By: marcelford
The process of raising funds in the public MTN market usually begins when a corporation files a shelf registration with the SEC. Once the SEC declares the registration statement effective, the borrower files a prospectus supplement that describes the MTN program. The amount of debt under the program generally ranges from $100 million to $1 billion. After establishing an MTN program, a borrower may enter the MTN market continuously or intermittently with large or relatively small offerings. Although underwritten corporate bonds may also be issued from shelf registrations, MTNs provide issuers with more flexibility than traditional underwritings in which the entire debt issue is made at one time, typically with a single coupon and a single maturity.
The registration filing usually includes a list of the investment banks with which the corporation has arranged to act as agents to distribute the notes to investors. Most MTN programs have two to four agents. Having multiple agents encourages competition among investment banks and thus lowers financing costs. The large New York-based investment banks dominate the distribution of MTNs.
Through its agents, an issuer of MTNs posts offering rates over a range of maturities: for example, nine months to one year, one year to eighteen months, eighteen months to two years, and annually thereafter. Many issuers post rates as a yield spread over a Treasury security of comparable maturity. The relatively attractive yield spreads posted at the maturities of three, four, and five years shown in table 2 indicate that the issuer desires to raise funds at these maturities. The investment banks disseminate this offering rate information to their investor clients. When an investor expresses interest in an MTN offering, the agent contacts the issuer to obtain a confirmation of the terms of the transaction. Within a maturity range, the investor has the option of choosing the final maturity of the note sale, subject to agreement by the issuing company. The issuer will lower its posted rates once it raises the desired amount of funds at a given maturity. As an example, the issuer might lower its posted rate for MTNs with a five-year maturity to 40 basis points over comparable Treasury securities after it sells the desired amount of debt at this maturity. Of course, issuers also change their offering rate scales in response to changing market conditions. Issuers may withdraw from the market by suspending sales or, alternatively, by posting narrow offering spreads at all maturity ranges. The proceeds from primary trades in the MTN market typically range from $1 million to $25 million, but the size of transactions varies considerably. After the amount of registered debt is sold, the issuer may "reload" its MTN program by filing a new registration with the SEC.
Although MTNs are generally offered on an agency basis, most programs permit other means of distribution. For example, MTN programs usually allow the agents to acquire notes for their own account and for resale at par or at prevailing market prices. MTNs may also be sold on an underwritten basis.
Saturday, January 31, 2009
Stock Market Trading: How To Make The Most Money
By: David Baxwell
Investing in the stock market is an easy way to make some quick cash as long as your are patient and you have some idea of what you are doing. There are many ways to go about doing stock market trading, but if you are looking for a get rich quick scheme, better play the lottery.
Penny stocks are considered to be another investment vehicle. Keep in mind that these stocks are not traded on the NYSE, instead they are traded on what is considered unregulated markets. You can purchase 400 penny stokes for as little as $100, while this does appear to be a great investment and an easy way to make money, you should be careful not to be tricked. Keep in mind that these stocks will collapse resulting in a loss of money.
A safer bet for stock market trading would be stock options trading. The safest of these would be Exchange Traded Options, whose value is listed and known on the exchange. What is beneficial about options is that it is a contract between two individuals that says that if the stock goes up, you will be paid a portion of the profit. These futures are definitely beneficial as a stock market tool, and are a great and safe way to make money as long as your are diligent.
The MACD indicator is a useful approach to judging how a stock might possibly perform down the road. It differentiates between a rapidly changing exponential moving average and a lethargic one. If the tracings cross a 0 line upwards, you should invest. If, however, they cross in a downward direction, you ought to sell. That principle, when applied in a sound market, generally results in significant profit to the investor.
However if you try to use this in which the volatility is high, you will end up losing money as this indicator does not perform very well. This is a way to make money that is used in day trading, so the risk is high but so is the reward.
Stock market trading is a fantastic way to build capital, but only if you are in it for the long run. Short term investments have a built in danger to them. The rewards might be large but the hazards are as well. Over the long haul, the stock market leaning has been in the positive direction, so putting your money into it can be a secure choice. It is just a matter of time and tolerance to watch your money accumulate, just be vigilant and remove it once you think it has achieved its peak.
Investing in the stock market is an easy way to make some quick cash as long as your are patient and you have some idea of what you are doing. There are many ways to go about doing stock market trading, but if you are looking for a get rich quick scheme, better play the lottery.
Penny stocks are considered to be another investment vehicle. Keep in mind that these stocks are not traded on the NYSE, instead they are traded on what is considered unregulated markets. You can purchase 400 penny stokes for as little as $100, while this does appear to be a great investment and an easy way to make money, you should be careful not to be tricked. Keep in mind that these stocks will collapse resulting in a loss of money.
A safer bet for stock market trading would be stock options trading. The safest of these would be Exchange Traded Options, whose value is listed and known on the exchange. What is beneficial about options is that it is a contract between two individuals that says that if the stock goes up, you will be paid a portion of the profit. These futures are definitely beneficial as a stock market tool, and are a great and safe way to make money as long as your are diligent.
The MACD indicator is a useful approach to judging how a stock might possibly perform down the road. It differentiates between a rapidly changing exponential moving average and a lethargic one. If the tracings cross a 0 line upwards, you should invest. If, however, they cross in a downward direction, you ought to sell. That principle, when applied in a sound market, generally results in significant profit to the investor.
However if you try to use this in which the volatility is high, you will end up losing money as this indicator does not perform very well. This is a way to make money that is used in day trading, so the risk is high but so is the reward.
Stock market trading is a fantastic way to build capital, but only if you are in it for the long run. Short term investments have a built in danger to them. The rewards might be large but the hazards are as well. Over the long haul, the stock market leaning has been in the positive direction, so putting your money into it can be a secure choice. It is just a matter of time and tolerance to watch your money accumulate, just be vigilant and remove it once you think it has achieved its peak.
Stock Advice: How To Invest Safely
By: Edward Moraz
If someone were to write a complete book on stock market investing, the first chapter would have to be called, “There is no such thing as a completely safe investment.” The biggest obstacle in the world of investing is risk. Brokers and mutual fund managers spend their entire careers trying to maximize profits while minimizing risk so that their clients always come out ahead. While it may be impossible to completely eliminate risk from the world of investing, there are a few things you can do to keep your risk as small as possible. Here are a few tips.
First, if you are new to investing, get a professional stock broker to help you until you feel safe performing trades on your own. It wasn’t that long ago that you had to have a broker to perform even a single stock trade, but with the invention of the Internet and online stock trading websites that allow individuals to act as their own broker, many people have taken to investing on their own. While this may seem like an exciting and less expensive way to go, it is extremely dangerous to buy and trade stocks without a complete working knowledge of the market as a whole. Even stock traders who fancy themselves as intermediates need a broker to save themselves from making bad trades. No matter how much you think you know about investing, using a stock broker is always a good way to minimize risk with every investment.
If you are considering entrance into the world of stock market investing in a big way, it is important that you read up on as much material as you can find, not only so you can learn the basics and the jargon that dominates the world of stock market investing, but also so you can learn how to spot trends and decipher hot stock tips so you can really cash in on your investments. Learning the ropes of stock market investing is a two-fold process. First, you need to learn the basics of what the various terms mean so when you talk to your broker, you can communicate clearly. Second, by subscribing to a top investing newspaper like the Wall Street Journal, you can stay up-to-date on the latest business news and get the best stock advice from the same source as everyone else. This will help you anticipate trends that might cost you money or might help you make money.
Finally, to help minimize risk, don’t ever make impulsive trades that haven’t been bounced off of your broker or other expert investing minds. One of the biggest traps that many investors fall into is the idea of acting on a hot stock tip without really looking at the situation first. We all want to make as much money from the stock market as possible, and many Hollywood films have given us the impression that all we need to do is make one big trade and we’re set for life, but trading stocks is seldom like winning the lottery. Investing in stocks is much more of a life long exercise than it is a quick sprint to the finish and while a hot stock tip may end up making you some fast cash, they aren’t to be trusted completely. By having a stock broker looking out for you, you are able to ensure that your risk is minimized as much as possible with every trade you make.
Investing safely thanks to solid stock advice is the dream of every new investor, but often times, greed and impatience gets in the way of smart decision making. Make sure you think before you act and your risk will stay under control.
About the Author
Edward Moraz provides realistic stock investing secrets in an easy-to-understand way. He can help you create limitless reocurring-income streams and 'at-will' triple-digit returns. Visit www.StockInvestingProfits.com for more details.
If someone were to write a complete book on stock market investing, the first chapter would have to be called, “There is no such thing as a completely safe investment.” The biggest obstacle in the world of investing is risk. Brokers and mutual fund managers spend their entire careers trying to maximize profits while minimizing risk so that their clients always come out ahead. While it may be impossible to completely eliminate risk from the world of investing, there are a few things you can do to keep your risk as small as possible. Here are a few tips.
First, if you are new to investing, get a professional stock broker to help you until you feel safe performing trades on your own. It wasn’t that long ago that you had to have a broker to perform even a single stock trade, but with the invention of the Internet and online stock trading websites that allow individuals to act as their own broker, many people have taken to investing on their own. While this may seem like an exciting and less expensive way to go, it is extremely dangerous to buy and trade stocks without a complete working knowledge of the market as a whole. Even stock traders who fancy themselves as intermediates need a broker to save themselves from making bad trades. No matter how much you think you know about investing, using a stock broker is always a good way to minimize risk with every investment.
If you are considering entrance into the world of stock market investing in a big way, it is important that you read up on as much material as you can find, not only so you can learn the basics and the jargon that dominates the world of stock market investing, but also so you can learn how to spot trends and decipher hot stock tips so you can really cash in on your investments. Learning the ropes of stock market investing is a two-fold process. First, you need to learn the basics of what the various terms mean so when you talk to your broker, you can communicate clearly. Second, by subscribing to a top investing newspaper like the Wall Street Journal, you can stay up-to-date on the latest business news and get the best stock advice from the same source as everyone else. This will help you anticipate trends that might cost you money or might help you make money.
Finally, to help minimize risk, don’t ever make impulsive trades that haven’t been bounced off of your broker or other expert investing minds. One of the biggest traps that many investors fall into is the idea of acting on a hot stock tip without really looking at the situation first. We all want to make as much money from the stock market as possible, and many Hollywood films have given us the impression that all we need to do is make one big trade and we’re set for life, but trading stocks is seldom like winning the lottery. Investing in stocks is much more of a life long exercise than it is a quick sprint to the finish and while a hot stock tip may end up making you some fast cash, they aren’t to be trusted completely. By having a stock broker looking out for you, you are able to ensure that your risk is minimized as much as possible with every trade you make.
Investing safely thanks to solid stock advice is the dream of every new investor, but often times, greed and impatience gets in the way of smart decision making. Make sure you think before you act and your risk will stay under control.
About the Author
Edward Moraz provides realistic stock investing secrets in an easy-to-understand way. He can help you create limitless reocurring-income streams and 'at-will' triple-digit returns. Visit www.StockInvestingProfits.com for more details.
Friday, January 30, 2009
High Yield Investment Programs And The Guidelines To Note Always
By: Mike Standing
The high yield investments as you might know, have been used by some people interested in making money online through joining programs that have also been named as hyips and regardless of the mechanisms and formulas used in such programs and online plans, it might be essential paying attention to some points and guidelines which can greatly help you having better chancing of earning cash online and also the ones that would diminish the money losing chances.
The first thing you might be asking in this regard is whether or not the hyips can be trusted anyway and this question can be looked upon from many different perspectives and viewpoints. For instance, although the hyip programs and plans can be risky, but if you take a look at the online records of such programs since their launching some years ago, you will figure out that many people have managed to earn income through joining them but you need be aware of some facts and rules in order to succeed once you consider joining the high yield investments.
Please note that when you enter the hyip world with knowledge, experience, insight and awareness of some minute details, all of these factors and elements would combine with each other and then help you through some ways leading to the money making websites and staying away from the cash losing ventures and resources. For example, if you have just launched your web browser and come across a newly launched hyip website, the one that you have limited or no knowledge about, this is never recommended joining that program with some higher amounts of capital and investment.
In other words, sometimes not knowing about the background and details of the high yield investments might lead to cash losing very quickly and this might be the mistake many people make when they decide generating money quickly by taking part in some online plans. It has been heard from some years ago among webmasters and the folks joining the hyips that trusting several programs instead of focusing over a single package is always recommended and up to this moment, all of the experiences people report after joining the high yield investments have proved this matter and you too are highly recommended following this approach and method.
First of all, make some calculations about your future investment projects when you find some hyip websites and consider joining them, and then make separate investments into each of the packages offered using various amounts of cash and then wait for the results. Please note that this way, even if one or some of the hyips you have taken part in fail, you might still be member of the other profitable high yield investments and this could help you compensating for the possible cash losses.
The other matter which is of great importance while joining the hyip programs and listings is taking a look at the actual interest rates promised and the backgrounds and previous records of the websites you like to join because by taking a quick look around the web, at money discussion boards as well as the hyip rating websites, you can easily become aware of the ideas other people have about the specific website and program you are going to take part in.
For example, if the hyip you think as the favorite money making portal online has been voted negatively by many people on the web portals and sites and everybody is telling about the company not paying them for some time, well joining this program would be completely equal to losing all of your cash overnight and this is definitely not the idea in your mind when you think of investing into the hyips.
If you try to be an active internet user, you can also increase your chances of winning in the high yield investments considerably because this way, you would probably be reading a lot of points about the hyips everyday and posted online by article writers and the webmasters who have extensive experiences about all of the plans introduced across the net used by people for generating wealth and other relevant points.
After joining a few of the hyip programs and investing with some smaller amounts, you will gradually gain experience and will step by step become closer to the point where you would be a professional person having a lot of information when it comes to joining the high yield investments and this can be great actually. If you are determined to make money online, try to remain calm and patient and never think about yourself as the person who knows everything about the hyips and the rest of the money making procedures.
The high yield investments as you might know, have been used by some people interested in making money online through joining programs that have also been named as hyips and regardless of the mechanisms and formulas used in such programs and online plans, it might be essential paying attention to some points and guidelines which can greatly help you having better chancing of earning cash online and also the ones that would diminish the money losing chances.
The first thing you might be asking in this regard is whether or not the hyips can be trusted anyway and this question can be looked upon from many different perspectives and viewpoints. For instance, although the hyip programs and plans can be risky, but if you take a look at the online records of such programs since their launching some years ago, you will figure out that many people have managed to earn income through joining them but you need be aware of some facts and rules in order to succeed once you consider joining the high yield investments.
Please note that when you enter the hyip world with knowledge, experience, insight and awareness of some minute details, all of these factors and elements would combine with each other and then help you through some ways leading to the money making websites and staying away from the cash losing ventures and resources. For example, if you have just launched your web browser and come across a newly launched hyip website, the one that you have limited or no knowledge about, this is never recommended joining that program with some higher amounts of capital and investment.
In other words, sometimes not knowing about the background and details of the high yield investments might lead to cash losing very quickly and this might be the mistake many people make when they decide generating money quickly by taking part in some online plans. It has been heard from some years ago among webmasters and the folks joining the hyips that trusting several programs instead of focusing over a single package is always recommended and up to this moment, all of the experiences people report after joining the high yield investments have proved this matter and you too are highly recommended following this approach and method.
First of all, make some calculations about your future investment projects when you find some hyip websites and consider joining them, and then make separate investments into each of the packages offered using various amounts of cash and then wait for the results. Please note that this way, even if one or some of the hyips you have taken part in fail, you might still be member of the other profitable high yield investments and this could help you compensating for the possible cash losses.
The other matter which is of great importance while joining the hyip programs and listings is taking a look at the actual interest rates promised and the backgrounds and previous records of the websites you like to join because by taking a quick look around the web, at money discussion boards as well as the hyip rating websites, you can easily become aware of the ideas other people have about the specific website and program you are going to take part in.
For example, if the hyip you think as the favorite money making portal online has been voted negatively by many people on the web portals and sites and everybody is telling about the company not paying them for some time, well joining this program would be completely equal to losing all of your cash overnight and this is definitely not the idea in your mind when you think of investing into the hyips.
If you try to be an active internet user, you can also increase your chances of winning in the high yield investments considerably because this way, you would probably be reading a lot of points about the hyips everyday and posted online by article writers and the webmasters who have extensive experiences about all of the plans introduced across the net used by people for generating wealth and other relevant points.
After joining a few of the hyip programs and investing with some smaller amounts, you will gradually gain experience and will step by step become closer to the point where you would be a professional person having a lot of information when it comes to joining the high yield investments and this can be great actually. If you are determined to make money online, try to remain calm and patient and never think about yourself as the person who knows everything about the hyips and the rest of the money making procedures.
Real Estate Investment Firms – Helping Investors Earn Huge Profits
By: Naj Alizada
Real estate investments are very popular these days. Whether you make commercial property investment or residential property investment, you can pave the way for impressive earnings. However, real estate investing is one option, which requires considerable amount of knowledge about all its aspects and this is where real estate investment firms enter the scene. These firms lend helping hands in making you financially independent and let you relax about your post-retirement years.
If it is your fist attempt to earn monetary benefits from investments in real estate, here are few reasons why you should approach one of the real estate investment firms.
Evaluation Of Various Investment Plans
The market of real estate investing is flooded with a number of plans like commercial real estate investments and equity real state investment plans. However, you should have the talent to choose most rewarding plan out of these. A real estate investment firm can help you to evaluate various investment plans in this category, so that you can witness your money growing at a dependable rate. These real estate investment firms have huge networks of real estate professionals and investment experts and thus, they can provide you with profit-bearing investment products.
Saving Your Time And Efforts
Real estate investing certainly requires an individual to spend time and efforts to achieve desirable success as an investor in this market. If you are in a regular job or an active social being, it might be difficult for you to reserve time in this direction. But, you can always take advantage of real estate investment firms to devote time and efforts on your behalf.
An Array of Beneficial Services
The real estate investment firms offer a wide spectrum of services to its clients. For instance, portfolio diversification, debt analysis, tax related issues and due diligence are some of the issues handled proficiently by these firms. You can seek advice from these firms on any aspect of real estate investing at any point of time.
Thus, you can begin your journey towards successful real estate investing with the help of these dedicated investment cradles.
While searching for a good investment firm, you might come across a number of options. However, a search under the lens can help you to figure out, which option is better for you. Concrete Equities is a good suggestion, as the firm is positively reviewed by its clients and market spectators.
About the Author
Naj is a very well known author who writes articles on Commercial Real Estate Investments , Equity Real Estate & Dragon's Den.
Real estate investments are very popular these days. Whether you make commercial property investment or residential property investment, you can pave the way for impressive earnings. However, real estate investing is one option, which requires considerable amount of knowledge about all its aspects and this is where real estate investment firms enter the scene. These firms lend helping hands in making you financially independent and let you relax about your post-retirement years.
If it is your fist attempt to earn monetary benefits from investments in real estate, here are few reasons why you should approach one of the real estate investment firms.
Evaluation Of Various Investment Plans
The market of real estate investing is flooded with a number of plans like commercial real estate investments and equity real state investment plans. However, you should have the talent to choose most rewarding plan out of these. A real estate investment firm can help you to evaluate various investment plans in this category, so that you can witness your money growing at a dependable rate. These real estate investment firms have huge networks of real estate professionals and investment experts and thus, they can provide you with profit-bearing investment products.
Saving Your Time And Efforts
Real estate investing certainly requires an individual to spend time and efforts to achieve desirable success as an investor in this market. If you are in a regular job or an active social being, it might be difficult for you to reserve time in this direction. But, you can always take advantage of real estate investment firms to devote time and efforts on your behalf.
An Array of Beneficial Services
The real estate investment firms offer a wide spectrum of services to its clients. For instance, portfolio diversification, debt analysis, tax related issues and due diligence are some of the issues handled proficiently by these firms. You can seek advice from these firms on any aspect of real estate investing at any point of time.
Thus, you can begin your journey towards successful real estate investing with the help of these dedicated investment cradles.
While searching for a good investment firm, you might come across a number of options. However, a search under the lens can help you to figure out, which option is better for you. Concrete Equities is a good suggestion, as the firm is positively reviewed by its clients and market spectators.
About the Author
Naj is a very well known author who writes articles on Commercial Real Estate Investments , Equity Real Estate & Dragon's Den.
Thursday, January 29, 2009
The Financial Markets For 2009
By: Robert Thomas
To bet or not to bet, that is the question. Actually it’s not the question. Should we be spread betting on the markets to go up or down in 2009? That is what needs answering.
Looking at the housing market, whilst UK house prices saw big falls throughout 2008, the trend looks set to continue in 2009. We will not see prices stabilise until they come back to the levels of affordability for first time buyers. On top of this we need to see mortgage lenders willing to give out attractive deals and entice buyers back in. Until then, any buyers out there will continue to offer around 10-15% below asking prices.
Whilst the current series of interest rate cuts from the Bank of England are designed to stimulate the economy and encourage lending they are almost having the reverse effect. Banks have to lend their money for next to nothing, still with the risk that they could not see it again. That causes more problems for the banks. Like it or not, they are central to the whole economy.
Looking at the FTSE 100, there was an interesting rise in the stock market over the festive period and start of 2009. The FTSE then gave much of the gain back and then some more. Again, the 4700 highs in November 2008 proved to be something of a psychological barrier for traders.
The interest rate cutting approach also appears to have lost any previous effect. Although more cuts are expected in the months to come, with banks still reluctant to take on the risk of additional lending it seems unlikely that the base rate is going to be the magic wand that staves off any further economic slowdown.
This does not mean that it is all necessarily doom and gloom for the financial markets. The main index is around 15-20% above last year’s low. So how much of the recession has already been factored into share prices? Perhaps not all of it.
The minutes from the last Federal Reserve meeting revealed their concern over the outlook for the US economy, citing that there are still considerable risks to any recovery.
This was highlighted in the US employment figures. These showed that just over half a million Americans lost their jobs in December, broadly in line with expectations. That is a jump to a fifteen year high and made 2008 the worst year for Non-farm payroll losses since 1945.
Initially this news was greeted with some relief that expectations had not been far too optimistic. Another 500,000 jobs is a lot of bad news priced into the markets. However, as the day went on, US markets turned lower and dragged down the rest of the world indices.
Whilst the unemployment number was in line with expectations, it does show the continuing dire state of the US economy. With a bit of time to digest the facts, the markets came to the conclusion that ongoing job losses of this magnitude could be the order of the day for some time.
It would be vastly optimistic to hope that this trend is going to change any time soon. The jury is still out on how much of this dismal outlook is already factored into share prices.
Nevertheless, bearing in mind that stock indices have bounced back by around 15-20% off the November lows, it is not too surprising that many have taken the view that significant upside for shares looks limited for the short-term at least.
Note that spread betting carries a high level of risk and may not be suitable for all classes of investor. Only trade with money that you can afford to lose. Make sure you fully understand the risks involved. If necessary, seek independent financial advice.
To bet or not to bet, that is the question. Actually it’s not the question. Should we be spread betting on the markets to go up or down in 2009? That is what needs answering.
Looking at the housing market, whilst UK house prices saw big falls throughout 2008, the trend looks set to continue in 2009. We will not see prices stabilise until they come back to the levels of affordability for first time buyers. On top of this we need to see mortgage lenders willing to give out attractive deals and entice buyers back in. Until then, any buyers out there will continue to offer around 10-15% below asking prices.
Whilst the current series of interest rate cuts from the Bank of England are designed to stimulate the economy and encourage lending they are almost having the reverse effect. Banks have to lend their money for next to nothing, still with the risk that they could not see it again. That causes more problems for the banks. Like it or not, they are central to the whole economy.
Looking at the FTSE 100, there was an interesting rise in the stock market over the festive period and start of 2009. The FTSE then gave much of the gain back and then some more. Again, the 4700 highs in November 2008 proved to be something of a psychological barrier for traders.
The interest rate cutting approach also appears to have lost any previous effect. Although more cuts are expected in the months to come, with banks still reluctant to take on the risk of additional lending it seems unlikely that the base rate is going to be the magic wand that staves off any further economic slowdown.
This does not mean that it is all necessarily doom and gloom for the financial markets. The main index is around 15-20% above last year’s low. So how much of the recession has already been factored into share prices? Perhaps not all of it.
The minutes from the last Federal Reserve meeting revealed their concern over the outlook for the US economy, citing that there are still considerable risks to any recovery.
This was highlighted in the US employment figures. These showed that just over half a million Americans lost their jobs in December, broadly in line with expectations. That is a jump to a fifteen year high and made 2008 the worst year for Non-farm payroll losses since 1945.
Initially this news was greeted with some relief that expectations had not been far too optimistic. Another 500,000 jobs is a lot of bad news priced into the markets. However, as the day went on, US markets turned lower and dragged down the rest of the world indices.
Whilst the unemployment number was in line with expectations, it does show the continuing dire state of the US economy. With a bit of time to digest the facts, the markets came to the conclusion that ongoing job losses of this magnitude could be the order of the day for some time.
It would be vastly optimistic to hope that this trend is going to change any time soon. The jury is still out on how much of this dismal outlook is already factored into share prices.
Nevertheless, bearing in mind that stock indices have bounced back by around 15-20% off the November lows, it is not too surprising that many have taken the view that significant upside for shares looks limited for the short-term at least.
Note that spread betting carries a high level of risk and may not be suitable for all classes of investor. Only trade with money that you can afford to lose. Make sure you fully understand the risks involved. If necessary, seek independent financial advice.
Agriculture Business – A Good Investing Option
By: Jono Craven
Agricultural businesses are diverse and cover much more than a large farm or ranch. A person looking to start a business or buy an existing business in this area will need financing as well as particular knowledge. The accessibility of land to start a new agricultural business is a limiting factor these days as there just is not that much land still not being refined. This means that a new owner will usually have to find an agricultural business that is for sale. There are always family businesses for sale, but they do not become available at low prices these days.
The land is valuable and the obtainable equipment if in good repair is also not contemptible. New equipment is priced like new cars are these days. The prices are higher and higher and out of prospect. Most new owners of ranches or farms were born into the family business and are just taking over the running of a family or corporate venture. There are other related agricultural businesses that can be started from scratch or purchased from an existing owner. These include farm supplies, farm equipment, nurseries, small special crop farms, pest control, a niche winery, crop dusting companies and horse or cattle ranches. All of these businesses can usually be found on the market. The problem, as with any other purchase of a business, is this. Can the buyer come up with enough money to interest the current owner and will the current owner carry back some of the paper. There are many very solid reasons that a new owner should consider buying an existing operation rather than starting a new company. The cost will be higher usually with a running business, but the existing business will have customers or a history of production.
Many of the related agricultural businesses will not take the capital to get started or to buy that is desirable for the purchase of a large ranch or farm. Farming now days is a capital concentrated business and this is one of the reasons that family units are always coming on the market. This opens the door for chance for the person looking to buy, but it also means that the buyer must have the capital or credit to make the purchase. A proposal for a potential buyer is contact brokers who specialized in these businesses and see what is being offered and the terms of the offers. This will quickly notify the buyer what they are going to need to make a sale ensue.
If you are interested in buying an agricultural business that supports the farming community, then your capital expend may be considerably lower and may show a higher percentage return on investment. Farming has a low return on invested capital since the price of land and equipment has sky rocketed in this current market. Some of the other particular businesses can be purchased or started with less capital and the percentage return is significantly higher. These are factors that should be considered by a potential new owner. One of the reasons that the family units come to market is just this fact. The old owners die or wish to retire and their children do not with to continue the business. So they put it up for sale, knowing they can get a better return on their money without the work or the risk of farming. Brokers usually know why a property is being offered and this knowledge can help the buyer make a better deal with the old owner. Maybe just as a matter of principal, they want to see their farm remain a family farm and not part of a large agricultural corporation.
The greatest advice that a potential owner can get is study the market and make sure you have the desired money to pull off whatever deal you are looking at. Find a knowledgeable broker and ask lots of questions. Use the Internet to look up answers to questions that you come across.
Agricultural businesses are diverse and cover much more than a large farm or ranch. A person looking to start a business or buy an existing business in this area will need financing as well as particular knowledge. The accessibility of land to start a new agricultural business is a limiting factor these days as there just is not that much land still not being refined. This means that a new owner will usually have to find an agricultural business that is for sale. There are always family businesses for sale, but they do not become available at low prices these days.
The land is valuable and the obtainable equipment if in good repair is also not contemptible. New equipment is priced like new cars are these days. The prices are higher and higher and out of prospect. Most new owners of ranches or farms were born into the family business and are just taking over the running of a family or corporate venture. There are other related agricultural businesses that can be started from scratch or purchased from an existing owner. These include farm supplies, farm equipment, nurseries, small special crop farms, pest control, a niche winery, crop dusting companies and horse or cattle ranches. All of these businesses can usually be found on the market. The problem, as with any other purchase of a business, is this. Can the buyer come up with enough money to interest the current owner and will the current owner carry back some of the paper. There are many very solid reasons that a new owner should consider buying an existing operation rather than starting a new company. The cost will be higher usually with a running business, but the existing business will have customers or a history of production.
Many of the related agricultural businesses will not take the capital to get started or to buy that is desirable for the purchase of a large ranch or farm. Farming now days is a capital concentrated business and this is one of the reasons that family units are always coming on the market. This opens the door for chance for the person looking to buy, but it also means that the buyer must have the capital or credit to make the purchase. A proposal for a potential buyer is contact brokers who specialized in these businesses and see what is being offered and the terms of the offers. This will quickly notify the buyer what they are going to need to make a sale ensue.
If you are interested in buying an agricultural business that supports the farming community, then your capital expend may be considerably lower and may show a higher percentage return on investment. Farming has a low return on invested capital since the price of land and equipment has sky rocketed in this current market. Some of the other particular businesses can be purchased or started with less capital and the percentage return is significantly higher. These are factors that should be considered by a potential new owner. One of the reasons that the family units come to market is just this fact. The old owners die or wish to retire and their children do not with to continue the business. So they put it up for sale, knowing they can get a better return on their money without the work or the risk of farming. Brokers usually know why a property is being offered and this knowledge can help the buyer make a better deal with the old owner. Maybe just as a matter of principal, they want to see their farm remain a family farm and not part of a large agricultural corporation.
The greatest advice that a potential owner can get is study the market and make sure you have the desired money to pull off whatever deal you are looking at. Find a knowledgeable broker and ask lots of questions. Use the Internet to look up answers to questions that you come across.
Wednesday, January 28, 2009
A Courageous Decision On Market Turmoil
By: Peter Jones
Just when you thought it was safe to go back into the water, the financial markets drop off again.
The more you watch the various twists and turns of our great leaders the more you begin to believe that they have as much clue as I do as to how to put a stop to the turmoil. The underlying reality is that the falls of the last year have been caused by too much money supply operating for far too long. Money has been too easy to get, too easy to spend.
In the UK, money supply has been running at over 10% for years with growth rates of around 2% (here or there) and an inflation rate of around 2% (here or there).
All this money had to go somewhere and in the main it went into assets (houses being the main one). That’s great for those spread betting on the housing market. Not so good for everyone else. This was not helped by a government that continued to add stimulus packages even though the economy was trundling along quite nicely anyway. That meant that even in the best of times there was still a public sector borrowing requirement instead of a surplus.
The result is that the elastic band eventually snapped. The banks have suddenly had to operate in a world of shrinking liquidity. Not surprisingly they have decided that they want to start restricting their exposure by cutting back on lending.
In response, over the horizon rides the Lone Ranger in the guise of the Fed, the Bank of England, the ECB, Bank of China etc to save the world economy. Their reaction has been, and continues to be, ‘print more money’, keep the ride going for one more round and something might turn up. This is like a redundant man applying for one more credit card on the basis that a job ‘is bound to turn up soon’.
Unfortunately, this time, the spending impulse is unlikely to have much impact in the short to medium term as the down turn has not really been allowed to run its course yet. We might believe that the worst is over…and it might be, you never know…but unfortunately this will not stop the continued destruction of loss making companies.
The huge injections of liquidity will keep the edifice lurching on a bit longer. Nevertheless the more we try to prop it up, the bigger will be the eventual fall. It will be many, many months before growth starts to be positive. If a business is only surviving on overdrafts and borrowings now, what chance in 12 or 18 months?
Gordon Brown’s accusation that the Tories were the ‘do nothing party’ should become the Conservatives slogan. We have tried the pump-prime method, now what is needed is harsh reality. Get the country’s (and individuals’) finances back in order.
This will take many years and will be unpopular…it is what Sir Humphrey in Yes Minister used to call ‘a courageous decision’. However that does not mean that it is wrong.
Spread bets carry a high level of risk to your money and may not suit all forms of investor. You can lose more than your initial investment so make sure you only speculate with capital that you can afford to lose. Likewise make sure you understand the risks involved and seek independent financial advice where necessary.
Just when you thought it was safe to go back into the water, the financial markets drop off again.
The more you watch the various twists and turns of our great leaders the more you begin to believe that they have as much clue as I do as to how to put a stop to the turmoil. The underlying reality is that the falls of the last year have been caused by too much money supply operating for far too long. Money has been too easy to get, too easy to spend.
In the UK, money supply has been running at over 10% for years with growth rates of around 2% (here or there) and an inflation rate of around 2% (here or there).
All this money had to go somewhere and in the main it went into assets (houses being the main one). That’s great for those spread betting on the housing market. Not so good for everyone else. This was not helped by a government that continued to add stimulus packages even though the economy was trundling along quite nicely anyway. That meant that even in the best of times there was still a public sector borrowing requirement instead of a surplus.
The result is that the elastic band eventually snapped. The banks have suddenly had to operate in a world of shrinking liquidity. Not surprisingly they have decided that they want to start restricting their exposure by cutting back on lending.
In response, over the horizon rides the Lone Ranger in the guise of the Fed, the Bank of England, the ECB, Bank of China etc to save the world economy. Their reaction has been, and continues to be, ‘print more money’, keep the ride going for one more round and something might turn up. This is like a redundant man applying for one more credit card on the basis that a job ‘is bound to turn up soon’.
Unfortunately, this time, the spending impulse is unlikely to have much impact in the short to medium term as the down turn has not really been allowed to run its course yet. We might believe that the worst is over…and it might be, you never know…but unfortunately this will not stop the continued destruction of loss making companies.
The huge injections of liquidity will keep the edifice lurching on a bit longer. Nevertheless the more we try to prop it up, the bigger will be the eventual fall. It will be many, many months before growth starts to be positive. If a business is only surviving on overdrafts and borrowings now, what chance in 12 or 18 months?
Gordon Brown’s accusation that the Tories were the ‘do nothing party’ should become the Conservatives slogan. We have tried the pump-prime method, now what is needed is harsh reality. Get the country’s (and individuals’) finances back in order.
This will take many years and will be unpopular…it is what Sir Humphrey in Yes Minister used to call ‘a courageous decision’. However that does not mean that it is wrong.
Spread bets carry a high level of risk to your money and may not suit all forms of investor. You can lose more than your initial investment so make sure you only speculate with capital that you can afford to lose. Likewise make sure you understand the risks involved and seek independent financial advice where necessary.
Why Options Trading Works and Has the High Payouts
By: Luke Anderson
You may wonder, what is this buzz I keep hearing about options? Options are contracts giving the purchaser the right to buy or sell a security (stocks) at a set price for a set amount of time. Options come in many types, and the business of options trading is generally high risk. The buzz is created by the people who have the knowledge of when to buy, and more importantly, when to sell.
Naturally, because trading options is high risk, the payout is extremely high. It is not uncommon for some gains to exceed 1000%. However, most gains are in the 100%-150% range. Calculated over a standard period of one year, large amounts of investment can grow phenomenally large.
Options by nature are a losing proposition. 95% of the time, the odds are stacked against you. However, it's that 5% that yields the high payout. Given viable information, reaching into that 5% of success is fairly easy. There are many firms and organizations that have proven methods of tapping into that success rate.
How many stocks should you trade? A part of the secret success is monitoring patterns. There are many stocks that follow such a pattern, and once you recognize this, your first step is done. Generally, a small amount of stocks are needed following the trends above in order for you to find success.
What if I can't watch the market daily? Some people get tied up with other things, family, work, Warhammer Online, etc, and can't keep an eye on the market. Options do allow investors to be passive in their buying and selling. Risk tolerance factors can be built in, which tend to not allow huge gains, but modest gains continually over time. 25% per month over time adds up.
The most common way to trade stock options is trading standardized options contracts that are listed by various futures and options exchanges - there are currently six exchanges in the United States that list standardized options contracts based on underlying stocks - The Philadelphia Stock Exchange (PHLX), American Stock Exchange (AMEX) and NYSE Arca in New York City, and the Chicago Board Options Exchange (CBOE) which are all open-outcry marketplaces, and the International Securities Exchange (ISE) and Boston Options Exchange (BOX) are electronic marketplaces. However, even for the non-electronic exchanges, competition and the introduction of automated execution (AutoEx) has led, by late 2006, to hybridization where all but the largest trades are executed electronically. In Europe the main exchanges where stock options are traded are Euronext.liffe and Eurex.
There are also over-the-counter options contracts that are traded not on exchanges, but between two independent parties. At least one of those parties is usually a large financial institution with a balance sheet big enough to underwrite such a contract.
As you can see, the world of options is fairly complex, and risky. However, if you have access to the right information and know-how, trading options can be very lucrative over a short period of time. Teaming with a firm that specializes in the technicalities of investment and trading options is a great place to start. Often, they will have time proven methods to spot trends, and offer great buying/selling advice.
About The Author:
Look at Options Trading for a good source of information about options trading and how options trading works.
You may wonder, what is this buzz I keep hearing about options? Options are contracts giving the purchaser the right to buy or sell a security (stocks) at a set price for a set amount of time. Options come in many types, and the business of options trading is generally high risk. The buzz is created by the people who have the knowledge of when to buy, and more importantly, when to sell.
Naturally, because trading options is high risk, the payout is extremely high. It is not uncommon for some gains to exceed 1000%. However, most gains are in the 100%-150% range. Calculated over a standard period of one year, large amounts of investment can grow phenomenally large.
Options by nature are a losing proposition. 95% of the time, the odds are stacked against you. However, it's that 5% that yields the high payout. Given viable information, reaching into that 5% of success is fairly easy. There are many firms and organizations that have proven methods of tapping into that success rate.
How many stocks should you trade? A part of the secret success is monitoring patterns. There are many stocks that follow such a pattern, and once you recognize this, your first step is done. Generally, a small amount of stocks are needed following the trends above in order for you to find success.
What if I can't watch the market daily? Some people get tied up with other things, family, work, Warhammer Online, etc, and can't keep an eye on the market. Options do allow investors to be passive in their buying and selling. Risk tolerance factors can be built in, which tend to not allow huge gains, but modest gains continually over time. 25% per month over time adds up.
The most common way to trade stock options is trading standardized options contracts that are listed by various futures and options exchanges - there are currently six exchanges in the United States that list standardized options contracts based on underlying stocks - The Philadelphia Stock Exchange (PHLX), American Stock Exchange (AMEX) and NYSE Arca in New York City, and the Chicago Board Options Exchange (CBOE) which are all open-outcry marketplaces, and the International Securities Exchange (ISE) and Boston Options Exchange (BOX) are electronic marketplaces. However, even for the non-electronic exchanges, competition and the introduction of automated execution (AutoEx) has led, by late 2006, to hybridization where all but the largest trades are executed electronically. In Europe the main exchanges where stock options are traded are Euronext.liffe and Eurex.
There are also over-the-counter options contracts that are traded not on exchanges, but between two independent parties. At least one of those parties is usually a large financial institution with a balance sheet big enough to underwrite such a contract.
As you can see, the world of options is fairly complex, and risky. However, if you have access to the right information and know-how, trading options can be very lucrative over a short period of time. Teaming with a firm that specializes in the technicalities of investment and trading options is a great place to start. Often, they will have time proven methods to spot trends, and offer great buying/selling advice.
About The Author:
Look at Options Trading for a good source of information about options trading and how options trading works.
Tuesday, January 27, 2009
How to Make Hotel Investments
By: Venugopal Naidu
Augmented global travel particularly from emerging market segments of India and China is the reason behind the undying upswing in the hotel industry. Unsurprisingly, hotel investment experts around the globe are ecstatic about this emerging trend. Hotel owners, operators and investors alike are quick to jump on to new acquisitions. But at the same time, it also holds true that investment in the hotel industry is plagued with complications and risk. A huge amount of capital is at stake, and this calls for a meticulously planned move and enormous expertise on the part of the investor. Investors should and do rely upon expert opinion before deciding upon an investment. Some vital points that need to be given a second thought before putting down the cash for investment in a hotel are discussed below.
Inspect
The hotel property, despite putting up a pretty face, may be rendered unusable after finishing the deal, due to reasons such as underground environment pollution, interior mold infestation, and structural damage from termites and rodents. Finalize the deal only after thoroughly investigating the property yourself. Authentication from an engineer to check for all the above conditions and to make sure that the property complies with building codes is necessary.
Know your hotel management company
If you are thinking of employing a hotel management firm to mind your business, be sure of its capabilities through different sources. Take a look at its operating performance and cross check with other hotels that it manages. Analyze its record in maximizing revenues and keeping expenses in control.
Analyze visitor segments
It is necessary that the hotel gets visitors from all segments like commercial, group, business and leisure travelers. Hotels that depend on a single segment for their business seldom do well throughout the year. On the other hand, hotels that derive visitors from diverse segments of travelers bank on the other segments when a particular segment registers a slack.
Avoid depending upon single businesses
If your hotel runs because of visitors that come from a single business, it would largely depend upon the performance of that business. Hotels dependent upon visitors from an airport, a business or an amusement park, can go berserk when these income generating businesses shut shop. For example, if the airport gets relocated, or the business changes headquarters or the amusement park gets tough competition from a better one, it is nonetheless important that the hotel fire keeps burning.
Check the period of the hotel's in-season
A hotel which has an in-season of a minimum eight months is an option worth considering. A season shorter than this period means that the hotel can cope up with costs only if it enjoys a sufficient average rate premium during season. It is also imperative that the in-season months are consecutive
Barriers to entry
There are certain markets wherein it is easy to acquire hotel zoned land and construct a lodging facility. When the financing norms are eased, these markets see an overcrowding of hotels. In a market where there are barriers to enter into the hospitality trade for any reason whatsoever, there is less possibility of overbuilding or overcrowding. Hence, it is always preferable to make an investment in a market where they are high.
Keep the terms easy
Do not overlook the possibility of your selling the hotel eventually. Plan your acquisition keeping this fact in mind. Design the management contract and franchise agreement so it can be easily terminated. Keep flexibility intact by assigning or prepaying the mortgage, buying out partners and minimizing tax exposure.
Choose the brand of your hotel with care
Before branding your hotel, understand the implication of a brand and what segment of visitors will it attract. Established brands like business hotel or leisure lodging are safer than newer brands that are still fumbling for identity.
Conclusion
These guidelines are no key to making your hotel investment successful. But paying heed to these nuances before allowing money to change hands will definitely reap rich dividends.
About The Author:
Venugopal Naidu is the business development head at Ista Hotel in Bangalore, India. Associated with Ista for the past five years, he has been active in projecting the hotel as a luxury five star hotel in Bangalore. Catalyzing the growing popularity of Ista, Naidu foresees a major fillip in the customer base of luxury business accommodation worldwide
Augmented global travel particularly from emerging market segments of India and China is the reason behind the undying upswing in the hotel industry. Unsurprisingly, hotel investment experts around the globe are ecstatic about this emerging trend. Hotel owners, operators and investors alike are quick to jump on to new acquisitions. But at the same time, it also holds true that investment in the hotel industry is plagued with complications and risk. A huge amount of capital is at stake, and this calls for a meticulously planned move and enormous expertise on the part of the investor. Investors should and do rely upon expert opinion before deciding upon an investment. Some vital points that need to be given a second thought before putting down the cash for investment in a hotel are discussed below.
Inspect
The hotel property, despite putting up a pretty face, may be rendered unusable after finishing the deal, due to reasons such as underground environment pollution, interior mold infestation, and structural damage from termites and rodents. Finalize the deal only after thoroughly investigating the property yourself. Authentication from an engineer to check for all the above conditions and to make sure that the property complies with building codes is necessary.
Know your hotel management company
If you are thinking of employing a hotel management firm to mind your business, be sure of its capabilities through different sources. Take a look at its operating performance and cross check with other hotels that it manages. Analyze its record in maximizing revenues and keeping expenses in control.
Analyze visitor segments
It is necessary that the hotel gets visitors from all segments like commercial, group, business and leisure travelers. Hotels that depend on a single segment for their business seldom do well throughout the year. On the other hand, hotels that derive visitors from diverse segments of travelers bank on the other segments when a particular segment registers a slack.
Avoid depending upon single businesses
If your hotel runs because of visitors that come from a single business, it would largely depend upon the performance of that business. Hotels dependent upon visitors from an airport, a business or an amusement park, can go berserk when these income generating businesses shut shop. For example, if the airport gets relocated, or the business changes headquarters or the amusement park gets tough competition from a better one, it is nonetheless important that the hotel fire keeps burning.
Check the period of the hotel's in-season
A hotel which has an in-season of a minimum eight months is an option worth considering. A season shorter than this period means that the hotel can cope up with costs only if it enjoys a sufficient average rate premium during season. It is also imperative that the in-season months are consecutive
Barriers to entry
There are certain markets wherein it is easy to acquire hotel zoned land and construct a lodging facility. When the financing norms are eased, these markets see an overcrowding of hotels. In a market where there are barriers to enter into the hospitality trade for any reason whatsoever, there is less possibility of overbuilding or overcrowding. Hence, it is always preferable to make an investment in a market where they are high.
Keep the terms easy
Do not overlook the possibility of your selling the hotel eventually. Plan your acquisition keeping this fact in mind. Design the management contract and franchise agreement so it can be easily terminated. Keep flexibility intact by assigning or prepaying the mortgage, buying out partners and minimizing tax exposure.
Choose the brand of your hotel with care
Before branding your hotel, understand the implication of a brand and what segment of visitors will it attract. Established brands like business hotel or leisure lodging are safer than newer brands that are still fumbling for identity.
Conclusion
These guidelines are no key to making your hotel investment successful. But paying heed to these nuances before allowing money to change hands will definitely reap rich dividends.
About The Author:
Venugopal Naidu is the business development head at Ista Hotel in Bangalore, India. Associated with Ista for the past five years, he has been active in projecting the hotel as a luxury five star hotel in Bangalore. Catalyzing the growing popularity of Ista, Naidu foresees a major fillip in the customer base of luxury business accommodation worldwide
What Type of Mortgage is best for you?
By: Helena Topolova
With all of the different types of mortgages out there, it is difficult to know which one is the right one for you. Here is a quick rundown and brief explanation of a few different mortgages you should consider. Also remember, taking out a mortgage is only a good idea if you have the money to pay it, never take one out on the hope that someday you will be making enough to pay the payments.
A fixed rate mortgage is the most basic mortgage you will encounter on the search for the mortgage. The mortgage interest rates stay constant throughout the term of the loan. With the type you don't have to worry about the mortgage rates going up on you from month to month. You will know what your payment is going to be every single month.
An adjustable rate mortgage is almost opposite the fixed rate. With this the mortgage interest rate fluxgates based several different aspects of the market. This mortgage is better for the financial institution because it eliminates some of the risk for them, by ensuring if the mortgage rates go up, so do your interest rates. However, this type can lead to lower interest rates as well; in fact they often start a little lower than the fixed rate.
The adjustable isn't to be confused with the graduated rate mortgages, which also has changing mortgage interest rate; however these rates increase at a steady, planned rate. You will still know each payment before you get it, but it starts lower and get larger as you go on. Good for someone just started a new job or recently moved to a new area and are getting settled.
The final type we're going to address is the balloon payment mortgage. This mortgage may have mortgage rates that are fixed or adjustable, depending on the bank, but the catch is at the end of the term there is a balance you still need to pay. The monthly payments will be lower, but when the maturity date hits there is a large, usually quite large, payment due. This is mortgage is generally reserved for commercial use and can be dangerous for residential mortgages.
In the end if you still don't know what mortgage you should get, visit or call your financial institution for some mortgages rates or go online to find yourself a mortgage calculator.
About The Author:
For more Information on this topic visit http://www.buildwish.com a free Online Home Improvement Directory in 100 Cities in North America. Featuring over 2 million Real Estate classifieds, helpful articles, contests, home improvement videos, virtual home tools, Qualified Trades people, ask an expert, a moving center, get free quotes for Insurance, Moving, Mortgages, Contractors, Find Foreclosures and a finance blog that will save you money on bank rates & credit card rates.
With all of the different types of mortgages out there, it is difficult to know which one is the right one for you. Here is a quick rundown and brief explanation of a few different mortgages you should consider. Also remember, taking out a mortgage is only a good idea if you have the money to pay it, never take one out on the hope that someday you will be making enough to pay the payments.
A fixed rate mortgage is the most basic mortgage you will encounter on the search for the mortgage. The mortgage interest rates stay constant throughout the term of the loan. With the type you don't have to worry about the mortgage rates going up on you from month to month. You will know what your payment is going to be every single month.
An adjustable rate mortgage is almost opposite the fixed rate. With this the mortgage interest rate fluxgates based several different aspects of the market. This mortgage is better for the financial institution because it eliminates some of the risk for them, by ensuring if the mortgage rates go up, so do your interest rates. However, this type can lead to lower interest rates as well; in fact they often start a little lower than the fixed rate.
The adjustable isn't to be confused with the graduated rate mortgages, which also has changing mortgage interest rate; however these rates increase at a steady, planned rate. You will still know each payment before you get it, but it starts lower and get larger as you go on. Good for someone just started a new job or recently moved to a new area and are getting settled.
The final type we're going to address is the balloon payment mortgage. This mortgage may have mortgage rates that are fixed or adjustable, depending on the bank, but the catch is at the end of the term there is a balance you still need to pay. The monthly payments will be lower, but when the maturity date hits there is a large, usually quite large, payment due. This is mortgage is generally reserved for commercial use and can be dangerous for residential mortgages.
In the end if you still don't know what mortgage you should get, visit or call your financial institution for some mortgages rates or go online to find yourself a mortgage calculator.
About The Author:
For more Information on this topic visit http://www.buildwish.com a free Online Home Improvement Directory in 100 Cities in North America. Featuring over 2 million Real Estate classifieds, helpful articles, contests, home improvement videos, virtual home tools, Qualified Trades people, ask an expert, a moving center, get free quotes for Insurance, Moving, Mortgages, Contractors, Find Foreclosures and a finance blog that will save you money on bank rates & credit card rates.
Monday, January 26, 2009
Selling Your Home Quickly May Save You Money
By: Anand Pancholi
As we reach the end of another year, I find myself musing over the latest housing market trends and wondering just how hard it might be to sell my house next year.
We have had more than a decade of non-stop house price growth, but now the housing market has reached a point of instability that indicates further slow down.
Recent statistics show house sales falling faster than they have in the past eight years and the number of new house sales has dropped for five months in a row, bringing us the severest decline since 1999. Supply is more than demand as many rush to sell before the housing market slowdown, which is widely forecasted.
For the moment these down trends are regional and the most badly effected are Yorkshire, Humberside and the Midlands with the market in Birmingham being described as depressed. Northern Ireland has shown the most spectacular price boom of recent years. Yet recently has experienced the largest price falls.
This month has also seen the Bank of England responding by cutting interest rates to 5.5 percent as they anticipate a slowdown next year. Assuming that mortgage lenders respond this should bring some relief to those who have seen their repayments rising sharply in the past year.
Another problem will be the nearly one and a half million people whose fixed rate terms end in the year to come. Will they be able to secure a comparable new rate or will this add to the rising repossessions?
This week we have also been warned by Chris Huhne, the candidate for the Liberal Democrat Leadership, that the planned capital gains tax cut next April, could lead buy to let landlord's hastening to sell. This could intensify what an already weak housing market.
One of the top DIY chains, Wickes is warning of a considerable slow-down of customer spending in the coming months because of the decline in the housing market.
As housing prices fall, people are inclined to move less as equity diminishes and we also here more stories of people being repossessed due to excessive lending rates of the past and the Citizens Advice report nearly sixty thousand people seeking advice on loan and mortgage arrears since April 2007.
So if like myself you are considering selling your house next year, how should we proceed? Selling with an estate Agent can take six months, how much may the price of my house drop in this time? I have been in this situation before, though many years ago. I started out selling at fifty five thousand and eventually bagged a price of thirty eight thousand, so you can see the reason for my concern.
However the answer may lie with a house sale specialist. These operated differently from an estate agent. Firstly they offer slightly less than the market value but there are no fees not even for a solicitor. One such company An Instant Sale operates throughout the UK and guarantees a sale in as little as seven days.
When I weigh all things up, I believe this will be a better option than just sitting it out with an estate agent and watching my home devalue. What do you think?
About The Author:
An Instant Sale are house sale specialists and property investors who operate throughout the UK. For a free, confidential and no obligation offer on your home visit our website at: http://aninstantsale.co.uk
As we reach the end of another year, I find myself musing over the latest housing market trends and wondering just how hard it might be to sell my house next year.
We have had more than a decade of non-stop house price growth, but now the housing market has reached a point of instability that indicates further slow down.
Recent statistics show house sales falling faster than they have in the past eight years and the number of new house sales has dropped for five months in a row, bringing us the severest decline since 1999. Supply is more than demand as many rush to sell before the housing market slowdown, which is widely forecasted.
For the moment these down trends are regional and the most badly effected are Yorkshire, Humberside and the Midlands with the market in Birmingham being described as depressed. Northern Ireland has shown the most spectacular price boom of recent years. Yet recently has experienced the largest price falls.
This month has also seen the Bank of England responding by cutting interest rates to 5.5 percent as they anticipate a slowdown next year. Assuming that mortgage lenders respond this should bring some relief to those who have seen their repayments rising sharply in the past year.
Another problem will be the nearly one and a half million people whose fixed rate terms end in the year to come. Will they be able to secure a comparable new rate or will this add to the rising repossessions?
This week we have also been warned by Chris Huhne, the candidate for the Liberal Democrat Leadership, that the planned capital gains tax cut next April, could lead buy to let landlord's hastening to sell. This could intensify what an already weak housing market.
One of the top DIY chains, Wickes is warning of a considerable slow-down of customer spending in the coming months because of the decline in the housing market.
As housing prices fall, people are inclined to move less as equity diminishes and we also here more stories of people being repossessed due to excessive lending rates of the past and the Citizens Advice report nearly sixty thousand people seeking advice on loan and mortgage arrears since April 2007.
So if like myself you are considering selling your house next year, how should we proceed? Selling with an estate Agent can take six months, how much may the price of my house drop in this time? I have been in this situation before, though many years ago. I started out selling at fifty five thousand and eventually bagged a price of thirty eight thousand, so you can see the reason for my concern.
However the answer may lie with a house sale specialist. These operated differently from an estate agent. Firstly they offer slightly less than the market value but there are no fees not even for a solicitor. One such company An Instant Sale operates throughout the UK and guarantees a sale in as little as seven days.
When I weigh all things up, I believe this will be a better option than just sitting it out with an estate agent and watching my home devalue. What do you think?
About The Author:
An Instant Sale are house sale specialists and property investors who operate throughout the UK. For a free, confidential and no obligation offer on your home visit our website at: http://aninstantsale.co.uk
Three Great Reasons to Buy a Home Today!
By: Melanie Speed
There has been a lot of doom and gloom hovering over the real estate industry of late, and for good reason. The foreclosure crisis, America hovering on a recession… these are things that might make you want to wait. However, there are a few great reasons why you should buy while prices are low and people are holding on to their money.
Prices are low.
Interest rates are low
People still need places to live
Prices:
As demand drops, housing prices do too. This means that you could be buying a great home at a rock-bottom price. Despite the financial crises that many people are going through right now, home owners still want to sell and buy.
Buying low means savings for you and a reserve in equity once the housing market gets back on its feet. Now is the time to buy low so, eventually, you can sell high or at least benefit from the increased equity in your home.
Interest rates:
Along with housing prices, interest rates are dropping as people are buying less. This is a good time to get a great interest rate on your mortgage. Something that can carry you through the life of your mortgage when rates start to rise will be a source of personal and financial satisfaction.
A good interest rate is really what enables you to pay for your home; the dropping rates will enable you to get a good permanent rate for the life of your loan.
People still need places to live:
You can rent your living space out to people who need somewhere to stay. Whether it’s a room, suite or entire dwelling, you could have your mortgage paid or partially paid by someone else. Renting is one of the paths to an independent income and is a great way to start out in building a real estate portfolio that could lead you to prosperity, even in these depressed times.
If you buy carefully, you can snap up homes in desirable areas that people will gladly pay a generous amount of rent for. Use this to pay the mortgage and keep the property in good repair and you will see your equity soar over the years with very little effort on your part.
These three reasons aren’t the only ones to buy today, but they are three of the most compelling. If you want to make it in real estate or just have a good home for a very fair price, think about buying today. There has never been a better time than now!
About The Author:
For local, personal attention to your Las Vegas real estate needs, visit eHome Realty, your professionals in the Las Vegas Valley. You'll find information about Los Prados real estate and more at eHomeLV.com.
There has been a lot of doom and gloom hovering over the real estate industry of late, and for good reason. The foreclosure crisis, America hovering on a recession… these are things that might make you want to wait. However, there are a few great reasons why you should buy while prices are low and people are holding on to their money.
Prices are low.
Interest rates are low
People still need places to live
Prices:
As demand drops, housing prices do too. This means that you could be buying a great home at a rock-bottom price. Despite the financial crises that many people are going through right now, home owners still want to sell and buy.
Buying low means savings for you and a reserve in equity once the housing market gets back on its feet. Now is the time to buy low so, eventually, you can sell high or at least benefit from the increased equity in your home.
Interest rates:
Along with housing prices, interest rates are dropping as people are buying less. This is a good time to get a great interest rate on your mortgage. Something that can carry you through the life of your mortgage when rates start to rise will be a source of personal and financial satisfaction.
A good interest rate is really what enables you to pay for your home; the dropping rates will enable you to get a good permanent rate for the life of your loan.
People still need places to live:
You can rent your living space out to people who need somewhere to stay. Whether it’s a room, suite or entire dwelling, you could have your mortgage paid or partially paid by someone else. Renting is one of the paths to an independent income and is a great way to start out in building a real estate portfolio that could lead you to prosperity, even in these depressed times.
If you buy carefully, you can snap up homes in desirable areas that people will gladly pay a generous amount of rent for. Use this to pay the mortgage and keep the property in good repair and you will see your equity soar over the years with very little effort on your part.
These three reasons aren’t the only ones to buy today, but they are three of the most compelling. If you want to make it in real estate or just have a good home for a very fair price, think about buying today. There has never been a better time than now!
About The Author:
For local, personal attention to your Las Vegas real estate needs, visit eHome Realty, your professionals in the Las Vegas Valley. You'll find information about Los Prados real estate and more at eHomeLV.com.
Sunday, January 25, 2009
Typical problems faced when trying to earn money online
By: stapin
When starting on online business, it is essential for you to know about the pitfalls of making money online. Your idea may sound great but when it comes down to putting it into practice, you could find it a lot less glamorous. Knowing the dangers will allow you to plan for your success and avoid the most common problems that others have faced. To make your online business a success, you will need to be proactive, and this is the first step towards that.
Scams:-
A major problem faced by many people eager to make money online is the large number of internet scams and fraud out there. Even if you are telling yourself right now that there is no way that you could get taken in by a con artist, least of all, online, think again. You'd be surprised how often a perfectly smart person is fooled by these clever tricksters and loses a lot of money. It's a good idea to verify your source, through references and association affiliations such as Better Business Bureau (BBB) that has an online arm as well. The Federal Trade Commission is also a good reference. Good standards of communication such as member forums and active phone numbers are also a good way of checking the authenticity of an online business. Be sure that your chosen source checks out.
Expectation mismatches:-
This is a typical problem faced by many enthusiastic entrepreneurs - unrealistic expectation levels. You may have the best idea and worked really hard to implement it, but be realistic in your expectations for success, especially initially. Like any other business, an online business can take time to start making money and there is a lot of competition out there. New businesses are cropping up every day and people are not searching for you in particular. Work on making yourself easier to find, for people who are looking for something similar to what you offer. Do this by adding relevant SEO tactics and good solid service. But remember that success will not happen overnight, and nor will it be easy. Be prepared to work hard. A lot of internet guides try to sell you on an "easy way to make money online". This is simply untrue. There is no easy way.
Technical problems:-
Another major cause ofconcern for online businesses is the actual back end problems that may occur that impact the business adversely. Problems with the phone connectivity can cause loss of data packets that leads to breaks in the pages. This can lead to a negative effect on the customer's mindset, particularly if this occurs in the middle of a payment transaction. If it happens too often, it can cause reputation loss for your site. Another common problem is with your hosting service. Often, an ISP will store a large number of sites on one single server and this will cause the service to be slow. At times, during heavy traffic, your sites pages will not load because the server is too busy. Ensure that no more than 10 sites are on your server. If you can afford it, another alternative is to have your own dedicated server.
When starting on online business, it is essential for you to know about the pitfalls of making money online. Your idea may sound great but when it comes down to putting it into practice, you could find it a lot less glamorous. Knowing the dangers will allow you to plan for your success and avoid the most common problems that others have faced. To make your online business a success, you will need to be proactive, and this is the first step towards that.
Scams:-
A major problem faced by many people eager to make money online is the large number of internet scams and fraud out there. Even if you are telling yourself right now that there is no way that you could get taken in by a con artist, least of all, online, think again. You'd be surprised how often a perfectly smart person is fooled by these clever tricksters and loses a lot of money. It's a good idea to verify your source, through references and association affiliations such as Better Business Bureau (BBB) that has an online arm as well. The Federal Trade Commission is also a good reference. Good standards of communication such as member forums and active phone numbers are also a good way of checking the authenticity of an online business. Be sure that your chosen source checks out.
Expectation mismatches:-
This is a typical problem faced by many enthusiastic entrepreneurs - unrealistic expectation levels. You may have the best idea and worked really hard to implement it, but be realistic in your expectations for success, especially initially. Like any other business, an online business can take time to start making money and there is a lot of competition out there. New businesses are cropping up every day and people are not searching for you in particular. Work on making yourself easier to find, for people who are looking for something similar to what you offer. Do this by adding relevant SEO tactics and good solid service. But remember that success will not happen overnight, and nor will it be easy. Be prepared to work hard. A lot of internet guides try to sell you on an "easy way to make money online". This is simply untrue. There is no easy way.
Technical problems:-
Another major cause ofconcern for online businesses is the actual back end problems that may occur that impact the business adversely. Problems with the phone connectivity can cause loss of data packets that leads to breaks in the pages. This can lead to a negative effect on the customer's mindset, particularly if this occurs in the middle of a payment transaction. If it happens too often, it can cause reputation loss for your site. Another common problem is with your hosting service. Often, an ISP will store a large number of sites on one single server and this will cause the service to be slow. At times, during heavy traffic, your sites pages will not load because the server is too busy. Ensure that no more than 10 sites are on your server. If you can afford it, another alternative is to have your own dedicated server.
Investment bankers pay heavy price for China's broking pie
By: john
Overseas banks keen for a piece of China's red-hot brokerage sector will have to swallow some rich prices to buy into domestic securities firms, which are in no hurry to make deals as they focus on their own share listings. But for investment banks such as Citigroup and JPMorgan, a strategic partnership with a local securities house is a must in the long run, if they want to cash in on China's rapidly growing stock markets, whose capitalisation has reached nearly 20 trillion yuan ($2.65 trillion), exceeding Hong Kong.
Besides Citi and JPMorgan, banks including HSBC and Credit Suisse are shopping for Chinese partners. Even Morgan Stanley, which launched China's first such investment banking joint venture in 1995, is eyeing its second deal, banking sources said. You cannot ignore China if you want to explore new profit streams in emerging markets," said Philip Leung, a Shanghai-based partner for Ernst & Young.
Mainland China is on track to overtake Hong Kong, as Asia's biggest centre for initial public offerings this year. Analysts have said, they expected fund-raising by Chinese firms via domestic IPOs to hit 400 billion yuan this year, up from 165 billion yuan in 2006 as Beijing encourages more Hong Kong-listed firms to sell shares at home. Most overseas banks will miss out on the current IPO boom except for Goldman Sachs, UBS and Morgan Stanley, which established partnerships in China when the industry was still mired in a severe downturn.
Despite the recent lifting of a ban on foreign acquisitions of Chinese brokerages, major local players are in no mood to rush into partnerships, as they speed up preparations for initial public offerings to fund expansions and boost market share. Market leaders including Guotai Junan Securities, Everbright Securities and Orient Securities are gearing up to launch IPOs in the first half of next year.
An IPO is now the top priority for us," said He Xiaobin, board secretary of Guotai Junan Securities. Almost every securities firm wants an IPO to boost capital now as China's stock market is growing incredibly fast." Banking sources told that plans by Citigroup and JPMorgan to buy into Chinese brokerages had seen little progress over the past year, partly because some potential partners changed their minds as they opted for IPOs as an alternative way to raise funds. JPMorgan has been pursuing a stake in Bohai Securities, which began considering an IPO late last year, the sources said.
Citigroup's talks on a stake in Huatai Securities in Jiangsu province, they said, have stalled since the local government encouraged Huatai to pursue a listing. Before, you could not bargain with Citigroup too much on price because it is the top US bank," said a Chinese banker familiar with the situation.
But you don't need to bargain these days, as you have a better option: an IPO." ABN AMRO's effort to secure a stake in Haitong Securities also stalled early this year when the latter chose to do a local listing through a reverse takeover. Foreign firms can negotiate for a large enough stake to win management control of those brokerages after they are listed, possibly through a private share placement. But they may have to pay hefty prices at the time A rising tide lifts all boats," said the Chinese banker, adding that a brokerage IPO can give a fair market price for foreign investors' reference.
Shares of the only three Chinese listed brokerages, CITIC Securities, Hong Yuan and Haitong, have gone through the roof, as their profits soar on swelling trading turnover driven by a 19-month stock market bull-run.
As of last week, half of China's 100 or so brokerages had posted a combined net profit of 41.8 billion yuan for the first half, six times what the entire industry earned in the year-earlier period.CITIC Securities, China's top listed broker, has seen its share price more than triple over the past year to reach a total market value of $24 billion.
The stock is trading at more than 32 times its forecast earnings for 2007. By comparison, Goldman is trading at about 11 times its forward earnings.
Those foreign banks, able to negotiate for a sizeable stake in a Chinese securities house are unlikely to secure the favourable terms granted to UBS and Goldman, bankers said.
UBS paid $200 million for a 20% stake in Beijing Securities and won de facto management control of the company, just before China's stock market started to take off.Goldman Sachs, helped by renowned Chinese investment banker Fang Fenglei, won a coveted licence to set up a brokerage JV in China in 2004, after paying less than $100 million to bail out a bankrupt Chinese securities firm.The deals are starting to bear fruit.
Goldman Sachs, Gaohua and UBS Securities (Beijing) have won a series of IPO deals in mainland China.PetroChina, Asia's biggest oil producer, recently hired the UBS unit to help sponsor its Shanghai IPO, expected to raise $7 billion in the fourth quarter of this year.
China International Capital, China's first investment bank JV launched in 1995, in which Morgan Stanley holds a 34.3% stake, has been dominating the IPO league table in Hong Kong and China. ($1=7.55 Yuan)
Article Publish by: http://www.investmentbankingcentral.com
About The Author:
John Parker working on blog http://www.investmentbankingcentral.com . My job is to publishing articles, hot news and to provide latest information regarding Brokerage, Banking, Insurance, corporate venturing, Investment Banking and Venture Capital Blog
Overseas banks keen for a piece of China's red-hot brokerage sector will have to swallow some rich prices to buy into domestic securities firms, which are in no hurry to make deals as they focus on their own share listings. But for investment banks such as Citigroup and JPMorgan, a strategic partnership with a local securities house is a must in the long run, if they want to cash in on China's rapidly growing stock markets, whose capitalisation has reached nearly 20 trillion yuan ($2.65 trillion), exceeding Hong Kong.
Besides Citi and JPMorgan, banks including HSBC and Credit Suisse are shopping for Chinese partners. Even Morgan Stanley, which launched China's first such investment banking joint venture in 1995, is eyeing its second deal, banking sources said. You cannot ignore China if you want to explore new profit streams in emerging markets," said Philip Leung, a Shanghai-based partner for Ernst & Young.
Mainland China is on track to overtake Hong Kong, as Asia's biggest centre for initial public offerings this year. Analysts have said, they expected fund-raising by Chinese firms via domestic IPOs to hit 400 billion yuan this year, up from 165 billion yuan in 2006 as Beijing encourages more Hong Kong-listed firms to sell shares at home. Most overseas banks will miss out on the current IPO boom except for Goldman Sachs, UBS and Morgan Stanley, which established partnerships in China when the industry was still mired in a severe downturn.
Despite the recent lifting of a ban on foreign acquisitions of Chinese brokerages, major local players are in no mood to rush into partnerships, as they speed up preparations for initial public offerings to fund expansions and boost market share. Market leaders including Guotai Junan Securities, Everbright Securities and Orient Securities are gearing up to launch IPOs in the first half of next year.
An IPO is now the top priority for us," said He Xiaobin, board secretary of Guotai Junan Securities. Almost every securities firm wants an IPO to boost capital now as China's stock market is growing incredibly fast." Banking sources told that plans by Citigroup and JPMorgan to buy into Chinese brokerages had seen little progress over the past year, partly because some potential partners changed their minds as they opted for IPOs as an alternative way to raise funds. JPMorgan has been pursuing a stake in Bohai Securities, which began considering an IPO late last year, the sources said.
Citigroup's talks on a stake in Huatai Securities in Jiangsu province, they said, have stalled since the local government encouraged Huatai to pursue a listing. Before, you could not bargain with Citigroup too much on price because it is the top US bank," said a Chinese banker familiar with the situation.
