ites/qai/2021/04/22/top-stocks-to-buy-today-as-the-market-struggles-to-find-a-direction/?sh=9bc19137349e rket Struggles To Find A Direction Q.ai - Powering a Personal Wealth Movement Former Contributor Making wealth creation easy, accessible and transparent. Click to save this article. You'll be asked to sign into your Forbes account. Got it Apr 22, 2021,10:28am EDT This article is more than 2 years old. Stock market report GETTY The market broke its losing streak on Wednesday. However, on Thursday, it struggled to build on the momentum. There are still fears that we’ve reached a market peak- as in peak earnings growth, peak economic data, and peak reopening optimism. The market traded roughly flat today as it struggled to find a direction, with the Dow Jones falling 110 points, the S&P 500 falling 0.1%, and the Nasdaq NDAQ +1.6% trading flat. Jobless claims came in better than expected, and airline stocks, such as Southwest CSWC +0.9% and American, led the way with a rosier than expected earnings reports and travel outlook. For investors looking to find the best opportunities, the deep learning algorithms at Q.ai have crunched the data to give you a set of Top Buys. Our Artificial Intelligence (“AI”) systems assessed each firm on parameters of Technicals, Growth, Low Volatility Momentum, and Quality Value to find the best Top Buys. Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open. Chipotle Mexican Grill Inc (CMG) Chipotle Mexican Grill CMG +0.3% is today’s first Top Buy. Chipotle is a chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and burritos made to order in front of the customer. Our AI systems rated the company B in Technicals, A in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 1.6% to $1507.62 on volume of 503,143 vs its 10-day price average of $1531.65 and its 22-day price average of $1483.74, and is up 14.29% for the year. Revenue grew by 5.53% in the last fiscal year and grew by 29.81% over the last three fiscal years, Operating Income grew by 26.49% in the last fiscal year and grew by 17.54% over the last three fiscal years, and EPS grew by 14.0% in the last fiscal year and grew by 126.19% over the last three fiscal years. Revenue was $5984.63M in the last fiscal year compared to $4864.98M three years ago, Operating Income was $327.14M in the last fiscal year compared to $352.06M three years ago, EPS was $12.52 in the last fiscal year compared to $6.31 three years ago, and ROE was 19.21% in the last year compared to 12.58% three years ago. Forward 12M Revenue is expected to grow by 3.08% over the next 12 months, and the stock is also trading with a Forward 12M P/E of 57.11. PROMOTED MORE FROM FORBES Chipotle Mexican Grill (CMG) Simple moving average of Chipotle Mexican Grill Inc (CMG) Simple moving average of Chipotle Mexican Grill Inc (CMG) STOCK CHARTS MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers Pcb Bancorp (PCB) Pcb Bancorp is today’s second Top Buy. Pcb Bancorp operates as the bank holding company for regional bank Pacific City Bank. Our AI systems rated the company B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.49% to $14.34 on volume of 20,802 vs its 10-day price average of $14.62 and its 22-day price average of $14.95, and is up 42.97% for the year. Revenue was $64.71M in the last fiscal year compared to $74.97M three years ago, Operating Income was $23.06M in the last fiscal year compared to $34.74M three years ago, EPS was $1.04 in the last fiscal year compared to $1.65 three years ago, and ROE was 7.02% in the last year compared to 13.79% three years ago. The stock is also trading with a Forward 12M P/E of 10.0. Investing Digest: Know what's moving the financial markets and what smart money is buying with Forbes Investing Digest. Email address Sign Up By signing up, you accept and agree to our Terms of Service (including the class action waiver and arbitration provisions), and Privacy Statement. Forbes is protected by reCAPTCHA, and the Google Privacy Policy and Terms of Service apply. MORE FROM FORBES Pcb Bancorp (PCB) Simple moving average of Pcb Bancorp (PCB) Simple moving average of Pcb Bancorp (PCB) STOCK CHARTS Centene Corp (CNC) Centene Corp CNC -0.9% is our third Top Buy today. The company is a healthcare insurer focused on managed care for uninsured, underinsured, and low-income individuals. It’s a multi-line managed care enterprise that serves as a major intermediary for both government-sponsored and privately insured health care programs. Our AI systems rated Centene A in Technicals, A in Growth, B in Low Volatility Momentum, and A in Quality Value. The stock closed up 0.09% to $65.49 on volume of 1,793,791 vs its 10-day price average of $63.69 and its 22-day price average of $63.98, and is up 5.48% for the year. Revenue was $104176.0M in the last fiscal year compared to $56688.0M three years ago, Operating Income was $4110.0M in the last fiscal year compared to $2132.0M three years ago, EPS was $3.12 in the last fiscal year compared to $2.26 three years ago, and ROE was 9.28% in the last year compared to 9.99% three years ago. The stock is also trading with a Forward 12M P/E of 12.54. MORE FROM FORBES Centene (CNC) Simple moving average of Centene Corp (CNC) Simple moving average of Centene Corp (CNC) STOCK CHARTS Rent-A-Center Inc (RCII) Rent-A-Center Inc is our final Top Buy today. Rent-A-Center Inc is a furniture and electronics rent-to-own company. Our AI systems rated the company C in Technicals, C in Growth, B in Low Volatility Momentum, and A in Quality Value. The stock closed up 2.12% to $54.86 on volume of 419,123 vs its 10-day price average of $56.7 and its 22-day price average of $57.22, and is up 44.6% for the year. Revenue was $2814.19M in the last fiscal year compared to $2660.46M three years ago, Operating Income was $272.85M in the last fiscal year compared to $97.74M three years ago, EPS was $3.73 in the last fiscal year compared to $0.16 three years ago, ROE was 39.6% in the last year compared to 3.04% three years ago. The stock is also trading with a Forward 12M P/E of 10.3 Simple moving average of Rent-A-Center Inc (RCII) Simple moving average of Rent-A-Center Inc (RCII) STOCK CHARTS 7. MORE FROM FORBES Rent-A-Center (RCII) Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open. Follow me on Twitter or LinkedIn. Check out my website. Source: S&P Global Market Intelligence Q.ai - Powering a Personal Wealth Movement Q.ai - Powering a Personal Wealth Movement We are professional financial writers focused on investing and AI news and analysis. Editorial Standards Reprints & Permissions BitGo Cofounder And CEO Explains The Sudden Surge Of Bitcoin Worth 00:00 / 01:09 We independently select all products and services. If you click through links we provide, we may earn a commission. Learn more VETTEDFASHION 10 Of The Best Wedding Bands For Men That Look Sharp And Stylish Annie Davidson Watson Contributor I cover luxury lifestyle. Kari Molvar Forbes Staff I’m a deputy editor, fashion writer and sneaker obsessive. Feb 16, 2023,03:50pm EST The best men’s wedding bands can be simple and straightforward in design—or quite the opposite. The market is full of unique and interesting styles to reflect a minimalist look or make more of a statement. Some guys might prefer a sporty black titanium ring while others opt for polished gold. Diamonds can also be part of the design, in subtle or bold ways. If you’re the sentimental type, you can match your band to your partner’s or add a personalized engraving with your wedding date or initials. Best_Mens_Wedding_Bands_Forbes The best wedding bands for men are stylish, made to last and express your personality. ILLUSTRATION: FORBES / PHOTO: RETAILERS If you know your ring size, you can find plenty of high-quality, handsome wedding bands online. Some tips to keep in mind: If you’ve got sensitive skin, stick to pure metals—gold, platinum, silver—and hypoallergenic titanium (stay away from nickel). The most popular width for men’s bands is 5 to 6mm. But if you prefer a slim, minimalist look, aim for 3 to 4mm, and 7 to 9mm if you want a ring that stands out. Beyond that, explore the options and see what resonates with your personal taste. Ahead, we rounded up the best men’s wedding bands that are comfortable to wear, stylish in design and made to last. And for more wedding-related ideas, check out our guides to the best places to buy engagement rings and lab-grown diamonds. Best Men’s Wedding Bands Overall: Mejuri Best Affordable Men’s Wedding Bands: Blue Nile Most Durable Men's Wedding Bands: David Yurman Best Luxury Men’s Wedding Bands: Jean Dousset Best Men’s Wedding Bands With Diamonds: Vrai Best Men’s Wedding Bands Engraved: Brilliant Earth Best Men’s Wedding Bands For Fast Shipping: James Allen Most Comfortable Men’s Wedding Bands: Ring Bear Most Unique Men’s Wedding Bands: Catbird Best Silicone Wedding Bands