What else you need when you’re looking an online loan? When you see that the site is credible enough for your loans, you found that the interest is something you could afford, then maybe you found that online loans site you would always use whenever you’re in need. But perhaps you need an online loan that could help you when you’re in another country, when your job is the kind of job that needs you to move frequently from countries to countries. A loan provider could help you on three major countries in the world.
Personalcashadvance.com, this loans company has their services on United States, United Kingdom, and Canada. That is good news for you isn’t it? You found that it is hard to take payday loan whenever you are moving to another country. Now, the problems have been solved. You could easily contact them, even when you are on Canada or United Kingdom.
Fill the form, give them the references they need, and wait for the customer service to call you. They would ask you some questions, just to make sure that you are a real person. Sometimes there are people who want to make a fraud loans. Then you will get the payday loan.
October 28th, 2010
posted in Investment News
There are so many needs that people should fulfill in their daily lives. This make them burn a hole in their own pocket in the beginning of month, just few days after their payment and make them don’t have any saving for emergency needs. That’s why when there is emergency’s financial needs come up in the end of month, they become so frustrated and looking for a help to any loans where they can get any loan for covering up that financial problem.
Urgentcashloan.com is the right place to visit and ask for help when you are facing this stressing problem. With online registration and online application, you will easily get the payday fast cash advance for it. If you think that you are appropriate and complying with request of loan’s taker requirement, you can apply for this loan as soon as possible. In this site, you can also read some articles related with information that you should know before taking loans for this site.
By taking this payday fast cash advance as an emergency help for financial needs, you can be avoid from the stressing end of month and you can learn to arrange your money management. There is always a way behind any difficulty.
October 28th, 2010
posted in Investment News
The modern era these recent times has brought many changes to people’s life. Everyone becomes much easier now to get anything that he or she want. People only need to visit a certain website to get anything that they want now. When you want to take the insurance for example, you just need to visit the Carinsurancerates.com website.
The site is the best site ever offered you with some important information about the car insurance rates. By learning about the car insurance rates, you will be able to find out that not all insurance company are good to join. Not all insurance companies could give you the best guarantee by their insurance product. If you want to find a good quality car insurance for example, you have to learn about the site carefully.
Visit the site and learn the information gave by the site about the best car insurance that you can visit. The information about the car insurance rates could show you the rates had by some insurance companies that related to the insurance product offered. Visit the site and be sure of the car insurance that you choose.
October 28th, 2010
posted in Investment News
Company investments require thorough research and a detailed examination of the risks involved. In order to plan financial freedom we need to first locate a good investment company. This is no easy task and one that is best left to the experts. The concept of investing in companies for financial growth and sustainability is not a new one. However, what factors should you consider when making a decision? Rule of thumb when looking for companies to invest in, you have to decide what type of service you want from the investment company.You can do a few things to assist you with your search for the best investment companies. You need to first identify your personal goals and the end results you expect from investments, decide upon the type of relationship you want with the company and research the company itself in terms of its background, reputation and return on investment consistency.Here’s something you need to think long and hard about when you make money investments. Final decisions are yours and the risk investments hold is also yours. You have to consider your own financial situation (current and future needs) first before deciding to invest. Quick returns that are high yield will mean more risk and quite a gamble with your money! Lower returns promise you more safety with your investment. Never invest in something you don’t understand – ask as many questions as you want until you fully grasp what is said.Why you choose an investment company depends really on what you want to achieve. One of the most common goals across the board is to make money on investments and to minimize losses. When choosing an investment fund your goals essentially revolve around what you want to achieve from your investment. This includes the following factors:• Return on investment: is your preference a safe, steady income that can be earned on a regular basis? Do you want to make a one time investment and receive returns or would you prefer investing in small amounts at periodic intervals? Options on these types of returns may or may not reduce the original investment.• Safety: how safe do you want to play the game – conservative investments equate to minimal risk. Most people do not want to risk the loss of their original investment.• Growth: what sort of growth are you looking for on your investment? Remember, a growth investment has a higher risk factor than a safe money investment.Speculative investments are high risk and also carry a high possibility of loss. It involves short term trading of stocks in new companies. Rewards are higher and of course faster, but the high risk means you need to have money you can afford to lose. As an investor, you have to set investment goals that cover the above factors. You can spread your investments to spread the risk, put a certain percentage of your money in safe income investments like interest bearing certificates and a certain percentage in investments that target growth. You have the right to choose so be selective in your investments and don’t feel shy to say ‘No’.
October 16th, 2010
posted in Investment News
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 PlansThe 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 EffortsReal 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 ServicesThe 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.
April 11th, 2010
posted in Investment News
There are a couple of ways that you can invest in a Mutual fund; one is a one time payment and the other through periodic investments. The later is termed to be Mutual Fund SIP. When you go for one time investments, you just hand over the cheque and you get your fund units depending on the value which is called Mutual NAV (Net Asset Value) of the units on that particular day. When you go in for this kind of investments a couple of factors creep in that determines the number of units you get. A small percentage of your investment is charged as an administrative fee and is termed as entry load. The other charge that is levied is the Mutual Fund NAV, which is the price of the unit of a fund. Say if you are investing Rs 9000/ and if one particular unit costs Rs 30/, then the total number of units that you get to purchase is 300. The other type of investment is done periodically instead of a one time down payment. This kind of investment planning is called Mutual Fund SIP (Systematic Investment Planning). This type of investment is done when you tend to go for high capital gains and you need to invest a bigger amount, but find it difficult to invest it at a single time.It is then that the concept of Systematic Investment Planning creeps in. If you intend to invest a sum of Rs 10,000/ into a particular Mutual Fund, but your current financial obligations prevents you from doing so, then with the concept of SIP, you breakdown your investment principle into equal installments month wise. If a monthly investment of Rs 1000 is done at the end of the year you end up investing a sum of 12000/. Unlike general investment where you pay an entry load, SIP usually doesn’t charge any fee, though as of late some companies have started to in the form of exit loads, which is a fee charged when you sell your units. The minimum amount that has to be invested during a one time investment is Rs 5000/, where as incase of a SIP it could be Rs 500/ or more (depending on the company). In most cases payments through SIP is done month wise, but companies also gives their customers the option of making the payments half-yearly or quarterly. Payments are basically made Electronic Clearance Service from your bank; this means the mutual fund will, as per your instructions, debit a certain amount from your account every month. If you don’t have the required money in your account, then for that month, no units will be allocated to you. But, if this continues periodically, the mutual fund will discontinue the SIP. It is a compulsion that you state to the company as to how long you long you would want the SIP. After that during the course of the period if you realize that you can’t continue with the SIP, all you have to do is inform the fund 15 days prior to the payout. The SIP will be discontinued. You can continue to keep your money with the fund and withdraw it when you want. The amount invested till then will be considered as the total investment made. Investing in Mutual Fund through SIP makes your budget more disciplined. Every month you are forced to keep aside a fixed amount. It helps you make money over the long term. Since you get more units when the NAV (charge/unit) drops and fewer when it rises, the cost averages out over time. So you tide over all the ups and downs of the market without any drastic losses. In case of SIP basically no fees are charged, but if you sell your units in a year time you pay and exit load. Hence it pays to invest in a longer run. The best way to enter a mutual fund is via an SIP. But to get the benefit of an SIP, think of at least a three-year time frame when you won’t touch your money.
April 10th, 2010
posted in Investment News
When it comes to investment pursuits, first time investors usually want to plunge in with the needed knowledge and trading. Unfortunately, only a few of these investors find success, which only means stock investing basics are needed to really enjoy excess in these type of investment. Having even a basic knowledge do help big time as investments means either gaining profits or losing your money – and so one must know what he is doing.
Before jumping into the stocks investment, it is advisable to learn more about investing. This can be done by studying and determining what the stock investing basics are. One basic in stock investments is know what your goal is. You should discern what you are trying go get out of your investments. Before deciding on investing a penny, think really hard first on what you want to earn from your investment. The fact is that knowing what your investing goal is will be a big help in your making more intelligent decision on investments.
One of the most important stock investment basics is to create a simple investment goal at first. Unfortunately many people wanted to become wealthy overnight with their investment. It is not a smart idea to begin your road to investment by having high hopes of getting rich overnight. It is best to make a slow but sure investment.
Stock investment basics also dictates that you work with a financial professional that will tell you if such as a wise investment. Your stock planner will provide you with information that will take you to sound investing moves in order to experience financial goals.
Simply put, you must be reminded that investing requires much from you as an investor. You simply cannot just call a broker and tell him that you desire to purchase or sell stocks. It takes a good amount of stock investment basics as well as investing knowledge especially about stock market in order to earn profitably and successfully.
For more articles and discussions on investing ways such as penny stock investment, do visit our Best Investing Strategies and Ideas blog.
April 9th, 2010
posted in Investment News
Creating a goal plan is half the fun of beginning real estate investing. It’s all about starts at the end, when you are beginning a real estate investing remember to begin with the end in mind, as you start down the path to beginning real estate investing. What kind of lifestyle you would like to have, how much time you want to put in, and where and how you want to live. What you would like your real estate investing activities to provide for you, Spend some time thinking about exactly what you want to accomplish. Don’t think only in financial terms. Be specific, and write down your goals. When you can see them clearly in your imagination, you’re well on your way to achieving them.In real estate investing goal setting step has fail to notice in short interval, this is very unfortunate because taking a few moments to complete this simple task effectively can have a huge impact on your long term results but also on how seriously you are treated by professionals. A great way to describe creative real estate investing is to describe what it is not, here are examples of what it is and isn’t. Real Estate has classified in five types they are Flipping real estate, Probate real estate investing, Virtual real estate investing, Lease option real estate investing: Part I is Lease option real estate investing and Part II is Flipping real estate. Flipping real estate is one of the most used terms in real estate investing. The term flipping real estate means different things to different people depending upon who you are. Probate real estate: Motivated seller, an unemotional is one of the great benefits of probate real estate investing. This benefit is usually from out of town, but not familiar with the property and therefore not emotionally attached to it. Virtual real estate investing: There is many an elaborate and systematic plan of action such as virtual real estate investing, it is an ideal virtual real estate investing system would allow you to work and never leave your house. For example leads are automatically generated through automated e-mails, websites and direct mail, which are directed to a prerecorded message and or answering service.Lease option real estate investing Part One: Now a day investing real techniques are accessible which creates multiple rewards by combining techniques. Lease option real estate investing Part Two :If your are beginning real estate investor making money by doubling cash flows is slam dunk. It gives you what ever you wanted.The most often asked questions by new or aspiring real estate investors have to do with beginning real estate investing. You would want to read this to learn some specifics associated with real estate investing if you are an avid goal setter, if not a frequent goal setter please read on and consider that setting goals which are really a powerful tool. It does have some magic about it, and is critical to you to become successful in real estate investor.
