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Preparing for a Perfect Storm: Nouriel Roubini’s Outlook on the Global Economy and Financial Markets

March 23, 2023  monitor investments.

Nouriel Roubini, a renowned economist and professor at NYU Stern School of Business, is known for his accurate predictions of the 2008 financial crisis. In recent years, he has been warning about the potential risks to the global economy and financial markets, including geopolitical tensions, rising debt levels, and the impact of the COVID-19 pandemic.

Preparing for a Perfect Storm: Nouriel Roubini's Outlook on the Global Economy and Financial Markets
Preparing for a Perfect Storm: Nouriel Roubini’s

According to Roubini, the world is facing a “perfect storm” of economic, social, and political challenges that could lead to a global recession and financial crisis. He has highlighted several key factors that investors should consider when preparing for this potential scenario, including:

  1. Geopolitical tensions: Roubini has warned that geopolitical tensions, including trade disputes and political instability, could lead to a global economic slowdown. Investors should monitor the news and developments related to these issues and adjust their portfolios accordingly.
  2. Rising debt levels: Roubini has also highlighted the growing debt levels in many countries, which could lead to financial instability and economic slowdowns. Investors should consider diversifying their portfolios and avoiding overexposure to high-risk assets.
  3. Impact of COVID-19: The COVID-19 pandemic has had a significant impact on the global economy and financial markets, and Roubini has warned that the effects could be long-lasting. Investors should be prepared for potential market volatility and consider investing in defensive assets, such as gold or government bonds.

So, how can investors protect their wealth and prepare for a potential economic downturn? Here are some options:

  1. Diversify your portfolio: One of the best ways to protect your wealth is to diversify your portfolio across different asset classes, such as stocks, bonds, commodities, and real estate. This can help reduce your overall risk and limit your exposure to any one asset class.
  2. Invest in defensive assets: Defensive assets, such as gold, government bonds, and dividend-paying stocks, can help protect your portfolio during times of market volatility. These assets tend to perform well when other investments, such as stocks, are declining.
  3. Consider alternative investments: Alternative investments, such as hedge funds, private equity, and real estate, can provide diversification and potentially higher returns than traditional investments. However, these investments often come with higher fees and may be more difficult to access.
  4. Monitor your investments: It’s important to regularly monitor your investments and adjust your portfolio as needed. This can help you stay on top of market trends and avoid any major losses.

In summary, Nouriel Roubini’s outlook on the world suggests that investors should prepare for potential economic challenges and market volatility. By diversifying their portfolios, investing in defensive assets, and monitoring their investments, investors can protect their wealth and potentially profit from market opportunities during these challenging times. However, investors should always carefully consider their investment objectives, risk tolerance, and financial situation before making any investment decisions.

Preparing for a Perfect Storm: Nouriel Roubini's Outlook on the Global Economy and Financial Markets

Why JVing with an existing developer is better for UK property development

March 10, 2023  buy to let, inflation proof investments, Investments, joint venture, property development, property investment, property joint venture, uk property development, Uncategorized, what to invest in now, what to invest in this quarter

The UK property market is notoriously difficult to navigate, with high costs, complex regulations, and a shortage of affordable housing. For those looking to enter the market, there are two main options: to start a property development project from scratch or to joint venture (JV) with an existing developer. While both options have their advantages, there are several compelling reasons why JVing with an existing developer is the better choice for UK property development.

JV
JV

Entering the UK property market can be a challenging task for anyone. However, JVing with an existing developer can provide access to valuable expertise. An experienced developer will have a wealth of knowledge regarding the local market, contacts with suppliers and contractors, and a deep understanding of the complex regulatory landscape. Trying to build this expertise from scratch is time-consuming and costly, and mistakes can be costly. A JV partner can provide a valuable shortcut to success.

Another benefit of JVing with an existing developer is the sharing of risk. Property development is a high-risk business, with a significant amount of capital and time invested in each project. By JVing with an existing developer, you can share this risk, minimizing your exposure to financial losses. Sharing risk with a partner also provides an opportunity to leverage each other’s strengths, expertise, and resources to ensure project success.

JVing with an existing developer can also help to reduce costs. An experienced developer will have established relationships with contractors and suppliers, as well as access to financing at favorable rates. They may also have economies of scale that can reduce the costs of materials and labor, which can be particularly beneficial when working on larger projects.

Developing a property from scratch can be a complex process involving numerous stakeholders, including architects, contractors, lenders, and regulatory bodies. With a JV partner, many of these processes will have already been streamlined and optimized, reducing the time and effort required to get a project off the ground.