But you don't need to bargain these days, as you have a better option: an IPO." ABN AMRO's effort to secure a stake in Haitong Securities also stalled early this year when the latter chose to do a local listing through a reverse takeover. Foreign firms can negotiate for a large enough stake to win management control of those brokerages after they are listed, possibly through a private share placement. But they may have to pay hefty prices at the time A rising tide lifts all boats," said the Chinese banker, adding that a brokerage IPO can give a fair market price for foreign investors' reference.
Shares of the only three Chinese listed brokerages, CITIC Securities, Hong Yuan and Haitong, have gone through the roof, as their profits soar on swelling trading turnover driven by a 19-month stock market bull-run.
As of last week, half of China's 100 or so brokerages had posted a combined net profit of 41.8 billion yuan for the first half, six times what the entire industry earned in the year-earlier period.CITIC Securities, China's top listed broker, has seen its share price more than triple over the past year to reach a total market value of $24 billion.
The stock is trading at more than 32 times its forecast earnings for 2007. By comparison, Goldman is trading at about 11 times its forward earnings.
Those foreign banks, able to negotiate for a sizeable stake in a Chinese securities house are unlikely to secure the favourable terms granted to UBS and Goldman, bankers said.
UBS paid $200 million for a 20% stake in Beijing Securities and won de facto management control of the company, just before China's stock market started to take off.Goldman Sachs, helped by renowned Chinese investment banker Fang Fenglei, won a coveted licence to set up a brokerage JV in China in 2004, after paying less than $100 million to bail out a bankrupt Chinese securities firm.The deals are starting to bear fruit.
Goldman Sachs, Gaohua and UBS Securities (Beijing) have won a series of IPO deals in mainland China.PetroChina, Asia's biggest oil producer, recently hired the UBS unit to help sponsor its Shanghai IPO, expected to raise $7 billion in the fourth quarter of this year.
China International Capital, China's first investment bank JV launched in 1995, in which Morgan Stanley holds a 34.3% stake, has been dominating the IPO league table in Hong Kong and China. ($1=7.55 Yuan)
Article Publish by: http://www.investmentbankingcentral.com
About The Author:
John Parker working on blog http://www.investmentbankingcentral.com . My job is to publishing articles, hot news and to provide latest information regarding Brokerage, Banking, Insurance, corporate venturing, Investment Banking and Venture Capital Blog
Saturday, January 24, 2009
Invest in International Property and get excellent returns
By: Kuldip Goel
Realestate purchase and selling market has picked up a boom with the increase stability across many countries economies. People not only buy property as an asset but considers it as an investment and why not, when it is actually providing them with excellent returns on their investment. Owing a beautiful home is each person dreams; however is out of reach of many due to the big prices attached with buying a property. In the recent years International Property is picking up at a faster rate and is turning out as a lucrative option of investment especially for middle class people. Couples, who really can't afford to buy a ready to live home due to hefty amount of money, they have to take it out from their pockets at the single go. They can actually think seriously about the investing in condo hotels, property overseas. International Property provides the opportunity to enjoy realestate investment appreciation while the property is being built as well as after the construction is completed.
There are many reasons as to why investing in International property is to be considered seriously. Lower initial price is the first important reason. This allows the investor to make a substantial return on the investment. Finished homes are pricy and thus are a difficult deal. In some cases there are contract attach to buy property, sell property or realestate sale which binds the investor to hold the property for some duration of time after the completion of construction however, by renting that finished home, the investor can earn a considerable income each month. Further, after the successful completion of the duration, that property can be sold and by that time real estate market would have definitely gone up as compare to the existing market: the trend has been such each passing year. This means that the return will be much higher than the investment and also the amount needs to be invested would have been higher if the investor would have invested in the finished property.
It should be kept in mind that the best deals can be obtained at the beginning of the project when there is more opportunity for the selection of floor, location etc. Project developer offer discounted prices at the beginning of the project for the fact that the investor will to pay even before having a look at the finished home. Which is the reason, it is smart to invest in pre-constructed homes. As the construction project moves forward, the developer tends to increase the prices as high as three to five times. Also, if the project is at prime location, it is by and large easier to rent or sell the property and excellent returns can be expected.
About The Author:
Kuldeep Goel works in various fields like Preconstruction Property, Overseas Preconstruction, international preconstruction, International Property, Preconstruction RealState, Property Overseas, condo hotels to know more about International Property visit: www.eastwestdevelopments.com
Realestate purchase and selling market has picked up a boom with the increase stability across many countries economies. People not only buy property as an asset but considers it as an investment and why not, when it is actually providing them with excellent returns on their investment. Owing a beautiful home is each person dreams; however is out of reach of many due to the big prices attached with buying a property. In the recent years International Property is picking up at a faster rate and is turning out as a lucrative option of investment especially for middle class people. Couples, who really can't afford to buy a ready to live home due to hefty amount of money, they have to take it out from their pockets at the single go. They can actually think seriously about the investing in condo hotels, property overseas. International Property provides the opportunity to enjoy realestate investment appreciation while the property is being built as well as after the construction is completed.
There are many reasons as to why investing in International property is to be considered seriously. Lower initial price is the first important reason. This allows the investor to make a substantial return on the investment. Finished homes are pricy and thus are a difficult deal. In some cases there are contract attach to buy property, sell property or realestate sale which binds the investor to hold the property for some duration of time after the completion of construction however, by renting that finished home, the investor can earn a considerable income each month. Further, after the successful completion of the duration, that property can be sold and by that time real estate market would have definitely gone up as compare to the existing market: the trend has been such each passing year. This means that the return will be much higher than the investment and also the amount needs to be invested would have been higher if the investor would have invested in the finished property.
It should be kept in mind that the best deals can be obtained at the beginning of the project when there is more opportunity for the selection of floor, location etc. Project developer offer discounted prices at the beginning of the project for the fact that the investor will to pay even before having a look at the finished home. Which is the reason, it is smart to invest in pre-constructed homes. As the construction project moves forward, the developer tends to increase the prices as high as three to five times. Also, if the project is at prime location, it is by and large easier to rent or sell the property and excellent returns can be expected.
About The Author:
Kuldeep Goel works in various fields like Preconstruction Property, Overseas Preconstruction, international preconstruction, International Property, Preconstruction RealState, Property Overseas, condo hotels to know more about International Property visit: www.eastwestdevelopments.com
Investment opportunity in airline travel
By: sundeep bardia
Russia is one of the largest nations of the world covering major parts of Asia and Western Europe. Russia is also one of the major emerging markets of the world. The air travel to Russia from nations like USA has been growing at a fairly healthy rate and the growth is expected to escalate in the future. Moscow and St. Petersberg are the major destinations in Russia.
Although there are numerous airlines offering connecting services to Russian cities and other nearby destinations, it is always difficult to select the best airline offering best service and most cost effective connections. Although new service announcements occur on regular basis and one or the other airline offer plethora of schemes to attract travelers in this route, the needs of the customers on this route is still underserved. However, a new airline service called Baltia Air Lines is expected to change the rules of the game on this sector. It is a small airline which is totally focused on providing cost effective, quick and high quality connections on this route.
Baltia Airlines trades under the BLTA" symbol on OTCBB". The Baltia group is based in U.S and will soon offer connections from New York to cities like St. Petersburg, Riga, Moscow, Minsk and Kiev.
Baltia is expected to provide best airline services ever from U.S to Russia. The company is introducing a new style of crossing the Atlantic with three different classes, including first, business and coach or Voyager class accommodations. The excitement to travel with Baltia will keep on increasing, as the company announces plans to offer better facilities.
This attractive offering, backed by world-class customer service and easily accessed reservation centers in St. Petersburg as well as New York, will surely redefine the travel to Russia from USA. Baltia's offerings will certainly be a sigh of relief for thousands of travelers from USA to Russia as the company will really make the travel to Russia lot more fun and cost effective.
The future prospects of Baltia looks really attractive, given the growth rate in travel to Russia and paucity of quality services at cost effective rates in the sector.
Baltia Air Lines will offer non stop flights, commencing from JFK, New York to destinations like St. Petersberg in Russia. Currently, no other airline offers such quick and cost effective connections on this route, thereby making Baltia a sure winner after its launch.
Baltia's pricing will be extremely competitive, a factor that competition will surely have to watch out for in this particular sector. Traveling with Baltia will simply be a delight for customers in this sector. Baltia is surely expected to evolve as a preferred carrier with its unmatched services in this sector and is expected to rule this market, as soon as the service is launched by the company.
Therefore, it is high time that value investors should start considering the potential of this company by investment in this small, but niche airline that is expected to change the norms for travel to Russia and nearby destinations.
Russia is one of the largest nations of the world covering major parts of Asia and Western Europe. Russia is also one of the major emerging markets of the world. The air travel to Russia from nations like USA has been growing at a fairly healthy rate and the growth is expected to escalate in the future. Moscow and St. Petersberg are the major destinations in Russia.
Although there are numerous airlines offering connecting services to Russian cities and other nearby destinations, it is always difficult to select the best airline offering best service and most cost effective connections. Although new service announcements occur on regular basis and one or the other airline offer plethora of schemes to attract travelers in this route, the needs of the customers on this route is still underserved. However, a new airline service called Baltia Air Lines is expected to change the rules of the game on this sector. It is a small airline which is totally focused on providing cost effective, quick and high quality connections on this route.
Baltia Airlines trades under the BLTA" symbol on OTCBB". The Baltia group is based in U.S and will soon offer connections from New York to cities like St. Petersburg, Riga, Moscow, Minsk and Kiev.
Baltia is expected to provide best airline services ever from U.S to Russia. The company is introducing a new style of crossing the Atlantic with three different classes, including first, business and coach or Voyager class accommodations. The excitement to travel with Baltia will keep on increasing, as the company announces plans to offer better facilities.
This attractive offering, backed by world-class customer service and easily accessed reservation centers in St. Petersburg as well as New York, will surely redefine the travel to Russia from USA. Baltia's offerings will certainly be a sigh of relief for thousands of travelers from USA to Russia as the company will really make the travel to Russia lot more fun and cost effective.
The future prospects of Baltia looks really attractive, given the growth rate in travel to Russia and paucity of quality services at cost effective rates in the sector.
Baltia Air Lines will offer non stop flights, commencing from JFK, New York to destinations like St. Petersberg in Russia. Currently, no other airline offers such quick and cost effective connections on this route, thereby making Baltia a sure winner after its launch.
Baltia's pricing will be extremely competitive, a factor that competition will surely have to watch out for in this particular sector. Traveling with Baltia will simply be a delight for customers in this sector. Baltia is surely expected to evolve as a preferred carrier with its unmatched services in this sector and is expected to rule this market, as soon as the service is launched by the company.
Therefore, it is high time that value investors should start considering the potential of this company by investment in this small, but niche airline that is expected to change the norms for travel to Russia and nearby destinations.
Friday, January 23, 2009
Apartment Search: Look for Apartments you can have Fun with
By: Zack Fair
Apartment living can be a lot of fun, but it can have its headaches as well. Living in an apartment can be fairly easy to budge. But there can also be some unthought-of expenses as well. Living in an apartment is also kind of like living in a community within a community.
Because an apartment is a small space, it is easy to turn into a home. All you need are a few pieces of furniture, some decorative items that fit your personality and presto you have a home. The small space also allows you to change your decorating style on a whim if you like. However, some unforeseen costs can also rack up when you are new to apartment living. Because an apartment is a small space, you have a drastic reduction in the amount of storage that you may be used to. The rooms in an apartment are also smaller as well as the bathrooms that are also smaller than what you would prefer. The lack of storage can be easily remedied with the purchase of closet organizers or free-standing organizer. Living in an apartment, you want to maximize as much space as possible.
When it comes to organizing small spaces you have a lot of options available to you. Closet organizers come in a variety of styles, allowing you to find one that will work perfectly for your needs. There are also organizers that are free-standing, such as wardrobes that can be used for hanging your clothes in case your closet is on the small side. And for the bathroom, there are shower caddies that you can hang in the shower if you don't have much shelf room for your shower accessories. There are also over-the-toilet storage units that also provide extra cabinet space for your bathroom necessities.
Apartment living also provides you with a ready-made community of people who share, at least in part, your interests and hobbies. For instance, if you are a college student, and your apartment is close to your school, then it is a safe bet that other college students live there as well. Or, if you chose your apartment because it has a superb fitness facility or other amenity that it is well-known for, then chances are that other tenants also chose it for the same reasons. Because of this, apartment living is much like living in a small community.
Apartment living allows you to practice with different decorating styles without spending a fortune. It also allows you to become quite adept at organize within small confines so that you can maximize as much space as you possibly can. The apartment community can also be beneficial because you have a really good chance of meeting other tenants who share your same interests.
About The Author:
Zack Fair is writes for Apartmentlinks.com, an apartment search site in the US to guide people into finding Minneapolis Apartments thru our online search facility to give sound information on the apartments available for rent.
Apartment living can be a lot of fun, but it can have its headaches as well. Living in an apartment can be fairly easy to budge. But there can also be some unthought-of expenses as well. Living in an apartment is also kind of like living in a community within a community.
Because an apartment is a small space, it is easy to turn into a home. All you need are a few pieces of furniture, some decorative items that fit your personality and presto you have a home. The small space also allows you to change your decorating style on a whim if you like. However, some unforeseen costs can also rack up when you are new to apartment living. Because an apartment is a small space, you have a drastic reduction in the amount of storage that you may be used to. The rooms in an apartment are also smaller as well as the bathrooms that are also smaller than what you would prefer. The lack of storage can be easily remedied with the purchase of closet organizers or free-standing organizer. Living in an apartment, you want to maximize as much space as possible.
When it comes to organizing small spaces you have a lot of options available to you. Closet organizers come in a variety of styles, allowing you to find one that will work perfectly for your needs. There are also organizers that are free-standing, such as wardrobes that can be used for hanging your clothes in case your closet is on the small side. And for the bathroom, there are shower caddies that you can hang in the shower if you don't have much shelf room for your shower accessories. There are also over-the-toilet storage units that also provide extra cabinet space for your bathroom necessities.
Apartment living also provides you with a ready-made community of people who share, at least in part, your interests and hobbies. For instance, if you are a college student, and your apartment is close to your school, then it is a safe bet that other college students live there as well. Or, if you chose your apartment because it has a superb fitness facility or other amenity that it is well-known for, then chances are that other tenants also chose it for the same reasons. Because of this, apartment living is much like living in a small community.
Apartment living allows you to practice with different decorating styles without spending a fortune. It also allows you to become quite adept at organize within small confines so that you can maximize as much space as you possibly can. The apartment community can also be beneficial because you have a really good chance of meeting other tenants who share your same interests.
About The Author:
Zack Fair is writes for Apartmentlinks.com, an apartment search site in the US to guide people into finding Minneapolis Apartments thru our online search facility to give sound information on the apartments available for rent.
Return Predictability
By: Jack Zimmerman
Introduction
To predict the stock return, this is the wildest goal by most of investors all along. In the report, a methodology is showed to try to predict the return in stock market by some related effective element. The Michigan Consumer Sentiment Index (MCSI) is used as the main independent variable to predict the effect to stock return change in United State stock market.
MCSI and the US stock market
The Michigan consumer sentiment index is an indicator of future national economy and normally associated with the interest rate, inflation, consumption and unemployment, etc. It measures how consumers view prospects for their own financial situation and the state overall economy in the short run and long run. According to their own expectation of the future economy, they would make decisions of spending and investing at the present time. Basically, economic optimism is likely to stimulate the expenditure and investment while economic pessimism would lead to postponement of spending and investing.
There are different views whether CSI directly or indirectly affect stock returns in academic world. From conventional proposition, CSI has indirect effect for the stock prices via wealth effect, investment and credit market imperfections. Generally, improvements in consumer confidence stimulate consumption growth at least in the short run and also lead to the lower interest rates and higher expected returns. An negative relation between short-term interest rates and aggregate stock returns has been documented by Fama and Schwert (1977). And Fama (1975) also reported that expected returns are negatively related to expected inflation.
In contrast, Jansen & Nahuis (2002) claimed that CSI transmits influence on stock prices via independent channel. According to their empirical evidence of 11 European countries during the period form 1986 to 2001, they found CSI were positively correlated with stock returns for 9 countries. Furthermore, Lemmon & Portniaguina (2004) reported that high investor optimism are followed by lower returns on stocks with non-paying dividend, low earning growth, low sales and low institutional ownership.
Overall, higher CCI is likely associated with higher returns and vice versa. It is possible that consumers tend to hold on their money if they feel unsure enough about their future finances and they would like to be investors of individual stocks or mutual funds during the economical expansion.
Data
The Consumer Sentiment Index data is monthly time-series data from the University of Michigan, which is so-called Michigan Sentiment Index, from January 1978 to March 2006. The survey polls 5000 American households on their personal financial situation, the prospect to whole economy of the U.S. and their propensity to purchases of durable goods. Because all questions are about expectation for the future, it is possible that the preliminary results can be announced at the beginning of the current month.
The sector indices in the U.S. stock market are monthly data in 10 sectors, which are automobile manufacturing, finance, gas, industry, machinery, material, movie & entertainment, steel, telecommunication and transport, from Global Financial Data at the same time period. The indices data are obtained at the end of every month.
Comparison to A Benchmark Strategy
Both my sentiment strategy and a benchmark buy-and-hold Strategy start with a $1000 investment in April 1996. I am going to test how much it would be worth by adopting those two strategies at the end of March of 2006.
The buy-and-hold strategy is to buy six sector indices with the close price in April, 1996 and hold it until March of 2006. Then we can calculate average returns and standard deviations by taking this strategy.
My trading strategy is that investors should only buy sector indices when returns predicted this month is higher than risk-free rate; on the other hand, they only can make a one-month deposit at the risk free rate if it is lower than risk-free rate. By trading in this way, investors would outperform the buy-and-hold strategy and make excess profits. The results are shown as follows in table 5. Unfortunately, the coefficients ofβare not significant at all.