April 8th, 2010
posted in Investment News
It looks like another banner year for the triple net leasing market, with demand far exceeding supply in most areas of the country. Thanks largely to the baby boomer population seeking out new types of retirement investments, demand continues to be high, and the demand, for the most part, comes from people who are in the midst of 1031 tax deferred exchanges. And even in light of interest rates trending upwards, cap rates tend to remain low with prices holding steady. Shopping Center Business recently spoke with several companies that are active in the triple net market to find out more about these trends and what we can expect for 2006. Demographic Shift The main reason for the current state of the triple net market is the significant demographic shift of baby boomers moving into their retirement years. According to Bruce McDonald, president of Net Lease Capital Advisors, there are about 75 million baby boomers, the oldest of which are just hitting the age of 60, so there are a lot of older Americans who have built up substantial wealth in real estate portfolios. Their ability to go into the net lease market allows them to avoid paying capital gains tax and move from management-intensive real estate to passive real estate that provides a stable income. “There are a lot of people who have built their portfolios out of single-family, duplexes or triplexes, and they are getting too old to bother with that and now have a yin for a management-free investment that produces a regular cash flow,” says Ralph Bunje, president of Reverse Exchange Services, Inc. “The traditional triple net model for these investors was a single-tenant property, such as a Burger King or post office because it fit their criteria. Now, as a result of this demographic shift, there has been the creation of the TIC [tenant in common] industry.” In addition to a management-free investment, a lot of these retirees are looking for “safer” investments as opposed to the traditional stock market approach. “There are a lot of people who had perhaps previously invested in the stock market or other investment opportunities and feel more comfortable getting into the triple net market now,” says Leith Swanson, president of Prime Net Realty Advisors, Inc. “There are a lot of very wealthy investors — individuals and entities — that are in the market and, at the same time, there has been a shortage of quality investment-grade net lease properties available for that pool of investors to buy. So what you’ve ended up with in the last couple of years is a huge pool of investors that are investing because of 1031 requirements or simply because they’re in the market and they are doing a dozen deals a year.” Though most agree that triple net investing is becoming more and more popular, one person we talked to thinks the stock market still has some appeal. “I think the media has been successful in helping create the perception of the real estate bubble out there,” says Keith Sturm, principal with Upland Real Estate Group. “I don’t think there is a bubble, but certainly clients have been a bit more hesitant about real estate just based upon what they hear on TV. With that, I’m noticing that the stock market has become sexy again. People have very short term memories and have forgotten how their 401Ks turned into 101Ks over the last stock market ‘crash.’ Those memories have been fading, and people are thinking about jumping back in.” Gaining Interest Interest rates on triple net investments may be rising, but cap rates so far have not necessarily followed, according to several people we talked to, and pricing still remains steady. “The demand continues to be strong because folks are simply looking for non-management properties and net lease seems to fit the bill,” says Jay Bastian, senior vice president of acquisitions for Commercial Net Lease Realty. “If treasuries stay where they are or trend lower, I think cap rates will probably maintain their current levels, but obviously treasuries are a driver of cap rates in some respects. Everyone talks about increasing interest rates, but I don’t see the demand sliding because of it; it’s just going to change pricing on deals.” “It’s still an incredible seller’s marketplace,” notes James Dwoskin, president of ICA Realty. “Sellers are still holding tight to prices that were originally put in place at a lower interest rate environment, but there doesn’t seem to have been any movement in the cap rates on the highest credit deals. On the lesser credit deals, there’s always been more flexibility and play in the pricing.” According to William H. Winn, president of Passco Companies, LLC, supply is still constrained and there is more demand by buyers. “However,” he says, “the movement of the interest rate has changed the market somewhat. Rising interest rates have, and will continue, to put downward pressure on yields, and as the trend continues, demand will be reduced on the buyer’s side.” Winn continues: “If sellers do not lower their price expectations, the result will be less transaction volume because buyers and sellers will not be able to agree on purchase price.” McDonald says he has yet to see a change in pricing. “Everyone would think that the cap rates will track interest rates,” he notes. “If interest rates continue to go up, there may be a change in pricing at some point, but so far it’s early. There’s usually a delay anyway, but I think in this market, there’s likely to be a longer delay between the interest rates and the cap rates.” Jonathan Hipp, president of Calkain Companies, takes a similar view. “There’s a lot of activity with tax-motivated buyers and plenty of fresh equity that’s not tied to an exchange,” says Hipp. “Although interest rates have gone up, cap rates have not correspondingly seemed to move in conjunction with the interest rates, so there are some pretty aggressive cap rates compared to what the debt is.” According to Sturm, the lower-priced, quality properties are holding their cap rates, and in the category of non-investment-grade properties that are in the $1.5 to $5 million range, there’s real pressure to increase cap rates. “The trend I’m seeing now is there’s incredible pressure on cap rates, based upon interest rates rising, that is causing a little bit of a slow down in the market until cap rates can adjust to interest rates,” says Sturm. 2006 Market So what effect will the demographic shift and rising interest rates have long term? The great risk is that people are buying at a market high, according to Bunje, but how long that will last is the burning question. “The demographic shift will probably continue to push for this type of investment for the next 10 years, at least,” he says. “But the question is, will these investments be popular and will the demand be there if the housing market should fall apart? If housing values go down, the whole focus is going to have to be on long term interest rates. So you just watch the 10-year Treasury rate and that will tell you what happens in that marketplace.” There are several forces that are going to cause cap rates to ease in 2006, says Barry Silver, senior partner with Silver Willis Investment Real Estate. “For the first time in my experience, investors are not willing to accept such small returns and they’ve turned to the TIC market,” he notes. “And they are being sold a higher current return without giving a tremendous amount of thought to the ramifications of what’s going to happen when the debt adjusts up to the interest rates that they’ll be seeing in 5 or 10 years.” Swanson says cap rates for net lease properties are going to be higher in 2006. “We may not see a fourth quarter that will look as good as the third quarter results are looking. But cap rates historically have lagged behind movements in interest rates, and though cap rates have continued to drift lower in September, October and November, interest rates have been fairly stable overall. But there are some inflationary pressures, and we’ll see an increase in cap rates possibly late next year.” “An average cap rate for a long term triple net property is between 8 and 10 percent,” adds Bunje. “Many of them are selling at 5 and 6 percent today, and that’s largely because of low interest rates. If interest rates go up, then cap rates go up, and as cap rates go up, investors who invested will lose their money because the cap rates will change.” While competition remains fierce, it may be a tougher market in 2006, according to Paul Domb, asset manager for United Trust Fund. “As interest rates increase, the primary players — the large REITs and the CNLs — will continue to do business, and I think a lot of the Johnny-come-lately’s will not be able to compete and will find a very tough market.” Hot PropertyWhat, where and how 1031 investments are being made. With the success of triple net leasing and 1031 exchanges, what types of investments make the most sense these days? Shopping Center Business recently talked to James Dwoskin, president of ICA Realty; Paul Domb, asset manager for United Trust Fund; Ben Simon, partner with The Simon Companies; Leith Swanson, president of Prime Net Realty Advisors, Inc.; Bruce McDonald, president of Net Lease Capital Advisors; Jonathan Hipp, president ofSusan H. Fishman ; Keith Sturm, principal with Upland Real Estate Group, Inc.; Michael Shephardson, executive vice president of Trustreet Properties; and Dan McCabe, president of Investment Exchange Group to find out more about the types of properties and investments that are at the top of the list for today’s investor. SCB: What types of properties are hot for 1031s right now? Domb: From our perspective, one type of property is no better than the other, and we do everything — office, retail, industrial, bank branches, pawn shops, 7-11s, you name it — all single tenant. Simon: On the seller side, it’s the Eckerd’s and CVS’s that are popping out of the ground. If you can get with a builder that’s doing those, then you might be able to get your arms around a newer product. McDonald: All properties are sought after for 1031. I think that what typically separates it is the size of the 1031 buyer in terms of how much money they have to reinvest. On a typical bell curve, there are just a lot more 1031 people who have smaller dollars — $1 million to $5 million — to invest. You have a large volume of smaller retail properties, such as drugstores and fast food restaurants. If you put it in a larger perspective, retail has the most transactions, but it’s not as high because industrial and office tend to be larger deals. Hipp: It used to be mainly retail, but now there is a lot more office and industrial. But I’d still say retail because it’s the most produced product out there — like a 7,000 square-foot Advance Auto or a 3,000 square-foot video store. The most sought-after property is any pure triple net property with reasonable or good credit behind it and rental increases. More than ever, I’m seeing buyers who have to buy something other than what they had hoped for and at yields lower than they had expected. Sturm: The single-tenant net lease, good-credit, well located properties are what’s really selling most today. We do a lot of retail, and it’s what we classify as the minimal management properties. The best-selling ones we see currently are passive real estate investments, where the owner just gets a check on a daily basis. McCabe: There are a wide variety of sought-after properties for 1031s. I’ve seen everything from large industrial complexes that are broken down and the typical semi-regional shopping center to gas and oil interests and multi-tenant office buildings. It almost depends on what the originator can find. I’m seeing a significant number of multi-tenant product, i.e. office buildings, medical facilities. There are too many inexperienced dollars chasing too few good deals. SCB: How hard is it to find properties? Dwoskin: The better properties are very hard to find. There are a lot of lesser credit, specialty type buildings, things like net-leased franchisee restaurant properties — those are always readily available. The harder things to come by are leased properties that are significant assets, such as warehouse distribution facilities, office buildings or well located retail facilities that are leased to investment-grade credit tenants. Over the last several years, most of the high-credit big-box users, like Wal-Mart, Target, Costco, Home Depot and Lowe’s, have decided that they no longer want to be tenants if they can avoid it and want to own all of their properties. So those deals are evaporating; there are very few, if any, in the marketplace. So what’s left of the investment-grade credit deals is coveted, and people will pay more for them. Hipp: Properties are not hard to find; it’s hard to find something that makes sense. It still continues to be a market where, if you see something you like, you’ve got to go after it. Shephardson: We’re very niche-focused and work in two primary sectors – 90 percent of our business is in the restaurant arena and the other 10 percent is just general retail that includes drugstores, banks and convenience and gas stations. We’ve found that because we’ve been in the business for so long and know so many restaurant operators, and because we have a very strong acquisition business in our origination efforts, we don’t have any challenge finding product. SCB: Where are people looking for property? Domb: To the 1031 investor, private ownership is a big factor, so local properties would be key. Credit and the type of real estate are secondary or tertiary considerations. The 1031 investor is hard-pressed to find quality investments. Swanson: We typically deal with clients in the $7 million to $10 million range and above, and the area doesn’t seem to matter, although obviously they’re not buying a lot of property in Louisiana and Mississippi. The driving catalyst behind the growth in the net lease market is the fact that the investor can move across state lines and not be relegated to his own backyard. McDonald: The product is spread across the country; there are certain areas for different product types. Florida and the whole Southeast are big growth areas and so are the western states. Office and industrial headquarter building deals are being done all over — they tend to be in the distribution hubs, such as Memphis or New Jersey. SCB: Are TIC structures still on the rise? Swanson: TIC structures offer the individual investor who doesn’t have $3 million to $7 million an opportunity to jump in, so that’s really propelled the market growth that we’re seeing. McDonald: They are certainly on the rise. In 2001, they did about $160 million in equity and in this year, they’re expecting to do $4 billion of equity — and that’s just on the securities side. So there is obviously a huge demand, and that ties into the fact that the majority of 1031 buyers have less equity and TICs allow them to have somewhat of a passive investment. So it’s clearly a product that there is substantial demand for. Hipp: They are becoming a very popular vehicle and much more publicized and well known. There are a lot of people out there with $200,000 to $300,000, and it’s hard to buy something without taking on a lot of leverage. They would much prefer to partner with a group of others to buy a more quality asset and let somebody else worry about the management. Hipp: The TIC market is certainly becoming more popular, and I think they serve a purpose. But when people start buying properties with interest-only loans so they can cash flow, I think it’s a double-edged sword because when that loan comes due in 5 years, they’re going to be out to the market looking for debt in a different interest-rate environment. I’m not sure they realize exactly what they’re buying. Sturm: We think the TIC structure is really the future for passive real estate investments. The baby boomer generation as a demographic group just turned 59 and a half, and it’s not long until their 401K plans are going to be available to them to start pulling down money on a tax-deferred basis. But what we’re finding is that the quality TIC properties that are investment-grade are able to attract very good financing right now. We’re able to get long term fixed financing in the 5 to 6 percent range, while the 1031 or net lease properties we’re talking about have been financed in the 6 to 7 percent range. Shephardson: TICs have wonderful application in the larger 1031 arena where you are selling a pool of assets or you’re going to sell one large asset at $10 million to $20 million and you want to syndicate it amongst many buyers. So the only thing that’s holding the TIC market back is the potential ruling on whether it’s a real estate product or a securities product. We expect that we’ll be doing TICs sometime in the not too distant future because it expands the buyer’s universe.
by Susan H. Fishman
April 7th, 2010
posted in Investment News
Most people, at least, in the West, know that art can have value. After all, they have been reading about Van Gogh, Picasso, or Klimt paintings selling for millions of dollars for decades. However, most people do not know that you do not have to be a millionaire to invest in and make money from art. Art is simply another investment asset class that savvy investors include in their arsenal. Therein lays the key to understanding.
The sad truth is, also, that most people who invest in the more common investment assets, like stocks and bonds, do not understand investment in those more common investments. I always hear people talking about “playing the market”, yet, as any professional investor will tell you (it just so happens that there are so few that odds are that you never met one), although it is a game, it is not a game for novices.
The first person to formalize a mathematical framework for economics and finance was John VonNeumann, a mathematical physicist, who invented game theory as the basis for studying those fields, in the early part of the twentieth century. Indeed, until the 1980′s, most of economics and finance sprang from this basis, and the focus was to assume, just like in playing dice with perfectly symmetrical cubes or flipping a so-called fair coin, that investment was a fair game: there was equal probability of gain or loss and the distribution of outcomes was the bell-shaped curve.
Since the 1980′s the behavioral school has gained ground, in the theoretical realm, by assuming that since people are not perfectly rational, we should examine the actual behavior of people in business and investment situations. Of course, that is something that investment professionals have been doing for centuries. Dow and Jones, in the 1880′s, said, for example, that at market tops the professionals are already well out of the market. After a crash, which will always happen because emotional human beings are markets, professionals quietly begin to buy. Their buying, eventually excites technical market analysts’ technical market indicators, which are somewhat based on supply and demand analysis, in real markets, and technicians begin to buy and recommend buying. Eventually, the general public catches onto this news, which is really very old news, and they jump onto the band wagon. Everyone tells everyone how smart they are and how much money they made yester day trading on-line. Meanwhile the professionals have begun to quietly exit the market. A peak comes; a crash comes. Then, all of those self-proclaimed investment mavens console each other and support each other in their ecstasy turned agony. Some run to the authorities and claim that they were duped because they did not understand the complex nature of the mini-bonds that they bought: translation – they were so greedy when they were told that they could make unbelievable returns, and they did not want to hear about the risks. Another lesson that the theoreticians finally came to admit after the stock market crash of 1987, which, statistically, should not have happened in the whole history of the solar system, was that the distribution of returns is skewed with a longer tail on the down side.