Lastly, JVing with an existing developer can also provide improved exit options. By partnering with an established developer, you may be able to sell your share of the property development project more quickly and easily, freeing up capital to invest in other projects or diversify your portfolio.

In conclusion, JVing with an existing developer is the better option for UK property development. It provides access to expertise, reduces costs, streamlines processes, shares risk, and offers improved exit options. By working with a JV partner, you can leverage their knowledge, experience, and resources to achieve success in the competitive UK property market.

Navigating the Regulatory Minefield of Buy-to-Let: What Investors Need to Know in 2023

March 8, 2023  buy to let

The Buy-to-Let market has long been a popular investment choice for those looking for a steady income stream. However, as regulations continue to tighten, many experts are predicting the death of buy-to-let as we know it.

So, what does this mean for those already in the market, and what should potential investors consider before jumping in?

Buy to Debt
Buy to Debt

The reality of buy-to-let in 2023 is a regulatory minefield, and investors need to be aware of the various lender rules, fees and deposits, HMO licensing, and taxation regulations.

All mortgage lenders have different lending criteria, but most buy-to-let mortgages require a deposit of at least 20-25%, and around 40% to secure the best rates. It is important to meet your lender’s affordability rules and interest cover ratios, and navigate any lender limits on the number of properties in your portfolio.

Since 2019, landlords and letting agents have been prohibited from charging tenants certain fees, and there are now caps on the amount of deposit or holding deposit money landlords can take from tenants.

Landlords can only charge tenants rent, a refundable security deposit, a refundable holding deposit, a default fee for lost keys or late payment of rent, or a fee for requesting changes to a tenancy agreement during the fixed term.

Landlords who rent out Houses in Multiple Occupation (HMOs) may require a licence to legally let their properties out. HMO licensing is mandatory for properties with five or more tenants from more than one household, known as “large” HMOs. Smaller HMOs rented by fewer than five tenants may not require a licence.

However, many local authorities operate additional licensing processes, meaning all HMOs in their area require a licence, regardless of size.

Taxation is one of the most complex rules around buy-to-let property, and landlords need to be aware of regulations around stamp duty, income tax, capital gains tax, and deductions of mortgage interest. Landlords and those buying second homes must pay a 3% stamp duty surcharge on each property they buy.

If you make a profit from renting out a property, or properties, you may have to pay income tax on that profit. It is possible to deduct certain costs from your rental income, such as water, gas, electricity, and council tax (if you pay them rather than the tenant), insurance costs, costs of services, letting agent management fees, accountancy fees, ground rent and service charges for leasehold properties, maintenance and repair costs, and replacement relief on items such as furniture, carpets, appliances and technology.

With all these regulations, it is no surprise that some experts are predicting the death of buy-to-let. In 2023, Lewis Shaw, Riverside Mortgages, advised that if he were holding a buy-to-let mortgage above 60% LTV, he would be selling up and looking to do a deal faster than a Tory peer with a dodgy PPE contract.

Potential investors need to be aware of the regulatory environment and do their due diligence before making any decisions.

In conclusion, while the death of buy-to-let may not be imminent, the regulatory environment has become more complex, and investors need to be aware of the various rules, fees, and taxes. Potential investors should take the time to research the market and understand the risks before jumping in. Property development now looks a much more secure and higher yielding option.

Is the Cambridge laboratory space a good investment ?

February 6, 2023  biotech, Investments, property investment

The Cambridge laboratory space market is currently experiencing a high level of demand, making it an attractive option for property investors. This demand is driven by a number of factors, including the growing number of technology companies and start-ups in the area, as well as the presence of a number of prestigious universities and research institutions.
Cambridge lab space
Cambridge laboratory space.
One of the key advantages of investing in laboratory space in Cambridge is the quality of the tenant base. Many of the companies and institutions located in the area are leaders in their respective fields, and have a strong track record of success. This can help to ensure that rental income remains stable, even during times of economic uncertainty.
Another factor that makes Cambridge an attractive option for property investors is the relatively low vacancy rate. The demand for laboratory space in the area has been consistently high in recent years, which has helped to keep vacancy rates low. This can help to ensure that properties remain occupied, and that rental income remains steady.
Despite the strong demand for laboratory space in Cambridge, there are still a number of challenges that property investors need to be aware of. One of the main challenges is the high cost of land and construction. This can make it difficult for investors to find properties that offer good value for money.
Another challenge is the competition for properties in the area. Because the Cambridge laboratory space market is so popular, investors may need to be prepared to compete with other buyers in order to secure the properties they are interested in.
Despite these challenges, the Cambridge laboratory space market remains an attractive option for property investors. The high demand for space in the area, coupled with the quality of the tenant base and the relatively low vacancy rate, make it an ideal location for investors looking to invest in laboratory space.
Overall, the Cambridge laboratory space market is a great option for property investors who are looking for a stable and reliable investment opportunity. With the right approach, investors can find properties that offer good value for money, and which are likely to generate a steady stream of rental income.

