Contact

News & Insights

Investing in the future – Ecommerce

The Smartphone

It is easy to underestimate just how much of a global game changer the smartphone has been, and how it has changed ecommerce for everyone. You now carry a digital shopping mall in your pocket or handbag that offers every product in the world at the very best prices, all of which are available at the click of a button and delivered to your front door. It is compelling and it is convenient for people of all ages but, for younger people, it is simply how things work as they have never known anything different. For those companies that understand this fact, the potential to grow is unparalleled; for those that don’t, there is no future.

Stop and look at your (digital) life

Most of us are completely unaware of just how fast our individual, everyday habits are changing toward becoming digital citizens of a global economy. Our every communication is an email, a text, a post or a tweet. Every photo now rests comfortably in the cloud; every book is now read on a Kindle or iPad. The music we listen to is streamed as we browse flights and hotels, manage our bank accounts, pay our taxes or even video chat with our friends and relatives in distant parts of the world on our devices. When you stop and look around, you start to realise that without ever making a conscious decision, your life has become digital and there is no going back.

How to invest

The potential for ecommerce is unlimited – but only for those companies that get it right. For retail investors, it is therefore extremely difficult to try to pick the winners in the crowd, which is why specialist investment funds have been created that aim to do exactly that. Managers of ecommerce funds must constantly look for the companies that are best placed to facilitate, or benefit from the rapidly growing trend. Whilst it carries tremendous opportunities, it also carries a higher risk than the average equity investment fund. For that reason, investors should only allocate a small proportion of their available capital in this area. You should also consider it a longer term investment theme as these are the companies of the future (as well as today). Finally, did you know?

  • We now send more than 100 billion emails every day!
  • The video gaming market is now significantly bigger than Hollywood and the Music Industry – combined!
  • In 2015 only 50% of the world had access to the Internet and only 30% have a smart phone so far…

To find out more about investing in Ecommerce as part of your overall investment strategy, contact us today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

What next for UK interest rates?

Rising GraphsInterest rates finally rose above 0.5 per cent in August – almost a decade after the emergency cut to that level. The Bank of England’s MPC voted to raise rates to 0.75 per cent on 2nd August, casting aside worries over a no-deal Brexit, as it said that low unemployment merited a hike to keep inflation on target.

The 9-0 vote to raise rates was accompanied by a quarterly Inflation Report, which showed that, despite August’s hike, the market outlook was for rates to go up more slowly over the next three years than previously expected and that no further move is expected until at least the middle of next year. The recent rate rise was widely expected as the Bank had not sent out any signals to dampen forecasts of a hike, unlike in the run-up to the May decision when a move up failed to happen. The question now is whether this is a one-off hike, or the start of a slow but steady rise in interest rates. A lot will depend on how the British economy fares over the rest of this year and into 2019, before the UK’s exit from the EU. If there is a marked slowdown then it is likely that rates will stall again. Even worse, a recession would most likely see a further interest rate cut. 

Read More

LEADER IN THE FINANCIAL SECTOR

Manuela RobinsonManuela Robinson – Joint Country Manager, was interviewed by the magazine “Revista Pontos de Vista” for their 21st November edition.

Blacktower Financial Management (International) Ltd (BFMI) is made up of experienced consultants who offer an excellent service in wealth management and tax planning. With more than 30 years’ experience in the market and with offices on both sides of the Atlantic, whose differentiating aspects have marked the company’s path, making it a leader in the financial sector?

All aspects are summarized in the ability to respond, with pragmatism, rationality and professionalism to the demands of the sector and customers’ expectations. BFMI is a leader in the financial sector due to the whole team being interconnected and ponders on the challenges and risks faced when operating in a complex context, within an international dimension. BFMI services differentiate itself from the others, by striving to guarantee investor confidence and not considering separately the national and international dimension; on the contrary, there are two sides to the same coin in a globalized world – take for instance the effects that the North American elections have on the global markets.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: