IPO stands for initial public offering. An IPO means that a privately held company offers its company shares for the first time to the public by listing the stock on the national exchange. This action allows companies to raise equity capital through new stock issuance.
Why Do Companies Goes Public?
There are many reasons a company wants to go public; one of the main motives is to raise huge capital during the company’s growth stage. Usually, during this stage, companies require fast funds to meet the demand of the growing business.
By going public, companies have one thing in mind, which is to raise funds constantly. The expansion of a business is limitless compared to being privately held. Besides that, it also strengthens the business brands and credibility.
The Pros and Cons of IPO
Some of the key pros are:
The ability to raise equity capital
Strengthening the brand and credibility of the company
Possible increase in the company valuation by taking advantage of the share trades by the public
Creating visibility and publicity
And an exit opportunity.
Every IPO brings a set of risks such as:
Market pressure on the share price
Potential loss of control in the business growth and ownership
The need to expose lengthy financial information to the public
The cost involved to go public.
Process and Compliance of IPO
For a private company to go public, it takes six months to a year to complete. It is a lengthy process that is required by the SEC.
To find a suitable investment bank: The purpose of the bank is to provide sound advice and other services like underwriting. Typically, an investment bank is chosen based on
The Credibility
Reputation
Quality of services,
Expertise in a specific industry favorable to the company
Type of distribution the bank does.
To perform due diligence and filings: The bank’s role as the underwriter is to act as a broker between the company and the public. Usually, the underwriting comes with a selected commitment level by the bank.
The best commitment will be the ‘firm commitment’ whereby the bank buys the whole shares from the company and sells them to the public.
The other type of commitment will be the ‘best efforts’ where the bank doesn’t guarantee the fund amount raised for the company but merely sell the stocks on behalf of the company. ‘All or none’ commitment requires the whole stock issuance to be sold, or the agreement will be canceled.
The bank will share the risk of an IPO with other banks through a ‘syndicate of underwriters. Whereby the bank will ally with different banks to sell the IPO.
The bank will then draft the engagement letter, letter of intent, underwriting agreement, registration, and red herring document.
Pricing: The bank will submit the paperwork for SEC approval. Once approved, the bank and the company will discuss the pricing of the stock. A few factors must be considered when fixing the price, including the current economic condition and the company’s goal.
Stabilization: Under this step, the bank will have to provide analyst recommendations followed by after-market stabilization. Then to create a market for the stocks issued.
Market Competition Transition: Under this final step of the IPO process, the market competition will start after 25 days of the cooling period as per the SEC’s guidelines. This means the public will transition from relying on mandates and prospectus for the stock’s information to market forces after the cooling-off period.
The required form to be completed for an IPO is the SEC’s S-1 form, which can be found on the SEC website. (https://www.sec.gov/files/forms-1.pdf). SEC will determine if a company is eligible to go public by verifying the information on the form.
Is IPO a good Exit Strategy?
IPO is a good exit strategy if the IPOs are successful. Many startups prefer IPO, which can quickly raise huge equity capital for the necessary business expansion. Once the stock reaches the secondary market (generally after the cooling-off period whereby the public can sell their shares), the market forces begin to impact the value of the stock.
When there is high trading activity on the stocks, there is a possible increase in the price per share. This strengthens the value of the company and increases the public interest.
There are three approaches under the IPO exit strategy:
Flipping: This happens when investors start liquidating or selling their shares after acquiring them. Usually, the share price is higher when it reaches the secondary market, leading to further inflated prices when the shares are in demand. The market makers, underwriters, and even the company do not encourage this approach.
Long term investment: Under this tactic, investors who acquired shares at the lowest price would benefit from high profit if and when the shares are held longer, taking advantage of the rising share price in the long run. This is a typical scenario in large-cap growth stocks.
Observation of the lock-in period: Usually, there will be a lock-in period for shares held by private investors. According to the SEC, private investors cannot liquidate their holdings entirely during the lock-in period (usually between three months to two years). This is to mitigate any sharp fall in the value of the stock, thus controlling the share price by moving down sharply.
How can Startup Tandem help?
IPO is the quickest and most efficient way to fund a company’s growing needs and effectively grow the business’s size. Even though the process of going public can range from six months to a year and requires adherence to complex regulations, it is worth it as the possibilities for expansion are prominent and endless. Companies who wish to use IPO as an exit strategy, especially startups, could benefit from the market forces on the valuation of the business in the long run.
Startup Tandem has licensed advisors to help you during the process. If this is an exit strategy you have been thinking of, we can help you during your assessment to determine if indeed this is the best option for your business during this economic time. Learn more on how to choose the best exit strategy here.
How to choose the best exit strategy for your business?
Every entrepreneur has one target in mind when starting their business, to grow and to be profitable in the long run. Many entrepreneurs start a business to multiply its and other stakeholders’ investment. It has been more common lately to see a company go thru an IPO or acquisition as an exit strategy. This blog will discuss how to choose the best exit strategy for your business.
As discussed in our blog, starting a successful business in an inflated economy, you have the opportunity to create innovative products or services to solve a problem that arises during hardship times. As an entrepreneur, you have the power to influence and change the current ecosystem by building a great startup. So why think about an exit?
Reasons why an exit strategy is needed
Many factors can contribute to an exit:
The business has been running at a loss for a while now
Legal reasons such as massive lawsuits
The demise of the owner (usually sole proprietorship)
Merger & Acquisition looks appealing
IPO to multiply investors’ money
What makes an exit a bad strategy?
A lousy exit usually involves poor strategy adaption. When a business owner decides to halt the business, choosing the right exit strategy is vital. Poor strategy management may cause financial losses and even steer the business brand away from its values. Business owners can choose the suitable method based on the business needs; every element of the strategy implementation is essential for a smooth exit process and optimizing business outcomes.
Most common exit strategies
There are a few exit strategies that we will discuss here. The most common ones are:
Transferring the business to another family member or a neutral person
Merger and Acquisition
Business liquidation
Bankruptcy filing
Selling the company to a partner or an interested investor
IPO (Initial Public Offering)
Exit Strategy 1: Transfer the business to a family member
Why choose this exit strategy?
As a business owner if you decide to retire, one of the most common ways to exit the business is by transferring to a family member. Business owners like this exit strategy as they are able to keep the business with family and pass it on from generation to generations to come.
Factors to consider when exiting this way.
It is prevalent to inherit a business from a family member. Usually, this type of business is more mature and established in the economy. The transferee should evaluate some factors before beginning the transfer. First of all, the soundness of the acquiring party. It is crucial to ensure the new owner has the mental and financial ability to take over the business and sustain its values and profitability. It can often become a challenge for both parties to have the same business practices mindset. Both parties should try to reach a common ground where the transfer can be done smoothly while ensuring the legal aspect of the transfer has been taken care of.
Exit strategy 2: Mergers & Acquisitions (M&A)
Why choose this exit strategy?
This M&A strategy is most common among startups and business owners. It can be a preferred strategy as the owner can set their terms, continue to hold control, and influence the price of the acquisition.
Factors to consider when exiting this way.
There are two outcomes from this type of transaction: either businesses merge and maintain equal interestand holdings, or the acquiring party becomes the major stakeholder of the merged entities. When the latter happens, the appointed CEO will be from the acquiring side, and significant changes can be made to the structure and processes of the other company. This strategy requires internal and external expertise to complete each transaction area and weigh the outcome of such activity. Some of the crucial part that will decide whether to continue with the strategy is the projected profitability, the size of the debt, and any ongoing legal issues that might fail the purpose of the M&A transaction. More on this topic soon!
Exit strategy 3: Business Liquidation
Why choose this exit strategy?
Business owners are ready to liquidate their business and move to the next venture. This may sound very appealing to a business owner if the passion for the business is lost. If the entrepreneur does not have any family members or partners to sell the business to, then liquidating the business is the preferred stategy to exit.
Factors to consider with this exit strategy.
It may sound simple and easy, but it is critical to inspect and ensure you create a proper checklist for each business area. Liquidating a business translates to permanently shutting down the business, so it is essential to ensure the business values and brands stay positive in the market and that such a decision will be profitable. Business owners often seek external services to help analyze and compile the necessary data to adapt the exit strategy successfully.
Exit Strategy 4: Bankruptcy Filing
Why choose this exit strategy?
Almost all business owner tries to avoid this type of exit. Filing for bankruptcy often relates to the inability to sustain the business profitably while the level of unpaid debt is snowballing. To avoid being sued or the possibility of losing not only business but personal assets, many owners’ resorts to this avenue. It takes a thorough process to qualify for the filing.
Factors to consider with this exit strategy.
Business owners should weigh the outcome and the consequences so that it will appear beneficial for choosing this exit strategy. We recommend seeking professional services to advise and assist in consolidating the business for filing purposes.
Exit Strategy 5: Selling the business to a partner or investor.
Why choose this exit strategy?
The exit strategy above is pervasive, especially among startups and small businesses. For example, many small entrepreneurs create business pages on social media such as Facebook to market their products and services. In time, the pages might have gathered a large number of followers, which might pique others’ interest in buying over the page with the acquired followers. It is easy for an interested investor to market their business with an established page with more significant followers by just changing the page’s name and other details while maintaining visitors’ traffic.
Factors to consider with this exit strategy.
Suppose business owners wish to sell their business, especially the ones with established brands. In that case, they should carefully review the circumstances and potential loss of future profit by analyzing the company’s value at the time of the sale.
Sometimes, it will include a royalty income in the sale agreement. There are many angles to be looked into before effecting any deal to achieve the best outcome.
Exit Strategy 6: Initial Public Offering (IPO)
Why choose this exit strategy?
An Initial Public Offering (IPO) is also a desirable exit strategy for entrepreneurs and investors. This exit strategy can substantially multiply the investment of private investors and business owners, making it very desirable.
Factors to consider with this exit strategy
Many factors can affect an IPO, such as market conditions can influence how profitable this exit strategy can be. Other reasons companies go for IPO include brand strength, liquidity, company success, and improved market valuation. We will write more on this strategy next week.
How can Startup Tandem help you?
As a business owner, you should partner up with a team that can help you choose the best exit strategy for your business and support you in the process that comes with it. All of these exit strategies need finance advisory and legal support.
The advisory team at Startup Tandem is available to help you prepare your company to achieve the desired exit. Startup Tandem advisory can help you value your company by using the discounted cash flow or LBO model and provide advice on any transaction to achieve the best exit possible for you and your investors.
Startup Tandem has developed a network of businesses and individuals that come together to help startups and small businesses. Reach out if you need referrals or if you need to discuss any of these exit strategies more in depth.
In this blog, we will discuss steps on how to start a successful business in an inflated economy. Businesses and entrepreneurs can and do succeed during hyperinflation. Starting a business is hard, let alone trying to set one up amid the highest inflation levels seen in the last 40 years. Incredibly, no one under the age of 50 has witnessed such times.
Inflation is a thing but not a permanent factor
The thing about starting a business during the high inflation period is the opportunities to create innovative solutions to problems we did not know existed until now. When prices go up, consumers are savvier in how they spend. Companies adapt and change their selling structures to give better deals and discounts and push more local products – reducing logistical costs.
Steps you should take to start a business
Let’s explore some basic steps to start a successful business in an inflated economy.
External Industry Analysis
Before starting your own business, it is critical to understand exactly what you’re getting into, particularly for first timers. As the First step, you need to do external industry analysis, and you should break this down into five segments, following Porter’s five forces1:
Threat of New Entrants- If the industry presents a low or no threat for new companies, then the threat of new entrants is high. This may happen when initial capital requirements are low, and state and federal requirements are none or low.
Threat of Substitutes- This threat is high if there is a large volume of indirect competitors to your product or service.
Bargaining power of Supplier– The bargaining power of suppliers is low when all groups of suppliers do not have the same power.
Competitive Rivalry – This threat is high if there are a lot of direct competitors in the industry offering the same product or service.
Bargaining Power of Buyers – This power is high when buyers can influence prices for the product or service offered.
A whole range of things can happen in your industry but outside of your business, meaning that external factors can play a part in your company’s performance. The more you know and understand your industry, the better you will be positioned for success.
Internal Analysis
You should develop an internal analysis of your company’s strengths and weaknesses. It would help if you created an analysis of the company’s infrastructure that makes up the primary and secondary activities. You can do a SWOT analysis outlining internal strengths and weaknesses and external opportunities and threats.
When deciding what industry to choose, you should look at how it gets affected by the economy. Cyclical Industries are affected by a recession. This is a bi-product of how much discretionary income a consumer spends on specific products or services.
In times of economic downturn, it is essential items that are recession-proof. We all need access to food, water, gas, electricity, and medical care. So when starting, it may be wise to opt for a product or service that is highly needed.
During the COVID lockdown, many restaurants folded, but the smaller, localized take-out and delivery stores created innovative solutions to adapt and bring your favorite foods to your door. Delivery services also boomed during these times.
