Bull and bear symbols for successful and bad trading are seen in front of the German stock exchange. With pandemic concerns still weighing on markets, investors are unsure if the global economy will spring back to life, or if they should stick to defensive mode in case it drags on. Reuters
Bull and bear symbols for successful and bad trading are seen in front of the German stock exchange. With pandemic concerns still weighing on markets, investors are unsure if the global economy will spring back to life, or if they should stick to defensive mode in case it drags on. Reuters
Bull and bear symbols for successful and bad trading are seen in front of the German stock exchange. With pandemic concerns still weighing on markets, investors are unsure if the global economy will spring back to life, or if they should stick to defensive mode in case it drags on. Reuters
Bull and bear symbols for successful and bad trading are seen in front of the German stock exchange. With pandemic concerns still weighing on markets, investors are unsure if the global economy will s

Three ways to invest $10,000 in the next three months


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The post-Covid-19 recovery is hanging in the balance as investors weigh hopes that vaccines will release consumers from lockdown against fears that a European third wave will set back the recovery yet again.

That makes now a tough time to decide where to invest. Should you target stocks and sectors that will fly when the economy springs back to life, or stick to defensive mode in case the pandemic drags on and on?

If you are looking to invest, say, $10,000 (Dh36,725) over the next quarter, here are three investment trends to consider right now.

The first will help you take advantage of a recovery in the banking sector, the second is that old favourite of safety seekers, gold, while the final one targets one of the world's most exciting sources of clean energy.

While this may be a good time to buy into these sectors, as with any investment, you must consider both the risks and rewards, and aim to hold for the long term.

Going back to the banks

The banking and financial sector has underperformed since the financial crisis as lenders battled to repair their balance sheets and reputational damage.

Low interest rates have made a bad situation worse by squeezing net interest margins, the difference between what banks pay depositors and charge borrowers.

However, banks could enjoy a prolonged boost as bond yields rise, says Vijay Valecha, chief investment officer at Century Financial in Dubai.

In the US, 10-year government bonds, or Treasuries, currently yield around 1.69 per cent, up more than three-fold from 0.51 per cent in May last year.

This allows banks to shift deposits into higher-yielding loans and other assets. “If yields rise higher, banking stocks could rally.”

Banks are much stronger than before the financial crisis as regulators have forced them to adopt more conservative accounting practices and build fatter capital cushions.

This protects them from the continued economic slump, but they will benefit if mass vaccination triggers a rapid bounce back, Mr Valecha says.  “If that happens, some of their projected loan losses might never happen, and banks should see a huge rise in profits.”

He suggests investing in a cross-section of banks through an exchange-traded fund (ETF). His favourites include Financial Select Sector SPDR Fund, iShares US Financial Services ETF, PowerShares KBW Bank Portfolio and SPDR S&P Regional Banking ETF.

UK and European banks look particularly cheap, says Russ Mould, investment director at investment platform A  J Bell. “Many investors are worried about unpaid bad debts due to the pandemic but lenders provisioned very aggressively in 2020, so the worst may already be known, especially if the global economy shows positive momentum,” he adds.

Many banks cancelled dividends during the first lockdown last year but are now looking to resume them, which will attract investors seeking income.

Mr Mould says banks still face major challenges, such as tighter regulations, competition from FinTech start-ups and the massive global debt pile, but is optimistic. “Japanese banks managed some big share price rallies during Japan’s multi-decade downturn, and UK and European banks could do the same.”

There is no import duty tax or VAT on gold bars brought into the UAE. REUTERS
There is no import duty tax or VAT on gold bars brought into the UAE. REUTERS

Gold and gold miners

Gold has been one of the best investments of the millennium, rising an incredible 563 per cent in the past 20 years. Last year’s pandemic gave it a further boost, as investors rushed to this traditional safe haven.

The gold price flew to a record high $2,084 an ounce last August, but has fallen more than 15 per cent since to $1,730.

Traditionally, the precious metal is seen as a hedge against inflation, which many analysts now expect to return in force.

The rebounding US dollar and rising bond yields are holding back the gold price for now, says Fawad Razaqzada, a market analyst at Think Markets.

Gold is priced in dollars and as the greenback rises, the precious metal gets more expensive for those buying with other currencies.

Rising bond yields are a threat, because gold pays no interest or dividend. "The opportunity cost of holding gold rises as investors can make more money by investing in government bonds,” Mr Razaqzada says.

However, today's low price could be a buying opportunity for long-term investors who want to add gold to their portfolio but thought they had missed their chance when the price shot past $2,000, he adds.