Which renewables are best for retail investors in the UK

 energystorage, Investments, Solar, what to invest in right now

Which renewables are best for retail investors in the UK?
Which renewables are best for investors
Which renewables are best for investors ?
There are several renewable energy options that are well-suited for retail investors in the United Kingdom. Some of the most popular options include:
  1. Solar energy: Investing in solar energy projects, such as rooftop solar panels, is a popular choice for retail investors in the UK. There are various investment options available, including buying shares in solar energy companies, investing in solar energy funds, or investing in community solar projects.
  2. Wind energy: Wind energy is another popular option for retail investors in the UK. There are several ways to invest in wind energy, such as buying shares in wind energy companies, investing in wind energy funds, or investing in community wind projects.
  3. Biomass energy: Biomass energy, which is generated from organic materials such as wood or agricultural waste, is also a viable option for retail investors in the UK. Investment options include buying shares in biomass energy companies, investing in biomass energy funds, or investing in community biomass projects.
  4. Hydroelectric energy: Retail investors in the UK can also invest in hydroelectric energy by buying shares in hydroelectric companies, investing in hydroelectric funds, or investing in community hydroelectric projects.
It’s important to note that investing in renewable energy projects, like any investment, comes with risk and it’s important to do your own research and consult a financial advisor before making any investment decisions.
Additionally, it’s worth mentioning that the UK government has implemented a series of policies and initiatives to support the growth of renewable energy in the country, such as the Renewable Obligation Certificates (ROCs) and the feed-in tariff (FIT) schemes, which have helped to attract investment into the sector.

Property development Kent

 Uncategorized

Property development in Kent, a county located in southeast England, has been on the rise in recent years. The county, also known as the “Garden of England,” offers a mix of urban and rural areas, making it a popular destination for both residential and commercial property development.
Property development Kent
Property development Kent.

 

One of the most significant property development projects in Kent is the Ebbsfleet Garden City. The development, located near the town of Gravesend, is set to become a new town with up to 15,000 homes, a range of shops and services, and new parks and open spaces. The project is being led by the Ebbsfleet Development Corporation, a government-funded body established to oversee the development of the area.
Another major property development in Kent is the regeneration of the Royal Albert Dock in the town of Ramsgate. The dock, which has been unused for several years, is being transformed into a mixed-use development with residential, commercial and leisure spaces. The project is expected to bring new jobs and economic growth to the area.
In addition to large-scale developments, there are also many smaller-scale property development projects taking place in Kent. These include the conversion of historic buildings into luxury homes, the development of new housing estates, and the construction of apartment buildings in urban areas.
Despite the ongoing COVID-19 pandemic, the property market in Kent has remained relatively stable. The county’s proximity to London, its good transport links, and its attractive countryside make it an appealing location for both homebuyers and investors.
In conclusion, property development in Kent is on the rise and has a lot of potential for growth. The county offers a mix of urban and rural areas, making it an ideal location for a wide range of property development projects. From the large-scale Ebbsfleet Garden City project to smaller-scale developments, Kent’s property market is well worth keeping an eye on.

What to invest in right now

September 1, 2022  hydrogen, london property, property joint venture, Uncategorized, what to invest in now, what to invest in right now, what to invest in this quarter

With the days shortening and the kids about to go back to school, we are preparing for the autumn rush as our investors go back to their desks. I hope you had a good summer and survived the travel chaos across most of Europe if you were traveling.
Here is a quick look at what to expect this autumn. We are taking expressions of interest now, so if any of the below are of interest please let us know and we will add you to the list.

Property Developments:

1. Lydd, Romney Marsh, TN29 9BA – 5 Residential Units
This is a great opportunity to effectively be the bank. A first charge lending opportunity where by you will fund the purchase of the site and the developer will fund the construction of the 5 timber frame properties. You will hold a first charge over the site as security. We have done a number of developments with this builder in Kent and they come highly recommended. Full valuation report should be available in the next 2 weeks.

