Saxo Group
Don’t let getting started feel overwhelming
Maybe you’ve inherited some money from a relative. Maybe you’re at the point in your career where you have some disposable income that wasn’t there before. Maybe you realized the longer you wait to start investing, the more difficult it is going to be to retire. Whatever the reason, you’re reading this because you want to get started investing and, perhaps, because it seems a little bit overwhelming. Remember the first time you tried to ride a bicycle, play chess or cook a meal? It probably felt the same way, so let’s just take it step by step and get started.
What’s your budget?
Even if you’re lucking enough to be investing some inherited money, it’s probably a good idea to take a look at your budget. How much money are you making? Are you paid weekly, bi-weekly, monthly? What are you spending? Start with what you absolutely need to spend. These expenses are things like rent or mortgage payments, necessary transportation costs, food, utilities, health care, etc. Also be honest about spending on items that are not necessary. Sure, many of these items are quite reasonable like buying a sandwich for lunch instead of making it at home and bringing it to work. You’ll probably also find items more frivolous in nature, like yet another pair of designer sneakers or multiple $8 lattes a day. The whole point here is to understand how money is coming in and how money is going out. If you’re lucky, you’ll realize there are items you’re buying that you could entirely do without. If so, at least consider the possibility that this money could be used to increase your investing budget.
Determine your net worth
Figure out what items of value you own. This could be your house, rental properties, car, money you have on hand or in the bank, your 401(k), your IRA, stocks, bonds, certificates of deposit, etc. Don’t worry about the minor things like your silverware set or your favorite chair from Ikea. Just determine the major items of value. These items are your assets. Also figure out what you owe. This could be your mortgage, the loan on your car, your student loans, etc. Again, these are the big things and not the $5 you owe your friend. These debts are your liabilities. Your net worth is simply the value of your assets minus the value of your liabilities. Use a spreadsheet or otherwise keep track of your assets, liabilities and net worth. This isn’t something you need to track daily. Do it once a year and notice how the values change over time.
Worth the effort
It’s a fair amount of work, but this is how you determine your financial big picture. With this information you will be able to make better investment decisions tailored to your specific situation.
AI: The good, the bad, and the bubble
While a deep recession may not be iminent thanks to central bank policy, interest rates will have to stay high for longer, and this will be accompanied by volatility risk from the unwinding of bubbles, especially within AI.
Steen Jakobsen,
Chief Investment Officer
The emergence of advanced AI systems is by far the most surprising event this year, turning everything upside down, while risks and benefits are debated. AI will also become an arms race between the US and China.
Peter Garnry,
Head of Equity Strategy
As China navigates global fragmentation, its cycle of technology application, productivity enhancement, and growth is threatened by US breakthroughs in generative AI, limited computing power, and geopolitical tensions.
Redmond Wong,
Market Strategist
Japan’s expertise in semiconductors and robotic integration could be the foundation of AI dominance. Combining two of this year's themes, Japanese equities and artificial intelligence, brings a wave of opportunities.
Charu Chanana,
Market Strategist
The AI fever has turned the technology into a darling, pushing crypto further into no-man’s-land. There are striking similarities between AI and crypto, and if these are to come full circle, AI won't be spared for bubbles.
Mads Eberhardt,
Cryptocurrency Analyst
Stocks related to artificial intelligence (AI) have appeared on investors' radars. Expectations are high, but it may be necessary to consider how to get exposure to AI in a diversified way.
Hans Oudshoorn,
Trainer Academy
The USD is on its back foot as markets celebrate an eventual Fed rate peak and steady long US yields. The stakes are even higher for the Japanese yen if longer major sovereign yield curves have to price in economic acceleration.
John J. Hardy,
Head of FX Strategy
While commodities, broadly speaking, have faced some tough months, a partial reversal during June could signal that the asset class is getting back on its feet with energy holding up and precious metals with upside potential.
Ole S. Hansen,
Head of Commodity Strategy
As inflation remains high central banks face hard decisions about whether they should keep hiking interest rates or stop. Meanwhile, the rise of AI creates bubble-like conditions that only make the decision harder.
Althea Spinozzi,
Senior Fixed Income Strategist
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