Hyperinflated economies can lead to opportunities to create innovative solutions to a problem with this type of economy. During COVID, the restaurant had to change its business model to adjust to the new way of living. Some restaurants created a new service offering farm-to-table-made baskets by creating synergies with farmers. Other restaurants closed their doors to reduce overhead costs and only served fresh, packed-to-go meals off the menu at standardized prices.
Consumers’ spending habits also changed during COVID, increasing sales for e-commerce startups. Many startups reached $1 Million in gross sales thru their online website, creating a solid brand presence.
When creating a business during a recession, the idea is to pay attention to behavior patterns and trends. Although COVID has been an event that was not easy to predict based on past recession trends, how the government reacted to it was a good indicator of what to expect from consumers. At least for some time.
Create a business plan
Once you are clear on what innovative solution you want to focus on creating as a business, you need to finish completing a business plan. We say completing a business plan because all the steps mentioned above are part of your business plan. This business plan will come in handy when requiring capital infusion.
A business plan should have the following sections:
Executive Summary
Company Introduction
External Industry Analysis
Internal Industry Analysis
Strategy analysis
Strategy Formulation
Strategy Execution
Once you have created the necessary external and internal industry analysis research, you can start building your business model.
Strategy analysis, formulation, and execution will come as you line up the next five years of your company. You should be able to determine where your company will be and the capital required to hit those milestones.
One of the most challenging areas is determining the capital needs of a business that is not fully running yet. Many entrepreneurs create projections that are very ambitious on revenue growth. Determining the expenses that will take the company to hit that revenue growth should be a logical, industry-standard year-over-year growth approach. Once you have developed a strong and conservative proforma, you can determine the cash (capital) needed to launch and each growth stage.
Government aid
Before setting up a business, check if you are eligible for a government grant to help get your business off the ground. It’s been a rough ride for many smaller businesses during the pandemic, but help may be available for you on a government, state, federal or local scale, as well as a bunch of private sector firms.
Research your eligibility before starting up.
How can Startup Tandem help?
Startup Tandem business model is to scale with your business. Services are customized accordingly to each business’s growth. Startup Tandem has a team of financial analysts, accountants, and fractional CFOs that can support you in creating your startup.
Startup Tandem is known for its network of professionals that can help you create a successful business. Success can be achieved by increasing revenue, getting legal advice, getting in front of venture capitalists or banks, being placed in retail, or helping you solve any other problem you may have. Head over to the blog Will My Business Survive The Current Economy? (startuptandem.com) to read more about if your business can survive a recession.
Start today with an initial call to discuss your business needs. From there, we can develop a plan that fits your budget and growth stage. Monthly meetings can ensure you stay on track to achieve your business and financial goals.
Do you want to know more about choosing the right investment during high inflation? There are numerous types of investments an individual can make however not all investments are created equally. Some investment plans carry a lot of risks but reap greater rewards, and there are safer investment options that generate lower returns.
Investing 101
Risk
Choosing the right investment bears a lot of risk. What you invest in is completely up to you, however, your portfolio should at least reflect your risk tolerance. Understanding your risk profile from the get-go will help you better plan the right types of investments for you – this can be considered rule number 1.
Affordability
It’s massively important to know how much you can afford to invest over a certain time frame, whether that be weekly, monthly, or yearly spending. It is vital to work out costs and understand exactly what you can afford.
Timelines & goals
Break down when you would like to achieve certain goals and stick to a plan when you are choosing the right investment during high inflation. Breaking down a business plan into bitesize, manageable pieces will help you better achieve your goals whilst giving much-needed motivation to achieve more. Setting goals and using timelines help to paint a clearer picture and help to reduce stress.
Professional help
Consulting with professionals is a good place to start when setting up a business or seeking to invest. Outside help from companies that offer such services will consult with you on your goals, when you want to achieve them, and the purpose for investing, such as aiming to retire, saving up for a new house, or looking at expanding a property portfolio.
Some of the most common investment types are as follows.
High-interest savings account
This is one of the safest ways to invest your money because there is no volatility. By placing your money in a HISA, you’re earning annual interest on your deposited monies. A typical savings account offers little to no interest at all circa 0.1% while a HISA will generate around 1.3%.
These aren’t mind-blowing numbers, yet they are a safe bet, and you are guaranteed the deposited amount plus at least 1.3%* in interest. Based on 1.3%, $10,000 in deposits would generate $130 in annual interest.
CD Investments
The second safest investment to invest in are CDs. CDs provide a higher interest rate than a savings account, once cash is deposited you can’t touch the principal or interest until maturity.