Equity Requirement of £600,000 to buy the land. 
The developer will be funding £800,0000 of build costs with his own funds.
Term – 12 months.
Rate – 12% p.a 
Security – First charge 
GDV – £1.8m
To find out more https://hubs.ly/Q01lj4Gh0
2. Wandsworth SW18 Swaffield Road
Equity requirement of £265,000 to facilitate the purchase and development of land in 
Swaffield Road into 9 dwellings, consisting of 3 town houses and 6 apartments with
landscaped communal amenity space. This is combined with a senior debt package of
£4m.
The proposed development makes in excess of 35% POC (gross of finance), which will
enviably net back to around 28%, which in the current climate given how competitive the
land market is, is a very strong return.
Equity Requirement of £265,000
Term – 12 months.
Rate – 14%
Security – Second charge
To find out more https://hubs.ly/Q01lj4Gh0
3. Conversion of Richmond Park Hotel into serviced apartments.
The Richmond Park Hotel is ideally located close to the River Thames in this most sought after area of West London. One or a small consortium of investors are invited to fund the equity a high value asset with a GDV of £5.6Million. 
Project Overview 
Reduce the number of rooms from 20 to 15
Full scale refurbishment and modernisation into higher yielding serviced apartments
15 year lease to serviced apartment provider already agreed at £235,000 p.a.
Ground floor consent to change to café – min £30,000 income p.a.
Rooftop mobile mast generates £14,000 income p.a.
Total annual income £279,000
Development capitalised at 5% giving a £5.6Million GDV
Exit via refinance to add to developers Portfolio (already interest from HNW investors to purchase as an alternative with an 8% yield).
Equity Requirement of £850K
Developer will be funding £130K of this with their own funds.
Term – 12 months.
Rate – 14%
Security – Second charge.
To find out more https://hubs.ly/Q01lj4Gh0
4. New commercial development in Cambridge.
We will once again be partnering with GCR our preferred development partners in Cambridge. Since the last two projects we did with them, they have become one of, if not the largest developer in Cambridge.
We will be offering our clients another JV planning uplift opportunity in this remarkable, fast growing, tech city. We have been promised its launch any day now so get in touch if you would like to know more.
5. Aerospace industry, plane leasing opportunity

 GLOBAL JET & WETLEASING EU (G/W) have successfully done more than € 60.000.000 of ACMI (Aircraft, Crew, Maintenance and Insurance) contracts in the last 10 years. Due to increasing demand in the travel sector post Covid-19 they are now looking to lease and operate their own aircraft in 2023. 

They are currently seeing a 68% increase in bookings compared to the same period last year which is a 24% above the pre-covid booking levels. This has led to a lack of available aircrafts on the market. Several contracts and opportunities were lost over the last months even if the rates are +45% higher than 2019 levels.

Going forward they would like to be in a much better and secure position to satisfy the needs of their clients. Instead of using different ad-hoc operators to complete their flight requests, G/W is looking to lease their own aircraft and complete some of these highly profitable requests themselves. 
G/W intends to lease one aircraft in 2023, and if the demand and sales are as expected then they intend to lease another aircraft in 2024. To accomplish this G/W requires a total investment of $1.000.000 by Q1 2023. G/W will be putting in $250.000 of their own money. 
The money will be used to establish an AOC (airline operating certificate) as well as pay the 3 months security deposit on the aircraft. Furthermore, it will allow G/W to cover all start-up cost.
This is a highly profitable industry since the EU introduced its canceled flight compensation scheme. Airlines are now far more motivated to reschedule flights rather than have to pay out up to 600 Euros for missed flights. 
With an expected return of 20-30% per annum, this should appeal to sophisticated investors with experience in the airline industry. 

To find out more https://hubs.ly/Q01lj4Gh0
6. Hydrogen plants UK, Spain and Portugal. 
We are working with two of the leading developers in the Hydrogen sector to build hydrogen production facilities across Europe. With as capex of £30,000,000 plus this wont be for everybody. However if any of our larger institutional investors would like to know more more please get in touch.
To find out more https://hubs.ly/Q01lj4Gh0
So thats a quick look at some of the exciting opportunities coming up over the next few month, if you are interested in any of these projects please click on the links or get in touch via email or call on the contacts below.
Also if you have any interesting projects you think might be suitable for Willow Rivers, please get in touch as we may be able to help fund them.
Enjoy the last days of the summer and I hope to hear from you soon.