It will be beneficial to understand the basic framework of a market, investing, and basic economics. Economics assumes that people are self-interested. Its only fault is that it assumes that people follow enlightened self-interest: no greed, lying, or cheating. Finance says that there is a difference between price and value: value is what someone thinks that something is worth, while price is the amount that someone actually paid for something. People make markets. A market is not, necessarily a place, like the New York Stock Exchange. Indeed, many people do not even realize that the NASDAQ market is not like the NYSE, it is simply a network of dealers, connected by computers, who maintain bid and ask prices for NASDAQ stocks. This is referred to as a dealer market or an over-the-counter market (OTC), as opposed to the NYSE, which is one physical exchange through which all orders to buy and sell are funneled. In fact, many people do not even know that the NYSE is a very special exchange, in that all of the stocks on the exchange are assigned to specialists who are the only one that you can buy a particular stock from. The specialist maintains an order book of bids and offers, and he has the ultimate in information about supply and demand for his stocks at any moment in time. As part of his job as a specialist, he can invest his own capital, in his stocks. All the other layers of the business that deal with the investing public, after that, are in marketing. A stock broker, for example, is just trying to make commissions when he calls you with a hot tip. Even at the level of institutional sales, salesmen, analysts and block traders are just trying to get commission dollars. None of them risk their own capital. There are also investment bankers who help companies raise capital by issuing new stocks and bonds, and there is a large market effort accompanying that. An underwriter might risk his capital by agreeing to underwrite the deal at a price for leftovers and may support the stock, in the secondary markets, by buying for a month or so.
So, let’s look at the art market. A market is where supply and demand sort out price and volume. Art buyers, collectors and investors make up the demand side. Retail investors are smaller buyers of art, while high-net-worth individuals, trusts, corporations and museums fulfill the role of institutional investor. Art dealers act as brokers, dealers, and investment bankers for art. They act as brokers by taking consignments for sale or request to buy from customers. They buy and sell art for their own account as dealers. By taking on new, undiscovered artists, by having shows for artists at galleries (much like the road show investment bankers do for IPO’s of stock), and by acting as agent or dealer for an artist, they fulfill a role, much like investment banker. Ultimately, supply is limited, depending on the artist. Once an artist is dead, supply is fixed.
Value begins, as in all of economics, with scarcity. It is the same principle that drives the precious metals market, the crude oil market, and the art markets. As with anything else, quality also plays a role in determining an appropriate price. However, also, like with many other things, including any type of investment, marketing plays a major role. Galleries, dealers, and art critics try to tell people what is good and what is bad art. Sometimes, I wonder about their opinions. Other times I have benefited, as in the sale of a table made of roots onto which birds were carved, and as one of only two found examples by this unknown folk artist from the 1800′s. Sale of the table brought over $4,000, back in the mid-1990′s. These art market analysts play the same role as securities analysts, in the stock and bond markets. They might even make buy and sell recommendations, and they might estimate values of artworks. Since art is supposed to make you feel good, your basic starting point should be to look to buy things that you, personally, like, then, check out the price.
In the securities markets, smart investors value things on a comparative basis. Instead of trying to figure out what prices or returns should be, stock analysts use comparative P/E ratio analysis, comparing one company to other companies, in the same industry, and comparing P/E’s of stocks and industries to those of the general market. In bonds, the yield-to-maturity (YTM) of a bond is compared to current market YTM’s of bonds of the same company and to general bonds with similar maturity, coupon rate, and risk. In the same manner, the value of works by an artist can be compared to one another and to those of other artists. Normalization, in the context of paintings, involves an artifice: converting prices to price per square meter or per square inch. One might make similar size normalizations for, e.g., teapot art and sculpture. However, price per unit of size might vary over an artist’s work with larger ones, perhaps, trading for lower price per unit of size, and their more famous works trading at higher price per unit of size.
Having built a comparative pricing system for art, one can compare the prices of one artist to another and the average prices of one artist over, a school, a movement or a period by construction single artist or composite price indexes and looking at their evolution over time. That also allows you to calculate returns since return is defined as the percentage change in price over time. You can compare prices from galleries, which is the retail market. The next layer of the market, much like in other investment markets, is an inter-dealer market. The final layer is the auction market, which in some respects is like the exchanges, in the securities markets, but it is a stop-out market: a market of last resort for sellers. The auction markets are more fragmented than the auction markets, in securities; they are not open every day, either, unlike their counterparts in securities. Price information of one sort can also be garnered from the auction markets for artists for whom there are auction records. There are also research and information services, in the art markets, mirroring similar services in securities and commodities markets.
I bought my first piece by a famous artist, Joan Miro, in the mid-1980′s. I was surprised to find that the price was only several thousand dollars. By the time that I bought my third Miro, I had learned about and used information from the auction record to pay the proper price. In succeeding years I bought art by many famous artists. Although the art that makes the headlines makes it seem that all art is out of reach of the man on the street, you will be surprised to find out that art by many known artists, past and present, is not that expensive. Another little known fact is the good returns that can be made in art, especially when one approaches the market with the tools and techniques as one would in any other investment asset market. During my decades of trading art, in the U.S., I cannot recall a time when I lost money, and returns have always been exceptionally good, especially when compared to returns of other investment assets. I can even recall times that I have continued to earn a profit, in art, even during downturns in securities and real estate markets.
Now, we are investing in and have set up a dealer in Chinese art. I moved to China four years ago to teach finance and economics at South China Normal University. I have been immersed in the Chinese social and economic scene, and I have concluded that the best current market in China, today, is the not the export market or the stock market or real estate, but, instead, the art market. Returns, in art, in China, have been above twenty percent per year over the last decade, in local currency, and the continued undervaluation of the Yuan versus foreign currencies, coupled with other socio-economic factors, make investment, in this market, appear to offer good opportunities over the next several years, especially for foreign investors.
Up through the 1970′s and early-1980′s, investment in stocks and bonds seemed outside the reach of the man on the street. By the 1990′s everyone and their brother was trading stocks on-line through discount brokers. Now that we are in the twenty-first century, the next time you think about art, remember that it is just like any other investment asset, like stocks, bonds, and commodities, it is not outside the realm of investment possibilities for the average investor. Think of the analogies that we have laid out between art and securities investing and markets. You can also find out more information about investment, art, China, and investment in art in China on various parts of our website.
February 24, 2009 Craig Mattoli, CEO, Red Hill Capital, owner of Leona Craig Art, Guangzhou, China
April 6th, 2010
posted in Investment News
Europe’s largest country by area, Ukraine combines the advantages of the longest border with the EU, some of the richest agricultural lands in the world, large and growing domestic market, as well as skilled workforce with labour rates of one tenth of the European average. The location of Lviv oblast on the crossroad of trade routes from Europe to Asia as well as from Scandinavia to South lands provides the access to 100-million consumer markets of Ukraine, Russia and other CIS countries.
Attractiveness of Lviv oblast is ensured by:- dynamically developing market,- highly educated and skilled labour force that easily adapts oneself to market requirements (150 thousand students graduate from 62 higher educational establishments located on the territory of Lviv oblast annually),- significant share of modern industries in the economy of the oblast, increase in the amount of innovation enterprises, wide network of research institutions,- developed telecommunication infrastructure,- modern market of financial services,- low-expense production base and rich recourses,- International airport “Lviv” as well as transport corridors that run through the oblast’s territory,- unique charm of Lviv city, which is included in UNESCO World Heritage List, and lots of recreation opportunities,- ancient traditions of trade with Russia and countries of CIS,- implementation of a number of international development programs in the oblast.
The priority task of the regional state authorities and local self-governments of all levels is to increase investment inflows to Lviv oblast. The Investment Program Welcoming Investors was adopted in the region. The regional Investment Program will provide achievement of the four following goals of the Strategy of Lviv Oblast Development 2015:
1. Lviv oblast is a region of sustainable economic and entrepreneurial development.2. Lviv oblast is a gateway of Ukraine into the EU.3. Lviv oblast is a region of highly qualified people, innovation potential and technologically advanced companies.4. Lviv oblast is a region of clean and attractive natural environment, culture, tourism and recreation.
The investment policy will be based on the well-defined partnership of the state and private sectors and realized taking into account the following principles:- providing investors with the equal rights and terms for investment activity,- providing investors with guarantees against non-commercial risks (deterioration of investment terms, caused by the actions of state officials or local regulatory documents),- matching potential investors’ interests and tasks of strategic economic development of the oblast,- improving investment infrastructure,- promoting Lviv oblast on the investment markets.
Preparation for Euro 2012 Final Tournament and creation of the possibilities for the implementation of wide-scale and small investment projects are the primary tasks of the Investment Program.The information for investors including propositions of land lots, unfinished construction and other investment projects is available at the official Internet Portal of Lviv oblast. www.invest.lviv.ua
Priority Investment Projects1) Reconstruction of International airport “Lviv”International airport “Lviv” is an air junction in Western Ukraine that provides air transportation between the city of Lviv and regions of Ukraine as well as the whole world. 100 thousand passengers and approximately 40 tons of high value cargo run through the airport annually. The airport is included in 2nd geographical zone of the world air space. The Austrian company Airport Consulting Vienna worked out the concept of International airport “Lviv” development. Modernization of Lviv airport was also included in the State Program of Preparation for the Final Tournament of Euro 2012 Football Championship. The project cost USD 166.1 million, including investor’s contribution of USD 97.2 million.
2) Construction of a stadium in LvivA brand new stadium is planned to be constructed in Lviv within the preparations for Euro 2012. The new stadium will be favourably located 12 km from the city centre, near the hugest residential area within the transport corridor # 5. 25 hectare land plot has been opted for the construction of the stadium, its infrastructure together with car parking. According to the project plan, the stadium will be able to host 40 thousand people and that will allow to play quarter-final games. The project of the stadium was developed by the German company HOCHTIEF. The construction of the stadium and its infrastructure requires USD 290 million investments.
3) Construction and maintenance of Lubelska Mine.Lviv oblast is rich in coke. The project foresees extraction of coal with the help of highly effective innovative technologies. The coal from Lubelska Mine is eligible for carbonization and belongs to the most valuable sorts of “K” mark. Its reserves are reported to be estimated at 86 million tonnes. After the completion of mine construction there will be partly national deficiency for cock coal reduced. General need for investment is USD 400 million.
State and Dynamics of Investment Processes
The trend of stable investment inflows to the oblast’s economy is observed: – for the 9 months of 2007 foreign investors invested USD 164.7 million and that is 2.2 times more than for the corresponding period of 2006.- the total investments in Lviv oblast made up USD 653.2 million. By the volume of investment inflows in Ukraine Lviv oblast belongs to the 10 most attractive investment regions holding 8th position, among the western regions it is ranked as the most attractive investment area.Currently 61 countries successfully invest in Lviv oblast. The most significant investments come from Poland, Germany, Denmark and Hungary. Foreign investments were attracted in 1206 companies of Lviv oblast. By the number of the companies that received foreign investments, Lviv oblast holds the 2nd place after the capital of Ukraine Kyiv. The largest investment inflows were directed to the basic branches of the oblast’s economy as well as its banking sector.
The following cities and rayons of the oblast were the most active in attracting investments:- the city of Lviv – USD 425.1 million or 65.2% of the total volume of investments (Laura Ltd. (Italy) – clothing manufacture, Subsidiary Gangso Ukrayina (Denmark) – furniture production, Merkuriy Ukrayina Ltd. (the USA) – transportation services);- Stryy Rayon – USD 52.3 million or 8.0% of the total volume of investments (Leoni Waering Systems UA GmbH (Germany) – automobile wire systems production, Halychyna Zakhid Ltd. (Germany) – pig farming);- Yavoriv Rayon – USD 35.9 million or 5.5% of the total volume of investments (Provimi Ltd. (Poland) – production of fodder, Yevroshpon Ltd. (Spain) – wood processing).
The highest rates of investment resources increase are expected in the following areas: production of details for machine-building industry, production of packaging materials and plastic items, agriculture sector, cargo and passenger transportation industry. Significant investments are expected in the development of the construction sector and production of modern construction materials. In 2008 the financial and banking industries will be developing as well.
April 5th, 2010
posted in Investment News
Investors today want to know: “Where can I find a legitimate high yield investment with low risk for my money?”
Many people have seen their retirement savings wither in the current global financial calamity. And, as a result, we are seeing an exodus of investors out of the stock markets and into the safest money investments they can find to shelter what’s left of their lifetime savings until the economy stabilizes.
We’re seeing many investors now moving their money into investments such as Certificates of Deposit and U.S. Treasury Securities whose returns likely won’t keep up with the rate of inflation because of their very low yields. But, people are settling for these low returns versus the risk of losing more in the stock markets or elsewhere. They’re scared and many don’t know where else to turn.
The truth is that investors today don’t have to settle for these sub-inflation or break-even investments. They can still find legitimate high yield investment opportunities with very low risk to principal if they just knew where to look.