For Men: Qalo MORE FROMFORBES VETTED The 10 Best Area Rugs That Are Soft, Durable And Stylish BySteven JohnContributor The 9 Best Fire Pits To Transform Your Patio Into A Cozy Haven ByKorin MillerContributor Best Men’s Wedding Bands Overall Mejuri: Modern Designs For Every Taste MOST POPULAR 46mm Smooth Band MEJURI Mejuri Smooth Band 4mm $500 Buy From Mejuri Mejuri has a small but extremely well-edited collection of men’s wedding bands, which range in size and style. For the minimalist, Mejuri’s 14k solid gold band is lightweight, smooth and streamlined. You can keep it simple or add an engraving that’s personal to you and your partner. Best Affordable Men's Wedding Bands Blue Nile: Excellent Quality At Affordable Prices Classic Wedding Ring in 14k White Gold (3mm) BLUE NILE Blue Nile Classic Wedding Ring in 14k White Gold (3mm) $290 Buy From Blue Nile Blue Nile has a large and varied selection of men’s wedding bands, including diamond and plain metal options. Prices start at $190 and engraving is available for an additional cost. This classic style shown here comes in four different metals and has a slender profile and lightweight design. Most Durable Men's Wedding Bands David Yurman: Luxury That Lasts And Won't Scratch DY Classic Band in 18K Gold DAVID YURMAN David Yurman DY Classic Band in 18K Gold $2300 AT DAVID YURMAN $2300 At David Yurman $2300 At Nordstrom Crafted from high-quality materials with durable—not to mention stylish—designs, David Yurman’s men’s wedding bands are a worthy splurge for guys who need a ring that won’t dent or scratch easily. The Classic Band comes in six sturdy metals, including solid 18k gold, and features Yurman’s signature cable engraving on the inner. Best Luxury Men's Wedding Bands Jean Dousset: Elegant Designs From A Cartier Hier Clayton Flat Profile Men's Wedding Band, Diamond Pavé JEAN DOUSSET Clayton Flat Profile Men's Wedding Band, Diamond Pavé $5900 Buy From Jean Dousset The great-great grandson of jeweler Louis Cartier, Jean Dousset is well versed in fine jewelry—he worked in Paris at Chaumet and Boucheron, where he was mentored by Alain Boucheron himself, and later joined Van Cleef & Arpels. In 2010, Dousset launched his own brand, with a focus on expert craftsmanship. The men’s wedding bands are modern classics in the making; many designs are beveled, with a high polish, and some stunners include pavé diamonds. Best Men's Wedding Bands With Diamonds Vrai: Trusted Lab-Grown Stones And Handsome Designs The Devotion Band Baguette Wedding Band in White Gold VRAI The Devotion Band Baguette Wedding Band $2050 Buy From Vrai Vrai’s lab-grown diamonds are created at the brand’s zero-emission foundry with greenhouses gases. The stones, which are backed by a lifetime warranty and certified with a GIA Gemologist report, are then cut and polished by artisans. Since there’s no middlemen, the prices are lower than traditional diamonds, and the designs for men’s wedding bands range from bold to discrete, depending on your budget and tastes. Best Men’s Wedding Bands Engraved Brilliant Earth: Large Selection Of Styles To Personalize Brilliant Earth 5.5mm Beveled Edge Matte Wedding Ring BRILLIANT EARTH Brilliant Earth 5.5mm Beveled Edge Matte Wedding Ring In 18K White Gold $1390 Buy From Brilliant Earth Brilliant Earth lets you filter men’s wedding rings by style (plain or wide), metals or design (with diamonds, for example), with engraving available. This beveled ring has a soft matte finish that adds a distinctive touch and comes in everything from white gold to platinum. It’s contrasted by a polished interior that’s ideal for engraving. Best Men's Wedding Bands For Fast Shipping James Allen: Speedy Delivery And Hassle-Free Returns 18K Yellow Gold 5mm Slightly Domed Comfort Fit Wedding Ring-19103y JAMES ALLEN James Allen 18K Yellow Gold 5mm Slightly Domed Comfort Fit Wedding Ring $1180 Buy From James Allen If you’re shopping last minute, James Allen simplifies the process: You can order rings for free overnight shipping and filter the options by style (classic, carved, alternative), metals and price. The brand also offers no-hassle returns within 30 days for a full refund or exchange, no questions asked. Most Comfortable Men's Wedding Bands Ring Bear: Hypoallergenic And Carbon Neutral Classic Tungsten Mens Comfort Fit Wedding Band Carbon Neutral RING BEAR Classic Tungsten Mens Comfort Fit Wedding Band $225 Buy From Ring Bear Ring Bear specializes in men’s wedding bands, as well as gifts for groomsmen and engagements. The options emphasize comfort and durability—all bands are hypoallergenic, nickel-free and cut 1.7 to 2.2mm thick (the industry standard is 1mm). Ring Bear also works with ethically sourced recycled metals, which helps minimize the energy, water and CO2 emissions traditionally required to mine gold. Most Unique Men's Wedding Bands Catbird: Unisex Styles That Express Your Bond Narrow Twisted Eternal Ring CATBIRD Yayoi Forest Narrow Twisted Eternal Ring $410 Buy From Catbird Catbird’s men’s wedding bands are unisex in design and range from subtle to bold, depending on what you’re looking for. In addition to Catbirds in-house rings made in Brooklyn, there are also many crafted by independent artists. Best Silicone Wedding Bands For Men Qalo: Skin-Friendly And Sporty Qalo Men's Polished Step Edge Silicone Ring QALO Qalo Men's Polished Step Edge Silicone Ring $30 Buy From Qalo For anyone who has sensitive skin or needs a ring that can take a lot of wear and tear, Qalo’s silicone bands are the way to go. This style combines the polished-edge shape of traditional metal with the extreme durability of silicone (it’s also affordable if you’re the type that tends to lose things). Best Of The Rest Manly Bands: Distinctive And Sophisticated Designs The Baller - Black Plated Tungsten Carbide Ring MANLY BANDS The Baller - Black Plated Tungsten Carbide Ring $275 Buy From Manly Bands Despite the somewhat humorous name, Manly Bands makes seriously stylish men’s wedding rings in untraditional materials, including wood, antler, steel, chrome and carbon fiber. Also nice: All of the rings can be customized and come with a free silicone band you can wear for travel or sports. Piaget: Timeless Styles, For The Guy Who Appreciates Quality Piaget Possession 18-Karat White Gold Ring MR PORTER Piaget Possession 18-Karat White Gold Ring $1960 Buy From Mr Porter Known for its fine jewelry and watches, Piaget excels in the details especially when it comes to classic pieces. This 18k white gold ring is a perfect example with a subtle stacked effect that’s elegant and timeless. Clean Origin: Sleek, Comfortable And Textured Metal Options Clean Origin Zachary Band CLEAN ORIGIN Clean Origin Zachary Band $750 Buy From Clean Origin Clean Origin emphasizes sustainable designs, transparent prices and stellar customer service: All pieces are returnable within 100 days and include free (expedited and insured) shipping. This Zachary Band has a unique, layered effect and textured finish, which is great for the more modern groom. It’s available in several different metals as well as widths, too. Catbird: Brooklyn-Made And Affordable Catbird Classic Wedding Bands, Flat Band, 4mm CATBIRD Catbird Classic Wedding Band, Flat Band, 4mm $550 Buy From Catbird Catbird’s bestselling collection of unisex wedding bands includes those designed in-house in their Brooklyn studio. This flat band style is a popular pick, available in seven different metals, from platinum to 18k yellow gold. Chopard: Heirloom Pieces From A Heritage Brand Silver Ice Cube 18-Karat White Gold Diamond Ring MR PORTER Silver Ice Cube 18-Karat White Gold Diamond Ring $2020 Buy From Mr Porter Founded in 1860, Chopard is one of the most venerable family-run watchmaking dynasties. They also create fine jewelry, including wedding bands for men. The “Ice Cube” is cast from 18k white gold with faceted squares set with a single 0.03-carat diamond. Ritani: Stylishly Unique, With Free Engravings Men's 6mm Satin-finish Diamond Wedding Ring RITANI Ritani Men's 6mm Satin-finish Diamond Wedding Ring $1885 Buy From Ritani Philadelphia-based Ritani understands that once you order a ring, you want to arrive safely and quickly. All of the men’s bands ship for free and include free return insurance for peace of mind (engraving is also complimentary). Styles range from traditional to statement-making, like this band with three diagonally set diamonds. Anna Sheffield: Vintage-Inspired, Modern Appeal Virtue Band - 14k Gold & Black Diamonds, 7mm ANNA SHEFFIELD JEWELRY Anna Sheffield Jewelry Virtue Band $2650 Buy From Anna Sheffield Jewelry Anna Sheffield’s men’s wedding bands are designed with one-of-a-kind, unique sensibility. The Virtue is decorated with discreet black diamonds and can be personalized with a custom engraving. David Yurman: Less Traditional Finishes And Shades David Yurman