Have you ever seen a road accident happen? You must have, since many generally drive like idiots and have a high accident rate. Whenever I see a road accident and later think about how it happened, I can’t help feeling that while most of us drive like idiots, most of the time accidents happen when two idiots do something idiotic at the same time and at the same place. One guy is happily speeding, while trying to read a text message and just then another one in front of him decides to turn right without revealing his intentions beforehand. Either one would have got away but the two in combination becomes an event.

The stock markets are just like that. While one company or one industry may be driven by some particular factor, a prolonged bull market or a bear market only happens when many different factors come together. Sometimes, some of these factors may be related but at other times, they may be unrelated. It could just be a coincidence that they are happening at the same time.

There has never been a correction that has not proven to be an investment opportunity. While everything is down in price, there is actually less to worry about than when prices are historically high. More money has been lost by people who bought into last year’s markets than by those who will buy into this one, at this stage of the correction. When the going gets tough, the tough go shopping.

Every correction is different, the result of various economic and/or political circumstances that create the need for adjustments in the financial markets. This correction is worse than most that I’ve experienced, but the doom and gloom scenarios many have been pushing are unlikely to come to fruition. Once the media elects a new president, they’ll just have to start reporting better news: 96% of all mortgages are current sounds a whole lot better than 20% of all sub-prime mortgages are in trouble.

Read (more…)

The undeniable truth is that making a lot of money doesn’t require a high IQ, either in the market or in business. It takes ruthless disciplined routine, and a focus on doing what is right for the long-term.

You can just feel it, can’t you? People are terrified about how the market has acted over the past month, to be more precise since the last one week. Watch the news — watch if you dare. The “boo-yahs” seem more restrained.

This is the time to buy andd hold on to solid blue-chips. Buy shares of good businesses that generate real profits, attractive returns on equity, have low to moderate debt to equity ratios, improving gross profit margins, a shareholder-friendly management, and at least some franchise value. Everyone is thinking this is a terrible time to be invested. But when everyone is thinking the same thing, no one is thinking much at all. That means ….OPPORTUNITY.

If you have been wanting to change your financial future for the better, then now is the perfect time.  The invetory of cash producing, equity filled homes is at an all time high!  Did you know that most retirees single most lucrative investment during their working years was the home that they lived in.  Imagine if they had bought just one or two more properties (that supported themselves of course) and then retired.

Those are the moments when fortunes are made. You might not recognize it at the time. You might not know it for years. But it’s true. When everyone is down on a stock, or a sector, or a country, you might as well take a look. Usually, the negativity comes with good reason. But the over-negativity can provide plenty of opportunity. It’s been that way forever, and it will always be so.

Read (more…)

Our schools teach the fundamentals we all love; reading, writing, math, science and history. What concerns me is our school system lacks some of the ‘street smart’ skills that kids will need to be those successful leaders, healers and entrepreneurs.

As parents, we must take teach our children ‘money smarts’.

Can you imagine how empowered you would be if your parents taught you how to balance a checkbook, invest in the stock market, manage credit card debt, start a business, or the power of compounding interest?

If you were one of the lucky few whose parents did teach you money skills, consider yourself blessed. The present economic situation is a perfect time to teach our kids the importance of money management and the need to respect money for what it is, and isn’t.

So, where do we start? With the basics. Depending upon your child’s age, you can start with talking about money. Most of us don’t discuss the family’s financial situation at the dinner table. I propose you do. I think it’s important that children understand what is happening, good or bad, with the money being earned.

Don’t get me wrong here; I’m not suggesting you tell your kids your annual income or the balance of your investment portfolio. What I am suggesting is to bring the kids into conversations regarding ways to save, creative ways to earn additional money and what to spend that money on. Involve them with decisions on vacations, donating to a charity or cause, or how they plan to buy their first car.
Read (more…)

Warren Buffett’s Berkshire Hathaway, which has avoided major acquisitions in the financial sector in recent months, may have had a $3.5 billion two-day paper profit on six major banking and financial services investments.

The two-day rally in financial shares, which drove the broad S&P Financials Index 24 per cent, came as the government announced sweeping measures to rescue the financial system and restore confidence in shaky markets.

Shares of Wells Fargo & Company, the fifth-largest US bank and Berkshire’s second-largest investment as of June 30, rose 19pc over the last two days and touched a record high. That would have given Berkshire a $1.85bn paper profit on its reported 290.7 million share stake.

Berkshire would also have had a $1.12bn profit on its reported 151.6m share stake in American Express Company, the credit card and travel services company. Stakes in Bank of America, M&T Bank, SunTrust Banks and US Bancorp also gained value.

Buffett has long favoured investments in undervalued businesses with strong earnings and management. That has helped him transform Berkshire since 1965 from a failing textile maker into a conglomerate with at least 76 companies.

“He’s always felt Wells was very well-managed,” said Frank Betz, who oversees more than $800m at Carret/Zane Capital Management in Warren, New Jersey. “Why does he like banks? Like Willie Sutton said, it’s where the money is.”

Read (more…)

Great investors surely have investing secrets that they use to build wealth, but they are open secrets. Anyone can find out what the greats do and copy them to have success in wealth creation. And many of the so-called secrets are simply common sense principles.

For instance, investing in a company with consistent earnings is the sensible thing to do and one that has helped Warren Buffet earn his millions. Taking care to invest in old and well-established companies is another. Many investors run into trouble by jumping on the bandwagon of some new company that sparkles for a while then quickly dies out leaving a pile of rubble rather than money.

Another common sense principle that is applied to both real estate and shares by the great investors is to never pay too much for an investment. Generally the more you pay, the less you get back as many real estate investors have found out to their cost. Warren Buffet also believes in concentration rather than diversification. When he buys a company he typically buys around 80%, and keeps it.

