues as to how this presidential election will play out, keep in mind that traders will trade. While some sincere believers may be investing in supposedly pro-Trump assets, the great majority are simply working the casino floor, hoping to cover their bets and gain a few bucks.

SOURCE | AP