Classic Band in Black Titanium, 6mm DAVID YURMAN David Yurman Classic Band in Black Titanium, 6mm $425 Buy From David Yurman Crafted in sturdy black titanium and darkened sterling silver, David Yurman’s band has an iconic look that never goes out of style—both in design and craftsmanship. It’s also available in a lighter grey titanium and a variety of widths. Shinola: Detroit Designed For The Untraditional Guy Tag Ring SHINOLA DETROIT Shinola Tag Ring $150 Buy From Shinola If you’re looking for an alternative to traditional wedding bands, Detroit-based Shinola’s has a small collection of rugged yet refined men’s rings. This one is cast from sterling silver with an individual serial number engraved on the inside. Coupons Cupshe logo Cupshe Link to Coupon Annie Davidson Watson Annie Davidson Watson I'm a writer, editor, and consultant focusing on luxury lifestyle. I'm also the founder... Read More Kari Molvar Kari Molvar I’m a deputy editor covering women's and men's fashion, accessories and athletic apparel.... Read More Editorial Standards Reprints & Permissions FORBESMONEY Does Private Equity Have A Place In Your Portfolio? Forbes Finance Council Patrick Dwyer Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 21, 2024,02:12pm EDT Partner/Managing Director, NewEdge Wealth. GETTY Private equity is an asset class that has enduring appeal for high-net-worth individuals who hope to see outsized returns. Around $13 trillion of assets were under management by private markets as of 2023, showing nearly 20% growth since 2018. Yet performance in most private asset classes was below historical averages for the second year in a row, influenced by high inflation, interest rates and capital costs. I believe private equity will continue to be an important asset class for some investors, but it will be increasingly difficult for private equity funds to beat the market. It’s simply hard to outperform a low-cost, well-diversified index fund, whether you’re picking individual stocks or actively managed mutual funds or investing in privately held companies. PROMOTED Financing is a major differentiator between public and private companies. Public companies enjoy lower financing costs and greater access to capital markets, while private entities have to manage higher borrowing costs and more limited avenues for funding, which can reduce returns. There are still private equity opportunities available, but they’re less reliable, especially following years of the U.S. implementing a zero-interest-rate policy. As an investor, it’s important to carefully consider where to allocate your money for optimal returns and minimal costs. I recommend weighing the following factors to determine what percentage of your portfolio—if any—you dedicate to private equity. MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers The Private Sector Versus The Market As a general rule of thumb, use the S&P 500 as the standard you measure all other investments against. There’s a reason this index fund is frequently used as the litmus test for the overall health of the U.S. stock market and economy. The S&P contains the 500 leading publicly traded companies in the U.S.—the most exceptional companies in the world, as far as I’m concerned—so it is a tall order for an alternative investment manager to outperform it. Look closely at all the expenses associated with private equity portfolios. What are the fees? What are the taxes? How do these costs compare to the S&P, which is nearly free and requires you to pay no taxes until you sell? Low-fee, tax-efficient portfolios typically perform better than those with high fees and taxes. If you do decide to invest some of your capital in private equity, look for integrated products that give you access to multiple funds and have low fees and no capital calls. You could also consider working with small- and mid-sized managers who are playing in a part of the market where more outsized returns are still a possibility, such as seed-stage venture capital. The Expanding Role Of AI AI is disrupting every industry, and I am confident that it will allow businesses at scale to eliminate costs in ways they never have before. AI promises to democratize technology by making expensive software affordable and accessible, which will likely benefit large public companies with expansive networks the most. If they deploy AI applications across their networks, they can quickly streamline operations, reduce human labor and eliminate costs. We're just at the beginning of the AI era, but it is incredibly powerful technology that can nurture the advantage of bigger companies. I believe AI will contribute to an exceptionally bullish decade. Keep your investment strategy simple; you don't have to overcomplicate your portfolio to take advantage of these gains. In my opinion, investing heavily in public companies, without giving much weight to alternative investments, will lead to reliable returns in the long term. The Benefits Of A Flat-Fee Model Make sure your investment advisor is working on your behalf, giving you unbiased advice without any conflicts or incentives to push certain products. One of the reasons that alternative investments can end up heavily weighted in client accounts, especially at big banks, is that firms make a lot more money on them than they do on stocks or bonds. This is why my firm has adopted a flat-fee model, where clients can count on receiving objective, transparent advice aligned with their best interests. I predict that the market will continue to move toward a high-trust, low-fee environment that will largely benefit investors. Private equity isn’t going away, but it also doesn’t have to play a huge role in your portfolio going forward. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on LinkedIn. Check out my website. Patrick Dwyer Patrick Dwyer Partner/Managing Director, NewEdge Wealth. Read Patrick Dwyer's full executive profile here. Editorial Standards Reprints & Permissions Steve Ballmer Teases What's In Store For The Intuit Dome And 2026 All-Star Game 00:37 / 01:03 MORE FROM FORBES Mar 21, 2024,02:12pm EDT Does Private Equity Have A Place In Your Portfolio? Mar 21, 2024,07:00am EDT Navigating The Balance: Growth Vs. Profitability In Business Mar 20, 2024,07:30am EDT How To Prepare For April's Tax Day As A US Expat Mar 20, 2024,07:15am EDT Breaking Down Barriers: How Education Can Demystify Alternative Investments Mar 20, 2024,07:00am EDT Integrating Data Like A Pro: How Banks Can Beat Fintechs Mar 19, 2024,05:18pm EDT Navigating Interest Rate Volatility In Real Estate Financing Mar 19, 2024,07:30am EDT The New CFO Swagger: Why CFOs Are Seeing Their Stock Rise FORBESMONEY Three Ways To Invest In The AI Revolution Forbes Finance Council Gabriela Berrospi Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 21, 2024,07:15am EDT Gabriela is the Founder of the Latino Wall Street movement, which provides financial education to the Latino community. Robot showing stock market financial growth chart GETTY Artificial intelligence has become an omnipresent force, revolutionizing industries. As AI impacts various sectors, from healthcare to finance, investors are increasingly seeking ways to capitalize on this transformative trend. In this article, I will explore the three promising avenues for investment. 1. Tech Giants And AI Powerhouses PROMOTED One of the most direct ways to invest in AI is through established technology giants and AI-focused companies. Companies such as Google's parent company Alphabet, Microsoft and Nvidia have been at the forefront of AI innovation. From cloud computing to AI-powered hardware, these kinds of industry leaders are not only integrating AI into their existing products and services but also actively driving breakthroughs in AI innovation. However, investing in tech giants comes with certain risks. One significant factor is the potential market saturation and maturity of their core products and services. As these companies diversify into AI, their growth may depend on the success of these newer ventures. Additionally, regulatory scrutiny and antitrust concerns could impact their market dominance, leading to legal challenges. Another consideration is the sheer size of these companies, which might limit their agility and innovation compared to smaller, more nimble competitors. MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers Before investing in tech giants, I personally always assess their overall business health, competitive landscape and regulatory environment. Keeping an eye on their ongoing research initiatives and adaptability to evolving market trends is crucial. 