Another secret investment principle Buffet favours that has helped him with his wealth creation is to buy companies with experienced managers and keep them on to do what they do best – run the company. Buffet rarely interferes with the running of the companies he buys. He simply compliments the managers on the job they are doing. Buffet’s talent is to see where good investments are and buy them, not run the company.

Read (more…)

Another crisis unfolding in the US, if this is likely to give you sleepless nights and you ponder on whether to sell or hold on to your equity portfolio, here’s a word of advice. Stay calm and invested, don’t panic and sell.

You don’t incur losses till the time you book them. Equity markets behave in this fashion and investors should take such falls in their stride. If you are a long-term investor, you are likely to get the best returns in such turbulent times.

At such low levels, markets look quite attractive. For investors waiting to venture into the markets, this is an ideal time to average out the cost of purchase. Invest in stocks that are fundamentally strong, preferably in a broad-based index that gives you exposure to large cap stocks. Avoid small or mid-cap companies. But if you lack understanding or don’t have much information, then take the help of professionals or try the mutual fund way.

To start off, one can look at index funds that mirror the movement of an index. Index funds should form the nucleus of your equity investments and other funds should surround it. These funds act as a stabilizing factor in an equity portfolio and should not be always seen as a return-giving factor.

But how about those who are already neck-deep into equities? “Stay invested. Don’t change the investment strategy and keep investing in a staggered manner.”

Read (more…)

Are you planning to put up your own small business? Then as early as now, you must already be thinking of every aspect of our business and the things that you would need in order for your business to operate well.

For small businesses, one of the most convenient promotional materials to use is posters because they are easy to work with, very cost efficient and also poster printing when done well could reel you in with more customers than you expect thus, it would also mean better investment returns for you.

The innovations made in technology had totally changed the way businesses handle all their printing jobs. The introduction of online printing had totally helped business people handle all their printing projects without the need to leave the comfort of their homes. Thus with online printing business had achieved to attain fast turn around days and easy printing jobs.

Invitation printing is among the preferred printing services opted at present. Although it is often implied that invitations can be done through the word of the mouth, people still make use of invitation cards for formality, for their clients or friends not to forget about the affair that will about to happen.

Online printing can be an ideal choice of doing your invitation printing projects. Through online printing you only need to:

Read (more…)

Leading bank shares around the world plunged yesterday after the crash of Lehman Brothers, forcing central banks to prop up the system with tens of billions of dollars. But US stocks rallied in the final hour of trading to close higher.

American Insurance Group (AIG) was the eye of the storm, with New York governor David Paterson warning the insurer had one day to raise $75-$80 billion.

After sliding about 150 points in early trading, Dow Jones Industrial Average closed at 11,059.02, up 141.51 points, or 1.3pc.

The S&P 500 gained 20.9 points, or 1.8pc, to 1,213.6, while the Nasdaq Composite climbed 27.99 points, or 1.3pc, to 2,207.9.

Stock markets took new fright yesterday after the Wall Street shocks, the bankruptcy of Lehman Brothers and bailout of Merrill Lynch by Bank of America.

The London and Tokyo markets dropped more than four per cent to their lowest points for more than three years with some leading bank shares dropping 20pc.

Read (more…)

The Internet is full of wonderful information, and much of this information can be found in ebooks. Whether you’re looking for guidance on feng shui, or just want to know how to save money, there’s an ebook out there for you. Here you’ll find a great collection of ebooks available online for free.

Learn about a wide variety of financial issues and advice in these ebooks.

  1. 66 Ways to Save Money: Learn about practical ways to cut costs in your daily life with this ebook.
  2. Estate Planning: Find out why a will is so important and how you can prepare one, plus plenty of other helpful details for estate planning.
  3. Ten Questions to Ask When Choosing a Financial Planner: Read this ebook to know what you should ask when looking for a professional to help you with your money.
  4. 7 Steps to Eliminate Debt: Take control of and eliminate your debt by following the steps outlined in this ebook.
  5. Living Trust Offers: The FTC commision’s pamphlet explains the details of living trusts and how you can protect yourself from estate planning scams.
  6. Get the Facts on Saving and Investing: This SEC document will help you learn how to save and invest properly.
  7. Simple Strategies for Managing Your Money: This FDIC ebook’s checklists will help you get financially fit and avoid scams.
  8. Building a Better Credit Report: In this ebook, you’ll learn about methods for legally improving your credit score, spotting scams, and dealing with debt.
  9. What You Should Know About Buying Life Insurance: In this pamphlet, you’ll find out about all of the types of life insurance, plus tips for choosing the right policy.
  10. How SIPC Protects You: Read this document to see how the Securities Investor Protection Corproration will help return your assets if your brokerage firm goes under.
  11. Read (more…)

But, some economists say that the slowdown in August could be a temporary blip, and may not be indicative of a long-term trend.

China’s industrial output grew at its weakest pace in more than six year last month, partly due to the industrial shutdowns ordered by the government ahead of Olympics, the government’s statistics agency said on Friday. The sharp decline continued to be affected by the global economic downturn.

Industrial production in China expanded by 12.8% in August from a year earlier, the National Statistics Bureau said after a gain of 14.7% in July. The August reading was less than the 14.5% median estimate of economists. This was slowest rate since August 2002 and well below the 17.5% recorded in August 2007.

But, some economists said that the slowdown in August could be a temporary blip, and may not be indicative of a long-term trend. China’s industrial activity will pick up with the re opening of factories in Beijing and surrounding areas, JP Morgan’s local securities unit wrote in a note.

Read (more…)

« Previous PageNext Page »