So, here’s the problem: most people don’t know where to look to find legitimate high yield investment opportunities. They are so ‘shell-shocked’ from their portfolio and stock market declines that they’re scared, cynical and skeptical when presented with opportunities that claim to be “high yield investments”. And, they turn a deaf ear to investments that they might have welcomed in better times.
But who can blame them? We’re seeing a resurgance of Ponzi schemes and other scams, identify theft, etc.
Fact #1: You can still find legitimate high yield investment opportunities today with low risk to your principal.
Fact #2: Many of the richest people in the world today, made their fortunes when the economies hit rock bottom. These investors chose to look for opportunities when the masses focused on despair. They recognized how stock markets and economies are cyclical by nature and they looked to the future.
So, let’s see if we can’t look to the future and spot a legitimate high yield investment opportunity staring at us right now:
Two realities that are public knowledge in America today are:
1) There is a limited amount of undeveloped, raw land available in the U.S.
2) The U.S. population is projected to grow +29% between 2000-2030.
In other words: “We’re making more people, but we can’t make any more land.”
What does this information tell us?
i) We will have approximately 82,000,0000 more people living in the United States by the year 2030. (According to the U.S. Census Bureau.)
ii) These new people will need new homes, new schools, new shopping, new businesses and new communities to support them.
So, what legitimate high yield investment opportunites does this present?
Let’s talk about “Raw Land Development”. Ever heard of it? If not, you should seriously consider learning about it right now.
This situation, of limited supply (limited amount of raw land) and growing demand (population growth) is a fundamental economic illustration of what happens when demand for a product is greater than its supply. By definition, the product becomes more valuable. Yes?
Well, the products, in this situation, would be the new homes, new schools, new shopping, new businesses and new communities needed to support the growing demand created by population growth.
This poses a tremendous opportunity for what legitimate high yield investment? How about “Raw Land Development”, the essential ‘building blocks’ of new community construction.
In December of 2004, the highly acclaimed Washington DC think-tank, Brookings Institution commissioned a research study conducted by Virginia Tech University. This study was titled “Toward a New Metropolis: The Opportunity To Rebuild America.”
According to the study, to accomodate the projected population growth, America’s future raw land development and construction needs require approximately 209 BILLION square feet of new land development between 2000 – 2030.
Estimated cost? $25 TRILLION. And, the bulk of this massive raw land development and construction expansion will be spent in 10 major metropolitan regions, which the Brookings study calls ” Megapolitans”. Plus, the study tells us exactly where these 10 Megapolitans are located.
By the way, this is happening right now!
How can investors profit from this legitimate high yield investment opportunity?
1st) By educating themselves asap about Raw Land Development
2nd) By researching the Brookings Institution study findings.
3rd) By investing in the companies that will be driving this new raw land development growth.
Raw Land Development Investment Benefits:
A) Legitimate High Yield Investment:
A proven investment option is to invest as a ‘silent investor partner’ with a professional raw land development company. The key is finding seasoned, reputable companies in this field.
Professional raw land development companies or ‘land developers’ often seek outside investors as silent partners to raise capital for their raw land development projects. Silent partners have no involvement in the day-to-day management activities of the business, but they share in the net profits of the project. In addition to profit sharing, some professional raw land developers also will pay high yield interest to their silent partners for the use of their money until the principal is returned.
B) Legitimate Low Risk Investments:
It is regular practice for professional raw land development companies to back their silent investor partners’ principal investments with project assets (e.g. the value of the land itself). This means that in the event of a developer default (heaven forbid), the project assets can be sold and the silent investors can recoup some or all of their principal plus any net profits.
In addition, for added security, silent investor partners are commonly placed in First Position for the raw land development project’s assets and revenue. This means that in the event of a developer default, if the project’s assets must be sold, the silent partners will be the first in line to be paid. (Similar to when a bank holds the mortgage or first deed on a home.)
IMPORTANT NOTES:
I. Per industry averages, a professionally managed raw land development project will increase the value of raw land by 2-5 times its original cost. In other words, a professional land developer will typically sell a completed raw land development project for 200-500% more than they paid for it originally as undeveloped, raw land.
II. It is widely held that real estate investment has created more riches than any other form of investments. Taking that one step further: Raw Land Development is the most profitable form of real estate.
III. For these reasons, professionally managed raw land development investment has been the cornerstone for many of the world’s wealthiest investors’ investment portfolios for generations.
Until recently, participation in raw land development projects was restricted to the very rich due to the exorbitant minimum investments required (often $1 Million +).
However, this has changed in the past several years, with some professional land developers dramatically reducing their minimum investment rquirements to allow smaller-scale investors to now participate in these legitimate high yield investments.
April 4th, 2010
posted in Investment News
The stock market has been fairly flat since the beginning of December, and that means its a good time to assess your relationship with your investments.This is a good time to look at your entire relationship with the market. It doesn’t matter whether you trade stocks, options, commodities, or even Forex. It’s a good time for a little self reflection.
The first thing to do is determine what your actual motivation for trading is. What is the reason behind your specific strategy? Maybe your strategy is to hand your money to a major broker like Smith Barney, AG Edwards, Fidelity, or any of the others. Does that mean that your main strategy is to not deal with investing… to just give your money to someone else and let them hopefully make money for you. Maybe your strategy is to put your money with a company like Scottrade, eTrade, or Ameritrade and actually make the trades yourself. Are you doing that for the thrill of winning and losing kind of like Las Vegas? Maybe you do it to have something to impress your friends and co-workers with. It’s importantthat you understand your underlying motivations. The ones beyond the automatic response of wanting to make riches.
With that bit of self analysis under your belt, it’s an excellent time to ensure that your trading mode is in order because the market will not stay flat forever. Now is the time to put together a winning trading methodology. Here are some ideas to help you be ready for the up swing in the market.
No matter why you trade, you’ve got to divorce your emotions from your investing. If you get excited when you win and sink into the pits of depression when you lose, then you will find out that you lose and lose and lose. Really, this emotion-based trading is a lot like a compulsive gambler. So act like an android and get your emotions out of the picture.
Now that you are clear about your motivations and have your emotions out of the picture, decide on your goals for trading. There are a few basic things to think about. How much time are you ready to spend on your investments? How much ROI are you looking for? How much risk will you assume on the money you invest… in other words, how much are you willing to lose? How much are you willing to spend on learning to invest? Come up with a statement of objectives in the form, “I am ready to invest ____ dollars and I am looking for a ____ percent annual return on my investment where I spend ____ hours per week/month managing my investments after spending _____ dollars and ______ hours learning how to invest.”
Next you need to do some reality checking on your goals. If you are looking for a risk free investment returning 100% annually, that is not likely to be found. This is also a great time to see how effective the investment techniques you have been using really worked.
Next, come up with your overall investment strategy for moving forward. Are you going to put your money in a bank? Are you going to put some money into guaranteed municipal bonds and some into mutual funds? Get specific about how you intend to reach your objectives.
Before you actually invest a dime, you’ve got to have an investment plan. The investment plan defines when you will actually put your money into an investment and when you will take your money out of an investment. If you are investing in a stock, then this plan will tell you when you should invest in the stock. What value should it be at? What should it’s recent history look like? Does the performance of the stock meet certain technical analysis criteria? Does the company meet some fundamental analysis criteria? Your plan should also tell you when to sell the stock. That tells you the risk you are taking. If you purchase 100 shares of a stock for $50 and are only willing to risk 100 dollars, then you must exit if the stock drops by $1. That’s not a very good plan, but it gets the idea across.
Many people don’t think they need a plan for things like mutual funds or 401K plans with their company. Frankly, those are the people that lost the most between June and December 2008. The plan that you make should get you the results that you seek in terms of ROI and risk. That’s why it’s called a plan.
Successful traders follow their investment plans to the letter… and this is where the android mind comes in. If you prepared your plan correctly, then if you follow it to the letter you will get the results that you seek. It’s really strange though, that most people stop following their plan. The winning technique consists of three steps. Follow the plan, follow the plan, and follow the plan.
After you exit the investment, then you need to do a de-briefing in your own mind. Take a look at what happened, how your plan served your objectives, and what you could have done better. With this simple analytical approach to investing you will be much more successful no matter what your overall investment strategy.
April 3rd, 2010
posted in Investment News
The Real Estate Investment is an expectation that uses investor’s money to invest in real estate properties or mortgages. A financial device that invests for the most part of the real estate such as apartments, offices, hotels, shopping centers, or warehouses. In real estate be inclined to pay high returns making them charming investment opportunities, especially when the stock market is falling. In high service requires them to pay out at least 90 percent of their taxable income each year in order. There are three main types of real estate investing mortgage, equity, and hybrid. Get various encouraged manners to invest in real estate, reasonable cash flows, and mobile homes. In real estate investment has raised to speculation capital trades on a reserve market just as a mutual assets. There are so many real estate investing articles, and find out how to get in progress, save money, make money, increase cash flows, and space rocket to success.In real estate be inclined to pay high returns making them charming investment opportunities, especially when the stock market is falling. In high service requires them to pay out at least 90 percent of their taxable income each year in order. There are three main types of real estate investing mortgage, equity, and hybrid. The Real Estate Investment is an expectation that uses investor’s money to invest in real estate properties or mortgages. A financial device that invests for the most part of the real estate such as apartments, offices, hotels, shopping centers, or warehouses. The real estate investing offer fundamental to members strategic real estate in order during monthly educational in investment opportunities to appeal the cursory in the real estate investing and they with investment alerts, network buying power, Investment Weimar’s, Quarterly, Portfolio Proven, Investment Strategies, Personal Attention, and Satisfaction Guaranteed. Control their trade power and knowledge to design commercial opportunities for all its members, property vectors is a group of sense real estate investors. Vision is to build high net worth for each member of investment group. The severe of real estate investor of leader service featuring limited venture. As such design available to the world class services and resources to investors to empowering them to make wealth capably and successfully because of real estate investing. The real estate is regarding more than presently finding a position to call home. Is stagnant the nearly everyone reliable form of investment in the banks. While the real estate market have sufficient of opportunities for creation a big gains, in real estate it just does not matter whether getting opened investing in pre foreclosure in real estate investing. Investing in the real estate have become gradually more then popular to over the last fifty years and has become a common investment vehicle. The standard home doubles in value, which is rather an arrival on funds. In arrange to be profitable need to learn the secret of real estate investing. In this article find further than trade a home and commence the real estate as an investment.
April 2nd, 2010
posted in Investment News
Invest is the word to express act of investing or laying out funds or capital in an activity with the belief of profit. Investment is the assurance of something additional than money, time, energy or effort, a plan with the prospect of some valuable result, this job calls for the investment of some hard thinking.Investment is the assurance of something additional than money, time, energy or effort, a plan with the prospect of some valuable result, this job calls for the investment of some hard thinking. Investors contain be rushing to purchase gold as the financial disaster carry on to bite as a revenue of providing a safe continuing asset as other markets deteriorate. Gold actual value is not that it provided a rapid rough fix but that it obtainable a sure and stable means of caring wealth through investing. Gold is an attractive investment that should form an important part of one’s investment portfolio. Gold will certainly continue to remain popular as its investment qualities are highly valued. You are satisfied to let them produce within your range, reinvesting payments to purchase more shares, if your goal is setting up to hold the stocks for several years. A classic approach employs making normal purchases. You are not very worried with everyday variations but maintain a close eye on the basics of the company for adjust that could affect continuing growth.This is not reality that investment policy engages a lot of effort, almost everyone remains thinking that. Investment strategy is about investing your money in varied investment so that you can get to your financial goals within a preset period of time. Each type of investment has separate investments. It is fairly easy to get confused with all the person investments that are available when conducting a research on the different types of investments. Instance, if you think about investing in stocks of electronic companies. Though your investment strategy as to be such so that you can benefit to the highest while taking into account your investment manner and risk tolerance. It is fairly easy to get confused with all the person investments that are available when conducting a research on the different types of investments. Though your investment strategy as to be such so that you can benefit to the highest while taking into account your investment manner and risk tolerance. Risk tolerance refers to the amount of capital you might be ready to invest without feeling the touch. Investment method is about either being conformist or aggressive. If you are conformist, you will select for mutual funds, and if aggressive investor for shares of companies. When someone who you be supposed turn to when you have any question or doubts about your investments. Make sure you have a sound financial goal, in order to work successfully with your financial planner. Your strategy for investing will be developed based on your ambitions.