2. AI-Driven Startups Another avenue for investors seeking potentially higher returns (and the higher risk associated with that) is investing in AI startups. The startup landscape is teeming with innovative companies leveraging AI for specialized solutions. From healthcare diagnostics to autonomous vehicles, startups are regularly creating disruptive technologies. You can keep an eye on promising AI startups through venture capital firms or crowdfunding platforms, providing crucial support to early-stage companies with groundbreaking ideas. Investing in AI startups is inherently riskier due to their early-stage nature. Many startups face challenges such as limited operating history and uncertainty regarding market acceptance and therefore have high failure rates. A startup that struggles to navigate regulatory hurdles or has tough competition without a clear competitive advantage may pose even higher risks. Key factors I look at when considering such companies include the startup's leadership, the uniqueness of its AI technology, the scalability of its business model and the market need for its solution. Investors should be aware that startups often require time to bring their products to market, and success is not guaranteed. Diversification within a startup portfolio can help mitigate risk. Thorough due diligence and closely monitoring the startup's progress are essential before committing capital. 3. AI ETFs And Index Funds For investors who don't feel comfortable picking individual stocks, AI-focused exchange-traded funds and index funds offer a compelling solution. These funds typically include a basket of stocks from companies heavily involved in AI research, development and implementation. Their diversified exposure to the AI sector reduces the risk associated with investing in individual companies. Investors can benefit from this diversification and capitalize on the growth of the AI industry as a whole. Despite these potential benefits, investors should be mindful of certain factors. It's crucial to understand the fund's underlying holdings. Factors such as expense ratios, liquidity and the fund manager's expertise in the AI sector should be considered. While diversification reduces company-specific risk, broader economic factors and market fluctuations can still impact the fund's performance. Investors should also assess the fund's track record and whether it accurately reflects the AI industry's growth. Additionally, staying informed about the fund's rebalancing strategy and potential changes in its portfolio composition is important. As we navigate the AI revolution, the investment landscape is rife with opportunities and challenges. Investing in AI can offer substantial rewards, but it requires careful consideration of the inherent risks. Whether opting for established tech giants, supporting AI startups or choosing diversified AI-focused funds, investors must align their strategies with their risk tolerance and long-term goals. Those who strategically invest in this transformative technology stand to gain from its widespread adoption across industries. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on Twitter or LinkedIn. Check out my website. Gabriela Berrospi Gabriela Berrospi Gabriela is the Founder of the Latino Wall Street movement, which provides financial education to the Latino... Read More Editorial Standards Reprints & Permissions Suzy Batiz Shares Poo- Pourri's Most Popular Products 00:13 / 01:02 FORBESMONEY Navigating The Balance: Growth Vs. Profitability In Business Forbes Finance Council James Webster Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 21, 2024,07:00am EDT James Webster, Executive Chairman, ROK Financial. Directional neon light arrow GETTY Starting or expanding a business is an exciting, yet challenging endeavor that requires a lot of strategy and sometimes risk. Any business owner looking to start up their business, or grow the business they’ve already worked hard to build, will come head to head with these two fundamental concepts: growth and profitability. What Is The Difference Between Growth And Profit? Growth can be measured and identified in many ways, but overall refers to the expansion of a company. Whether it be in operations, employees and size, market expansion, or new product development, business growth can present itself in different verticals. PROMOTED Profitability, on the other hand, refers to the ability of a business to keep its gross earnings above or relative to the expenses associated with operations. In short, making sure the money you make can keep up with what you spend. So how do these two concepts align, and where is the balance? Many will come to a crossroads at a certain point in their business ventures where they feel they need to choose between growth and profit. And while both can be efficient and promising ways to scale a business, finding the route best for you is crucial in long-term business survival. MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers Growth & Profit: Contrasting Approaches Years back, two entrepreneurs I knew were looking to start up new companies. With similar startup funds and advantages available, I found it interesting how drastically different their approaches were. Business Owner A invested heavily into their business from the start, purchasing a large office space, hiring upwards of 50-plus employees into their technology and business development teams, and advertising their brand and products through costly marketing efforts. On the other hand, Business Owner B opted to spend only what was necessary to get their business off the ground in an attempt to maintain control of their business’s financial health. They did not take on many new employees, did not purchase more inventory than needed to meet their demand, and only utilized word-of-mouth and referral marketing at a minimal expense. Looking back on how these business owners approached their startup ventures, here’s what they found one, five and even 10 years down the line. Business Owner A: Costly Pursuit Of Investment & Expansion In their first year, Business Owner A saw a large uptick in market presence and overall consumer awareness for their product. With their sizable team, they were able to strategize efficiently and continuously improve their product development and customer acquisition; however, they were not cash-flow positive in their first year, due to their high overhead costs. By year 10, their business was consistently in a green cash-flow zone and possessed a large market share due to their years on top of the industry. Business Owner B: Slowly Building A Profitable Foundation In contrast, while Business Owner B may have taken a more disciplined spending approach, this allowed them to focus more on their profit margins and keeping costs low, achieving profitability in their first year of operations. By initially opting for a solid foundation rather than substantial growth, their business was able to obtain a steady customer base and revenue streams, which helped them maintain a healthy profit margin year after year. Eventually, Business B was financially stable enough to explore expansion opportunities and growth initiatives later down the line, and found themselves entering new markets and positioning themselves as a trusted industry leader. Quality Standards Businesses that expand too quickly can find themselves struggling to maintain quality standards due to rapidly increasing production, ignoring issues in their products or services, or not giving employees the quality training they need in order to satisfy customers. This can result in poor brand reputation and overall loss in profitability. Lack Of Scalability When scaling a business, it’s crucial to be able to widen your reach and grow efficiently. Sometimes this requires investments and more than just increasing sales or low-cost tactics. Without upgrading pieces of technology, ordering higher inventory loads, and providing additional staffing support, you may find your business hitting a wall and struggling to grow beyond its current scale. On the other hand, investing sufficient funds into business growth doesn’t always guarantee a plentiful outcome. The allocation of funds has to be strategic, cost-effective, and align with the long-term goals of your business. If not, you may find yourself dealing with unintended consequences such as greater overhead costs, unsustainable staffing needs, or expensive technology that your business outgrows. From Concept To Action In my own lifetime, as an entrepreneur who has started and scaled many businesses, I too have faced the reality of growth versus profit and the sacrifice you sometimes have to make in order to obtain both. When building up a recently started business of mine, I took the risk of employing upwards of 25 team members and investing heavily into various marketing tactics to get the company off the ground. There were times when the business was certainly not positive in revenue, between paying multiple salaries and putting more expenses into the business than what was paying off at the time. However, I knew my team had extensive knowledge in the industry, and I truly believed in our ability to grow something remarkable. Fast forward to present day, and this company is generating over 10 times what it was just a few short years ago. We’ve doubled the size of the company, built incredibly strong relationships in our network, and positioned ourselves as a front runner in our industry. In this case, I chose growth before profit knowing that profitability may ensure stability and sustainability, but growth is the fountain that provides more avenues for profit in the long run. The relationship between growth and profitability is something all business owners should strive to understand and master, including myself, and I am always looking to gain more knowledge as I come across opportunities. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on LinkedIn. Check out my website. James Webster James Webster James Webster, Executive Chairman, ROK Financial. Read James Webster's full executive profile here. Editorial Standards Reprints & Permissions House GOP Subpoenas Fulton County DA Fani Willis Amid Trump Criminal Case 00:09 / 01:11 FORBESMONEY How To Prepare For April's Tax Day As A US Expat Forbes Finance Council Nathalie Goldstein Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 20, 2024,07:30am EDT CEO of MyExpatTaxes, an expat tax software that can e-file expat taxes for an accurate, fast and affordable filing experience! Close-up white paper desk calendar appointment and business meeting concept. GETTY The U.S. tax season is nearing, and most Americans are probably going to have to file. Most U.S. citizens are probably familiar with the April 15 deadline. However, it may not be as common to know that U.S. citizens living abroad are still required to file their U.S. taxes. The April 15 deadline is a tax deadline expats should strive to meet. What makes the April deadline so important? The April 15 deadline is the most known tax date for Americans living in the U.S. However, it also acts as a deadline for other tax-related purposes with U.S. expats. For the April 15 deadline, all Americans must file if they have an outstanding debt owed to the IRS. Alongside that, the April 15 deadline is also the deadline for Foreign Bank Account Reports (FBAR), which are essential when living abroad. PROMOTED For expats especially, filing before the April 15 deadline can ensure that refunds such as the Child Tax Credit are received on time. While the majority of expats do not end up owing any U.S. taxes, some may, so it’s best to understand your possible U.S. tax liability in advance of the April payment deadline. Overall, the April 15 deadline acts as a best practice to stay compliant with the IRS, while avoiding penalties. Just heard you need to file when living outside of the US? If unaware of the obligation for U.S. citizens earning abroad to file taxes, the IRS does offer an amnesty procedure. The Streamlined Procedure requires taxpayers to file only for the past three years plus the current year, along with six years of FBARs. More details can be found in my previous article "How To Get U.S. Tax Compliant From Abroad." MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers Single U.S. taxpayers under the age of 65, regardless of where they live, will need to file a 2023 U.S. tax return in 2024 if they earn over $13,850. Lower thresholds apply for those married filing separately and those who are self-employed as detailed below. What do I need to do before I file? Social Security Number The first step in the process of filing your taxes is ensuring you have a Social Security number (SSN). Your SSN makes it easier to identify you, provide accurate income reports and claim deductions while ensuring compliance with the IRS. However, if you do not have an SSN, you can then apply for an Individual Taxpayer Identification Number (ITIN). The ITIN works in a similar way to help you meet your take obligations. Tax Threshold Before filing, you should determine which filing status is best for your lifestyle and associated filing requirements. Figuring out which category you fit into is quite easy. Single: Not legally married. Married filing separately: Legally married, but your spouse doesn’t want to file together This is a common filing status for U.S. expats who are married to non-U.S. citizens. Married filing jointly: Legally married filing with your spouse. Head of household: Unmarried individuals involved with paying to maintain the entirety of a house with a qualifying dependent, expats married to non-U.S. may also be able to use this filing status, as the IRS considers them unmarried for this purpose. Qualified widower: Those with a deceased U.S. spouse in the last two years, who also have U.S. dependents. The threshold amounts for 2024 (tax year 2023) can be found on the IRS website under "who needs to file a tax return." Expat Documents No service can help if you do not have the required documents to file. Therefore, keeping your financial documents organized is critical. You will need to have access to your local payslips or tax return along with any U.S. tax documents such as 1099 or K-1 forms. Pick a trusted tax filing service. After you have determined that you need to file, the next step is choosing a company to file your U.S. taxes with. It sounds simple, but you should find a company that caters to your needs as an expat. The reason is that some of the tax forms you will most likely need as an expat are not always included in standardized tax companies. Important tax forms catered to international income include: Form 1116: Foreign Tax Credit Form 2555: Foreign Earned Income Exclusion Form 8938: Statement of Specified Foreign Financial Assets (FATCA) Form 8833: Tax Treaty Disclosure Form 8621: PFIC Forms, including QEF and Mark to Market Elections Foreign Bank Account Report (FBAR) Here is what MyExpatTaxes recommends looking for when you start your search: The company specializes in expats. Security measures for sensitive financial and personal data. Reliable reviews and verified credentials. There are other suggestions that could be mentioned, but with these three you should be well on your way to finding the best company for your needs. Not ready to file by April 15? As an expat there are multiple deadlines, which can be confusing. Taxes need to be paid by April 15; however, U.S. expats can potentially wait until June 15 (automatic extension) to file the actual return. If the June 15 deadline is not enough time, you can file for an additional extension to October 15. In the end, if in October you still need more time, make sure to file a timely extension request to December 15 with the IRS directly. Taxes can be a complicated process, so when April 15 comes around, being prepared can save you a lot of stress. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on Twitter or LinkedIn. Check out my website. Nathalie Goldstein Nathalie Goldstein CEO of MyExpatTaxes, an expat tax software that can e-file expat taxes for an accurate, fast and affordable filing... Read More Editorial Standards Reprints & Permissions Why NFT And Crypto Markets Stagnated In 2023 00:00 / 01:12 The video player is currently playing an ad. MORE FROM FORBES Mar 21, 2024,02:12pm EDT Does Private Equity Have A Place In Your Portfolio? Mar 21, 2024,07:15am EDT Three Ways To Invest In The AI Revolution Mar 21, 2024,07:00am EDT Navigating The Balance: Growth Vs. Profitability In Business Mar 20, 2024,07:30am EDT How To Prepare For April's Tax Day As A US Expat Mar 20, 2024,07:00am EDT Integrating Data Like A Pro: How Banks Can Beat Fintechs Mar 19, 2024,05:18pm EDT Navigating Interest Rate Volatility In Real Estate Financing Mar 19, 2024,07:30am EDT The New CFO Swagger: Why CFOs Are Seeing Their Stock Rise FORBESMONEY Breaking Down Barriers: How Education Can Demystify Alternative Investments Forbes Finance Council Eric Satz Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 20, 2024,07:15am EDT Eric is the Founder and CEO of Alto Solutions, which provides investment access to alternative assets for all. Man using desktop pc at desk in home office GETTY Alternative assets are no longer a gated community. Once reserved for professional and ultra-wealthy investors, the landscape has evolved over the past decade, opening new doors for regular investors to access these markets. But first, they need to know where to look for them. There’s an old saying: Knowledge is knowing that a tomato is a fruit. Wisdom is knowing not to put it in fruit salad. When it comes to alternative investments these days, knowledge is a more significant hurdle than any regulatory restrictions. Almost a third of Americans have not heard of alternative investments, according to our company’s 2024 study of 500 U.S. adults ages 30-65. For people who have never invested, the number balloons to 73%. PROMOTED Education is a necessary first step to demystify alternative markets so you can participate in them. What to invest in comes second and differs from investor to investor. Behind The Knowledge Gap You aren’t alone if you don’t know much about alternative assets. There are good reasons why many people have not heard of alternative investments such as venture capital, private equity, private debt and hedge funds. Historically, these investments had high regulatory barriers blocking most people. For example, most private equity and hedge funds can only accept accredited investors with high income or net worth. MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers Traditional brokerage platforms also have limited alternative investment options, focusing instead on promoting the stocks, bonds and mutual funds that comprise their core offerings. Finally, alternative assets do not have the same transparency and standardization as traditional markets, making it harder to research, compare and evaluate them. The top three reasons investors in our survey reported being reluctant to use alternatives included: 1. A lack of familiarity with the assets. 