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The Federal Reserve Board’s Impact on Business Activity and Market Stability

The Federal Reserve Board is the central banking system of the United States. It was founded in 1913 by Congress to provide the nation with a safer, more flexible and more stable monetary and financial system. The Federal Reserve Board plays an important role in our economy by implementing monetary policy and open market activities. In this blog post, we will discuss the impact of the Federal Reserve Board on business activity and market stability. We will also explore the different rates that the Federal Reserve Board uses and how they impact the economy. Good luck on your Series 7 exam!

Monetary policy refers to the actions taken by the Federal Reserve Board to influence the availability and cost of money in order to achieve specific economic goals. One of the main tools used by the Federal Reserve Board to implement monetary policy is open market activities, which involve changes in interest rates and/or the quantity of money available. For example, the Federal Reserve Board may decide to lower interest rates in order to stimulate economic activity and boost the growth of the economy. Fiscal policy, on the other hand, refers to the actions taken by the government to influence economic activity through its spending and tax decisions. This may happen through the use of tax cuts, for example, to stimulate economic growth.

Overall, the Federal Reserve Board has a significant impact on business activity and market stability. By lowering interest rates or expanding the supply of money through open market activities, it can help stimulate economic growth and address issues such as recession, unemployment, rising prices, or falling asset values. At other times, however, it may need to take more restrictive measures to control inflation or respond to financial instability.

There are several different rates used by the Federal Reserve Board, including the interest rate, discount rate, and federal funds rate. Each of these rates serves a different purpose and is used in various ways to influence economic conditions. For example, by lowering interest rates on loans or increasing the amount of money available through open market activities, it can help increase borrowing and investment activity. Conversely, raising interest rates or reducing the money supply may have the opposite effect by discouraging consumers from taking out new loans or making investments.

Overall, understanding how the Federal Reserve Board works and its impact on business activity and market stability is an essential part of Series 7 exam prep. These and other topics will be covered on the Series 7 exam. Achievable offers comprehensive Series 7 exam practice questions to prepare you for the Series 7 Exam. With the right tools and resources, you can feel confident as you prepare for your Series 7 exam. Good luck!

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United Arab Emirates Real Estate Market: Your Gateway to UAE Residence Visas

Introduction

Today, the United Arab Emirates (UAE) is witnessing a remarkable surge in its real estate sector. The array of luxury apartments, villas, offices, hotels, and houses available for sale in the UAE continues to captivate international high-net-worth individuals (HNWIs) and investors alike. The recent development adds to this appeal: starting from 2023, property buyers can qualify for UAE residence visas lasting 2 to 10 years. The duration of these visas depends on the value and location of the UAE properties they invest in.

A Flourishing Real Estate Market

In 2022, the UAE experienced an astonishing surge in real estate transactions, with property sales in various cities surging by over 60%. Experts in the field anticipate a further uptick in UAE housing prices, with an expected increase of up to 13.5% in 2023.

Dubai, the crown jewel of the UAE real estate market, takes the lead in this growth story. The cityscape is constantly evolving, with new apartments, residential complexes, and houses developed for sale. Several districts in Dubai stand out as the most sought-after destinations for property buyers, whether for investment or permanent residence:

  • Business Bay: Renowned for its dynamic urban lifestyle and modern skyscrapers, the area is an attractive hub for business professionals.
  • Dubai Marina: A vibrant waterfront community offering stunning views and a luxurious lifestyle.
  • Al Safa: A well-established area known for its tranquility, green spaces, and convenient access to various amenities.
  • Palm Jumeirah: An iconic man-made island famous for its luxury villas and beachfront living.
  • Downtown Dubai: Home to the world-famous Burj Khalifa, this district offers a variety of luxury living, high-end shopping, and entertainment options.

UAE Real Estate Opportunities

It’s crucial to note that our property listings in the UAE encompass not only luxury apartments and villas but also houses and hotel rooms in Dubai that are available to purchase directly from developers. Also, it is crucial to remember that foreigners can buy or lease some UAE property for 99 years. You can rent a building in the Emirates, but the land under it belongs to the state.

Real Estate Market on the Rise

Dubai’s luxury real estate market is experiencing one of the most significant price hikes globally. The luxury housing market in Dubai is still expanding in 2023 due to the increasing construction of new apartments, residential complexes, and houses for sale. According to market analysis, prices for luxury properties in Dubai are expected to surge; they may reach an astounding 50% increase by the end of 2023.

Beyond Dubai, in the broader UAE real estate market, including areas outside Dubai, residential and commercial property prices are projected to grow by approximately 2% in 2023, reflecting the market’s resilience and continued appeal to investors. Follow the link for more information about buying property in the UAE.

New Rules for Obtaining UAE Residence Visas through Buying Property in 2023

The UAE government introduced investor visas back in 2019, initially designed for buyers of elite properties in the Emirates. These long-term UAE investor visas, often referred to as ‘Golden Visas,’ were granted to individuals who made property investments ranging from 5 to 10 million dirhams (AED). However, in 2022, the UAE government revamped these regulations and launched a new Residency by Investment (RBI) program.