About The Author:
Jack Zimmerman is an associate staff writer. Upon graduation, he started working with other freelance writers for on-line writing agencies.
Introduction
To predict the stock return, this is the wildest goal by most of investors all along. In the report, a methodology is showed to try to predict the return in stock market by some related effective element. The Michigan Consumer Sentiment Index (MCSI) is used as the main independent variable to predict the effect to stock return change in United State stock market.
MCSI and the US stock market
The Michigan consumer sentiment index is an indicator of future national economy and normally associated with the interest rate, inflation, consumption and unemployment, etc. It measures how consumers view prospects for their own financial situation and the state overall economy in the short run and long run. According to their own expectation of the future economy, they would make decisions of spending and investing at the present time. Basically, economic optimism is likely to stimulate the expenditure and investment while economic pessimism would lead to postponement of spending and investing.
There are different views whether CSI directly or indirectly affect stock returns in academic world. From conventional proposition, CSI has indirect effect for the stock prices via wealth effect, investment and credit market imperfections. Generally, improvements in consumer confidence stimulate consumption growth at least in the short run and also lead to the lower interest rates and higher expected returns. An negative relation between short-term interest rates and aggregate stock returns has been documented by Fama and Schwert (1977). And Fama (1975) also reported that expected returns are negatively related to expected inflation.
In contrast, Jansen & Nahuis (2002) claimed that CSI transmits influence on stock prices via independent channel. According to their empirical evidence of 11 European countries during the period form 1986 to 2001, they found CSI were positively correlated with stock returns for 9 countries. Furthermore, Lemmon & Portniaguina (2004) reported that high investor optimism are followed by lower returns on stocks with non-paying dividend, low earning growth, low sales and low institutional ownership.
Overall, higher CCI is likely associated with higher returns and vice versa. It is possible that consumers tend to hold on their money if they feel unsure enough about their future finances and they would like to be investors of individual stocks or mutual funds during the economical expansion.
Data
The Consumer Sentiment Index data is monthly time-series data from the University of Michigan, which is so-called Michigan Sentiment Index, from January 1978 to March 2006. The survey polls 5000 American households on their personal financial situation, the prospect to whole economy of the U.S. and their propensity to purchases of durable goods. Because all questions are about expectation for the future, it is possible that the preliminary results can be announced at the beginning of the current month.
The sector indices in the U.S. stock market are monthly data in 10 sectors, which are automobile manufacturing, finance, gas, industry, machinery, material, movie & entertainment, steel, telecommunication and transport, from Global Financial Data at the same time period. The indices data are obtained at the end of every month.
Comparison to A Benchmark Strategy
Both my sentiment strategy and a benchmark buy-and-hold Strategy start with a $1000 investment in April 1996. I am going to test how much it would be worth by adopting those two strategies at the end of March of 2006.
The buy-and-hold strategy is to buy six sector indices with the close price in April, 1996 and hold it until March of 2006. Then we can calculate average returns and standard deviations by taking this strategy.
My trading strategy is that investors should only buy sector indices when returns predicted this month is higher than risk-free rate; on the other hand, they only can make a one-month deposit at the risk free rate if it is lower than risk-free rate. By trading in this way, investors would outperform the buy-and-hold strategy and make excess profits. The results are shown as follows in table 5. Unfortunately, the coefficients ofβare not significant at all.
About The Author:
Jack Zimmerman is an associate staff writer. Upon graduation, he started working with other freelance writers for on-line writing agencies.
Thursday, January 22, 2009
5 GUIDELINES FOR EVALUATING YOUR TRADING AS A BUSINESS
By: Leroy Rushing
Trading is just as much of a business as any other industry. Treating what you do as a business will help you improve your trading, allowing you to trade with less emotion. Constantly set trading goals to work towards, just as you would create goals for any business. Here are a few tips to improve your trading as a business, helping you reach your trading goals.
1. Your Trading Plan is Your Business Plan - Your complete trading plan is much like a business plan. Included in your trading plan planner should be a concrete statement on how to generate profits and your specific strategies. Much like your own business, you should have a plan in place to reach your trading goals. Setting swing or day trading goals is critical to producing consistent profits and staying in business."
2. Profit Loss Sheets - Bookkeeping may come second to technical analysis and e-mini futures, but it is just as important as day and swing trading itself. You should prepare a profit or loss statement every month and track where you've made money and lost money. If you're finding yourself losing money in the 10 am - 2 pm period of the trading day, you might consider closing up shop during that time.
3. Have a Routine - If you were going to the office every day, you wouldn't go in sweatpants and a t-shirt. You should be dressing the way you want to perform. Getting up early and getting ready just like you would for any other occupation will keep your mind in the game and bring in consistent earnings. You need to treat yourself the same as you would with a business. Set a trading goal for each day and strive to reach it with profitable trading strategies.
4. Use Profits to Grow - Businesses need more capital to expand and make more money and so does your portfolio. Spending a few extra dollars on advanced trading techniques, tools, and strategies will help you be a better trader. Mark each expenditure against the value of your trading portfolio as you would against the bank account of your business. Each investment is an investment in yourself, and it is also tax-deductible, just like any other business expense.
5. You're Buying and Selling a Product - Shares of stocks are products just like an article of clothing or a pound of carrots. Trading is buying and selling a stock for a profit, much like owning a business is buying and selling a product for a profit. Think of each stock like a product; you might have to have sales" to get rid of extra holdings or to cut losses, but it is all a part of running a business.
Organizing your trading life like your business increases your probability of market success. When you take time to manage your business, invest in your business, and treat yourself professionally, these are the tools to make consistent profits.
About The Author:
About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading.
Trading is just as much of a business as any other industry. Treating what you do as a business will help you improve your trading, allowing you to trade with less emotion. Constantly set trading goals to work towards, just as you would create goals for any business. Here are a few tips to improve your trading as a business, helping you reach your trading goals.
1. Your Trading Plan is Your Business Plan - Your complete trading plan is much like a business plan. Included in your trading plan planner should be a concrete statement on how to generate profits and your specific strategies. Much like your own business, you should have a plan in place to reach your trading goals. Setting swing or day trading goals is critical to producing consistent profits and staying in business."
2. Profit Loss Sheets - Bookkeeping may come second to technical analysis and e-mini futures, but it is just as important as day and swing trading itself. You should prepare a profit or loss statement every month and track where you've made money and lost money. If you're finding yourself losing money in the 10 am - 2 pm period of the trading day, you might consider closing up shop during that time.
3. Have a Routine - If you were going to the office every day, you wouldn't go in sweatpants and a t-shirt. You should be dressing the way you want to perform. Getting up early and getting ready just like you would for any other occupation will keep your mind in the game and bring in consistent earnings. You need to treat yourself the same as you would with a business. Set a trading goal for each day and strive to reach it with profitable trading strategies.
4. Use Profits to Grow - Businesses need more capital to expand and make more money and so does your portfolio. Spending a few extra dollars on advanced trading techniques, tools, and strategies will help you be a better trader. Mark each expenditure against the value of your trading portfolio as you would against the bank account of your business. Each investment is an investment in yourself, and it is also tax-deductible, just like any other business expense.
5. You're Buying and Selling a Product - Shares of stocks are products just like an article of clothing or a pound of carrots. Trading is buying and selling a stock for a profit, much like owning a business is buying and selling a product for a profit. Think of each stock like a product; you might have to have sales" to get rid of extra holdings or to cut losses, but it is all a part of running a business.
Organizing your trading life like your business increases your probability of market success. When you take time to manage your business, invest in your business, and treat yourself professionally, these are the tools to make consistent profits.
About The Author:
About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading.
Safe Foreclosure Investing: An Overview
By: Josh Sloan
Right now, there are more opportunities to purchase houses in foreclosure than ever before. Contrary to what you might see on late-night TV or on websites offering information on HOW *YOU* CAN GET RICH WITH FORECLOSURES!!!, investing in foreclosed properties is not a get-rich-quick scheme. It is, however, a get-rich-slowly scheme - *if* you love working with houses, improving them and marketing them, *if* you have a steady cash flow already and *if* you are aware of the legalities of the system and how to make them work for you.
Some people might tell you this is easy money - usually with an expensive seminar or CD attached. However, while foreclosure investment can result in a profit, the unbridled flow of riches just aren't going to happen. You may get lucky with one house and make some money, but this isn't going to happen all the time, nor is it something you can bank on making a steady flow of income with until you accumulate enough knowledge and experience to predict which house is going to be the next 'diamond in the rough'.
Your best bet is to engage the services of a Realtor who specializes in foreclosure, at the very least, for your first foreclosure investment. Your Realtor can guide you through the ins and outs of the legal system, help with paperwork, and do the research on foreclosed homes that can net you the best home for your dollar. They also can guide you to publications, educational materials and other tools that you can use in your search for the next foreclosure.
Foreclosures can also be an emotionally harrowing experience, not to mention financially, for the people who have to deal with evictions and/or vindictive former owners. Some former homeowners continue living in 'their' home for as long as they can, even after the eviction papers have been sent. An experienced lawyer can help you with the legalities entailed in eviction. Some people may be spiteful enough to damage or strip the property. Some may even leave behind pets that will damage or foul the property and, if not found in time, die from lack of food and water.
Assuming that you're buying an empty foreclosure, you need to have a good idea of how much is required to get the home back into sellable condition. If you are not proficient in assessing a home, obtain the help of a professional who can go through the home and give you an estimate of what needs to be done. Paint and new carpets are one thing; having to completely rewire the house is quite another!
Allow for a significant chunk of time to do repairs/oversee repairs and improvements. If you are doing a lot of this yourself, you will probably have to devote most of your free time to this endeavour, which can eat into family and friend commitments.
Also, consider what's going to happen when the mortgage is due. You must be able to carry the house for a few months on your own money if repairs take longer than anticipated or if the housing market takes a downturn. If you cannot make the payments due to the fact that you were depending on a quick sale, you'll be in the same position as the people who formerly owned your home.
Another issue with foreclosure is the laws of your state. Some states allow owners to 'buy back' their homes for up to 30 days after a court-ordered auction. Be wary of foreclosures in states that allow this and make sure that the house is definitely yours before you start making improvements.
Investing in foreclosures is not always easy money. There are many pitfalls into which the novice buyer can stumble - even if the buyer has bought other types of properties before. A foreclosure is different. However, with the help of a knowledgeable Realtor, you can be on your way to a new and potentially profitable hobby.
About The Author:
Joshua Sloan is your San Diego real estate agent at SanDiegoRealEstateBuzz.com. If you're looking for Carmel Valley real estate for sale, Joshua can help.
Right now, there are more opportunities to purchase houses in foreclosure than ever before. Contrary to what you might see on late-night TV or on websites offering information on HOW *YOU* CAN GET RICH WITH FORECLOSURES!!!, investing in foreclosed properties is not a get-rich-quick scheme. It is, however, a get-rich-slowly scheme - *if* you love working with houses, improving them and marketing them, *if* you have a steady cash flow already and *if* you are aware of the legalities of the system and how to make them work for you.
Some people might tell you this is easy money - usually with an expensive seminar or CD attached. However, while foreclosure investment can result in a profit, the unbridled flow of riches just aren't going to happen. You may get lucky with one house and make some money, but this isn't going to happen all the time, nor is it something you can bank on making a steady flow of income with until you accumulate enough knowledge and experience to predict which house is going to be the next 'diamond in the rough'.
Your best bet is to engage the services of a Realtor who specializes in foreclosure, at the very least, for your first foreclosure investment. Your Realtor can guide you through the ins and outs of the legal system, help with paperwork, and do the research on foreclosed homes that can net you the best home for your dollar. They also can guide you to publications, educational materials and other tools that you can use in your search for the next foreclosure.
Foreclosures can also be an emotionally harrowing experience, not to mention financially, for the people who have to deal with evictions and/or vindictive former owners. Some former homeowners continue living in 'their' home for as long as they can, even after the eviction papers have been sent. An experienced lawyer can help you with the legalities entailed in eviction. Some people may be spiteful enough to damage or strip the property. Some may even leave behind pets that will damage or foul the property and, if not found in time, die from lack of food and water.
Assuming that you're buying an empty foreclosure, you need to have a good idea of how much is required to get the home back into sellable condition. If you are not proficient in assessing a home, obtain the help of a professional who can go through the home and give you an estimate of what needs to be done. Paint and new carpets are one thing; having to completely rewire the house is quite another!
Allow for a significant chunk of time to do repairs/oversee repairs and improvements. If you are doing a lot of this yourself, you will probably have to devote most of your free time to this endeavour, which can eat into family and friend commitments.
Also, consider what's going to happen when the mortgage is due. You must be able to carry the house for a few months on your own money if repairs take longer than anticipated or if the housing market takes a downturn. If you cannot make the payments due to the fact that you were depending on a quick sale, you'll be in the same position as the people who formerly owned your home.
Another issue with foreclosure is the laws of your state. Some states allow owners to 'buy back' their homes for up to 30 days after a court-ordered auction. Be wary of foreclosures in states that allow this and make sure that the house is definitely yours before you start making improvements.
Investing in foreclosures is not always easy money. There are many pitfalls into which the novice buyer can stumble - even if the buyer has bought other types of properties before. A foreclosure is different. However, with the help of a knowledgeable Realtor, you can be on your way to a new and potentially profitable hobby.
About The Author:
Joshua Sloan is your San Diego real estate agent at SanDiegoRealEstateBuzz.com. If you're looking for Carmel Valley real estate for sale, Joshua can help.
Wednesday, January 21, 2009
Many Popular Short Selling Questions Answered Here
By: Terry Detty
This is going to be an article that talks about short selling once again and a few points to think about and learn about before you decide to start practicing this same type of selling for yourself.
When we talk about buying and selling stocks, there are always going to be a lot of questions that are going to be asked mostly by the good people of the world who have started to gain an interest in what this trading world has to offer them. So, I will begin to write about several popular questions that seem to be asked quite frequently and are in need of some answering.
Can a person really make money when the price of a stock is falling?
The short answer to this question is......YES! This is a practice of trading known as short selling where you look to borrow shares, then you sell them and later on after they have fallen you buy them back. This is how you make money short selling. I realize that this concept may seem very foreign to others who have not used it before........and its ok.
There are plenty of other places online that you can search for that will give you results that will explain how this actually works. Wikipedia is always good for helping out with providing online surfers with the technical answers that they may be looking for everyday. Otherwise click on one of the links below to fill your brain with the ways that you can profit from short selling in the pennystocking world and beyond.
How exactly does one short sell?
Each online broker usually offers 4 choices when you want to place an order buy, sell, sell short, buy to cover...you click on the little sell short" button when you want to bet that a stock will drop in price and the buy to cover" button when you want to close your position, ideally when the stock has dropped and you in return profit.
What does reserving shares to short" mean?
Short selling involves taking a negative position" in a stock the only way to do that is to borrow those shares from your broker. If the broker doesn't have shares to lend out, you can't short sell that stock as it is hard/impossible to borrow". You may still be having a hard time wrapping your head around this concept, don't worry, it will all come to you in good time.
Is it wrong to profit from stocks going down?
The answer you will get to this question obviously depends on who you are talking to and what position they take on this as a whole. Some think it is unpatriotic to bet against a company. The answer is..........No, companies are going to fail, management is going to screw up, hype is going to die, you might as well profit from these natural phenomena's. Really, it's not personal, it's just business.
How do you exit out of a short position?
Since you're taking a negative position or shorting, for example -1,000 shares, to exit the position, you must buy those negative shares back, which is called buying to cover"....it's just like a buy order but instead of initiating a new position, a buy to cover order gets you out of the stock....So, when you short and buy to cover a stock, you go from no position (zero position) to a negative one (-1,000 shares) back to no position (often times when you close out a short, your broker if you're chatting with an actual person will say you're flat".
Short Manipulation, is it possible?
There are lots of conspiracy theories around in every market sector...when bulls are losing, they claim short seller manipulation to push prices lower. When shorts get squeezed, the bulls are accused of manipulating a stock higher.
I'm sure it happens big hedge funds and other speculators have huge bankrolls so they can takes excess cash and use their connections to spread rumors one way or the other, but it's impossible or nearly impossible-to prove.
Whether your buying long or selling short, its all about understanding why and when manipulation occurs and then profiting from it, the legal way, through the reading of charts.
Always go into any trade very suspicious for if there has been a lot of volatility, you can bet lots of people have bets lots of different ways and some will try to make their trade successful at any cost.
About The Author:
There is so much information Terry Detty wants you to learn about what you can experience with Short Selling Penny Stocks and Selling Short Stock Picks .
This is going to be an article that talks about short selling once again and a few points to think about and learn about before you decide to start practicing this same type of selling for yourself.
When we talk about buying and selling stocks, there are always going to be a lot of questions that are going to be asked mostly by the good people of the world who have started to gain an interest in what this trading world has to offer them. So, I will begin to write about several popular questions that seem to be asked quite frequently and are in need of some answering.
Can a person really make money when the price of a stock is falling?
The short answer to this question is......YES! This is a practice of trading known as short selling where you look to borrow shares, then you sell them and later on after they have fallen you buy them back. This is how you make money short selling. I realize that this concept may seem very foreign to others who have not used it before........and its ok.
There are plenty of other places online that you can search for that will give you results that will explain how this actually works. Wikipedia is always good for helping out with providing online surfers with the technical answers that they may be looking for everyday. Otherwise click on one of the links below to fill your brain with the ways that you can profit from short selling in the pennystocking world and beyond.
How exactly does one short sell?
Each online broker usually offers 4 choices when you want to place an order buy, sell, sell short, buy to cover...you click on the little sell short" button when you want to bet that a stock will drop in price and the buy to cover" button when you want to close your position, ideally when the stock has dropped and you in return profit.