CDs are offered at 1-year, 3-year, and 5-year rates. Each bank will provide different terms.
Real estate
This investment requires a lot of capital but is a very worthwhile investment and extremely popular. Flipping property and renting property are the two most common types of real estate investing.
Rental investing is complex and requires proper research. Outside consultants can help you better understand laws, taxes, and risks – so outside help is always advised.
Stock
Stocks can carry risk and is a more ‘hands-on’ investment that requires monitoring and analysis of a company’s performance. If a company wants to generate some quick cash, it can sell stocks to investors to generate liquidity.
When a shareholder purchases a stock, they’re entitled to a portion of the company’s earnings. Shares of stocks depend on the company’s performance and its projected future earnings. Stocks require a lot of research and could be considered a better option for more experienced investors.
Index Funds
These funds can provide high returns and diversified portfolios that mirror the movements of such index. These can be less risky than just investing in one single stock. According to MSN, the best index funds for 2022 are:
1-Vanguard 500 Index Fund Admiral Shares-Return 13.62, mirrors the performance of the S&P 500.
2-Fidelity Nasdaq Composite Index Fund- average return 16.21%
3- Fidelity 500 Index Fund: Return 13.65%, investments the majority in S&P 500.1
Index funds we found appealing to invest in:
1-Vanguard Total Stock Market: Return 17.99%, well-diversified portfolio, mirrors the performance of the S&P 500.
2-Vanguard Growth Index: Return 24.58, a lot risker, portfolio of large-cap U.S. stocks
3-Vanguard Total Bond Market: Return 9.25%
How does inflation affect investments?
Currently, we are experiencing high inflation, so how can this affect our decision? Inflation in theory affects the value of our purchasing power as consumers. Then to mitigate the inflation factor, a higher interest rate is needed to deliver higher returns and capital growth.
A savings account does not provide an interest rate that is high enough to offset the inflation factor.
A CD does not offer a high-interest rate to mitigate the inflation factor unless the inflation is less than 3%, Which in this case the benefit of the investment will be offset by the inflation factor.
Inflation increases the value of real estate assets.
Stocks may fluctuate depending if the companies are in the cyclical or noncyclical industries.
Index Funds can offset some of the inflation, as these are well-diversified portfolios of stocks.
So what now?
Startup Tandem advises you to assess your personal risk, and financial health before investing. Do the research needed to make a proper decision. Making an account with a broker or consulting with a financial advisor can help you achieve your long-term financial goals. This type of individual can help you invest your money in a certain investment that can provide you with extra income for day-to-day activities.
Startup Tandem does not provide financial advice to individuals on personal investments. Brokers can give you crucial advice on the right sort of investments to suit your financial position and investment goals.
What does this mean for small businesses?
Small business owners should try to maintain healthy cash balances to navigate the current market conditions. As interest rates continue to rise, the cost to borrow will increase making it challenging for small business to meet their lending terms. This also means being smart at placing purchase orders for equipment, inventory, or any other materials.
Startup Tandem can help you create a short-term strategy for businesses to navigate the uncertainty of the current market conditions and reassess periodically. Now is the time to ask for help, if your business is suffering.
This article is solely for educational purposes. Nothing in this article is meant to persuade or advise anyone on what to do with their money. Please consult with an experienced broker or financial advisor before making any decision.
Sources:
1- Barbara Friedberg. May 23, 2022. “9 Best Index Funds for 2022” Retrieved on 8/1/2022.
Celcius seems to have overtaken Terra (luna) as the most talked about crypto disaster.
On June 13th of this year, as crypto markets tumbled, Celsius did the unthinkable and paused all withdrawals, swaps, and transfers on their platform. Essentially locking users out of access to their funds ”acting in the interest’’ of their community. Far from trusting behavior from one of the largest crypto lenders in the space.
But what is Celcius?
Celsius Network is a centralized finance lending and borrowing platform founded in 2017. Users can deposit crypto assets onto the platform and can earn generous interest rates in return, up to 15-18% every year with 80% of celsius earnings going back to their user base.
Celsius uses crypto deposits to generate profits by loaning them out to other institutions at a higher interest rate, a similar model to a traditional banking system. Any of its 1.7 million users could purchase the Celcius token (CEL), giving holders guaranteed higher rates and lower costs. Sounds perfect, right?
Where did it all go wrong?