April 1st, 2010
posted in Investment News
Interest in Socially Responsible Investing IncreasesMany investors have strong opinions that don’t involve their views on interest rates and stock prices. This might include support for a clean environment or concern for the poor and the disadvantaged – just to mention a few well-known causes.Increasingly, these investors want their holdings to reflect their social, ethical or religious values. They wish to avoid companies that profit from activities they oppose, and support companies that behave in ways they consider appropriate or responsible. At the same time, however, most investors still want or need to earn a reasonable return on their portfolios.Socially responsible investing (“SRI”) seeks to reconcile these two objectives by helping investors create diversified portfolios designed to deliver an acceptable level of performance, while at the same time excluding companies that don’t meet the their ethical standards. SRI investing recognizes that corporate responsibility and societal concerns are an important part of many investment decisions—particularly with the world’s increased focus on sustainability and climate change, among others. SRI investors encourage corporations to improve their practices on environmental, social, and governance issues. You may also hear SRI-like approaches to investing referred to as mission investing, responsible investing, double or triple bottom line investing, ethical investing, sustainable investing, or green investing. Increasing InterestOver the last several decades many investors have shown an increased appetite for social investors. The Social Investment Forum, a nonprofit group that promotes socially responsible investing, calculates the total number of assets under professional SRI management rose from $629 billion in 1995 to $2.71 trillion in 2007. In fact, the Forum estimates that one out of every nine dollars under professional management in the US today—or 11% of the $25.1 trillion in total assets under management tracked in Nelson Information’s Directory of Investment Managers—is involved in socially responsible investing.Why has socially responsible investing gained in popularity? One of the reasons may be that investors posed themselves a question similar to this one: while my number one investment goal will always be to create a properly diversified portfolio based on my personal risk tolerance levels, how can I also do a bit of good for the environment, for the world or to improve the condition of mankind? A second reason for SRI’s popularity is that some of the nation’s most prominent institutional investors have increasingly added a social focus to their investment decisions. These institutions, many with significant assets and often with great public, political and media clout, often carry both a big stick and use a loud voice. Some have become well-known advocates for social issues and this is often carried out through their investments in socially-responsible projects. An example is found in the California Public Employees’ Retirement System (CalPERS), one of the world’s largest public pension funds. CalPers recently announced support for the United Nation’s Principles for Responsible Investment, a menu of possible global actions on environmental, social and corporate issues. A third reason for increased interest in SRI is the simple fact that it’s now much easier to access professionally managed SRI vehicles. Many investment firms have created specific investment processes that exclude companies that, in the investor’s view, focus on non-socially responsible or acceptable activities. Once these decisions have been made, the manager constructs a diversified portfolio within the desired constraints. The goal is to deliver performance consistent with the investor’s return objectives and tolerance for risk. Structuring investments consistent with social, environmental or ethical objectives offer investors a way to align their portfolios to their own objectives. Please call today, for more information on incorporating a socially responsive component into your investment program. Graeme H. Patey is a Financial Advisor located in Cleveland, Ohio and may be reached at 216-523-3015 or www.fa.smithbarney.com/graemepatey. Smith Barney does not provide tax or legal advice, and it is important to consult with a tax or legal advisor before investing.© 2008 Citigroup Global Markets Inc. Member SIPC. Securities are offered through Citigroup Global Markets Inc. Smith Barney is a division and service mark of Citigroup Global Markets Inc. and its affiliates and is used and registered throughout the world. Citi and Citi with Arc Design are trademarks and service marks of Citigroup Inc. and its affiliates, and are used and registered throughout the world. Working WealthSM is a service mark of Citigroup Global Markets Inc. Citigroup Global Markets Inc. and Citibank are affiliated companies under the common control of Citigroup Inc.INVESTMENT PRODUCTS: NOT FDIC INSURED • NOT GUARANTEED • MAY LOSE VALUE
March 31st, 2010
posted in Investment News
The markets don’t always behave the way we’d like them to: Geopolitical turmoil, natural disasters, interest rates and world events can have a profound effect on market movements. If recent market volatility has you concerned about the economy, you are not alone; this is a confusing time for many investors. Some have decided to stay the course, while others are sitting on the sidelines waiting for the market to rebound. However, since no one can predict how the markets will perform, it’s important to develop an investment strategy that can help you stay on the right track to meeting your long-term financial goals. Here are some strategies that you can implement today, that may help to manage risk during these uncertain times.Work with a Financial Advisor. There are a lot of do-it-yourself investment resources available to investors today. However, none of those resources can replace the experienced, personal service a Financial Advisor provides. A Financial Advisor can offer an understanding of your complete financial picture, not just your investments. Additionally, in periods of market volatility when you need the most support, a Financial Advisor can provide:• Access to important decision-making research and information;• Ongoing monitoring of your investment portfolio, while anticipating your changing needs; and• A comprehensive market-volatility plan.Have a plan. Developing a financial plan is one of the best ways to meet your long-term goals. Your plan should also include an action plan to address market volatility, which should be developed well in advance of a turbulent market. Having a market-volatility plan will help you to set realistic goals and appropriately manage your return expectations.Invest regularly. It may not seem intuitive, but investing regularly—even during market downturns—can help to reduce your overall costs. Dollar cost averaging is one of the best ways to invest regularly, since you’re investing a fixed amount on a fixed schedule, regardless of how the markets perform. Investing regularly can also have intrinsic benefits: It encourages discipline and may also ease the anxiety of daily market fluctuations.Diversify. If you’ve ever heard the saying, “Don’t put all your eggs in one basket,” then you already have a basic understanding of diversification. Diversifying your portfolio can reduce risk and volatility if the assets have little or no correlation to each other.Investing in mutual funds is one way to achieve portfolio diversification, since mutual funds are typically a diversified investment. There are also several other ways to diversify and potentially reduce portfolio volatility:• Within an asset category, such as purchasing different types of mutual funds;• Among asset categories, such as purchasing stocks and bonds; and• Outside of the United States, since some markets move opposite to the US stock market.Put volatility to work for you. Do you think of the glass as half empty or half full? Your perspective can affect the investment decisions you make during market downturns. Investors who view market volatility negatively can make irrational decisions. A down market can be an opportunity for you to build your portfolio and take advantage of lower unit costs.Stay invested. You are probably anxious during times when the value of your investments has decreased. As a result, you may be tempted to move out of the market, sit on the sidelines and wait for the market to rebound. However, since no one knows how the markets will move, how do you know you’re leaving at the right time? Also, how will you know when it is the right time to get off the sidelines and start investing again?If you have worked with a Financial Advisor, your investment strategy was developed to help you meet your long-term goals. Timing the market could potentially jeopardize your financial plan—and your future goals.Be patient. There will always be uncertainty in the markets; market volatility is a natural part of the investment cycle. Although it may take some time, markets do rebound.In the meantime, call your Financial Advisor to help you develop an action plan for market volatility and continue to focus on your long-term investment goals rather than short-term market moves.Graeme H. Patey is a Financial Advisor located in Cleveland, Ohio and may be reached at 216-523-3015 or http://fa.smithbarney.com/graemepatey. Asset allocation and diversification strategies do not guarantee a profit or protect against loss.A periodic investment plan such as dollar cost averaging does not assure a profit or protect against a loss.International stocks are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets.Mutual fund investments are subject to market risk, including the possible loss of principal. They are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges and expenses, and other information regarding the mutual fund and variable annuity contract and its underlying investments, which should be carefully considered before investing. Prospectuses are available through your Financial Advisor or at www.smithbarney.com. Read the prospectus carefully before you invest or send money.Smith Barney does not provide tax or legal advice, and it is important to consult with a tax or legal advisor before investing.© 2008 Citigroup Global Markets Inc. Member SIPC. Securities are offered through Citigroup Global Markets Inc. Smith Barney is a division and service mark of Citigroup Global Markets Inc. and its affiliates and is used and registered throughout the world. Citi and Citi with Arc Design are trademarks and service marks of Citigroup Inc. and its affiliates, and are used and registered throughout the world. Working WealthSM is a service mark of Citigroup Global Markets Inc. Citigroup Global Markets Inc. and Citibank are affiliated companies under the common control of Citigroup Inc.INVESTMENT PRODUCTS: NOT FDIC INSURED • NOT GUARANTEED • MAY LOSE VALUE
March 30th, 2010
posted in Investment News
The term asset management is often used to refer to the investment management of collective investments which usually includes investment funds, managed funds, mutual funds or any other funds etc. Financial market shows amazing moves. Asset management is must to get the control over finance and further investments. Sometimes it may be confusing to choose the best investment option as there various options available nowadays. To manage these investments and to plan further is again a confusing and hard task. Because without the asset management finance, you won’t get the actual picture of your overall investment and profit portfolio. With the help of proper asset management, you can develop your investment performance and manage financial risk exposure. Even it also helps to reduce the overall business cost which in turn benefits you to reduce the extra expenses.
Today, there are many finance companies available in the market that are specialized in asset management finance and they provide services to the customers which vary according to the type of assets, customer requirements, investment capacity and market conditions etc. Asset management finance system has developed from maintenance management system. Thus, it works out to all physical assets also such as property, heritage, infrastructure, plant and equipment. Generally, services offered by these companies also include liquidity, diversification, portfolio management and professional management service. They provide advices regarding issues like asset management and restructuring to corporations, mergers and acquisitions, partnerships, institutions and governments. The portfolio managers of an asset management finance company turn individual investment decisions into a fully diversified local, global or specialist portfolio. Such portfolios are with attractive risk-return characteristics.
Thus, get the help of asset management finance companies for your short-term or long-term investments. Proper asset management finance is the key to become a successful investor.
A stock is a share in the ownership of the company you have invested in. By owning an amount of stock, you will be paid dividend as and when the company declares. When you own a stock, you have the total control of this stock. You can sell it anytime if you think that you no longer intended to own it or you think that it is not worth to own it. You can also keep it for your whole life and use it as collateral to borrow money from bank or financial institution. Stock investments can be long-term or short-term investments.
A bond is a debt security which the bond issuer owns you if you have bought the bond and is obliged to pay interest or repay the principal at a later date. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Bonds are bought and traded mostly by institutions like pension funds, insurance companies and banks. Most individuals who want to own bonds do so through bond funds.
Though stock and bond are securities, there are some differences in their investment policies. Major difference is that stock investment gives you the share of ownership of the listed company whereas bond investment doesn’t give as bond holders are lenders to the issuers. Another difference between stock and bond investment is that bonds usually have a defined term or maturity after which the bond is redeemed. On the other hand stocks may be outstanding. Bond usually has contract type repayment schedule and once they have paid back all the money that you have lent to them, the bond will end. Once the expiration date has over, the whole investment will become worthless. On the other hand, the ownership of a stock can not be cancelled unless the company is declared bankrupt.
Thus, while choosing between stock and bond investment be aware of these facts and then decide the right investment policy for you.
March 29th, 2010
posted in Investment News
Knowing what your risk tolerance and investment style are will help you choose investments more wisely. While there are many different types of investments that one can make, there are really only three specific investment styles – and those three styles tie in with your risk tolerance. The three investment styles are conservative, moderate, and aggressive.Naturally, if you find that you have a low tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, you will most likely be a moderate or aggressive investor. At the same time, your financial goals will also determine what style of investing you use.If you are saving for retirement in your early twenties, you should use a conservative or moderate style of investing – but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive style.Conservative investors want to maintain their initial investment. In other words, if they invest $5000 they want to be sure that they will get their initial $5000 back. This type of investor usually invests in common stocks and bonds and short term money market accounts.An interest earning savings account is very common for conservative investors. A moderate investor usually invests much like a conservative investor, but will use a portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.An aggressive investor is willing to take risks that other investors won’t take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns – either over time or in a short amount of time. Aggressive investors often have all or most of their investment funds tied up in the stock market.Again, determining what style of investing you will use will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should carefully research that investment. Never invest without having all of the facts!