Key Visa Features for Property Buyers in 2023:

  • Unlimited Travel: Holders of UAE residence visas can travel outside the UAE for an extensive period of time and return at their convenience.
  • Family Sponsorship: The visa allows for the ‘sponsorship’ of family members, facilitating their visa applications if the applicants meet specific property investment criteria.
  • Flexible Financing: Applicants can use a combination of personal funds and loans/mortgages to make the real estate purchase.
  • Investment Thresholds: Investment thresholds for UAE real estate that qualify for specific types of residence visas include:
  • AED 2 million (USD 545,000) for the renewable 10-year ‘Golden Visa.’
  • AED 750,000 (USD 204,000) for the 2-year UAE residence visa.
  • Retiree Benefits: Foreign retirees aged 55 and above can secure a UAE residence permit for up to 5 years by investing in freehold apartments worth AED 2 million.

Property purchases in the UAE can grant investors an investor residence visa in 2023 within nine investment zones in Abu Dhabi and approximately 50 freehold zones in Dubai.

Benefits of UAE Residence Visas:

The advantages of acquiring a UAE residence visa through property investment extend far beyond the mere right to reside in this thriving nation. Here are some key benefits:

  • Family Security and Savings: The UAE’s political stability and hospitable environment for immigrants provide a sense of security for families.
  • Travel Flexibility: Holders of residence visas do not need to live in the UAE permanently. Visa holders are at liberty to travel in and out of the country without restrictions. To retain their residency status and the right to stay in the UAE, a visit to the country every 1 to 2 years is sufficient.
  • Tax Benefits: The UAE offers a highly attractive tax environment. It does not levy taxes on income, capital gains, inheritance, gifts, or property. Moreover, as of 2023, the corporate income tax rate is a mere 9%, provided that the total income exceeds AED 375,000. These favorable tax conditions enhance financial growth and prosperity for UAE residents, enabling them to protect and maximize their wealth.
  • Banking Services: UAE residence visas received through property investment provide the privilege of opening bank accounts.

Conclusion

The United Arab Emirates real estate market presents a thriving opportunity for investors and individuals seeking a new place to call home. With soaring property demand, construction projects, and favorable residence visa options, the UAE’s real estate sector is flourishing. Whether for investment or personal use, exploring this dynamic market can provide various benefits, including long-term visas and access to a range of amenities and services. Please contact our experts to tap into the potential of UAE property investment and residence visas in 2023.

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The Silver Lining: Profiting from Precious Metals in Today’s Market

Silver (XAGUSD) is one of the most sought-after metals in the world. Like gold (XAUUSD), it finds utility in various industries, including jewelry, electronics, photography, medicine, and much more. The silver exchange rate reflects market worth and depends on many factors, such as supply and demand, inflationary trends, and geopolitical situation.

The main reasons for silver price hikes are increased demand from industry and the jewelry sector and reduced supply due to depleting deposits and stricter environmental regulations.

Unlike gold, which still serves as a more speculative instrument and a means of capital maintenance, silver is often seen as a less popular asset among traders. However, this perception often turns out to be erroneous, since trading volumes are steadily growing despite its stable trajectory.

The demand for silver is determined by the needs of various industries, such as electronics, automotive, jewelry, and medicine. An upsurge in demand leads to higher silver prices and vice versa. The volume of extraction and processing of secondary raw materials determines the supply of silver. Depletion of deposits, technological complexities in mining, and tightening of environmental legislation all contribute to reduced supply and consequently, higher silver prices.

In periods of high inflation, the value of silver typically increases, as it can still act as a protective asset capable of preserving the value of money.

Political instability in the regions rich in silver deposits can adversely affect production and export, leading to an increase in the cost of the metal.

The imposition of stricter environmental standards and production and processing requirements also contributes to silver’s value growth, as enterprises are forced to invest in new technologies and equipment to comply with these standards.

It is worth mentioning that the majority of silver trade volumes originate from less developed countries, possibly due to the preference for a less popular metal with a more stable price.

It is expected that in the coming years, the value of silver will increase as the demand for it increases due to the growth of industrial production, the development of new technologies, and an increase in the share of alternative energy sources.

In the short term, it is worth referring to the chart and monitoring price movements. Currently, the price is declining, and given that the primary support in the area of 22.0000 has already been tested twice, the probability of it being breached significantly increases. Many may have noticed that the trend has been bearish for some time. Accordingly, the breakdown of the current support level is only a matter of time. Therefore, it is essential to determine the next support level, which will serve as a starting point for bullish movements. Nevertheless, it’s advisable to avoid overly optimistic yield expectations.

Given the gradual increase in volumes, demand is also increasing, eventually leading to a value recovery. The next major support level hovers around 21.0000, which represents a local low observed in March 2023. This level is somewhat significant as it previously acted as resistance. In fact, the buying zone can extend down to 20.0000, where the lowest price was reached. However, for better risk management, it’s advisable to place a stop loss around that level in case of a potential breakdown.