2. Difficulty predicting the long-term returns. 3. High entry costs. A Fairer Playing Field The alternative investment landscape is changing rapidly. New financial technology companies, such as crowdfunding and digital asset platforms, have opened these asset classes to non-accredited investors. Under pressure from investor demand, traditional brokerages have also begun developing and offering alternative asset exchange-traded funds. While alternative investments are still not as mainstream as traditional markets, they are quickly approaching that status. As more people pay attention to these assets, there is more news and analysis, helping regular investors project returns and make proper portfolio decisions. Increased competition has also helped reduce entry costs and investment minimums, making these markets more accessible. The Investment Value Of Alternative Assets Diversification is the foundation of portfolio management. A portfolio of different performing assets typically has less volatility and more upside potential than a portfolio with all its eggs in one basket. Alternative assets perform differently than publicly traded stocks and bonds, and alternative assets such as private equity and private debt concentrate more on long-term growth. However, it’s worth noting that they have liquidity restrictions, making it harder for investors to cash out early. This long-term focus has helped private equity outperform publicly traded equities over the past several decades. Another factor is that many of the top companies in the country do not go public, or they only do so after most of the return goes to early-stage private investors. From 1981 to 2021, private equity delivered excess annual returns of 4.3% compared to public equities, according to KKR. Given the recent struggles of the traditional 60/40 portfolio, investors are looking for other options. KKR proposed investors move beyond the traditional stock/bond portfolio to consider a 40/30/30 approach with 30% of holdings in alternative investments, thanks to their extra diversification and potential return benefits. If you want to start incorporating alternative investments, it’s easier than you may think. Breaking Down The Barriers And Moving From Knowledge to Wisdom Education is the first step toward entering any new market. Spend time researching the relevant details of these investments, including how they compare to traditional asset classes. The industry is expanding educational materials, and financial advisors are also making a greater effort to educate investors about alternatives. In 2023, the Financial Planning Association, a leading organization of certified financial planners, announced a 2023 partnership with the Chartered Alternative Investment Analyst Association, the professional body for the alternative investment industry. They wish to broaden the educational resources available for this previously unknown market. Investors interested in alternatives should ask their advisors or brokers what educational materials they can offer. Once you have a good understanding of alternatives and are ready to invest in them, start small with your portfolio allocation adjustment. See alternatives as a way to diversify your portfolio rather than as a way to go “all-in” for high immediate returns. Responsible actors in this space would encourage this slow and steady approach. As with any investment, you should adequately research your trades and monitor their performance as needed. Consider Preqin, Forbes and DailyAlts as sources for market news. By using these educational materials, you can gain both knowledge and wisdom. Today, regular investors have access to the research needed to be smart about alternative asset investing. This helps overcome the main emotional hurdles that stand in the way of participation. The alternative asset options previously only available to professional fund managers and accredited investors are now available to a much wider investor audience—as are the potential excess returns. As the public learns more about alternative investments, it will further break down barriers for this space. And it’s about time. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on Twitter or LinkedIn. Check out my website. Eric Satz Eric Satz Eric is the Founder and CEO of Alto Solutions, which provides investment access to alternative assets for all. Read... Read More Editorial Standards Reprints & Permissions House GOP Subpoenas Fulton County DA Fani Willis Amid Trump Criminal Case 00:09 / 01:11 FORBESMONEY Integrating Data Like A Pro: How Banks Can Beat Fintechs Forbes Finance Council Fiona Roach Canning Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 20, 2024,07:00am EDT Fiona Roach Canning is the co-founder and CEO of Pollinate. People communication GETTY In my last article, I discussed how the Personal Financial Data Rights Rule might lead to a digital banking boom in the U.S. in 2024. This is likely to intensify competition between banks and digital-first finance businesses, as they vie for the business of increasingly digital-first small and medium-sized business consumers. There are many ways in which banks are responding (or not responding) to the digital challenge. What I’ve seen time and again from business banking customers, however, is that they increasingly expect the user experience of a fintech, even when dealing with a traditional bank. To meet the digital challenge, financial services are going to need to deliver a more intelligent and intuitive UX. PROMOTED The problem for banks isn’t knowing they need to deliver this, but knowing how to deliver it. In my experience, banks understand the ways data and tech can improve experience for SMB customers but are unsure of where they should focus. Added to this, banks are large and disparate organizations and, therefore, struggle to offer the iterative and UX-focused service offered by fintechs. So, how can banks upgrade the customer experience in a way that can compete with tech, while also offering the advantages of institutional finance? One often overlooked strategy that can help banks deliver on experience is to better integrate existing data and processes across different sections of the bank. This may sound simple, but even the basics are often incredibly complex. MORE FOR YOU Google s Surprise New Update Brings Unique iPhone Feature To Android Phones Apple s Surprise Update Just Made iPhone More Like Android Google Makes Another Surprise New Offer To Pixel 8 Buyers Integration So, what do the basics look like? Banks are typically big, complicated organizations with decades spent building systems to serve single product silos. Getting different parts of a bank to talk to each other effortlessly is hard—but key to better customer experience and intelligence-driven sales. This is even harder when services that are bank-branded are delivered by a third party. Often a customer has to visit different websites and use different credentials to access services from a single institution. One common example of this is merchant acquiring, which is often separated from the services of the broader business bank. Let’s consider a concrete example. What’s the first data you input when signing up with a new bank, or any other product or service? Chances are it will be simple biographical details such as name, address, telephone number and similar. What can serve to undermine customer experience is the need to input this data repeatedly. First when onboarding, perhaps later when applying for a product and again when contacting customer service. And yet, this is an all-too-common experience. The