News: Asset-Backed Token Raise to Support the Build of Algae Biomass Protein Farms

June 29, 2022  biotech, bitcoin, blockchain, cryptomining, decentraland, energystorage, Ethereum, FinTech, Green Technology, GreenTech, how it invest in the metaverse, How to invest for inflation, How to profit from inflation, how to profit from the metaverse, inflation proof investments, Investments, meditech, meta, metaverse, property development, PropTech, Smart grid, Solar, tech investment, Uncategorized

Globacap announces the offering of Sustainable Impact Token (SIT) to support the construction of algae biomass farms.

SIT is the world’s first blockchain-based algae biomass project offering. The project will be built utilising patented sustainable technology to deliver a pioneering green investment opportunity.

Algae From Solar

Carbon credits generated by biomass projects will be tokenised as Algaecoin.

The world’s first blockchain-based algae biomass project, built on the energy-efficient Tezos blockchain, was today announced by leading capital markets technology firm, Globacap.
Developed and operated by Sustainable Impact Token (SIT), the project will support the development, construction, and operation of algae biomass farms. The initiative will use blockchain technology to bridge the gap between two of the fastest growing investor markets in the world – asset-backed finance and crypto.
Algae Biomass Investment
Algae Biomass Plant
SIT’s algae biomass farms produce high quality, non-animal protein, based on a system powered exclusively using renewable energy. These algae farms are absorbing large amounts of carbon out of the autmosphere and a net producer of renewable energy. The SIT project is currently supporting the development of a “proof of concept” algae biomass farm in Europe using patented, sustainable technology.
Myles Milston, CEO of Globacap says, “Being part of this pioneering project marks an important milestone in our ongoing mission to enable frictionless asset creation and transferability. With Globacap, the capital raising process is completely digital, mostly automated, transparent, secure, and regulatory compliant. Our work with SIT and Tezos is transformational in the way this market can operate.”
The $5 billion algae biomass sector is estimated to grow at a CAGR of 6.3% during the next 5 years ( Quince Market Insights) and the success of the project will provide the basis to expand globally. SIT provides investors with tokens issued via smart contracts deployed on the proof-of-stake Tezos blockchain, representing their preferred shares in the project. Carbon credit generated from the algae production will also be tokenized into Algaecoin, a tokenized asset representing tradable carbon credits. “By bringing agri-tech solutions and carbon credit-backed assets into private markets and beyond, we can make significant, impactful steps towards sustaining our planet for future generations,” adds Milston.
The SIT offering was designed to enable frictionless transferability in full compliance with securities regulation through the Tezos FA2 compliant token contracts for holding and settlement. This pioneering offering links the sustainable asset-backed and crypto investment worlds together to create a compelling blockchain-enabled investment vehicle. “As solutions to the macro challenges of food scarcity and sustainable energy production continue to be a global priority, demand for investment vehicles that can also support these objectives are increasing. We are thrilled to see Globacap choose Tezos to power this unique blockchain based, asset-backed offering,” says Mason Edwards, from Tezos Foundation.
Tezos is an energy-efficient open source blockchain network powered by a globally decentralised network of users and validators. Companies and builders around the globe leverage Tezos for projects exploring the potential for blockchain to be a tool for sustainable innovation. Recently, Cambridge University announced the Cambridge Centre for Carbon Credits (4C) which is creating a trusted decentralised marketplace on Tezos where purchasers of carbon credits can confidently and directly fund trusted nature-based projects that ties together corporate funders to conservationists via automated and transparent global oracles.
Globacap is committed to driving adoption of tokenization for most asset classes and providing a means for digital securitisation to global capital markets. Blockchain technology enables previously illiquid investment to now be transacted efficiently in seconds instead of weeks, and with minimal overheads. Globacap’s mission is to bring the archaic processes behind capital markets into the digital era by offering private placement, securities issuance, securities registry management, and liquidity products.
Chairman & Founder of Sustainable Impact Token, Peter Henderson, says “Our vision is to play our part in addressing some of the real challenges of our time – how can the growing world population be fed sufficiently, nutritiously and can this ambition be achieved in a way that improves, rather than harms, the environment? We believe our approach helps on all of these fronts and know that the investor community is keen to join us on the journey.”
“We wanted to structure the offering using an innovative, transparent and secure approach. Investors are being offered an attractive return, in a real asset, but through digital technology – and they can make their investments through fiat or crypto currencies.” “Bringing to market the token offering has been amazingly smooth, which is a credit to our partners at Globacap , Tezos and Lumin Capital.”
To learn more about Sustainable Impact Token get in touch for a copy of the white paper by filling in the below contact form.