What does reserving shares to short" mean?
Short selling involves taking a negative position" in a stock the only way to do that is to borrow those shares from your broker. If the broker doesn't have shares to lend out, you can't short sell that stock as it is hard/impossible to borrow". You may still be having a hard time wrapping your head around this concept, don't worry, it will all come to you in good time.
Is it wrong to profit from stocks going down?
The answer you will get to this question obviously depends on who you are talking to and what position they take on this as a whole. Some think it is unpatriotic to bet against a company. The answer is..........No, companies are going to fail, management is going to screw up, hype is going to die, you might as well profit from these natural phenomena's. Really, it's not personal, it's just business.
How do you exit out of a short position?
Since you're taking a negative position or shorting, for example -1,000 shares, to exit the position, you must buy those negative shares back, which is called buying to cover"....it's just like a buy order but instead of initiating a new position, a buy to cover order gets you out of the stock....So, when you short and buy to cover a stock, you go from no position (zero position) to a negative one (-1,000 shares) back to no position (often times when you close out a short, your broker if you're chatting with an actual person will say you're flat".
Short Manipulation, is it possible?
There are lots of conspiracy theories around in every market sector...when bulls are losing, they claim short seller manipulation to push prices lower. When shorts get squeezed, the bulls are accused of manipulating a stock higher.
I'm sure it happens big hedge funds and other speculators have huge bankrolls so they can takes excess cash and use their connections to spread rumors one way or the other, but it's impossible or nearly impossible-to prove.
Whether your buying long or selling short, its all about understanding why and when manipulation occurs and then profiting from it, the legal way, through the reading of charts.
Always go into any trade very suspicious for if there has been a lot of volatility, you can bet lots of people have bets lots of different ways and some will try to make their trade successful at any cost.
About The Author:
There is so much information Terry Detty wants you to learn about what you can experience with Short Selling Penny Stocks and Selling Short Stock Picks .
Biblical Wealth Strategies with Investments
By: Mark Freeman
Most of us have heard the phrase multiple streams of income" as a means of achieving financial freedom. This doesn't mean getting another part-time job," but creating wealth and residual income through multiple sources of businesses, investments, and real estate. Residual income is money that continues to come in, whether you're actively working at it or not.
The advantage of multiple streams is if one stream dries up or slows down, you have others flowing in to pick up the slack. With the recent trends of corporate downsizing and the loyalty of employers being a way of the past, multiple streams of income from different sources are more important than ever, and will be perhaps essential in the future. Not only is this a good idea for you and your family's security and wealth-building strategies, but it can help fulfill your vision of giving to expand the Kingdom.
Is this a new idea? Not at all. The Scriptures are in agreement. Ecclesiastes 11:1-2 says, Cast your bread upon the waters [plural], for you will find it after many days. Give a serving to seven, and also to eight, for you do not know what evil will be on the earth."
The first part of this chapter (vs. 1-6) speaks of taking risks and making multiple investments rather than operating out of fear and exercising too much caution. It also speaks of being generous with your wealth. But these first two verses speak of the need of multiple income streams because you don't know what evil" will be on the earth.
What do you think are examples of the evil" it's speaking of here? It could be economic changes or market trends, to being a victim of fraud, lawsuits, and so on. The evils" may change for different times in history or even certain seasons in our lives. The evil" isn't necessarily from the devil. It's not always a spiritual attack. It could just be trends and changes in the system, but for whatever it may be, we need the multiple income streams to diversify and spread the risks. We like to believe as Christians that we are immune to such things, and I certainly am not speaking that over you, but the Lord does give us wisdom to be prepared for the potential rain that falls on the just and the unjust" as it says in Matthew 5:45. Multiple income streams is one way to diminish or even eliminate the evil," because if you have enough streams, one can completely disappear and you won't even notice it too much.
This passage in Ecclesiastes goes on to say in verse 6, In the morning, sow your seed, and in the evening, do not withhold your hand; for you do not know which will prosper, either this or that, or whether both alike will be good."
We think that if a certain investment doesn't give a good return, or maybe even goes south, that God wasn't in it. But it's plain here that not everything you invest in will prosper, but do it anyway! Of course, don't be foolish, be smart, do your homework and your due diligence, but just free yourself by knowing that some will be good and some won't. Don't condemn yourself when some investment or business or real estate deal doesn't work out maybe like you thought it would. I believe the Lord will bless your efforts, if not on that particular investment, it may be the next one. The problem with the wicked servant in the parable of the minas in Luke 19 is not that he tried something and it didn't work. He didn't even try, and that's what made the master upset.
Remember the dot-com bubble in 2000-2001? People in droves began investing in real estate. Then when the media began chanting about the possibility of a real estate bubble (which spells opportunity" to me), many were looking for what they thought would be the next big thing."
However, if you are diverse in your businesses, investments, and real estate, then you won't be affected as greatly as markets change in various areas. If there is a bump in the road with one of your markets, you have the others that continue to flow.
Most people think of diversifying as investing in mutual funds. They believe this is a method of spreading the risk and playing it safe, but in reality, all they are doing is investing in more and more paper assets. What if the stock market crashed? Don't be deceived into thinking that type of evil" can't ever happen again as it did in 1929. If the stock market had a major crash, most mutual funds would be wiped out. We had a glimpse of that a few years ago when many retirement plans invested in mutual funds plummeted to almost nothing. I understand the buy and hold strategy and dollar-cost averaging, but what about those just entering retirement age? They didn't have time to wait for the funds to go back up. So mutual funds and 401(k)s can have risks, too, right?
We continue to assume that the stock market will always go up and that mutual funds will give us the security we need. Mutual funds may diversify into many different funds, but they are still largely connected to the traditional stock market. Yes, they are diversified into growth funds, bond funds, mid cap funds, money funds, sector funds, international funds, etc., but what are all those? Stocks and bonds! It's okay to invest in mutual funds and 401(k)s, but what I'm saying is don't rely on just those and not do anything else. No one should rely solely on one investment type or one business for their sole source of income or retirement...
About The Author:
This article is excerpted from the beginning of CD #3 of the 7-CD Audio Program "Multiple Streams of Income for the Christian Entrepreneur" available from EPIC Wealth Strategies. For more information, visit www.epicwealthstrategies.com/multiplestreams or download the free report "Twelve Biblical Wealth Principles" at www.epicwealthstrategies.com/freereport.
Most of us have heard the phrase multiple streams of income" as a means of achieving financial freedom. This doesn't mean getting another part-time job," but creating wealth and residual income through multiple sources of businesses, investments, and real estate. Residual income is money that continues to come in, whether you're actively working at it or not.
The advantage of multiple streams is if one stream dries up or slows down, you have others flowing in to pick up the slack. With the recent trends of corporate downsizing and the loyalty of employers being a way of the past, multiple streams of income from different sources are more important than ever, and will be perhaps essential in the future. Not only is this a good idea for you and your family's security and wealth-building strategies, but it can help fulfill your vision of giving to expand the Kingdom.
Is this a new idea? Not at all. The Scriptures are in agreement. Ecclesiastes 11:1-2 says, Cast your bread upon the waters [plural], for you will find it after many days. Give a serving to seven, and also to eight, for you do not know what evil will be on the earth."
The first part of this chapter (vs. 1-6) speaks of taking risks and making multiple investments rather than operating out of fear and exercising too much caution. It also speaks of being generous with your wealth. But these first two verses speak of the need of multiple income streams because you don't know what evil" will be on the earth.
What do you think are examples of the evil" it's speaking of here? It could be economic changes or market trends, to being a victim of fraud, lawsuits, and so on. The evils" may change for different times in history or even certain seasons in our lives. The evil" isn't necessarily from the devil. It's not always a spiritual attack. It could just be trends and changes in the system, but for whatever it may be, we need the multiple income streams to diversify and spread the risks. We like to believe as Christians that we are immune to such things, and I certainly am not speaking that over you, but the Lord does give us wisdom to be prepared for the potential rain that falls on the just and the unjust" as it says in Matthew 5:45. Multiple income streams is one way to diminish or even eliminate the evil," because if you have enough streams, one can completely disappear and you won't even notice it too much.
This passage in Ecclesiastes goes on to say in verse 6, In the morning, sow your seed, and in the evening, do not withhold your hand; for you do not know which will prosper, either this or that, or whether both alike will be good."
We think that if a certain investment doesn't give a good return, or maybe even goes south, that God wasn't in it. But it's plain here that not everything you invest in will prosper, but do it anyway! Of course, don't be foolish, be smart, do your homework and your due diligence, but just free yourself by knowing that some will be good and some won't. Don't condemn yourself when some investment or business or real estate deal doesn't work out maybe like you thought it would. I believe the Lord will bless your efforts, if not on that particular investment, it may be the next one. The problem with the wicked servant in the parable of the minas in Luke 19 is not that he tried something and it didn't work. He didn't even try, and that's what made the master upset.
Remember the dot-com bubble in 2000-2001? People in droves began investing in real estate. Then when the media began chanting about the possibility of a real estate bubble (which spells opportunity" to me), many were looking for what they thought would be the next big thing."
However, if you are diverse in your businesses, investments, and real estate, then you won't be affected as greatly as markets change in various areas. If there is a bump in the road with one of your markets, you have the others that continue to flow.
Most people think of diversifying as investing in mutual funds. They believe this is a method of spreading the risk and playing it safe, but in reality, all they are doing is investing in more and more paper assets. What if the stock market crashed? Don't be deceived into thinking that type of evil" can't ever happen again as it did in 1929. If the stock market had a major crash, most mutual funds would be wiped out. We had a glimpse of that a few years ago when many retirement plans invested in mutual funds plummeted to almost nothing. I understand the buy and hold strategy and dollar-cost averaging, but what about those just entering retirement age? They didn't have time to wait for the funds to go back up. So mutual funds and 401(k)s can have risks, too, right?
We continue to assume that the stock market will always go up and that mutual funds will give us the security we need. Mutual funds may diversify into many different funds, but they are still largely connected to the traditional stock market. Yes, they are diversified into growth funds, bond funds, mid cap funds, money funds, sector funds, international funds, etc., but what are all those? Stocks and bonds! It's okay to invest in mutual funds and 401(k)s, but what I'm saying is don't rely on just those and not do anything else. No one should rely solely on one investment type or one business for their sole source of income or retirement...
About The Author:
This article is excerpted from the beginning of CD #3 of the 7-CD Audio Program "Multiple Streams of Income for the Christian Entrepreneur" available from EPIC Wealth Strategies. For more information, visit www.epicwealthstrategies.com/multiplestreams or download the free report "Twelve Biblical Wealth Principles" at www.epicwealthstrategies.com/freereport.
Tuesday, January 20, 2009
Some Great Business Ideas for the Entrepreneur
By: James Totty
Business Ideas for the Entrepreneur
Many individuals nowadays prefer to have a home-based job rather than working eight hours each day in the office. Some people are also into franchising; this may sound good but if you want to become a successful entrepreneur, you don't have to focus entirely on franchising. You should consider other business ideas that you can venture into.
Research can be carried out with ease these days, thanks to the power of the internet. If you conduct your search online, you can find other business ideas that you can use as an entrepreneur. Beginners will benefit a lot from the information they can find online about business ideas.
Because of the many business ideas you can find online, you will often find it hard to choose the ones you like. It's easy to choose if you use your instincts. For instance, if one business idea feels right, take note of it but if you have second thoughts about another idea, disregard it.
As an entrepreneur, you should investigate further by gathering as much information as possible about the business ideas. True enough, franchise is absolutely a great idea. By choosing this business alternative, you can be the boss of your own business and you can earn unlimited income.
However, according to experts, franchise and other internet businesses promise the same business opportunities. It will all differ on how you handle the business.
Not all individuals who desire to own a business can achieve this goal. You see, being an entrepreneur is hard. There are a lot of factors to consider before you decide to become an entrepreneur. Even if you have the capital to finance the business undertaking, you can't be sure that it can give you high profits in the future especially if you don't know how to handle certain business situations.
First and foremost, you must be able to work alone. Once you're an entrepreneur, you're already self-employed. It would also be best if you can have the support of your loved ones.
Here is a very good example. As mentioned earlier, further investigation is needed to evaluate the business ideas that you have in your hands. Starting a business from scratch requires a lot of work. Suppose the business that you're about to put up is also available in franchise, which business idea will you choose?
For the smart entrepreneurs, they will already go for franchising because it requires less work. An established business undertaking is less expensive and less risky. But before you make a final decision, you must be able to weigh all the advantages as well as disadvantages. This is an essential part of choosing the best business idea.
Once you've chosen the right business idea, you can spring it into action. Soon enough, you will gain the financial benefits that you're dreaming of. Whether you choose to start your own business or go for franchising, the most important thing is to develop goodwill. All the actions of the entrepreneur must be focused in attaining all the objectives of the business.
If you want to become an entrepreneur, you must research all the business ideas that you can get online. The internet can help you a lot. Also, don't forget to develop the needed traits and skills as an entrepreneur.
You can get many resources through the internet or you can talk to an established entrepreneur so that you will have an idea on what you're about to undertake.
About The Author:
WordPress Templates
Business Ideas for the Entrepreneur
Many individuals nowadays prefer to have a home-based job rather than working eight hours each day in the office. Some people are also into franchising; this may sound good but if you want to become a successful entrepreneur, you don't have to focus entirely on franchising. You should consider other business ideas that you can venture into.
Research can be carried out with ease these days, thanks to the power of the internet. If you conduct your search online, you can find other business ideas that you can use as an entrepreneur. Beginners will benefit a lot from the information they can find online about business ideas.
Because of the many business ideas you can find online, you will often find it hard to choose the ones you like. It's easy to choose if you use your instincts. For instance, if one business idea feels right, take note of it but if you have second thoughts about another idea, disregard it.
As an entrepreneur, you should investigate further by gathering as much information as possible about the business ideas. True enough, franchise is absolutely a great idea. By choosing this business alternative, you can be the boss of your own business and you can earn unlimited income.
However, according to experts, franchise and other internet businesses promise the same business opportunities. It will all differ on how you handle the business.
Not all individuals who desire to own a business can achieve this goal. You see, being an entrepreneur is hard. There are a lot of factors to consider before you decide to become an entrepreneur. Even if you have the capital to finance the business undertaking, you can't be sure that it can give you high profits in the future especially if you don't know how to handle certain business situations.
First and foremost, you must be able to work alone. Once you're an entrepreneur, you're already self-employed. It would also be best if you can have the support of your loved ones.
Here is a very good example. As mentioned earlier, further investigation is needed to evaluate the business ideas that you have in your hands. Starting a business from scratch requires a lot of work. Suppose the business that you're about to put up is also available in franchise, which business idea will you choose?
For the smart entrepreneurs, they will already go for franchising because it requires less work. An established business undertaking is less expensive and less risky. But before you make a final decision, you must be able to weigh all the advantages as well as disadvantages. This is an essential part of choosing the best business idea.
Once you've chosen the right business idea, you can spring it into action. Soon enough, you will gain the financial benefits that you're dreaming of. Whether you choose to start your own business or go for franchising, the most important thing is to develop goodwill. All the actions of the entrepreneur must be focused in attaining all the objectives of the business.
If you want to become an entrepreneur, you must research all the business ideas that you can get online. The internet can help you a lot. Also, don't forget to develop the needed traits and skills as an entrepreneur.
You can get many resources through the internet or you can talk to an established entrepreneur so that you will have an idea on what you're about to undertake.
About The Author:
WordPress Templates
Commodity Trading - A Beginner's Guide
By: FT
Fed up with the weekly rise in petrol prices? Hey, if you can't beat 'em, why not join 'em. Instead of moaning about the Arabs, Chelsea tractors and Jeremy Clarkson why not thank them and learn how to make money out of the oil price?
In this 'Dummies guide to trading oil' I'll be having a look at the major 'need to knows' of the oil market, the mechanics of trading commodities and what you need to watch out for.
This Price Is On Viagra
On July 11th Crude Oil hit a new record high of just over $147 a barrel - an awe-inspiring rise of 110% from last July. Over the same period the Dow fell by around 22%. This Tuesday (15th July) witnessed the biggest 1-day fall in oil for 18 years.
Folks, this is a great traders' market.
How To Trade Oil Without Getting Dirty
There are two contracts available, Brent Crude and West Texas Intermediate:
Brent Crude is the UK contract on oil sourced from the North Sea. And, hey! The UK might be crap at rugby, football, and cricket, but two thirds of the world's internationally traded oil, from Europe, Africa and the Middle East, is priced relative to UK Brent Crude. In the big boys market Brent Crude is traded in London as something called Futures contracts, which are priced in US Dollars.
West Texas Intermediate is the US equivalent to Brent Crude. Also known as US Light Sweet Crude (or any derivation of these words), this one is again traded as a Futures contract but in New York this time.
Now, all you traders with enough balls and attention span to run your positions over a period of days and weeks, pay attention here. Oil spread bets are monthly contracts. This means that:
a) You don't pay any rollover charges; the bet will run until the contract ends.
b) You do need to put a note on your Kylie Minogue calendar that the spread bet runs out (expires) on a definite date.
c) Now, get this. The spread bet runs out (contract expires) in the middle of the month before the month it says on the tin.
So, for example, the Brent Crude October contract on paddypowertrader runs out (expires) on 13th September and the November contract finishes on the 12th October. How dumb is that? It smacks of interference from a country that already writes the date back to front.
What To Watch When Trading Oil
Good news if you have the attention span of a goldfish; trading oil means watching lots of telly. Wu hoo!
However you won't get rich watching the Playboy channel, while repeats of Dallas on UK Gold might be good for motivation but not much else. Trading oil is very news-orientated so keep CNBC on 24/7.