business loan team, for example, might be in a different part of the organization than the onboarding team. Or perhaps these two parts of the bank use different software solutions that don’t talk to each other. A simple win for banks is to integrate data properly to pre-populate forms to create a smoother customer experience. Banks might have a whole range of different products and teams all within one brand. For business customers, however, how a bank is organized is less relevant than is receiving relevant product recommendations in real time. Data-Driven Relationships By leveraging data more effectively, banks can strengthen merchant relationships to build better, long-term customer relationships. Integrating merchant services into business banking platforms makes sign-up more convenient. Additionally, banks should leverage digital product marketing and onboarding solutions within their platforms to deliver a better experience for merchants who don’t already have those services. Once merchants are onboarded, it’s important to surface key transaction information alongside bank account details. This includes recent statements, settlements, transactions and alerts on disputes or fund holds. Providing this comprehensive view helps merchants reconcile transactions efficiently, reducing the need for support calls. Additionally, experimenting with deeper integrations such as customer relationship management systems for pre-population of onboarding information or creating alerts based on transactional data can further enhance the merchant experience. Experience As A Service Taking the time to integrate data properly may seem counterintuitive in our age of AI hyperbole. When we think about harnessing data, it’s easy to be seduced into thinking that the answer is complicated, self-iterating algorithms. While AI and similar technologies will no doubt take banking in interesting directions in coming years, it remains the case that AI isn’t as useful as it might first appear when it comes to highly sensitive personal data that banks work with, but perhaps, I’ll explore that in a future article. More prosaically, however, you don’t need complicated machine learning to make sure data is integrated intelligently across an organization and in a way that’s going to deliver a more intuitive customer experience. And beyond an enhanced customer experience, better-integrated data also means better customer profiles for the bank, which allows for intelligence-driven sales. It’s a well-established principle in business that cross- and upselling to existing customers is easier than acquiring new customers and leads to better margins. Integration can unlock this allowing a bank to create nudges along the customer journey, pointing toward additional products and services, meaning increased revenue can go hand in hand with better customer experience. Outside of bank processes, business banking platforms can provide a better customer experience by seamlessly integrating third parties into the platforms. This can help deliver effortless supply chains and a single customer touch point, which makes business easier to manage and lightens the cognitive load for business customers. For banks, too, this again means a better view of customer needs and opportunities to anticipate those needs before a customer is even aware of them. Banks that can successfully pull together different data inputs—their own and those from third parties—to create really integrated and seamless front-end experiences can offer customers the feel of a fintech, with the security and products of a bank. In an increasingly digital economy, experience is more important than ever, and a smarter approach to integration, one that focuses on the basics, can help banks deliver this. Business customers want to be able to plug in the best and latest tools that make business easier and offer their own customers a smooth and reliable service. In a world where experience is a service, integration will be key to empowering banks to deliver. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on LinkedIn. Check out my website. Fiona Roach Canning Fiona Roach Canning Fiona Roach Canning is the co-founder and CEO of Pollinate. Read Fiona Canning's full executive profile here. Editorial Standards Reprints & Permissions House GOP Subpoenas Fulton County DA Fani Willis Amid Trump Criminal Case 00:13 / 01:11 FORBESMONEY Navigating Interest Rate Volatility In Real Estate Financing Forbes Finance Council Trixy Castro Forbes Councils Member Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 19, 2024,05:18pm EDT Trixy Castro is the founder and CEO of TRX Capital. GETTY While there is always some degree of fluctuation in real estate interest rates, the last few years have been particularly volatile. For instance, according to an article in The Mortgage Reports, which cited data from Freddie Mac, “mortgage rates fluctuated significantly in 2023, with the average 30-year fixed rate going as low as 6.09% on Feb. 2 and as high as 7.79% on Oct. 26.” And while some organizations predict mortgage rates will decrease in 2024, leaders of real estate investment, development and lending firms should not rely solely on such predictions. Interest rates play a crucial role in real estate investing as they affect the cost of borrowing for property purchases and refinances and can dramatically affect an investor’s bottom line. The more volatile interest rates are, the more business risks arise, and the harder it is for investors and developers to accurately plan their projects and predict their ROI. Interest rates affect more than just borrowing costs—they also affect property values and the overall market dynamics. Higher rates mean it is harder for end-consumers to purchase an investor’s project. By taking several steps, leaders in this space can more strategically navigate volatile interest rates and keep their ROI high. PROMOTED 1. Remain Educated On What’s Going On In The Broader Economy I’ve observed that sometimes, real estate investment, development and lending leaders can become too focused on their specific markets as well as the real estate industry as a whole. They can become hyperfocused, not looking at broader economic trends. This is a mistake. The real estate market is interconnected with the greater economy. Leaders in the space need to be aware of what’s happening across the economy, not just within real estate and their niche. For instance, if one of the focus areas of a commercial real estate developer is building industrial properties and that client base starts to suffer from mass layoffs, then that’s a sign that the developer needs to focus their commercial building efforts elsewhere. By remaining updated on what’s happening in the broader economy, leaders can act proactively rather than reactively—and better protect their profits. MORE FROMFORBES ADVISOR Best High-Yield Savings Accounts Of 2024 ByKevin PayneContributor Best 5% Interest Savings Accounts of 2024 ByCassidy HortonContributor 2. Diversify Part of acting proactively rather than reactively is diversifying as soon as possible. Real estate investment, development and lending firms should avoid becoming myopic. They need to consider diversifying by expanding into new markets and/or pursuing new asset types. Being too heavily concentrated in a given market or asset type increases risk. Diversification helps spread out that risk. Going back to the developer example I shared earlier, if that developer only worked on commercial development for industrial properties rather than having it be one core area of several, they would get hit much harder if that client base faced a downturn. Leaders should sit down and evaluate their portfolios and other tenets of their firms to determine how diversified they are and take action sooner rather than later to become more diversified. Granted, leaders should be mindful not to veer too far in the opposite direction. Becoming too diversified can cause a firm to lose its focus and start operating with less precision. 3. Consider Fixed-Rate Financing There are situations where adjustable financing makes sense. But when there’s interest rate volatility, firms should explore fixed-rate financing. While adjustable financing usually starts with lower interest rates and monthly payments, firms must evaluate how the costs can add up in the long term, especially in a volatile market. Fixed-rate financing, by contrast, could end up costing less over time because sudden expense spikes are out of the equation—which can give investment firms, in particular, greater security across their portfolios. 