    To learn more about Globacap, visit https://globacap.com/

    To learn more about Tezos, visit https://tezos.com/

    ###

    About Globacap:

    Globacap is driving the digitisation of all assets by using technology to unlock the true potential of capital markets. It has standardised the securities landscape, enabling frictionless asset creation and transferability. Over $14 billion of private share and debt instruments are digitally administered on the platform, and Globacap has now executed over $180 million of secondary liquidity in private securities with digital, automated settlement. Globacap is regulated by the FCA (Financial Conduct Authority) as an arranger and custodian and its platform can onboard investors from over 60 countries, in compliance with local regulations. For more information on how Globacap is changing the private capital markets industry, please visit globacap.com.

    About Tezos:

    Tezos is smart money, redefining what it means to hold and exchange value in a digitally connected world. A self-upgradable and energy-efficient Proof of Stake blockchain with a proven track record, Tezos seamlessly adopts tomorrow’s innovations without network disruptions today. For more information, please visit www.tezos.com.

    How To Profit From The Metaverse

    November 3, 2021  bitcoin, blockchain, cryptomining, decentraland, Ethereum, Green Technology, how it invest in the metaverse, How to invest for inflation, how to profit from the metaverse, meta, metaverse, sandbox, tech investment

    How To Profit From The Metaverse

    Facebook created a huge amount of hype last week around the concept of the Metaverse by rebranding Facebook to Meta.

    (Full Keynote Video here https://www.facebook.com/watch/?v=561535698440683 )

    Contrary to what Facebook (Meta) would have you believe the Metaverse already exists and is expanding rapidly. Decentralised projects, such as Sandbox and Decentraland, are already ahead of the curve. They will not be handicapped by Facebooks negative image or desire to collect your personal data.

    How to profit from the Metaverse
    How to profit from the Metaverse

     

    How Big Can The Metaverse Be?

    Bloomberg Intelligence recently estimated that the metaverse’s market size will reach USD 800bn by 2024, suggesting this could be a very lucrative area to invest in.

    I write this as a Forty something property and renewable energy professional who has sourced and raise funding for projects in just about every corner of the world. I always thought funding the highest building in Outer Mongolia was the most extreme piece of real estate I would ever work on, is the Metaverse set to eclipse this?


    What is the Metaverse?

    For those that don’t know, the Metaverse was first coined in a Scifi novel by Neal Stephenson in the 1992 science fiction novel Snow Crash, where humans, as avatars, interact with each other and software agents, in a three-dimensional virtual space that uses the metaphor of the real world. Stephenson used the term to describe a virtual reality-based successor to the Internet.

    So why has Facebook, one of the world’s largest corporations, identified this as the next evolutionary step for the internet?

    They made their first major bet on this space back in 2014, when they purchased VR headset manufacture Oculus. I am sure most people have tried an Oculus headset at a trade show at some point, but how many people do you know that have gone out and purchased one for their home? Is this all set to change?

     

    Smoke & Mirrors Or The Real Deal

    Facebook are committing 10,000 people to this project and $10 Billion. That’s an incredible team and massive undertaking. However, is this a stroke of genius or desperation as the numbers of users of both Facebook and Instagram start to fall across the developed world as the below FT article outlines.

    https://www.ft.com/content/4304f14a-1b06-46d8-a066-42bb1b3c200c

    Internal documents show that the number of US Facebook users under 30 is in decline and that Instagram, which has been phenomenally popular since being bought by Facebook in 2012 for $1bn, appears to be reaching the limits of its growth among younger users in key markets, raising serious questions about the company’s future.

    Will Facebook Be The Metaverse?

    Personally, I don’t think Facebook will win the race to be THE Metaverse, there is too much bad blood from the mismanagement of Facebook and our data. This is reiterated by the fact they felt the need to rebrand rather than carry the world’s most recognisable social media brand into the metaverse.  Also, most of our interactions in the Metaverse will be private or via Avatars so there will be less opportunity to mine our personal data and sell it to advertisers.

    However, rather than provide the ecosystem itself, like they did with Facebook, they could well provide the hardware and support services, such as games, events, business communication tools, fitness tech and wearables. This could see the company stay relevant. And if you throw $10 billion at any problem you are bound to back some winners.

    So the first answer to the question how to profit from the Metaverse… Buy shares in Facebook, this might not appeal to everyone given their questionable ethical practices. So we will look elsewhere for better opportunities.

