The economic crisis in the western world strikes the Ethiopian flora export during the rosy romantic week of Valentine’s.
February, one of the peak seasons for the flower growers and exporters, often gets high returns in value generation. However, this year’s global narrative has not lived up to expectations. The result has had a ripple effect on the flower export in Ethiopia which has shown slight reduction. Nevertheless, the sector has continued to register more foreign currency with an annual growth rate.
According to the information Capital obtained from Ethiopian Horticulture Producer and Exporters Association (EHPEA), for the romantic day festivities Ethiopian flower growers exported 2,165.33 tons of the products to the global market with an estimated value of overUSD 3.2 million in the period spanning from February 1 to 13, 2023.
Yemisrach Berhanu, Promotion and Information Service Head at EHPEA, explained that the auction market in the first week of the month was relatively slow, but later gained traction in the second week, “This gained traction made the Ethiopian growers to export more product in the period.”
Yemisrach however noted that this year’s export in relation to Valentine’s Day was lower in contrast to the preceding year.
“This is not unique to our product alone but it has happened for all flora industry players worldwide,” she said.
The Promotion and Information Service Head explained that the inflation occurring in Europe, which is the major destination of Ethiopian flowers, was one of the reasons for the slowdown in the market.
Experts alluded that the economic downturn and price hike on the commodities led it to have a lower performance this season.
Valentine’s Day is very important for the country’s flower sector as its one of the holidays in which the flower industry flourishes and increases production from 35 percent to 40 percent. In February 2022 Ethiopia exported 2714.45 tons of flowers for the lovers’ day.
Despite being a late comer to the export basket, the horticulture sector has achieved spectacular successes. Even when the sector was severely affected by COVID 19, the Ethiopian export earnings from the horticulture industry, which takes on average 15 percent of thetotal export earnings, was massive.
In the first quarter of the 2022/23 budget year, the floriculture sector generated USD 167.3 million up from USD 122.6 million a year back.
“Export receipts from flower increased by 36.5 percent due to a 26.2 percent growth in export volume and 8.2 percent in international price,” reads the National Bank of Ethiopia quarterly report.
It added that as a result, the share of flower in total merchandise export increased to 17.1 percent from 12.6 percent a year ago.
In the 2021/22 budget year, the flower export climbed by 15.1 percent from the preceding year to generate USD 541.6million.
Ethiopia gains not so rosy returns on Valentine’s week flower export
Ethiopian Education Highlights
By our staff reporter
Since 2017, Education Cannot Wait (ECW) has made a substantial investment of $55 million in Ethiopia. An additional $5 million investment is currently in the final stages of approval to enhance the education response to the prevailing drought conditions.
In collaboration with strategic partners, ECW’s investments have already impacted 276,000 crisis-affected girls and boys, providing them with access to safe and quality education.
Despite these efforts, significant challenges persist in Ethiopia’s education landscape. A staggering 3.6 million children remain out of school. The combined impact of conflict and the climate crisis has resulted in the partial or severe damage of over 8,700 schools across the country.
Compounded by ongoing crises and the repercussions of the COVID-19 pandemic, learning outcomes have witnessed a decline. Notably, the proficiency of second-grade Ethiopian students in reading has dwindled from 25% in 2018 to a concerning 13% in 2021.
The recent drought has further exacerbated the situation, disrupting the education of 1.6 million girls, with close to 940,000 forced out of the learning environment.
Among the most vulnerable are girls, particularly teenagers, children with disabilities, and those who have been displaced. These groups face heightened risks and barriers to accessing education, emphasizing the urgent need for targeted interventions to address these challenges and ensure inclusive and equitable education for all Ethiopian children.
Strategies for Building a Successful Long-Term Portfolio
Investing is a long-term game, and building a successful portfolio requires strategy, discipline, and patience. Whether you’re just starting out with investing or looking to fine-tune your existing portfolio, it’s important to have a plan in place that aligns with your goals and risk tolerance.
In this blog post, Motley Fool helps us explore strategies for building a successful long-term portfolio that can help you achieve financial stability and growth over time. From diversification to asset allocation to rebalancing, we’ll cover key considerations for constructing a portfolio that can weather market ups and downs while working towards your desired outcomes, is motley fool worth it? Read on and find out for yourself.