March 28th, 2010
posted in Investment News
Swing trading is a popular method of capitalizing on the short-term price variations of the stock market. It has earned a reputation of being a powerful method of maximizing profits at lower risks. The best swing trading strategy involves choosing the right stock and the right market. Swing traders usually choose the stocks that fluctuate at extreme ends. Swing trading strategy is employed in a stable market, because here the prices tend to have minor variations on which the swing trader can capitalize. In a rapidly rising or crashing market, swing trading strategy cannot be employed.Investing Journal Let me begin with some of the eye – catching metrics that might lead an investor to consider purchasing shares. Investing Journal – this newspaper company has a price – to – earnings ratio of 11.3, a price – to – sales ratio of 0.93, a 5 year average return on capital of 17.6%, and a five year average pre-tax profit margin of 27.4%. Investing Journal – the Journal Register Company has an enterprise value – to – EBITDA ratio of 9.07 and an enterprise value – to – revenue ratio of 2.24. Obviously, this company is carrying a lot of debt. So, perhaps the multiples on the common stock price are deceptive.Investing Tips – Given the risky nature of playing the stock market, investing tip sheets have become a mainstay of online financial advice. Investing Tips serious investors will want to subscribe to e-mail newsletters sponsored by the sites or to reputable newspapers and journals, but for beginners, the Web offers the easiest way to get acquainted with the market.Investing the stock market – Some Stock Market References: Stock: Stock refers to a share in the profit. Stock trading involves ‘buying into ownership’ of a company. Stock is also referred to as equity or shares. Investor: An investor is the owner of a particular company’s stock. He has ‘claim’, in however small a proportion, to all company assets. The investor shares the company’s earnings. Stock certificate: The stock certificate represents the stock purchased and defines the return on investment. Offline, the certificate is a fancy document, while online it is a display available at a click on the mouse. Dividend: This is a distribution of the owned portion of a company’s earnings. It is commonly quoted in terms of a currency amount per share. Common stock: Common stock represents ownership in a company and claim on a portion of profits. It yields higher returns in the long run. Preferred stock: It guarantees a fixed dividend forever. In event of liquidation, preferred stock continues to be paid off. Stock is a share in the ownership of a company. When a private company decides to divide its business and allows the public to be a part of the firm, then it sells shares of ownership through stock offerings. For example, if a company sells one million stocks and you buy one share, then you own one-millionth of that company and vice versa.When a company sells stocks to the public for the first time, then it is called initial public offering (IPO) or new issue. One of the major reasons of selling stocks is to meet the financial needs of the company for its growth and expansion. If a company plans for expansion and if the bankers of the company feel that borrowing money would be a heavy burden, they look to investors and/or shareholders to finance the growth of the company. investing commodities – Beginner investing information, stock investment advice and help for investors on investment planning, management and strategies, venture capital investment and resources on investment services and firms. The investing commodities – modern era, so frequently referred to as the “information age,” has brought about a new breed of investor who is both savvy and equipped with the necessary technology to make informed decisions. This, coupled with the creation of many new investment vehicles, has transformed investing from owning a few stocks and having a passbook savings account to a more detailed and advanced activity. investing commodities – now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today’s investors. The links herein relate specifically to investments and ventures.Charts candlesticks give you much more information than the simple line chart. They tell you the open and closing price along with the high and low of the day. Even though they both give off the same information I prefer the charts candlesticks because it is much easier to read. If you get use to the bar charts candlesticks it will probably be just as easy. But for new traders the charts candlestick is much easier to read.Oil ETF will move in tandem with oil price. If oil rises by 20%, then its corresponding OIL ETF will move by the same amount. Thus, this makes it easier on investor. They do not have to figure out both oil price and the company specific issues such as production, cost of extracting oil or even labor unions.Most energy ETF is futures. This means that they watch the future prices and resources of the energies. For example, oil and gasoline are futures. This energy ETF depends on the future prices of a barrel of oil as well as how much oil is being made and stored. In other words, will there be enough supply to meet the demand. If the prediction is that there won’t be enough, then the obvious follow up is that gas prices will continue to rise. Therefore, anybody owning this energy exchange traded funds are likely to make money on them.10000 dollars – Some of the simplest strategies work the best but having 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.Invest 10000 get 10000 bucks in a year? Can you imagine the high risk venture that would offer you a return on your money? In this article we investigate the possibility of returns and if they exist, how can they be achieved. To invest 10000 you must have $10 grand, so you are not stupid. So I am going to speak to you on an advanced level.Investing 10000 – If each share costs ten cents then you can buy 10,000 shares with $1000. And if a share rises to $12 then you can easily earn $2000 by selling those 10,000 shares. You can sell the shares for $12,000 immediately after investing $10,000. That means you have not made 20% profit but its 100% gain.http://www.my10000dollars.com/
March 27th, 2010
posted in Investment News
Of all possible investments that are within the reach of the average investor, none ofter the combination of outstanding benefits that are available to real estate investors. And, do you want to know something, banks and life insurance companies recognise this fact!
So they invest your money in real estate. While they pay you 1 to 3 percent for the use of your money, they are making 10 to 20 percent on it.
Why is real estate such a good investment? It offers the investor at least five different returns or ways of making money, on his investment.
Gross spendable income – cash flow
Investors also refer to this as “cash flow” or how much money that you can spend at the end of the month or year after all the operating expenses and mortgage payments have been made. We also call this as “gross” spendable because we have not taken income tax consequences into consideration at this point.
We always purchase properties that cash-flow. It takes time to find them, but it is well worth the effort. The simplest definition of positive cash flow is that you collect more revenue, usually in the form of rent, than it takes to pay for and operate the property.
A big advantage of real estate over other investments is that it can produce cash flow on a monthly basis. The cash generated by a real estate investment will always be a much larger percentage cash-on-cash return than any other investment.
The beauty of a cash-flowing real estate property is that it can help you become financially free. We discussed two real life examples of such real estate property in “How to know if a property investment is worth investing?”
Equity income
This is also referred to as equity buildup or principal reduction. Anyone who has had a mortgage on a home or car recognises that each time a payment is made, a certain portion of that payment is for the interest charged by the lender and the balance goes toward reducing the balance on the loan.
In a real estate investment, this equity income can be a sizeable amount. Although you cannot spend it each month, when the time comes to sell your property, you owe less on the mortgage, so you will receive more money at closing. It’s like putting money in the bank each month.
Making inflation work for you instead of against you – appreciation
Like inflation, you do not see it but it’s there. Only now, it’s working for you instead of against you. How does it work? Each year, because of inflation, your real estate is appreciating in value. Those of you who own a home, for example, would you sell it today at the same price you paid for it five or ten years ago?
We keep on having babies but God quit making land a long time ago. The supply is limited.
What does this mean in terms of existing land values? It means that existing land is becoming more and more valuable each year. It explains why investment real estate, whether in single family homes, apartment buildings, office buildings, shopping centres, ware houses and even vacant land, has become the most secure and profitable way to beat inflation. Existing land in most parts of the country, is appreciating at a rate greater than that of inflation.
How real estate stacks up against other investments – leverage
Leverage is an interesting thing about investing in real estate. It’s more than likely you have heard the term Other People’s Money, or OPM. The concept is simple and powerful.
The OPM concept is using money generated from someone or something other you in order to start a business or acquire an asset. While it is true that you can do this to an extent with stocks through buying on margin, the fact is that there is no investment where the application of this tool is more powerful than in real estate.
In real estate the leverage is based on the asset itself and you can get a bank to loan you the money up to 90 percent, and sometimes even 95 to 100 percent, of the total asset value. Why do banks do this?
Because they can repossess the physical asset itself should you default. Buying stocks on margin, however, allows you to borrow no more than 50 percent of the stock portfolio value. Just try to get bank to loan you the money for buying stocks – let alone your margin! Instead, you have to buy through a brokerage – at a high interest rate. In other words, when you buy stocks on margin, you are taking the risk. But when you take out a loan to buy real estate, the bank is assuming the risk. – Ken McElroy in “The Advance Guide to Real Estate Investing”
You can see the power of leveraging demonstrated by real life cases in our article “Why you want to take up a loan for your real estate investment?” No other form of investing allows an investor the opportunity to control so much with a small amount of his own cash.
We further discussed in “How to finance your real estate investment for maximum return?” the ways to structure a mortgage loan in order to get the maximum return from your cash investment in real estate.
An investment that allows you to control
A unique advantage to real estate is that you can control it. In other types of investments, you give your money to a financial advisor and they place it for you in a company’s stock, a bond, or a mutual fund. What happens after that is completely out of your control. You have no ability to make operating decision for the company you have invested in; you are at the mercy of its managers.
Similarly, you have no control over financial markets when you purchase bonds or futures. You make a calculated guess, and then you sit back and watch. With these types of investments, the only control you have is choosing whether to buy or to sell.
Real estate is different. You purchase a tangible asset and you manage it. While there are still external market conditions that affect your investment, the difference is that you have the ability to manipulate the operations of your investment to respond to those conditions. Instead of being reactive (buying or selling), you are being proactive.
For example, if you are a landlord, you have the ability to manipulate rents based on changing market conditions in order to maximise income. This doesn’t always mean raising rents. The goal is to maximise income. Since it is a dynamic process, that might mean lowering rent or offering an incentive. A property’s occupancy comes into place here.
If you have the highest rents in a market, chances are potential tenants will rent from a direct competitor. Then all your high rents become lost potential income. The dynamic of real estate require you to keep occupancy, as well as rents, high.
You have the power in real estate to control the operational performance of your asset more than any other investment.
March 26th, 2010
posted in Investment News
Recently one of my clients asked me what I thought about a book on tax lien investing. The book that he asked me about is one that I do recommend on my web site. The name of the book is Profit by Investing in Tax Liens, by Larry Loftis. The problem with books about investing in tax liens and tax deeds is that every state is very different and there is no book in print that I’m aware of that does justice to every state in the U.S. My goal in this article is to give you a short review of some of the books that I’m familiar with and point out the pros and cons of each one.
Let’s start with the book already mentioned, Profit by Investing in Tax Liens by Larry Loftis. Mr. Loftis is an attorney in Florida, and I do find that the best books on tax lien investing are written by lawyers that are also tax lien investors. Mr. Loftis has personally purchased tax liens in nine states and the District of Columbia. In addition he has also either attended tax sales or bid on over-counter liens or deeds in four other states. He or a member of his staff has either interviewed or spoken with tax sale officials from all 50 states. This is probably the most comprehensive and accurate book on the market that I am aware of. It’s great for anyone that is just getting started in tax lien or tax deed investing and wants to know the basics. The drawback is that for some states there is very little information given. As I said earlier, there is no one book that does justice to every state. What I like about this book is that the author didn’t just look up the state statutes in each state (even though he is a lawyer), but contacted county tax offices in every state to find out what actually takes place. I give this one two thumbs up for beginners and one thumb up for experienced investors in tax lien investing.
Another book written by an attorney is The 16% Solution, by Joel S. Moskowitz. Though this book is written by an attorney, it was first published back in 1992, and last copyrighted in 1994, more than 10 years before Profit by Investing in Tax Liens. What I like about this book is that it does not attempt to cover both tax lien and tax deed investing but concentrates on only tax lien investing. As little as four years ago, this was the only book that I could find in print on tax lien investing. Even then, though, this book was already outdated. Not only does each state have different rules when it comes to tax lien and tax deed investing, but these laws and procedures are constantly changing. This book is still good to read and have in your library, but only as an introduction to tax lien investing. Any state specific information is outdated (it doesn’t give too much state specific information anyway), and any contact information is probably no good. I give this book one thumb up for beginners, no thumbs up for experienced investors in tax lien investing.
I’ve heard that the state of New Jersey is the second most popular state for tax lien investing. I don’t know if that’s still true, but I do know that NJ has the most complicated law and procedures for tax lien investing. It is also one of the most profitable and most competitive states to invest in. Until 2005, there was no book in print that discussed tax lien investing in New Jersey accurately. That’s the year that Tax Liens: The Complete Guide to Investing in New Jersey Tax Liens, by Michael Pellegrino, was published. Mr. Pellgrino isn’t just an attorney in New Jersey; he’s an attorney that specializes in tax liens. He specializes in tax lien foreclosures and related litigation, so he really knows the ins and outs of tax lien investing in New Jersey. Although this book doesn’t cover everything for the experienced investor, it does cover what you need to know to get started with tax lien investing in New Jersey. What I love about this book is that it concentrates on tax lien investing in one state, thus it covers what happens in that state more thoroughly than any of the other books about tax liens. This is a must have for anyone that is thinking of investing in New Jersey tax liens and a good reference for experienced investors in that state. I give this book two thumbs up, for both beginning and experienced investors in New Jersey.
When I first started investing a few years ago there was only one book in print about tax lien investing. Today there are several. There are more available than were mentioned here in this article. I want to caution you before you purchase other books that are written on this subject. There is only one other author I know of that I would recommend even though I haven’t read her books. That author is Lillian Villanova and the reason that I would recommend her books is that I know she is an experienced tax lien investor. In fact, I believe that she makes her living with tax liens; she is experienced in more than one state, and has taught others how to invest in tax liens. This is important because there are a few people out there writing books on tax lien investing that have limited experience. They buy a couple of tax liens, do a little research and then write a book. This is not the kind of advice or knowledge that you need in order to buy profitable tax liens. You want to learn from a real expert, who knows what the pitfalls are and can steer you away from them. Maybe that’s why all of the books that I recommend on my web site are written by attorneys.
March 25th, 2010
posted in Investment News
By.- http://www.MomentumStockTrading.com
The stock market should present you with a wide variety of NEW hot stocks in 2009. Many of them are going to be new technology stocks that come from the nanotech, biotech, financial, energy, healthcare & communications sectors.
Most of them might seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That’s why it’s very important to know how to choose among the best especially if you want to day trade them.
When you know how to pick and approach the best hot stock trading opportunities, you are able to generate a consistent and respectable amount of money in a very short period of time.
Experienced day traders recognize that trading hot stocks on momentum can be the fastest way to make money in the stock market, especially on uncertain times like these.
You don’t necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities for going long or for shorting them to make money when they are poised to fall down.
If You decide to day trade stocks just keep always in mind that for a trader to survive and be consistently profitable, its necessary to keep things as simple as possible. To much confusion and technical indicators will most of the time make you slow in your decisions and froze you up when a good opportunity is right in front of your screen.
In the end, stock market day trading is all about picking the best daily stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.
March 25th, 2010
posted in Investment News
Swing trading systems capitalize on the oscillations experienced in the stock prices. In this style of trading, the returns on a stock can be gained in few days. Traders employing this style can leverage on the short term stock movements without fearing any stiff competition from the big players in the market. Swing trading systems are best suited for the at-home investors who can afford to watch over the market progress once in a day or week.