In theory, the banking model works but what Celcius didn’t account for is the volatility in the crypto market. When BTC and ETH suffered a pounding back in June, Celsius’ asset value fell by 50% from $24bn down to $12bn. This left the platform facing a liquidity crisis, meaning that if all investors chose to withdraw at the same time, they would not be able to fulfill demand – forcing a suspension of user funds.
What’s happening now?
Things have gone from bad to worse for Celsius members in the last few days with the platform filing for Bankruptcy on the 13th of July, casting further uncertainty over investors looking to recoup their funds.
Celsius said in a press release that the reason for the filing was “to provide the Company with the opportunity to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.” 1.
In a nutshell, this means that Celcius doesn’t have the capital to cover its debts and is looking for a way forward to survive.
Will investors get their money back?
Not any time soon, unfortunately. There will be a long line of creditors looking to get their funds back and depositors on the platform will have to join that queue. Many commentators think that the wait for a refund may take years.
Crypto and inflation
In times of economic downturn, consumers go out in droves to find an asset to hedge against inflation.
Typically we would consider precious metals such as gold and silver as a safe bet in the markets. Cryptocurrencies have often been referred to as “inflation-proof” but with what we have seen recently, is anything truly safe from inflation?
There isn’t much doubt between speculators that BTC and ETH will bounce back, but when platforms do fail, does this help or hinder larger platforms in building trust with skeptics?..
Only time will tell.
References
1. Celsius. (2022, July 13) Celsius Network Initiates Financial Restructuring to Stabilize Business and Maximize Value for All Stakeholders. [press release]
Why consumer Sentiment and Confidence is Important in the Economy
Consumer Sentiment- What is it?
Statistical measurements of the overall economic health that has been determined by consumers. That is what consumer sentiment is. Keep in mind that this will also take how people feel into account. This means that how people feel towards how they are doing financially matters. It will also take the short-term health of the current state of the economy and what is prospected in the long-term for growth. Plus, this is used to be one of the best and most-useful indicators for the economy.
PRO TIP: Visit our site to learn more about important topics related to consumer sentiment and confidence.
Consumer Sentiment- How to Measure It
Consumer Confidence Index or CCI and Michigan Consumer Sentiment Index or MCSI are two of the key measures that will want to know and express how the consumer is feeling about their purchase plans for the future and how they feel about the economy as a whole.
Sentiment Indexes- What are They?
These are the indicators that will help measure the many changes in the future of the economy. These indexes are based on how well an investor and consumer feel about purchasing items. Their interest and willingness to do this will be considered. Before indexes are made, many consumers are interviewed beforehand.
PRO TIP: Read this blog post to learn more about the 2022 real estate outlook.
Consumer Confidence Versus Consumer Sentiment
Both of these are simply surveys. They are two short surveys for two months. They will be from various sources. However, both are going to judge the confidence that Americans have. This will be judging what Americans feel about their financial security, status, and expectations. They are wanting to know how they feel about the future, good and bad concerns. This is how they determine how confident people are spending money on purchases in the near future.
Why Consumer Confidence is Important for the Economy Indication
Consumer Confidence Index will happen once a month. There are about fifty questions, give or take. These questions will track many aspects of the attitudes of customers towards the future of the business. It will also track how consumers feel about the current and future conditions of employees as well as the income for families in the next few months.
When the economy expands, consumer’s confidence will rise. When the economy decreases, people will start to contract. Keep in mind that the consumer information may not be perfect. This will cause the measure to become what is known as a lagging indicator for the performance of the stock market.
How to Approach/React to Uncertainty in the Economic Condition
Data and research have shown that people will react based on their emotions before they think reasonably. This is going to be certainly true for those who are worried about the investments that have been made and how the economy is going to look in the future. In the long run these fear-based decisions usually do not end in the favor of the investor.
You should seek advice from professionals before investing if you are concerned about any aspect of it. They will help you understand the state of the current economy and help you understand what the future looks like. They can help with both pros and cons of investing with a certain stock. This can help you assess what your risk and potential losses could be.
The chart has allowed us to conclude that the consumer sentiment is in fact, an important part to consider when monitoring because it can impact the economy heavily. June 2021 was the highest index since 2020. This was because people would start to travel again because the restrictions due to Covid were being lifted in many areas. This is what is called a post-pandemic situation. It allows the consume to feel better about the economy and the future of the economy. This is due to the positive outlook that is currently happening causing them happiness and to be emotional. Increased emotion could cause increased confidence. In return, this leads to more spending within the economy and activities.