4. Remain Flexible And Nimble Considering fixed-rate financing is one way that industry leaders can remain flexible and nimble in a volatile market. Flexibility and nimbleness are key; these factors must be central to leaders’ mindsets moving forward, as they will help leaders safeguard their firms in the worst-case scenarios. To practice flexibility and nimbleness, leaders must first develop thorough contingency plans so that they have a clearer picture of their options in the event of market chaos. They need to be ready to pivot at any time regarding strategy in order to be able to get the highest returns. For instance, they should assess their exit and credit options—if they’re currently solely focused on selling or are only working with one lender, it might be time to change that. A smart investor will always have multiple exit plans and be able to quickly switch directions in the event of market shifts. In my experience, in the backdrop of greater market security, leaders can make more clear-headed, forward-thinking decisions because they are operating more from a place of greater confidence and calmness rather than fear. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on LinkedIn. Check out my website. Trixy Castro Trixy Castro Trixy Castro is the founder and CEO of TRX Capital. Read Trixy Castro's full executive profile here. Editorial Standards Reprints & Permissions The video player is currently playing an ad. FORBESMONEY The New CFO Swagger: Why CFOs Are Seeing Their Stock Rise Forbes Finance Council Forbes Finance Council COUNCIL POST| Membership (Fee-Based) Click to save this article. You'll be asked to sign into your Forbes account. Got it Mar 19, 2024,07:30am EDT Carlos Vega | CEO & Co-founder of Tesorio | Redefining Cash Flow Performance. Businessman, digital tablet or strategy planning in hotel conference lobby or airport travel lounge. Happy smile, corporate worker or technology app to budget company finance or schedule target goals GETTY The chief financial officer's role is transforming. No longer confined to the back-office functions of number-crunching and financial reporting, the modern CFO is emerging as a strategic leader at the forefront of driving responsible growth and ensuring the long-term sustainability of their organization. This shift in power and responsibility is reshaping the traditional perceptions of the CFO role and giving rise to what I like to call "the new CFO swagger." As the co-founder and CEO of a company that provides automated accounts receivable solutions, I have the privilege of witnessing firsthand the pivotal role CFOs play in shaping the trajectory of their companies. Today, more than ever, CFOs are being called upon not only to manage the financial health of their organizations but also to drive value creation and promote responsible business practices. PROMOTED I lean heavily on my finance leader to ensure that all employees across the organization understand the role they play in ensuring the company's financial health. Max regularly presents key performance indicators at company all-hands meetings and helps educate the company about what financial stability means for us and our mission. One of the key drivers behind this shift in power is the increasing focus on responsible growth and unit economics. With sustainability and ethical business practices as top priorities for consumers, investors and regulators alike, CFOs are being tasked with aligning financial strategies with broader environmental, social and governance goals. This requires CFOs to adopt a more holistic and forward-thinking approach to financial management, one that goes beyond short-term profit maximization to prioritize long-term value creation and impact. MORE FROMFORBES ADVISOR Best High-Yield Savings Accounts Of 2024 ByKevin PayneContributor Best 5% Interest Savings Accounts of 2024 ByCassidy HortonContributor Cash Flow Performance Is Key To CFOs' Elevated Status At the heart of this new paradigm is the recognition of cash flow performance as a critical indicator of a company's health and sustainability. While traditional financial metrics such as revenue growth and profit margins are important, they only tell part of the story. Cash flow, on the other hand, provides CFOs with real-time insights into the liquidity and solvency of their organizations, enabling them to make more informed decisions about capital allocation, risk management and resource optimization. By focusing on cash flow performance as a KPI, CFOs can not only ensure the financial stability of their organizations but also unlock new opportunities for growth and innovation. Similarly, by closely monitoring cash flow patterns, CFOs can identify potential risks early on and proactively mitigate them—versus the status quo of having to wait for books to be closed and working with month-old data. By prioritizing cash flow performance, CFOs can enhance transparency and accountability within their organizations, fostering a culture of fiscal discipline and responsible stewardship. How AI Empowers CFOs AI is one of the enabling technologies empowering CFO swagger today. While almost all finance platforms are now incorporating AI co-pilots and features into their platforms, CFOs can also leverage free AI tools such as ChatGPT and Claude to get AI assistance. Even my nontechnical CFO was able to build a solution, leveraging free AI tools, to automatically extract data from order forms and generate an invoice. It's not just about automating basic tasks such as writing emails; it's about crafting smart workflows. We're moving toward using AI to do financial analyses, understanding which customers are consistently late, and handling them differently than those who are generally on time. Here are four tangible ways that CFOs can leverage AI for cash flow performance: 1. Implement Predictive Analytics For Financial Forecasting: By analyzing relevant factors, such as historical data and market trends, AI algorithms can generate more precise forecasts for revenue, expenses, cash flow and other key metrics. However, the CFO and finance teams need to oversee and interpret these AI-driven insights. A human element is critical to ensuring that forecasts don’t rely strictly on data but also take into consideration the company’s unique context. 2. Automate Routine Financial Tasks: CFOs can use AI to automate routine tasks such as invoice processing and reconciliation, streamlining financial operations. AI-powered software can accurately categorize and process large volumes of financial transactions, reducing manual effort and human error. This not only improves efficiency but frees up finance teams to focus on higher-value activities such as strategic analysis and decision support. 3. Enhance Fraud Detection And Risk Management: CFOs can leverage AI-based fraud detection systems to proactively identify and mitigate financial risks. AI algorithms can analyze transactional data in real time to detect unusual patterns or anomalies indicative of fraud or compliance breaches. By deploying AI-driven risk management solutions, CFOs can strengthen internal controls, minimize financial losses and safeguard the organization's reputation. 4. Optimize Capital Allocation With AI-Driven Insights: By analyzing diverse datasets, including market trends, customer behavior and operational performance, AI algorithms can provide valuable insights into investment opportunities, capital allocation strategies and portfolio management. This enables CFOs to allocate resources more efficiently, maximize returns on investment and drive sustainable growth for the organization. The symbiotic relationship between AI's advanced analytics and the strategic insight of a CFO creates a powerful combination. AI provides the tools to analyze complex datasets and predict trends with remarkable accuracy, while the CFO's expertise and understanding of the business context steer these insights toward effective, real-world applications. The emergence of "the new CFO swagger" reflects a fundamental shift in the role and responsibilities of CFOs. By embracing their role as strategic leaders and championing responsible growth and unit economics, CFOs have the opportunity to redefine the trajectory of their organizations and drive value creation for all stakeholders. At the heart of this transformation lies the recognition of cash flow performance as a linchpin of financial health and sustainability. As we look to the future, I am confident that CFOs who embrace this new paradigm will not only thrive in the face of uncertainty but also leave a lasting legacy of responsible leadership and meaningful impact. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? Follow me on LinkedIn. Forbes Finance Council Forbes Finance Council Forbes Finance Council is an invitation-only, fee-based organization for senior-level finance executives. Find... Read More Editorial Standards Reprints & Permissions The video player is currently playing an ad. ites/qai/2021/04/22/top-stocks-to-buy-today-as-the-market-struggles-to-find-a-direction/?sh=9bc19137349e