Investing tips – the stock market should present you with a wide variety of NEW stocks in 2009. Many of them are going to be new technology stocks that come from the financial, energy, & communications sectors. Investing tips – mostly seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That’s why it’s very important to know how to choose among the best especially if you want to trade them the same day.
Why do so many investments fall through cracks? Experts blame everything from lack of information to wrong strategy and over-confidence about the swings in the market. Here, some tips that may get you find the tracks of investments.
1. Determine your objectives in terms of short and long term.
2. Once the objectives are finalized, seek towards the type on investments to buy.
3. Calculate the level of risk to withstand it.
4. Determine where you stand in terms of needs and goals.
5. Make sure you have time to follow through your commitments.
Investing journal – Let me begin with some of the eye – catching metrics that might lead an investor to consider purchasing shares. Investing Journal – this newspaper company has a price – to – earnings ratio of 11.3, a price – to – sales ratio of 0.93, a 5 year average return on capital of 17.6%, and a five year average pre-tax profit margin of 27.4%. Investing Journal – the Journal Register Company has an enterprise value – to – EBITDA ratio of 9.07 and an enterprise value – to – revenue ratio of 2.24. Obviously, this company is carrying a lot of debt. So, perhaps the multiples on the common stock price are deceptive.
Investing the stock market – Stock is a share in the ownership of a company. When a private company decides to divide its business and allows the public to be a part of the firm, then it sells shares of ownership through stock offerings. For example, if a company sells one million stocks and you buy one share, then you own one-millionth of that company and vice versa. When a company sells stocks to the public for the first time, then it is called initial public offering or new issue. One of the major reasons of selling stocks is to meet the financial needs of the company for its growth and expansion. If a company plans for expansion and if the bankers of the company feel that borrowing money would be a heavy burden, they look to investors and/or shareholders to finance the growth of the company.
Investing commodities – now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today’s investors. The links herein relate specifically to investments and ventures.
charts candlestick – The concept of charts candlestick is said to have originated in the 18th Century as a way to analyze rice prices over periods of time. Method was immediately popular with other rice traders because it allowed five data points to be displayed simultaneously. Additionally, it was easier for rice traders to predict future demand for their rice based on the trends and patterns shown by the charts candlestick.
new investors – New investors can begin by locating a house that requires some cosmetic modifications, with a mere finishing touch to bring back its lost charm. It is better to buy houses that can be renovated easily without any heavy expense. You can update the home lighting, carpeting and plumbing fixtures. You can sell the property for a huge profit. Try to avoid houses that cannot be marketed without any major structural repairs.
oil etf – We were discussing about Exchange Traded Funds (ETF) and its use which is mainly to save commission cost and reduce volatility. There are, however, instances where buying ETF will enhance your return compared to buying one individual stocks. Buying Oil ETF and its corresponding stock is one example.
energy etf – This means that they watch the future prices and resources of the energies. For example, oil and gasoline are futures. These energy ETFs depend on the future prices of a barrel of oil as well as how much oil is being made and stored. In other words, will there be enough supply to meet the demand. If the prediction is that there won’t be enough, then the obvious follow up is that gas prices will continue to rise. Therefore, anybody owning these energy exchange traded funds are likely to make money on them.
10000 dollars – Some of the simplest strategies work the best but having 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.
invest 10000 – Some of the simplest strategies work the best but having invest 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.
investing 10000 – If each share costs ten cents then you can buy 10,000 shares with $1000. And if a share rises to $12 then you can easily earn $2000 by selling those 10,000 shares. You can sell the shares for $12,000 immediately after investing $10,000. That means you have not made 20% profit but its 100% gain.
http://www.my10000dollars.com/
March 21st, 2010
posted in Investment News
Swing trading – a swing trader looks for short-term opportunities in the market to go long at a relative low, or get short at a relative high, with the expectation of closing their position in one to several days. Swing trading involves a longer time horizon than day trading, but avoid holding an open position beyond a week or two.
Swing trading can be effectively utilized on a part-time basis, allowing a trader to also have a day job. With the sophisticated conditional orders available through most online brokerages, it is not necessary to agonize over every market tick. A stop loss order will close your trade to limit losses, while a simultaneously placed order will capture the profits from your winning positions.
Investing tips – the stock market should present you with a wide variety of NEW stocks in 2009. Many of them are going to be new technology stocks that come from the financial, energy, & communications sectors. Investing tips – mostly seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That’s why it’s very important to know how to choose among the best especially if you want to day trade them.
Why do so many investments fall through cracks? Experts blame everything from lack of information to wrong strategy and over-confidence about the swings in the market. Here, some tips that may get you find the tracks of investments.
1. Be consistent and organized. Make thorough efforts in whatever you do.
2. Be open to all the new thoughts and get out the myths of your bag.
3. Develop your own plans and play your own games.
4. Access quality investment information available at internet.
5. Diversify your knowledge and investments plans to various channels.
Investing Journal – this newspaper company has a price – to – earnings ratio of 11.3, a price – to – sales ratio of 0.93, a 5 year average return on capital of 17.6%, and a five year average pre-tax profit margin of 27.4%. Investing Journal – the Journal Register Company has an enterprise value – to – EBITDA ratio of 9.07 and an enterprise value – to – revenue ratio of 2.24. Obviously, this company is carrying a lot of debt. So, perhaps the multiples on the common stock price are deceptive.
Investing the stock market – Stock is a share in the ownership of a company. When a private company decides to divide its business and allows the public to be a part of the firm, then it sells shares of ownership through stock offerings. For example, if a company sells one million stocks and you buy one share, then you own one-millionth of that company and vice versa.
When a company sells stocks to the public for the first time, then it is called initial public offering or new issue. One of the major reasons of selling stocks is to meet the financial needs of the company for its growth and expansion. If a company plans for expansion and if the bankers of the company feel that borrowing money would be a heavy burden, they look to investors and/or shareholders to finance the growth of the company.
Investing commodities – now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today’s investors. The links herein relate specifically to investments and ventures.
Charts Candlestick patterns are used by each and every kind of trader. Day trading and swing trading utilize Charts candlestick as a way to read chart patterns quickly and efficiently, while getting the same data offered charts. Professional traders love charts candlestick because they can be read much quicker than a bar chart, while also allowing a different kind of technical analysis known as charts candlestick reading.
new investors – Investing is one of the most important decisions we must take. If you are new to investing then this is the best place to start. Investment is a learning process that requires one to implement their knowledge in a proper way. It is very simple to lose money and very tough to generate money. If you want to make your first investment you should get your capital in proper order. Once you started handling you expenditures, it will be must easier to start investment.
oil etf – all of the commodity ETFs (exchange traded funds) oil is probably the most exciting, as well as the most frustrating. Until very recently, the market price of oil ETFs has been steadily rising for quite some time. Is this a direct result of the increasing price of crude oil? In many ways it is. If you had invested in oil, in any capacity, a year or more ago, you are probably quite satisfied with your returns to date.
energy etf – This means that they watch the future prices and resources of the energies. For example, oil and gasoline are futures. These energy ETFs depend on the future prices of a barrel of oil as well as how much oil is being made and stored. In other words, will there be enough supply to meet the demand. If the prediction is that there won’t be enough, then the obvious follow up is that gas prices will continue to rise. Therefore, anybody owning these energy exchange traded funds are likely to make money on them.
10000 dollars – Some of the simplest strategies work the best but having 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.
invest 10000 – Some of the simplest strategies work the best but having invest 10000 dollars today to invest can be a daunting thing to do. Most investors start at the risk profile of any potential investment and doing this is the first step in making sure your investment not only pays off, but that your seed capital stays intact and is returned to you.
investing 10000 – If each share costs ten cents then you can buy 10,000 shares with $1000. And if a share rises to $12 then you can easily earn $2000 by selling those 10,000 shares. You can sell the shares for $12,000 immediately after investing $10,000. That means you have not made 20% profit but its 100% gain.
March 20th, 2010
posted in Investment News
Captain Jack Sparrow in the movie “Pirates of the Caribbean” has been forced ashore by a mutinous crew. We see him stranded on an island drinking rum with his lovely companion beside a fire. They are discussing his ship. “It’s not just a keel, a hull, and a deck and sails. That’s what a ship needs. But what a ship is, what the Black Pearl really is . . . is freedom.”
As an idealistic young investor in the ’80s I felt the same way about the investment of my retirement savings. Those investments represented financial freedom. With the passage of time life gets more complicated; deciphering financial statements and reviewing all the investment options available can leave us bewildered. We may have a sense the ship has run aground. We feel disconnected from the original meaning or purpose of our investments. We aren’t sure if our money is working for us and if it is working in a way that matters to us. How can we get back to basics and recover our sense of direction? What does investing really mean to us personally?
When we invest in stocks or bonds we are essentially investing in business. Let us consider an example of investment in a small local business. A sausage maker is trying to raise half a million dollars to start his business. You may know the chef personally or know of his reputation. You’ve enjoyed his product and respect his passion for and commitment to making a wonderful sausage using the best organic ingredients. A number of people come together to invest in this business. They might lend to the business (becoming bond holders) or provide equity (becoming stockholders.) The investors provide the capital that allows the business to be born.
Think about the importance of these collective investments and the value they bring. Providing all the capital himself could be a huge personal risk for the sausage maker. So the risk is shared among the investors, none of whom assumes a risk that he or she cannot afford. In fact each investor may benefit financially while serving the needs of the community in a delicious way. The act of investing serves an important and critical function in our economy.
On a personal level, you the investor have put your hard-earned money into this project for a variety of reasons, some of which may be pride in being involved with such a high quality product, a belief that people will love the sausage and the expectation that you will receive a good return on your investment. You appreciate the man’s commitment to sustainable practices. You believe in his ability to be a good manager and careful steward of the capital you have placed in his hands.
As with any investment there are risks, but you feel you can understand them. The business may fail after a few years or you might not get the return you had hoped for. You have invested with the sausage maker based on your priorities and values, some of which you share with him. You care about his success not only because you want a good return on your money but also because you love his products. Your life seems richer for having experienced them. The relationship between the business and you as an investor is very tangible and personal.
Investing for our retirement years now seems so far removed from this paradigm. How can investing in a 401k, an IRA or a mutual fund have that kind of meaning? Making choices here is not like investing with the sausage maker. You own stocks and mutual funds. Are the managers of these companies or funds people whom you know and trust? Do you have the same faith in them as you do in the sausage maker? Do you believe that they are making decisions that reflect your priorities and values?
Certainly we care about our investments and realize they are important. They may mean the difference between subsistence and being able to afford to do some of those things we’ve always dreamt about. However, this type of investing is not the same as putting our money with the local guy, whose success we are rooting for.
Investing can start to become more personal by checking in with yourself. Remind yourself why you are investing. What do your investments really mean to you? They may represent financial freedom. Perhaps they are your security or the potential to live your dreams. They may give your children the head start that you never had. Just as you would expect the sausage maker to be a careful steward of the investment you’ve entrusted to him, your first responsibility in investing is to yourself. Your investments are important assets in your life. By making investments more personal you will derive greater satisfaction from them and increase your chances of feeling successful in the process.
How do you create a sense of purpose and meaning in relation to your investments? The very act of investing demonstrates a belief in our country and in our way of life. Your capital is precious and important. How you invest it matters. Investing in promising medical research or a daycare center in a blighted urban area allows you to get a financial return on your money while reinforcing your belief in businesses you feel deserve support. Naturally, you need to balance these two objectives in order to protect and grow your nest egg. Examine each investment by asking, “Is this working for me, and in a way that supports my priorities and vision for the future?”
Investing can be as personal and meaningful as you choose to make it. You are the captain of your ship.
March 19th, 2010
posted in Investment News
A Guaranteed Investment Certificate, or GIC is a type of Canadian investment in which the rate of return is guaranteed over a fixed period of time. Guaranteed Investment Certificates are relatively low-risk investments, and thus yield smaller returns than that of stocks, bonds and mutual funds. GIC’s are typically offered by banks or trust companies. These safe and secure Canadian investments earn interest at a fixed rate, variable rate, or based on a market-based index. Many Canadians view Guaranteed Investment Certificates an excellent choice for an investment portfolio that requires a measure of safety.
How do Guaranteed Investment Certificates Work?
With GIC’s, you will invest an amount of money (determined by you) for a period of time that is determined by the specific type of Guaranteed Investment Certificate that you choose. Typically these periods of time vary greatly and can tend to range anywhere from 1 day to 10 years. GIC’s with longer terms will earn more interest than short term ones. When your Guaranteed Investment Certificate reaches the end of its term (otherwise known as ‘maturity,’) you will be able to access not only your initial investment, but the earned interest as well.
Some Canadian Guaranteed Investment Certificates require that the amount of money you invest initially remain ‘locked in’ for a minimum period of time (30 days for example). Other GIC’s will allow you to access your money before the investment matures. There are even Guaranteed Investment Certificates that allow you to add to your initial investment amount by making weekly, biweekly or monthly contributions.