     

    Who Will Be The Metaverse Ecosystem?

    The real money will be made by identifying where the Metaverse Ecosystem may come from if its not Facebook.

    Research has identified two major current players, Sandbox and Decentraland. We shall discuss both their merits below.

     

    Sandbox. https://www.sandbox.game/en/about/

    With its strong emphasis on decentralisation, a key idea of ​​cryptocurrencies, sandbox allows the use of its native token SAND in the game to implement its five functionalities: buy, trade, play, create and govern.

    The Sandbox is a metaverse that offers players and creators a decentralised platform to create 3D worlds and game experiences, as well as to store, trade and monetise their creations. It is a subsidiary of Animoca Brands, which develops and publishes products in digital entertainment, blockchain and gamification.

    As I write this Sandbox has just received $93 million form Softbank to continue its development. The Sandbox Crypto coin used within the Metaverse has risen 24% today alone. Sandbox Coin can be purchased on the Binance Exchange.

    There are two ways to invest in Sandbox’s growth, one would be to buy SAND coin, the other is to buy land within the Metaverse itself. This, like all land speculation is highly risky but can have enormous upside.  The Land parcels which can be seen here (Map of LANDs and the Game Metaverse (sandbox.game)) will be registered on the Ethereum network as an NFTs (Non Fungible Tokens). This secures your asset in the metaverse to you and you only.

     

    Decentraland https://decentraland.org/

    Like Sandbox, this platform is not controlled by any central entity or company. It is a decentralised virtual reality world that allows you to monetize the content created through tools such as the simple Builder tool and some SDKs for the more experienced. This Metaverse is already well established, they have recently thrown a number of high profile parties and a list of upcoming events can be seen here. https://events.decentraland.org/

    The interesting part for investors is the land section: https://market.decentraland.org/lands

    Land parcels as you can see are priced in Ethereum and are already commanding substantial amounts. Personally I think they are trading at too much of a premium for novice investors. The more sensible play would be to accumulate some to their crypto currency MANA.

    MANA is the currency of Decentraland. With it, you can buy or rent parcels of virtual land, known as LAND, which work through a smart contract based on the ERC-721 standard that is approved and stored in the blockchain by Ethereum.

     

    The Final Play

    So how to profit from The Metaverse? For me, all of the above are sensible ways to access the Metaverse and back a runner in this very early race. If one of the above were to become the major player in this space the upside potential in huge. But none of this is guaranteed, we may not have even seen the Metaverses final ecosystem yet. It may yet be superseded by a new player much like Netscape was.

    There is however one constant that seems to be running through all of these runners and riders, they are all using NFTs powered by Ethereum.

    Willow Rivers has long been a big fan of the Ethereum network, although expensive, it is proven. For me, the simplest and most diversified way to invest in the Metaverse is to buy or mine Ethereum.

     

    Ethereum is essentially the building blocks for the Metaverse @brendan_dharma on Twitter recently wrote:

     

    So basically, it’s Ethereum vs. Facebook in a race to create a compelling Metaverse.

    Open vs. Closed.

    Transparent vs. Opaque.

    Permissionless vs. Permissioned.

    Community Owned vs. Zuck Owned.

    My bets are placed. Let’s build a better future together.

     

    If you have any questions or would like to discuss any of the above please get in touch via www.willowrivers.com

    We are happy to talk you through strategies and ways of accessing crypto and the Metaverse. If you would to be part of our mailing list simply fill out the form below and you will receive updates on new projects and investment news.

      How to profit from the Metaverse

      How To Profit From Inflation.

      May 21, 2021  FinTech, Green Technology, GreenTech, How to invest for inflation, How to profit from inflation, inflation proof investments, Investments, property development, property investment, PropTech, Solar

      How To Profit From Inflation.

       

      Unless you have been living under a rock for the last few weeks, you will have seen that the markets have been spooked by the prospects of higher inflation. This has come about due to the post Covid bounce we predicted back in January, in our Roaring 20s article. https://willowrivers.com/the-roaring-20s-are-back/ This latest article looks at how to profit from inflation.

      Just in case you don’t know what inflation is. I have borrowed a definition from Robbert Kiyosakis website: The simple definition of inflation is when prices rise and the purchasing power of a currency drops. It means that you can buy less with your money than you used to be able to. Simple!

      So we are all getting poorer. Our money goes less far and this is bad news unless our income is linked to inflation.