Benefits of Investing in the Long-Term
Investing for the long term brings many benefits to investors, including time to benefit from compounding returns and reduced risk. By investing for the long term, you have enough time to manage any short-term volatility in the markets and stay focused on your investment goals. Here are some other benefits of investing for the long term:
- You have more time to benefit from compounding returns.
- Your investments can grow over time as markets generally move in cycles.
- Diversification helps spread out risk and generate higher returns over the long term.
- Long-term investors are often able to take advantage of lower tax rates.
- You have more time to research investments before making a decision.
Develop Your Strategy for Building a Successful Long-Term Portfolio
Developing an investment plan is the most important part of creating a successful long-term portfolio. This includes deciding how much to invest, which asset classes to include in your portfolio, and what kind of risk you’re comfortable with. Once you’ve developed your strategy, it’s important to stick with it and revisit it from time to time as your financial situation changes.
- Establish Goals for Your Portfolio
Before you start investing, take the time to think through your financial goals. This will help you determine which investments are right for you and how much risk you’re comfortable taking on. Like any other goal, it’s important to have specific and measurable goals for your portfolio.
- Understand Your Risk Tolerance
Understanding your risk tolerance is one of the most important steps in building a successful long-term portfolio. Risk tolerance is the level of risk you are comfortable taking, and it’s essential to understand how much volatility and loss you are willing to accept when investing in the stock market. Typically, investors with shorter time horizons should have a more conservative asset allocation, while those with longer time horizons can afford to take on more risk.
- Diversify Your Investments
Diversification is essential when it comes to long-term investing. Diversification helps spread out risk and can help increase returns over time. There are many ways to diversify, but the most important thing to remember is that different investments carry different levels of risk.
- Consider Tax Implications and Fees on Investments
One of the most important aspects of investing is understanding the tax implications and fees associated with investments. Different investments have different tax treatments, so it’s important to know how your investments will be taxed before you invest. In addition, many investments come with management and transaction fees, which can erode returns over time.
- Review and Rebalance Your Portfolio Regularly
Once you’ve established your investment strategy and invested your money, you must review your portfolio regularly. This will help ensure that you’re still on track to meet your goals and that any changes in the market haven’t caused you to stray from your original plan. It also helps ensure you remain diversified, as markets can shift unexpectedly.
Understand Market Risk To Avoid Losses
While investing for the long term does carry certain benefits, it also has certain risks. It’s important to understand these potential risks before investing to manage them effectively and avoid losses.
Understand How Different Assets React to Markets
Different asset classes react differently to different kinds of market conditions. Understanding how these assets will react to changing markets can help you decide better when and what to invest in. In most cases, stocks and other equity investments tend to be more volatile than bonds and cash.
Manage Volatility Through Hedging and Diversification Strategies
Volatility is a normal part of investing and can create both gains and losses in the short term. To manage volatility, it’s important to diversify your investments across asset classes and sectors. You may also want to look into hedging strategies that can help protect you against large losses due to market declines.
Consider Inflation, Interest Rates, and Other Factors That Impact Investments
Inflation, interest rates, and other macroeconomic factors can all have an impact on investments. It’s important to understand how these factors will affect your portfolio over time so that you can make better decisions about when and where to invest.
Tips for Building a Long-Term Portfolio
Building a successful long-term portfolio requires careful planning and strategy. Here are some tips to help you get started:
- Start by Developing an Investment Plan: Before you begin investing, it’s important to develop a plan that outlines your goals, time horizon, risk tolerance, and investment strategy. This will help ensure that you stay on track toward achieving your long-term financial goals.
- Consider Automating Your Investment: Automated investing can be a great way to simplify the process and make sure that your investments stay on track. With automated investing, you’ll set up an account with a broker and specify how much money you want to contribute each month. The broker will take care of the rest, investing your funds in the appropriate asset classes and rebalancing the portfolio as needed.
- Monitor Your Portfolio Regularly: Once you’ve established your plan and set up automated investments, it’s important to monitor your portfolio regularly. This will ensure that you remain on track toward meeting your goals while also allowing you to make any adjustments that may be necessary for response to changes in the markets.