Redeemable vs. Non-redeemable
Guaranteed Investment Certificates can be redeemable or non-redeemable. As aforementioned, there are some GIC’s which allow you to access your cash during the term. This is referred to as ‘redeemable.’ With a redeemable investment, you will be able to withdraw your cash before maturity. Some redeemable GIC’s specify that you will earn less interest if you cash out prior to maturity.
Non-redeemable Guaranteed Investment Certificates do not allow withdrawals before the maturity date. Non-redeemable GIC’s may offer higher interest rates than redeemable ones.
Interest
Guaranteed Investment Certificates in Canada can be offer either fixed or variable interest rates.
Fixed Rate GIC’s
With a fixed rate GIC, your investment will earn interest at a set rate. That is, the interest that your investment earns will be consistent throughout the term of the investment. The benefit of fixed rate GIC’s is that you can predict exactly how much your investment will be worth on the maturity date.
Variable Rate GIC’s
Variable rate Guaranteed Investment Certificates are either linked to the Canadian prime interest rate or to stock-market performance. With interest-rate linked GIC, you are guaranteed that your money will grow, but you will not know at which rate until maturity. With market-linked GIC’s, you can earn more interest if the stock market does well, but your initial investment will be protected either way.
Benefits of GIC’s
The most important benefit offered by this type of investment is safety and security. Your initial investment will be protected. With fixed-rate GIC’s you can also enjoy guaranteed growth and an easy way to project value at maturity. GIC’s are also known to offer excellent interest rates. Finally, GIC’s are typically pretty flexible investments. You can enjoy flexibility in length of term as well as how often you receive payments.
If you live in Canada and are interested in investing your money in a safe instrument, a Guaranteed Investment Certificate may be right for you. To find out more about what is available in your area, visit your local bank.
March 13th, 2010
posted in Investment News
Bill Gates probably doesn’t invest in mutual funds (funds), maybe because most of his money is tied up in Microsoft stock. Warren Buffet made his billions by managing investments, so he does not need their help, either. But, if you have money to invest and don’t really know how to invest and manage an investment portfolio, you should consider investing in mutual funds. Millions of average investors do.
Keep in mind that mutual funds are designed for folks who want professional investment management at a moderate cost. These are not short-term investments, but rather are for people with longer-term investment horizons. Once you have cash reserves in the bank for short term needs like emergencies, you are ready to invest.
Should you invest in mutual funds? If one or more of the following apply to you, you probably should.
If you want to accumulate a nest egg for retirement, give these investment packages consideration. For example, if you have a typical 401k plan at work, most of the investment options available to you are mutual funds.
If you decide to open a traditional IRA or Roth IRA, consider going with a major mutual fund family. This will give you a wide array of investment options, from safe and conservative to aggressive and growth oriented.
If you want to start slow and learn how to invest as you go, you should invest in mutual funds. For example, you can set things up so that $100 a month automatically flows from your checking account to a couple of mutual funds within a fund family.
If you want to invest in stocks and/or bonds, but don’t know how to invest in them, join the crowd and do it the sensible and easy way with funds.
If you have a lump sum of money to invest from a retirement plan, a CD that matured or from an inheritance, look no further. For example, if you leave your job where you had money in a 401k, you can move it and avoid taxes and penalties with a direct rollover to a mutual fund family.
If you are retired and want to earn a higher return with relative safety, try bond funds in addition to money market funds. When you want to receive a monthly income, they will send you the amount you specify.
If you want an investment in real estate, oil & gas, or gold the easy way, invest in mutual funds and let them deal with the details.
It doesn’t matter if you are young or old, rich or of modest means, conservative or aggressive as an investor. You need an investment portfolio that contains a variety of investment types. Unless you really know how to invest and can manage your own stocks, bonds, and money market securities…you should invest in mutual funds.
Finally, if you don’t know much about investing…you’re probably a red-blooded American. As a financial planner I worked with folks from all walks of life. Few knew how to invest on their own, so I often recommended mutual funds.
March 12th, 2010
posted in Investment News
Recently, I met the owner of a well-known precious metals web site and I popped this question to him: “What do you think about investing in silver?” His reply was both profound and accurate. “David,” he said, “The smart money is moving into gold, but the SMARTEST money is moving into silver!”Investing in silver is a great way to make money, especially if you are looking to secure your future or your retirement. But of course, just like any type of investing, there are no guarantees. You need to know what you are doing and what the silver market is all about before you can get too involved. This is the only way to make sure that you give yourself every possible advantage to benefit from silver investing. That’s the ONE and ONLY reason that I am here today. I want to share with you some tips that will give you direction when you start investing in silver so you can make the most money possible.7 Getting Started in Silver Investing Tips That Will Make You More Money1. Take a close look at the market before you decide that silver investing is right for you. Investing is silver is different than investing in stocks and bonds. 2. Educate yourself. If you are not sure how investing in silver works, touch base with a professional who can help you with the buying and selling process. 3. Complete effective online research. Be careful of the information you find. There’s so much information online about silver investing, but a lot of it is misinformation. You want to learn from experts who are in the trenches tracking the silver market and making investments every day. For example, the information that you will find on http://www.silver-investor.com is based on my experiences and knowledge from following the silver market daily for more than thirty years. 4. Get familiar with the many different ways that you can invest in silver. You can invest in silver mining companies, silver ETFs, silver futures, silver bullion and silver coins. The sure-fire way to invest in silver without the worry is to invest in bullion or coins. This is the place to start– real metal for your future. You don’t have to pay for a mining company’s energy costs. And you don’t have to buy 1000 to 5000 ounces in a futures contract that carries too much risk for a beginning silver investor.5. If you are looking to invest in silver coins and silver bars then you need to know this trick — Find sellers who are actually selling as near the spot price of silver as possible (spot plus a reasonable fee). A general rule is that the more silver you are buying the less percentage of fees you should be expected to pay. When buying coins to invest in their silver content be certain you are not buying coins for their numismatic value (the value to a collector of rare coins).6. Before you invest in silver, make sure you calculate how much you can invest between your IRA rollover funds, cash on hand and other assets that you wish to turn into silver. Be sure to keep your emergency fund mostly in cash for unforeseen expenses. You don’t want to bite off (invest) more than you can chew (afford).7. Stay on top of the market. There are times to buy. And, there are times to sell. Yes, at some point, it may be better to sell some or perhaps even all of your silver holdings for currency, depending on the bull market and your personal investment goals. But the only way you know when to buy or sell is if you have current silver market investing information at your fingertips.Here’s a Bonus Silver Investing Tip For You…Get started now. The time to invest in silver is today! What are you waiting for?Put my tips into action and start investing in silver right away.
March 10th, 2010
posted in Investment News
Different sources define value investing differently. Some say value investing is the investment philosophy that favors the purchase of stocks that are currently selling at low price-to-book ratios and have high dividend yields. Others say value investing is all about buying stocks with low P/E ratios. You will even sometimes hear that value investing has more to do with the balance sheet than the income statement.
In his 1992 letter to Berkshire Hathaway shareholders, Warren Buffet wrote:
“We think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value – in the hope that it can soon be sold for a still-higher price – should be labeled speculation (which is neither illegal, immoral nor – in our view – financially fattening).”
“Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.” Buffett’s definition of “investing” is the best definition of value investing there is. Value investing is purchasing a stock for less than its calculated value.
Tenets of Value Investing
1) Each share of stock is an ownership interest in the underlying business. A stock is not simply a piece of paper that can be sold at a higher price on some future date. Stocks represent more than just the right to receive future cash distributions from the business. Economically, each share is an undivided interest in all corporate assets (both tangible and intangible) – and ought to be valued as such.
2) A stock has an intrinsic value. A stock’s intrinsic value is derived from the economic value of the underlying business.
3) The stock market is inefficient. Value investors do not subscribe to the Efficient Market Hypothesis. They believe shares frequently trade hands at prices above or below their intrinsic values. Occasionally, the difference between the market price of a share and the intrinsic value of that share is wide enough to permit profitable investments. Benjamin Graham, the father of value investing, explained the stock market’s inefficiency by employing a metaphor. His Mr. Market metaphor is still referenced by value investors today:
“Imagine that in some private business you own a small share that cost you $1,000. One of your partners, named Mr. Market, is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or sell you an additional interest on that basis. Sometimes his idea of value appears plausible and justified by business developments and prospects as you know them. Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly.”
4) Investing is most intelligent when it is most businesslike. This is a quote from Benjamin Graham’s “The Intelligent Investor”. Warren Buffett believes it is the single most important investing lesson he was ever taught. Investors ought to treat investing with the seriousness and studiousness they treat their chosen profession. An investor should treat the shares he buys and sells as a shopkeeper would treat the merchandise he deals in. He must not make commitments where his knowledge of the “merchandise” is inadequate. Furthermore, he must not engage in any investment operation unless “a reliable calculation shows that it has a fair chance to yield a reasonable profit”.
5) A true investment requires a margin of safety. A margin of safety may be provided by a firm’s working capital position, past earnings performance, land assets, economic goodwill, or (most commonly) a combination of some or all of the above. The margin of safety is manifested in the difference between the quoted price and the intrinsic value of the business. It absorbs all the damage caused by the investor’s inevitable miscalculations. For this reason, the margin of safety must be as wide as we humans are stupid (which is to say it ought to be a veritable chasm). Buying dollar bills for ninety-five cents only works if you know what you’re doing; buying dollar bills for forty-five cents is likely to prove profitable even for mere mortals like us.
What Value Investing Is Not
Value investing is purchasing a stock for less than its calculated value. Surprisingly, this fact alone separates value investing from most other investment philosophies.
True (long-term) growth investors such as Phil Fisher focus solely on the value of the business. They do not concern themselves with the price paid, because they only wish to buy shares in businesses that are truly extraordinary. They believe that the phenomenal growth such businesses will experience over a great many years will allow them to benefit from the wonders of compounding. If the business’ value compounds fast enough, and the stock is held long enough, even a seemingly lofty price will eventually be justified.
Some so-called value investors do consider relative prices. They make decisions based on how the market is valuing other public companies in the same industry and how the market is valuing each dollar of earnings present in all businesses. In other words, they may choose to purchase a stock simply because it appears cheap relative to its peers, or because it is trading at a lower P/E ratio than the general market, even though the P/E ratio may not appear particularly low in absolute or historical terms. Should such an approach be called value investing? I don’t think so. It may be a perfectly valid investment philosophy, but it is a different investment philosophy.
Value investing requires the calculation of an intrinsic value that is independent of the market price. Techniques that are supported solely (or primarily) on an empirical basis are not part of value investing. The tenets set out by Graham and expanded by others (such as Warren Buffett) form the foundation of a logical edifice.
Although there may be empirical support for techniques within value investing, Graham founded a school of thought that is highly logical. Correct reasoning is stressed over verifiable hypotheses; and causal relationships are stressed over correlative relationships. Value investing may be quantitative; but, it is arithmetically quantitative.
There is a clear (and pervasive) distinction between quantitative fields of study that employ calculus and quantitative fields of study that remain purely arithmetical. Value investing treats security analysis as a purely arithmetical field of study. Graham and Buffett were both known for having stronger natural mathematical abilities than most security analysts, and yet both men stated that the use of higher math in security analysis was a mistake. True value investing requires no more than basic math skills.
Contrarian investing is sometimes thought of as a value investing sect. In practice, those who call themselves value investors and those who call themselves contrarian investors tend to buy very similar stocks.
Let’s consider the case of David Dreman, author of “The Contrarian Investor”. David Dreman is known as a contrarian investor. In his case, it is an appropriate label, because of his keen interest in behavioral finance. However, in most cases, the line separating the value investor from the contrarian investor is fuzzy at best. Dreman’s contrarian investing strategies are derived from three measures: price to earnings, price to cash flow, and price to book value. These same measures are closely associated with value investing and especially so-called Graham and Dodd investing (a form of value investing named for Benjamin Graham and David Dodd, the co-authors of “Security Analysis”).
Conclusions
Ultimately, value investing can only be defined as paying less for a stock than its calculated value, where the method used to calculate the value of the stock is truly independent of the stock market. Where the intrinsic value is calculated using an analysis of discounted future cash flows or of asset values, the resulting intrinsic value estimate is independent of the stock market. But, a strategy that is based on simply buying stocks that trade at low price-to-earnings, price-to-book, and price-to-cash flow multiples relative to other stocks is not value investing. Of course, these very strategies have proven quite effective in the past, and will likely continue to work well in the future.
The magic formula devised by Joel Greenblatt is an example of one such effective technique that will often result in portfolios that resemble those constructed by true value investors. However, Joel Greenblatt’s magic formula does not attempt to calculate the value of the stocks purchased.
So, while the magic formula may be effective, it isn’t true value investing. Joel Greenblatt is himself a value investor, because he does calculate the intrinsic value of the stocks he buys. Greenblatt wrote “The Little Book That Beats The Market” for an audience of investors that lacked either the ability or the inclination to value businesses.
You can not be a value investor unless you are willing to calculate business values. To be a value investor, you don’t have to value the business precisely – but, you do have to value the business.
March 6th, 2010
posted in Investment News
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