      Luckily there are ways of beating this. Some assets perform better than others in an inflationary environment and we are lucky enough to have a number of these on our books here at Willow Rivers Wealth Ltd.

      How to profit from inflation
      How to profit from inflation

      Long-term (since 1950) correlation between inflation & various financial/real assets.

      So lets first look at what not to do!

      The worse thing you can do, is hold all your net worth in cash in an inflationary environment. You are effectively making a negative return. With some analyst stating inflation could pass 5% this is a very real threat.

      The boom on the back of the rapid vaccine rollout is starting to take shape and many assets and commodities are getting swept up in the rapid recovery. None more so than in the construction industry:

      https://www.constructionnews.co.uk/supply-chain/construction-materials-shortage-5-key-items-in-short-supply-17-05-2021/

      https://www.theconstructionindex.co.uk/news/view/developers-urged-to-start-now-to-beat-build-inflation

      Inflation in building materials will lead to higher prices for construction and thus higher property prices down the line. Added to this, demand for property is rising as people come out of look down and look to improve their living standards.

      Fuel prices are also rising rapidly as we get back on the roads and start to fly again. Expect $100 oil in the not too distant future. https://financialpost.com/commodities/energy/oil-gas/peak-demand-more-like-a-supply-crisis-propelling-oil-to-us100

      So how do we beat and profit from inflation?

      How to profit from inflation

      • Property Investment

      So the first and most obvious place to look when trying to beat inflation in the property market. Inflation is also a good time to use leverage. One can buy a property with a buy-to-let mortgage and buy an appreciating asset with a 25% deposit but see capital appreciation on the full value of the property. If you fix in your mortgage rate for several years you should be able to see steady capital appreciation and rental growth, while your fixed interest costs remain the same. A very crude example of this would be a if a 100,000 pound flat appreciates by 10% and you have invested 25,000 you have made a paper profit of 40%. (10,000/25,000 x100) comfortably beating inflation. There are obviously other costs to take into account but even when these are added you should still be well clear of any inflation.

      • Property development.

      By developing houses and projects now, you can build at the current prices and sell at the new rate of inflation in 6 to 12 months time. We offer a number of property developments around the county all with market beating returns of 15%+. We use a JCT contract https://corporate.jctltd.co.uk/products/about-our-contracts/ which fixes the price of the build at the front end and avoids any uncomfortable surprises for the investor. Get in touch to find out about our latest development opportunities around the county. More details at www.willowrivers.com

       

      • Commodities

      You can trade commodities on all the usual platforms such as Etoro and IG. Oil, Copper and Timber are already showing excessive growth, but just about any commodity used in the building process will see substantial growth over the next couple of years.

       

      • Renewable energy with inflation linked returns.

      We have been developing renewable energy projects for over ten years now. Feed-in-tariffs linked to inflation are a thing of the past now, however we are still building private projects with a Power Purchase Agreement (PPA). The power generated from wind, solar or geothermal is sold back to the business below and the contract is fixed for 20 to 30 years with an inflation linked kicker to the price. We are able to generate 10% to 15% pa returns which will rise in line with inflation. Get in touch to find out what projects we have available for investors. Projects start from 20,000 pounds to 25m. www.willowrivers.com

      • Farmland and Forestry

      UK Farmland will also appreciate again. The combination of the security land ownership offers, zero inheritance tax and yields linked to commodity prices will attract both UK and international investors alike. We work closely with a number of UK land companies and can help with forestry and agricultural land investment.

      Conclusion

      Don’t just take our word for it, hedge fund manager Michael Burry made famous in the the movie Big Short is also investing for inflation. https://moguldom.com/338484/famous-big-short-investor-michael-burry-warns-weimar-like-hyperinflation-is-coming-to-america/

      Now is the time to get your house in order and profit from what is likely to be a bumpy road ahead.

      If you have any questions about building an inflation proof portfolio, do get in touch and we can discuss some strategies.

        Additional resources on inflation:

         

        Institute of International Monetary Research has produced a good video on their inflation expectations over the next couple of years.

         

        Good video here on why we can expect higher inflation of the next couple of years.

        https://www.theguardian.com/business/2021/may/15/the-fear-that-haunts-markets-is-inflation-coming-back

        https://www.marketwatch.com/story/the-biggest-inflation-scare-in-40-years-is-coming-what-stock-market-investors-need-to-know-11617846712

        https://www.wsj.com/articles/if-inflation-is-coming-here-is-what-to-do-about-it-11620694235

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