Investing in American Small Business in 2015

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As an American studying finance in London in the late ’00s, the dollar did not go very far. Today, however, with the ECB’s new stimulus plan, marks the beginning of a new era in the American currency: one of near parity with the Euro. With interest rates remaining near record lows, this bout of Euro Quantitive Easing will increase inflation and encourage Europeans to spend more. It will also allow me to stay in nicer hotels when I go to Spain this summer.

Coupled with Obama’s State of the Union this week, it’s clear that the economy is in better shape than it’s been since 2007, when people started fearing the oncoming recession. Now is a great time for small businesses to invest, since all points indicate that the American economy will lead the world in overall growth at least for a while.

Where the money is

Many investors are eschewing domestic stock pickers and moving their monies to lower-cost index funds. Where investors still rely on stock pickers is in foreign markets, where markets are less volatile. While markets are volatile at home, there is greater chance to earn more money at once, due to everyone’s desire to find that next Unicorn. More than 80 startups have been valued at over a billion dollars during this past year.

Bigger valuations, more dough

Most of these huge valuations come as a result of disruptive technology, especially within the sharing economy. Companies such as Uber and AirBnb are prime examples of huge valuations. When a lot of venture capitalists passed over Facebook they were made to look foolish after their enormous IPO and continuous success. While some older investors still remember the dot com bubble of 2000, younger people suggest that this time it’s different. But eventually, there will be a bear market, the only question is when. From my view, we have at least a couple of years, until the excitement from the next governmental change comes in mid-2017. That’s about two and a half years to cash in.

Investing in American Small Business in 2015

Welcome to Sinnel Sandoval’s Small Business Blog!

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Hey thanks for dropping by. This is my new blog where you can read about small business consulting and raising capital for business development. Feel free to reach out to me via e-mail or Linkedin to ask questions about steps you can take to improve your business management and make more money.

Sinnel Sandoval’s Investment Tips

Today I’m an entrepreneur running my own capital raising and consultancy agency. In the past, I’ve worked for a variety of clients around the world. As technology becomes cheaper, faster, and overall better, there’s a lot of money to be made out there. It’s crucial to recognize opportunity in areas that are still emerging, but to remember that high returns are never consistent.

Go against the grain

With that in mind, if you’re planning to invest make sure that the time is right, that the price you’re paying is low enough and that if everyone is jumping on board, it’s probably too late to make good money. Remember that investing is a popularity contest and the best investments are made before a product or a service finds itself in the news every day. Think the opposite of what most people do—if everyone buys a security that you own, it’s time to dump it. If no one wants it, that means it’s time to buy. At this point, with consumer confidence higher than it’s been in ten years, it may be time to be wary of the market and start planning for when the bubble might burst. People are willing to buy anything now because the market is running smoothly, but if you’re savvy, now is the time to think about how to cash out.

Get in touch

These basic investment tips are just some of what you can expect by checking in on my new blog. Have any questions? Leave them in the comments and I’ll get back to you. In the meantime, consider how you can use the above investment tips for smarter returns for your small business and feel free to follow me on Google+, Twitter, orLinkedin.

Welcome to Sinnel Sandoval’s Small Business Blog!