The most specific economic data to focus on are the US weekly oil and gas inventory figures, issued by the Energy Information
Administration and released every week on Wednesday afternoons. If you trade oil you can't afford to miss these.
Being aware of the US Driving Season (apparently the land of the gas-guzzler has a particular season for driving, starting on Memorial Day at the end of May and finishing on Labour Day at the start of September) will definitely work in your favour, and also pay attention to cold winters when we all turn the heating up.
Something that's more important again is the US Hurricane Season, which officially runs from 1st June to 30th November, but don't expect the forces of nature to pay too much attention to the dates. An average season has 11 named storms with six growing into hurricanes, but only two reach major hurricane status. So don't go buying oil every time your weathercock spins round.
So why is the hurricane season so significant to the oil market in particular? Hurricanes tend to hit the Gulf of Mexico, which is filled to the rafters with oilrigs (over 20 rigs went missing due to Hurricane Katrina in 2005).
Next take a look at the world's big oil producers. You won't find oil gushing out of countries like Belgium, Holland or Sweden, where even mentioning their name is soporific. No, putting aside the comparatively stable USA and Saudi Arabia, God blessed the world's more excitable countries with the power and wealth of massive oil supplies. A short roll call includes Iraq, Iran, Libya, Nigeria, Venezuela and Russia, where a few well-chosen words from a president can send you sprinting to the 'trade' button.
So What's Driving The Oil Price?
Ask any politician and he'll spit out the word, �Speculators". Out in the real world there are a number of factors, though most hone in on the common perception that demand is greater than supply. This list is far from exhaustive, but will give you a feel for what matters:
- The easy-to-get oil has already been drilled. The next easiest to get oil is the wrong type; it's 'sour' (rather than 'sweet') and more expensive to refine. There may be vast oil reserves in places like Canada's tar sands, but these will be hugely expensive to get at.
- Geo-political tensions in oil-producing countries. One day it's militants in Nigeria, another day its Israel and Iran at each other's throats. Tomorrow it'll be someone else. These tensions are hugely significant because whenever someone throws their toys out the pram it threatens to disrupt the supply of oil.
- The Dollar. Oil is priced in Dollars, so if the Dollar falls the oil price rises to maintain a constant value in other currencies. This move has been compounded by investors piling money into oil as a hedge against the weaker Dollar.
- Inventories. The oil price is massively sensitive to the build up, or run down, of oil supplies. The most keenly watched figures are the stats from the US Energy Information Administration, released each Wednesday.
How To Trade Oil
You can either trade oil through the equity market or through the oil spread bet. Let's have a look at equities first.
Now here's something to make you choke on your sandwich; the oil majors are having a really crap time!
But why? Well, it may not seem like it to you and me, but part of the problem is that petrol prices haven't kept up with the rise in crude prices; the jargon is that the refining margins have fallen, and that's quite a significant chunk of their business. The other problem is that these guys spend a lot of time sticking rods in the ground to see if anything spurts up and that costs a lot of money.
There are exceptions; smaller companies like Tullow Oil and Dana Petroleum have had a cracking time. Each new discovery has notched up a couple of quid on the share price. And they've got the added attraction that one of the majors might decide it's cheaper to bid for them than to look for new reserves itself.
Until recently few people outside of Ireland had heard of Tullow. Nowadays, after several successful oil discoveries, it's a FTSE 100 company.
There are alternative ways of playing the oil price. The rise and fall of shares in airline companies has been related to the oil price. However, there are other factors too (BA suffered the Terminal 5 debacle) so it's not a perfect strategy.
The purest solution, if you want to follow the rise and fall of oil, is to trade the commodity itself. And spread betting is arguably the most convenient way of doing that.
Conclusion
So now you should be armed with the ideas on how to trade oil, who and what are important and a rough idea of the sort of things that drive the oil price.
Just a word of warning for newbies. Hidden inside this mountainous price rise are some nasty crevices. The volatility that makes this market so great can still eat you up and spit out the bony bits. Do your trading capital a big, big favour and use a demo account for a while whilst you learn the tricks of the market. Then edge in gently with small bet sizes. There's no rush, there'll always be a market to trade in when you're ready.
About The Author:
Mr FT is a self-employed spread better. After 18 years in fund management he was given the choice of moving to London or .. not. 'Not' won out. FT has been trading full time from home for two years, with nothing but four kids and a beach to distract him . He fills his spare time with weight training and rugby, though more coaching than playing these days. FT mostly trades the forex markets and although he plays FTSE on occasions his bread and butter market is. Read more from FT on commodities trading and spread betting on the Paddy Power blog at PaddyPowerTrader.com
Fed up with the weekly rise in petrol prices? Hey, if you can't beat 'em, why not join 'em. Instead of moaning about the Arabs, Chelsea tractors and Jeremy Clarkson why not thank them and learn how to make money out of the oil price?
In this 'Dummies guide to trading oil' I'll be having a look at the major 'need to knows' of the oil market, the mechanics of trading commodities and what you need to watch out for.
This Price Is On Viagra
On July 11th Crude Oil hit a new record high of just over $147 a barrel - an awe-inspiring rise of 110% from last July. Over the same period the Dow fell by around 22%. This Tuesday (15th July) witnessed the biggest 1-day fall in oil for 18 years.
Folks, this is a great traders' market.
How To Trade Oil Without Getting Dirty
There are two contracts available, Brent Crude and West Texas Intermediate:
Brent Crude is the UK contract on oil sourced from the North Sea. And, hey! The UK might be crap at rugby, football, and cricket, but two thirds of the world's internationally traded oil, from Europe, Africa and the Middle East, is priced relative to UK Brent Crude. In the big boys market Brent Crude is traded in London as something called Futures contracts, which are priced in US Dollars.
West Texas Intermediate is the US equivalent to Brent Crude. Also known as US Light Sweet Crude (or any derivation of these words), this one is again traded as a Futures contract but in New York this time.
Now, all you traders with enough balls and attention span to run your positions over a period of days and weeks, pay attention here. Oil spread bets are monthly contracts. This means that:
a) You don't pay any rollover charges; the bet will run until the contract ends.
b) You do need to put a note on your Kylie Minogue calendar that the spread bet runs out (expires) on a definite date.
c) Now, get this. The spread bet runs out (contract expires) in the middle of the month before the month it says on the tin.
So, for example, the Brent Crude October contract on paddypowertrader runs out (expires) on 13th September and the November contract finishes on the 12th October. How dumb is that? It smacks of interference from a country that already writes the date back to front.
What To Watch When Trading Oil
Good news if you have the attention span of a goldfish; trading oil means watching lots of telly. Wu hoo!
However you won't get rich watching the Playboy channel, while repeats of Dallas on UK Gold might be good for motivation but not much else. Trading oil is very news-orientated so keep CNBC on 24/7.
The most specific economic data to focus on are the US weekly oil and gas inventory figures, issued by the Energy Information
Administration and released every week on Wednesday afternoons. If you trade oil you can't afford to miss these.
Being aware of the US Driving Season (apparently the land of the gas-guzzler has a particular season for driving, starting on Memorial Day at the end of May and finishing on Labour Day at the start of September) will definitely work in your favour, and also pay attention to cold winters when we all turn the heating up.
Something that's more important again is the US Hurricane Season, which officially runs from 1st June to 30th November, but don't expect the forces of nature to pay too much attention to the dates. An average season has 11 named storms with six growing into hurricanes, but only two reach major hurricane status. So don't go buying oil every time your weathercock spins round.
So why is the hurricane season so significant to the oil market in particular? Hurricanes tend to hit the Gulf of Mexico, which is filled to the rafters with oilrigs (over 20 rigs went missing due to Hurricane Katrina in 2005).
Next take a look at the world's big oil producers. You won't find oil gushing out of countries like Belgium, Holland or Sweden, where even mentioning their name is soporific. No, putting aside the comparatively stable USA and Saudi Arabia, God blessed the world's more excitable countries with the power and wealth of massive oil supplies. A short roll call includes Iraq, Iran, Libya, Nigeria, Venezuela and Russia, where a few well-chosen words from a president can send you sprinting to the 'trade' button.
So What's Driving The Oil Price?
Ask any politician and he'll spit out the word, �Speculators". Out in the real world there are a number of factors, though most hone in on the common perception that demand is greater than supply. This list is far from exhaustive, but will give you a feel for what matters:
- The easy-to-get oil has already been drilled. The next easiest to get oil is the wrong type; it's 'sour' (rather than 'sweet') and more expensive to refine. There may be vast oil reserves in places like Canada's tar sands, but these will be hugely expensive to get at.
- Geo-political tensions in oil-producing countries. One day it's militants in Nigeria, another day its Israel and Iran at each other's throats. Tomorrow it'll be someone else. These tensions are hugely significant because whenever someone throws their toys out the pram it threatens to disrupt the supply of oil.
- The Dollar. Oil is priced in Dollars, so if the Dollar falls the oil price rises to maintain a constant value in other currencies. This move has been compounded by investors piling money into oil as a hedge against the weaker Dollar.
- Inventories. The oil price is massively sensitive to the build up, or run down, of oil supplies. The most keenly watched figures are the stats from the US Energy Information Administration, released each Wednesday.
How To Trade Oil
You can either trade oil through the equity market or through the oil spread bet. Let's have a look at equities first.
Now here's something to make you choke on your sandwich; the oil majors are having a really crap time!
But why? Well, it may not seem like it to you and me, but part of the problem is that petrol prices haven't kept up with the rise in crude prices; the jargon is that the refining margins have fallen, and that's quite a significant chunk of their business. The other problem is that these guys spend a lot of time sticking rods in the ground to see if anything spurts up and that costs a lot of money.
There are exceptions; smaller companies like Tullow Oil and Dana Petroleum have had a cracking time. Each new discovery has notched up a couple of quid on the share price. And they've got the added attraction that one of the majors might decide it's cheaper to bid for them than to look for new reserves itself.
Until recently few people outside of Ireland had heard of Tullow. Nowadays, after several successful oil discoveries, it's a FTSE 100 company.
There are alternative ways of playing the oil price. The rise and fall of shares in airline companies has been related to the oil price. However, there are other factors too (BA suffered the Terminal 5 debacle) so it's not a perfect strategy.
The purest solution, if you want to follow the rise and fall of oil, is to trade the commodity itself. And spread betting is arguably the most convenient way of doing that.
Conclusion
So now you should be armed with the ideas on how to trade oil, who and what are important and a rough idea of the sort of things that drive the oil price.
Just a word of warning for newbies. Hidden inside this mountainous price rise are some nasty crevices. The volatility that makes this market so great can still eat you up and spit out the bony bits. Do your trading capital a big, big favour and use a demo account for a while whilst you learn the tricks of the market. Then edge in gently with small bet sizes. There's no rush, there'll always be a market to trade in when you're ready.
About The Author:
Mr FT is a self-employed spread better. After 18 years in fund management he was given the choice of moving to London or .. not. 'Not' won out. FT has been trading full time from home for two years, with nothing but four kids and a beach to distract him . He fills his spare time with weight training and rugby, though more coaching than playing these days. FT mostly trades the forex markets and although he plays FTSE on occasions his bread and butter market is. Read more from FT on commodities trading and spread betting on the Paddy Power blog at PaddyPowerTrader.com
Monday, January 19, 2009
Business management a Type of investment
By: julianne
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: Managers determine the investment value of the assets that a business enterprise has within its control or possession. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). Assets are used to produce streams of revenue that often are associated with particular costs or outflows. All together, the manager must determine whether the net present value of the investment to the enterprise is positive using the marginal cost of capital that is associated with the particular area of business.
In terms of financial assets, these are often marketable securities such as a company stock (an equity investment) or bonds (a debt investment). At times the goal of the investment is for producing future cash flows, while at others it may be for purposes of gaining access to more assets by establishing control or influence over the operation of a second company (the investee).
Type of Some Investments
Bank savings
The simplest kind of short term (or cash) investment is a savings account. Returns are low compared to other investments, but returns are guaranteed by the bank - so your investment won't drop in value in the short term like others might. You can withdraw part or all of your money whenever you want (total liquidity). This makes them ideal for short term savings goals, or as a place to keep your emergency fund - They're not a good investment option for medium or long term goals.
Property
Owning property rented to individuals or businesses can be a safe and profitable investment. Returns from property investment come from rental income, after deducting expenses, and from the increase in the value of property over time.
Shares
By investing in shares in a public company listed on a stock exchange you get the right to share in the future income and value of that company. Your return can come in two ways:
* Dividends paid out of the profits made by the company.
* Capital gains made because you're able at some time to sell your shares for more than you paid. Gains may reflect the fact that the company has grown or improved its performance or that the investment community see that it has improved future prospects.
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riverside business investment
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: Managers determine the investment value of the assets that a business enterprise has within its control or possession. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). Assets are used to produce streams of revenue that often are associated with particular costs or outflows. All together, the manager must determine whether the net present value of the investment to the enterprise is positive using the marginal cost of capital that is associated with the particular area of business.
In terms of financial assets, these are often marketable securities such as a company stock (an equity investment) or bonds (a debt investment). At times the goal of the investment is for producing future cash flows, while at others it may be for purposes of gaining access to more assets by establishing control or influence over the operation of a second company (the investee).
Type of Some Investments
Bank savings
The simplest kind of short term (or cash) investment is a savings account. Returns are low compared to other investments, but returns are guaranteed by the bank - so your investment won't drop in value in the short term like others might. You can withdraw part or all of your money whenever you want (total liquidity). This makes them ideal for short term savings goals, or as a place to keep your emergency fund - They're not a good investment option for medium or long term goals.
Property
Owning property rented to individuals or businesses can be a safe and profitable investment. Returns from property investment come from rental income, after deducting expenses, and from the increase in the value of property over time.
Shares
By investing in shares in a public company listed on a stock exchange you get the right to share in the future income and value of that company. Your return can come in two ways:
* Dividends paid out of the profits made by the company.
* Capital gains made because you're able at some time to sell your shares for more than you paid. Gains may reflect the fact that the company has grown or improved its performance or that the investment community see that it has improved future prospects.
About The Author:
riverside business investment
Consider Investing in Vacant Land Lots
By: Ted Guarnero
Vacant land lots are not just for big developers. They can be a sound investment for the person willing to research the area's present and future development, desirable areas and the type of land suitable for the development of popular construction.
Vacant land is often available a much lower price than comparable developed land. The average home investor stands as much chance at making a good profit from a carefully purchased land lot as they would investing their money in a developed property. Perhaps more, if the lot is in a desirable area or an area that becomes desirable as a result of other development in the locale.
A newly desirable piece of land can reap much reward for the careful buyer. You don't have to spend a lot of money in upkeep or repair, the property can be used or sold flexibly and the increase in value can bring thousands of dollars in profit to you, for much less time, money and effort than it takes to maintain and stage a home. And, if you buy in an area that has boomed, you could be holding the deed to a particularly valuable piece of property.
Knowing when and where to buy is a key point with undeveloped land. This is where having a good relationship with a real estate professional who knows the area, keeps track of developments and pre-construction can really pay off. A property can become valuable because of its proximity to a new development such as a shopping mall or activity center. As communities expand, land once considered "rural" may eventually fall within the city limits, making it more valuable as urban property.
In addition to resale value, vacant land is also a great buy for the options it gives the buyer for developing it themselves. Whether it's a primary residence, second home or vacation property, developing the land yourself can mean you save thousands of dollars that would otherwise go to buy an established structure. It also gives you the freedom to design and build your home to suit you and your family.
A vacant lot is only vacant in terms of there not being a building on it. It is actually full of opportunity for buyers who want to try a different kind of real estate investment, people who want to build their own homes and those who want a flexible piece of real estate for multiple uses. Careful consideration and research will reward the serious buyer.
About The Author:
Illustrated Properties is a Jupiter real estate company with professional, effective services to help you succeed in the local market. Visit TedSoldIt.com for information on local neighborhoods like Singer Island real estate, and to see listings of homes for sale.
Vacant land lots are not just for big developers. They can be a sound investment for the person willing to research the area's present and future development, desirable areas and the type of land suitable for the development of popular construction.
Vacant land is often available a much lower price than comparable developed land. The average home investor stands as much chance at making a good profit from a carefully purchased land lot as they would investing their money in a developed property. Perhaps more, if the lot is in a desirable area or an area that becomes desirable as a result of other development in the locale.
A newly desirable piece of land can reap much reward for the careful buyer. You don't have to spend a lot of money in upkeep or repair, the property can be used or sold flexibly and the increase in value can bring thousands of dollars in profit to you, for much less time, money and effort than it takes to maintain and stage a home. And, if you buy in an area that has boomed, you could be holding the deed to a particularly valuable piece of property.
Knowing when and where to buy is a key point with undeveloped land. This is where having a good relationship with a real estate professional who knows the area, keeps track of developments and pre-construction can really pay off. A property can become valuable because of its proximity to a new development such as a shopping mall or activity center. As communities expand, land once considered "rural" may eventually fall within the city limits, making it more valuable as urban property.
In addition to resale value, vacant land is also a great buy for the options it gives the buyer for developing it themselves. Whether it's a primary residence, second home or vacation property, developing the land yourself can mean you save thousands of dollars that would otherwise go to buy an established structure. It also gives you the freedom to design and build your home to suit you and your family.
A vacant lot is only vacant in terms of there not being a building on it. It is actually full of opportunity for buyers who want to try a different kind of real estate investment, people who want to build their own homes and those who want a flexible piece of real estate for multiple uses. Careful consideration and research will reward the serious buyer.
About The Author:
Illustrated Properties is a Jupiter real estate company with professional, effective services to help you succeed in the local market. Visit TedSoldIt.com for information on local neighborhoods like Singer Island real estate, and to see listings of homes for sale.
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