China Misses Growth Expectations—12/14/2018
China reported economic data that missed expectations and the market is selling off…again. This concern over global growth is the latest worry that has Wall Street’s attention.
China Misses Growth Expectations—12/14/2018
China reported economic data that missed expectations and the market is selling off…again. This concern over global growth is the latest worry that has Wall Street’s attention.
Over the weekend, at the G-20 meeting, President’s Trump and Xi meet to discuss the trade tensions/Trade War between the U.S. and China. The gist of the meeting was that the Trade War will take a pause for 90 days. The world financial markets are hoping that these two leaders can come to a longer-term agreement during that time frame and these trade tensions will de-escalate.
Powell Turns Less Hawkish—-11/28/2018
Fed Chair Powell gave a speech in which he said that interest rates are closer to neutral rather than still accomodative. This has eased the markets concerns that he was going to keep the hammer down and raise rates indefinitely, which would run the risk of destroying the economy. As I type this, the Dow is up over 500 points today.
Markets Continuing to be Jittery—-11/12/2018
After a nice rally last week, the markets started to sell off again after the Fed meeting. I believe the reason is two fold:
1) Fed Chair Powell gave no indication that he will stop raising rates.
2) There is no trade deal with China
Regarding the first point, the market needs reassurance that the Fed will not keeping raising rates indefinitely. However, Chair Powell has given no hint that he will stop. The market would love to hear him say something as simple as, “the Fed will be data dependent regarding future interest rate hikes.” But, again, he hasn’t done that as of yet.
Regarding the second point, seemingly every other nation/organization has signed a new trade deal with the U.S. and/or given hints that they are working towards an agreement, except China. The market will not be fully settled until this is done. The largest players on the global economic stage are the U.S. and China and until there is an agreement on how business dealing will be done between those two, global market will remain volatile.
Mid-Term Elections are over…and the Market is rallying!!—11/7/2018
Last night saw the Democrats take control of the House and the Republicans retain control of the Senate. Historically, markets love a gridlocked Congress. As I type this, the Dow is up over 500 points. Looks like the market liked those election results.
Another Amazing Jobs Report!—-11/2/2018
Not only are we seeing continued jobs growth, but wages are now accelerating by more than a 3% clip.
Unemployment rate at 3.7% is the best since the 1960s and Wage Growth over 3% is the best since 2009. This economy is booming!!!
https://www.cnbc.com/2018/11/02/us-created-250000-jobs-in-oct-vs-190000-jobs-expected.html
Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.
Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”
The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.
There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.
Typical Spot Factoring Transaction
Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.
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Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.
Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”
The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.
There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.
Typical Spot Factoring Transaction
Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.
If you would like to learn more about Forex’s Spot Factoring services, call +65 6666 6666