Thursday, December 15, 2016

What will happen to the global economy in 2017?

Lots of changes are happening in the world right now. As new leaders in many countries try to tighten their respective administrations, these adjustments have a direct effect on the world economy. This is evident especially in the case of the U.S., one of the world’s strongest nations. Here are some things that experts predict could happen to the global economy in 2017:

1. Europe could face a recession.

The Brexit is the least of the EU’s problems. The rising anti-European sentiment is becoming quite visible in Italy. If the country eventually decides to leave the Euro Zone and the European Union, this could lead the rest of the region into a dreaded recession.

Image source: Insidegov.com


2. China’s renminbi will be more stable.

The devaluation of the RMB will end in 2017, but the growth of the Chinese economy will slow down. This will make way for other emerging markets like Russia and Brazil to come out of recession and start an ascent in the global field.

3. Trump’s new policies are expected to boost growth.

Not many might see it yet, but experts predict that the fiscal policies and effects brought by the new administration will further benefit the U.S. economy. As the economy becomes more stable and as the financial markets continue to develop, the rest of the world will also be affected by these changes.
What do you think of these predictions? For me, some of these seem possible. But I’ll guess we’ll just have to see after a few months.

Image source: Worldatlas.com


Welcome to my blog. I am Steve Sorensen and I’m a CPA and business writer based in Colorado. I advise businesses on issues such as avoiding employee embezzlement and developing their retirement plans. For updates, visit this page.

Thursday, October 20, 2016

Three Strategies To Protect Your Portfolio In a Stock Market Crash

Investors understand that stock market crashes are an inevitable part of business. Savvy businesspeople take the necessary steps to protect their portfolio. Financial analysts have listed three of the most ideal strategies.

Consider peer-to-peer lending websites: This is a relatively new financial concept and describes the borrowing and lending of money between two individuals for a profit. These websites keep track of the money and makes it incredibly easy to invest money. A lot of these websites also offer pretty good rates of return. However, there is always a chance that the person who borrowed the money will not pay the money back. This is a risk that lenders have to take.

Image Source: history.com


Think diversity: One of the best ways to protect one’s portfolio is to have many different assets. Economists say that it having one sole income-generating equity is not a good idea. One’s portfolio should be reflective of the individual’s own risk tolerance and proximity to retirements. Regardless, it is highly recommended to have a portfolio composed of bond funds, cash, and other assets.

Image Source: thinklikeagiant.com


Remember tradition: There is still appeal to traditional investment strategies. Consider an insured high-yield savings account. A lot of modern adults think that this is a bad idea; saying that the return of investment is not worth the capital. Nevertheless, an old-fashioned savings account does have its uses. It still is a guaranteed revenue stream and tempers whatever damage caused by a stock market crash. A wiser investor recognizes the advantages offered of tradition.

It is important to carefully look at these strategies. Crashes usually occur during major political or global events.

Steve Sorensen specializes in embezzlement topics, being a financial blogger. To know more about his professional background, view this LinkedIn page.

Wednesday, September 21, 2016

Checks And Balances: Preventing Employee Embezzlement

A risk that comes with running a business is the chance of being a victim of employee theft or embezzlement. The risk is especially higher for small businesses as it is more common for owners to overlook, and not implement, the necessary measures to prevent such occurrences.

There are steps that can be taken to substantially diminish the likelihood of embezzlement, such as the following:

Trust, but verify
 
Taking heed of Ronald Reagan’s advice to “trust, but verify,” it is important to understand that employee theft can happen to anyone. There are cases that even the seemingly most trustworthy of employees or partners are the first one to steal from the coffers of the company.

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 Image source: entrepreneur.com

Checks and balances

To make sure that employees, particularly bookkeepers, are not given an opportunity to embezzle, receipts and disbursements should be ran through a checking account. In doing so, manipulation of financial statements can be prevented and reconciliation can be conducted more regularly and punctually. The duties of setting up a vendor, approving payments, and issuing checks, can also be assigned to separate employees to make sure that there are more than two people involved whenever money leaves the business. Division of labor can be done for other business procedures, as well.

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Review and audit

Periodic and surprise reviews of financial statements and employee records, as well as books and accounts, can help deter employee theft and embezzlement.

I am Steve Sorensen, a CPA and financial advisor from Colorado. With a strong background in business and finance, I have helped clients from both the public and private sectors by providing advices on various money matters, including preventing employee embezzlement, legally lowering taxes, and improving overall financial structure. Visit this blog to learn more.

Wednesday, August 24, 2016

A month post-Brexit: The impact on various economic sectors

After a month since Britain voted to leave the EU, has its economy taken a blow as experts predicted it would?

                                                         Image source: afr.com


Officially a month after the U.K. referendum to leave the European Union, the Office for National Statistics is expected to release an official data chart about consumer prices, jobs, and public finances. Several economists and banks such as the Bank of England and Markit already released forecasts expressing the possibility of the U.K. falling into a recession, although investors are yet to see official reports. This is based on the declining rate of inflation in July as well as household spending weakening more rapidly.

On the other side of the spectrum, the number of people claiming unemployment benefits fell by 8,600 between June and July, making the unemployment rate at a steady 4.9 percent for 11 years now. While contrasting data from economists and trade associations appear, the seemingly changing movement in the U.K. economy post-Brexit is not entirely discouraging.

Interestingly, public confidence has also recovered this month, despite the fear most people had about Brexit harming job prospects and wage increase. This new level of confidence was mostly expressed by the highest earners and private sector workers while the low earners and workers at the public sector remain pessimistic about the referendum.

In the U.S., economists expressed fears about the possible consequence Brexit has on the export sector. The impact of Brexit on the American economy will not be as profound in relation to the overall economic activity. However, the regression could be deepened if the consumer sentiment continues to fall and Americans spend less. This will definitely affect the performance of the US economy as a whole, as consumers fear what Brexit may bring.


                                             Image source: theguardian.com


My name is Steve Sorensen. I am a finance professional and business analyst offering financial advisory services to both the public and private sectors. I also help businesses design strategies to avoid employee embezzlement and improve retirement plans. Please follow me on Twitter for similar updates.