Many investors are worried about unpaid bad debts due to the pandemic but lenders provisioned very aggressively in 2020, so the worst may already be known, especially if the global economy shows positive momentum

Mr Mould says the best time to invest in an asset for the long term is when prices are low, rather than high. “This could be an interesting time to pick up some inflation protection and hedge against an unexpected financial wobble by getting exposure to this neglected, unloved sector.”

He suggests buying shares in gold miners, rather than the precious metal, whose share prices are stagnating “even as they record bumper profits, generate copious cash flows and pay out higher dividends”.

Selecting individual gold miners can be risky as they are at the mercy of factors such as geology, weather, regional politics and local taxation. Mr Mould suggests actively managed fund BlackRock Gold & General.

Alternatively, invest in an ETF tracker such as Van Eck Vectors Gold Miners ETF. More adventurous investors might consider the Van Eck Vectors Junior Gold Miners ETF, which targets smaller mining stocks.

Hydrogen

The world has embarked on a transformational shift towards key clean energy, as countries race to meet their 2050 net-zero carbon commitments.

Randeep Somel, manager of the M&G Climate Solutions Fund, says this offers massive opportunities, particularly in hydrogen where investments will total $38 billion a year this decade, according to the International Energy Agency.

Hydrogen could prove essential in sectors that will struggle to electrify, such as heavy-duty vehicles, air travel and shipping, which account for 19 per cent of global emissions, and steel and cement production, which account for another 16 per cent. “We require a high density, non-fossil based fuel to take over from oil and coal. The emerging alternative is hydrogen,” Mr Somel says.

While some methods of producing hydrogen require carbon, others use wind and solar power.

UK-based ITM Power is the leader in proton exchange membrane (PEM) electrolysers that convert renewable energy into carbon-free green hydrogen, Mr Somel says. “Oil major Shell is its largest customer, as it looks to build hydrogen-refuelling stations in anticipation of the phasing out of combustion vehicles.”

Another UK company, Ceres Power, has drastically reduced fuel cell costs, he says. Chinese industrial conglomerate Weichai, German firm Robert Bosch, and Japanese motor companies Honda and Toyota all license its innovative technology.

Mr Somel says the green hydrogen market today totals just 2 gigawatts but that is changing fast. “The EU alone is targeting 40GW by 2030.”

As with any emerging technology, investing in individual companies is risky, so most people should invest in a renewable energy fund or ETF.

The recently launched Defiance Next Gen H2 ETF invests in a range of firms including Plug Power, FuelCell Energy, Ballard Power Systems and ITM Power.

In February, Legal & General Investment Management launched the L&G Hydrogen Economy UCITS ETF targeting technologies and firms producing cheaper, clean forms of hydrogen.

This is a high-risk, high reward investment, so make sure you understand the potential downside, as well as the upside.

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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5
How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Hoopla%3Cbr%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMarch%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Jacqueline%20Perrottet%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2010%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%3Cbr%3E%3Cstrong%3EInvestment%20required%3A%3C%2Fstrong%3E%20%24500%2C000%3C%2Fp%3E%0A
VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

SERIES INFO

Afghanistan v Zimbabwe, Abu Dhabi Sunshine Series

All matches at the Zayed Cricket Stadium, Abu Dhabi

Test series

1st Test: Zimbabwe beat Afghanistan by 10 wickets
2nd Test: Wednesday, 10 March – Sunday, 14 March

Play starts at 9.30am

T20 series

1st T20I: Wednesday, 17 March
2nd T20I: Friday, 19 March
3rd T20I: Saturday, 20 March

TV
Supporters in the UAE can watch the matches on the Rabbithole channel on YouTube

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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Manikarnika: The Queen of Jhansi

Director: Kangana Ranaut, Krish Jagarlamudi

Producer: Zee Studios, Kamal Jain

Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni

Rating: 2.5/5

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.4-litre%20four-cylinder%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20210hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Starting%20from%20Dh89%2C900%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
Essentials

The flights

Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes. 
 

The stay

A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.

PRESIDENTS CUP

Draw for Presidents Cup fourball matches on Thursday (Internationals first mention). All times UAE:

02.32am (Thursday): Marc Leishman/Joaquin Niemann v Tiger Woods/Justin Thomas
02.47am (Thursday): Adam Hadwin/Im Sung-jae v Xander Schauffele/Patrick Cantlay
03.02am (Thursday): Adam Scott/An Byeong-hun v Bryson DeChambeau/Tony Finau
03.17am (Thursday): Hideki Matsuyama/CT Pan v Webb Simpson/Patrick Reed
03.32am (Thursday): Abraham Ancer/Louis Oosthuizen v Dustin Johnson/Gary Woodland

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Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

The%20Secret%20Kingdom%20
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ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

Uefa Nations League: How it works

The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.

The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.

Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.