- Have a Contingency Plan: Even the most well-thought-out plans can go awry due to unexpected events or changes in the market. It’s important to have a contingency plan in place that outlines how you will respond if the markets start to turn south. This may include shifting investments away from more volatile assets or increasing your cash holdings until the market recovers.
In Conclusion
Knowing that the stock market is volatile, it’s important to have a long-term investment plan to remain on track toward achieving your financial goals. This means understanding the risks associated with investing and having strategies in place, such as diversification and hedging. Automated investing will help protect you from losses due to market declines. By having all of these strategies in place, you can build a resilient and well-positioned portfolio to achieve success throughout good times and bad.
How Do You Manage Money in Binary Trading?
Binary trading is a rapidly growing market. It is a contract in which the trader can purchase or sell an asset at a specific price within a certain period. It is a fast-paced and exciting way to make money. But it can also be risky. So, it is essential to manage your money carefully to make the most of this investment opportunity.
Before starting trading, you should get to know the money management strategy for binary options. It involves understanding how much you can afford to lose and how often you should trade. A common mistake people make when trading is not managing their money properly. This article will help you to manage it wisely. Here are some financial tips in binary trading:
1. Control Your Emotions
The most important thing when it comes to trading is controlling your emotions. It is especially true in binary options trading, where the slightest fluctuations in the market can lead to huge losses.
When you’re trading binary, remember that volatility will always be a part of the game. So, you must learn to control your emotions and focus on the task.
One way to do this is by using strategies like flow mapping. This technique allows you to track your progress and identify areas where you struggle. Then, you can work on fixing those flaws to continue making profits.
Another strategy that can help you control your emotions is self-talk. When you have positive thoughts about yourself and your ability to trade, it will send a positive message to your brain.
2. Use Proper Stop Loss and Take Profit Levels
When trading binary options, consider the use of proper stop loss and take profit levels. By doing so, you can manage your money effectively and avoid common mistakes.
A stop loss is a defined point on your trade that will notify you when you have reached an acceptable loss for the trade. Once you’ve hit this point, you should exit the trade at whatever cost necessary to protect your investment.
It is also vital to set take profit levels to ensure that you always make a healthy return on your investment. During binary trading, it’s easy to fall victim to a gambling mentality and lose more money than necessary. By setting sensible limits, you can keep yourself in control and ensure a healthy return on your investment.
For Example…
You buy 100 shares of ABC stock at $10 per share. The market price of ABC stock is currently $12 per share. You set a stop loss at $9/share, meaning that you will sell your shares if the market price goes below $9. You will not sell your shares if the market price goes above $12/share.
3. Have a Financial Backup Plan
In binary trading, the potential for losses is high. It is essential to have a financial backup plan in place, to reduce the risk of losing your entire investment. Here are some tips on how to create one.
- Make sure you have an emergency fund set aside. It should at least cover six months of your regular expenses, plus some extra for unexpected costs (like car repairs).
- Don’t borrow money to trade with. If things go wrong, you’ll repay more than you originally borrowed and still be in debt. Instead, use cash or margin loans to buy and sell stocks and options.
- Store your assets in safe investments. It means putting your money into investments likely to maintain their value, such as stocks or bonds.
4. Set Realistic Goals
Don’t expect to make millions overnight in binary trading – it’s a long-term investment that requires patience and discipline. Set manageable goals, such as making $100 per day in profit or doubling your investment every six months.
Reward yourself for milestones reached. If you hit your targets, take time off to celebrate and allow your profits to grow even further. Be realistic about your abilities. No one is perfect in trading, so be prepared to make mistakes from time to time. Accept losses gracefully.
5. Start With a Demo Account
A demo account is important if you want to manage money in binary trading. It lets you experience the trading platform firsthand before you put any real money at risk. You can also use a demo account to test different strategies and see their performance before making a trade.
6. Know Your Risks
Knowing the risks associated with binary trading can help you minimize your losses. It is highly speculative and risky if you don’t understand the risks involved. Make sure you fully understand the conditions before you trade it.
Final Say
Managing money in binary trading can be complex and confusing. If you are not adequately prepared, you could lose your entire investment. The best way to manage your money is to have a plan and stick to it. Make sure to research and understand the risks involved in binary trading before investing. Finally, always be aware of the market conditions and make timely decisions based on your knowledge.
