wealthwatch

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A year into COVID-19 : The Economic Impact

A year into COVID-19 : The Economic Impact

Background In the Genesis of the COVID-19 outbreak, news sources warned about the mysterious disease from the Wuhan Province in China, sparking debate around its economic and social impact. A year later, the death toll stands at roughly 600 persons in Jamaica and at approximately 2.84M worldwide. On the local front, Jamaica entered its second phase of partial lockdowns due to a severe spike in…

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Exchange rate movements and you

Exchange rate movements and you

Background                                                 

Simply put, an exchange rate is the price of a currency expressed in terms of another currency. Jamaica has seen a large devaluation of its currency since the 1990s due to various factors, especially after the IMF urged the country to release its peg to the USD circa 1990 in order to be more competitive. A peg is a tool used to lock a…

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Why our parent's strategies aren't working

Why our parent’s strategies aren’t working

Background: Savings and Debt In post colonial societies such as the Caribbean banks historically have had a prominent role in the economic development of the region. A strong emphasis on savings and loans has been a part of the lifestyle habits of most Caribbean families, specifically as a means to acquire assets and achieve goals. Education is seen as the vehicle to progress; moving children…

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Finding the right financial advisor

Who is a financial advisor? Under the law of Jamaica, an investment brokerage house is an entity licensed to trade securities and provides professional financial advice. The practitioners at these entities are known as financial advisors or brokers who assist clients in finding the appropriate financial solution based on their risk appetite, time horizon, life goals and investment philosophy.…

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What are Jamaica's 2018 Investment prospects?

What are Jamaica’s 2018 Investment prospects?

Background In the aftermath of The Great Recession of 2008 the global economy has slowly been healing itself, specifically transforming the classical industrial economy through a unique technology boom. This new frontier has seen the emergence of 3D printing, social media, artificial intelligence, cryptocurrencies and the severe disruption of major industries including retail shopping, media,…

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What are some investment basics?

Background According to Warren Buffett, rule #1 in investment is not merely to ‘make money’ but rather to ensure that one doesn’t lose money. An asset’s returns should be framed by a link between how consistent these returns are and the chance that one’s principal is protected. This link is what we call performance. Simply it’s better to make $3 dollars and to lose nothing rather than making $6…

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What are IPOs all about?

Background Generally speaking, this is a special time in Jamaica’s history, most notably in the last three years, as there has been an unprecedented level of activity on the Jamaica Stock Exchange. Just in one week FosRich, Wisynco and G West are coming to market via IPO. What does all is really mean? IPO overview IPO means initial public offering which involves a company issuing an allocation of…

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Why is the JMD more stable?

Background Historically the JMD has been relatively unstable since the 1970’s and this is so for various reasons, and obeah is not among them. Jamaica is a small, open economy which means that events beyond our control including oil supply shocks and hurricanes have a massive impact on our ability to make real progress. Typically, Jamaicans have become used to the notion of the JMD being…

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Riches vs Wealth

Background The difference between riches and wealth is a hotly debated topic across the World for many reasons. In popular culture we are encouraged to believe that they are one and the same, leading many persons down a bitter path of disappointment and frustration but let us take a closer look. What is wealth? Wealth is personal and subjective while riches are related more directly to one’s net…

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Jamaica's Economic Progress

Jamaica’s Economic Progress

Background Undeniably Jamaica has faced immense challenges since independence in 1962. Namely, high unemployment, no social safety net, a stagnant middle class, inadequate success of local businesses and mismanagement of finances have collectively led to brain drain and very little financial success for the nation. However, for the first time in decades we have been seeing notable progress but…

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Why its time to pay yourself first

Why its time to pay yourself first

Background Traditionally, we are all taught that the cycle of life is to go to school, get a job, “make life” and live happily ever after. However, much to the dismay of many persons in today’s work force, they have realized that schooling has become far more burdensome and milestones that used to be achieved at 25 for a prior generation become delayed by 10 or more years. This dilemma is to the…

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Politics vs your pocket

Politics vs your pocket

Background There is an ongoing debate about whether government A or government B can really move the economic needle in the grand scheme of things. Before we get into a canteen food fight, let’s examine the idea of fiscal policy. Economy as a garden Let’s think of an economy like a garden and aggregate demand as water. Aggregate demand is the overall strength of the appetite that businesses and…

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Great sources of financial knowledge

Great sources of financial knowledge

Background On the quest to financial independence, readers are sometimes bombarded with many sources of information with some being more reliable than others. After careful consideration, here are some useful sources of gaining a better understanding of financial developments locally and internationally. Friday Gleaner The Friday Gleaner exclusively has the Financial Gleaner which is like a…

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Real estate without the stress

Real estate without the stress

Background Over the decades, individuals in the Caribbean have come to love the idea of real estate being a solid investment vehicle. Perhaps this affinity is linked to the colonial heritage of the region, specifically in regard to how economic wealth and progress correlated closely with land ownership. Planters and Landlords once ruled political and economic affairs to the extent that only these…

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Alternate ways to fund education

Alternate ways to fund education

Background Traditionally, Caribbean people have used education as a means of social mobility and economic progress. Undoubtedly there are countless stories of how education has been the saving grace for many families from the tentacles of poverty and despair. Further, education has been either been funded by savings, grants, debt in the form of loads or scholarships following the habit of using…

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Viewing Marriage as a Merger

Viewing Marriage as a Merger

Background Firstly, it’s to be noted that WeaIth Watch JA doesn’t provide relationship counselling but is only here to “simplify the world of finance” by bringing certain realities to light. In today’s social landscape the concept of marriage can be very controversial but is still seen as a priority for many and has significant effects on one’s journey along the financial life cycle. A marriage…

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The FINSAC meltdown and you

The FINSAC meltdown and you

Background The 1980s was a crucial turning point in Jamaica’s economic history as there was a fiscal tug o war between the government of Jamaica and the International Monetary Fund. Both entities wanted to make the economy more modernized, open and compatible with the tides of globalization but there were opposing ways of making this into a reality. Specifically the exchange rate was the point of…