STAP 2: Bereiken Financiële Vrijheid - Het kiezen van Uw Escape Vehicle
Wilt u financiële vrijheid te bereiken? Voor de meeste mensen, dit is constant aan hun hoofd. Als u dit leest CashFlow Avenue's 7 eenvoudige stappen naar financiële vrijheid en Bouw van de rijkdom, is de kans u op zoek bent naar manieren om eruit te komen van de rat race en financiële vrijheid te bereiken. Helaas, het is niet altijd zo gemakkelijk als het klinkt.
Met uw financiële doelstellingen vast gedefinieerd in stap 1, dan zou u nu uw "escape" beleggingsinstrument te kiezen. Er zijn tal van beleggingsinstrumenten in de wereld. Laten we eens een paar te noemen meest voorkomende vorm van investeringen - vaste deposito's, goud, obligaties, onroerend goed, aandelen, aandelenopties, beleggingsfondsen, een bedrijf te starten op uw eigen, enz.
Uit ervaring, zou je waarschijnlijk wel kunnen vertellen dat een ieder van de bovenstaande risico bevat, behalve voor vaste deposito's. Winst, simpelweg gedefinieerd, is je beloning voor het plaatsen van het nemen van risico's op uw vermogen.
Op het oppervlak, vaste deposito's, bezoeken de veiligste vorm van investeringen, maar zijn waarschijnlijk het meest riskant, omdat de inflatie constant hoger dat wat zou de bank die u betaalt - langzaam eten weg uw koopkracht in de komende jaren. Dus, in waarheid, terwijl uw bankrekening groeit in aantallen, je bent eigenlijk steeds armer. Als er geen inflatie (wat nooit zal gebeuren op de lange termijn), vaste deposito's zijn nog steeds niet de beste uitweg voertuig want het duurt gewoon te lang te waarderen. Wie wil 30 jaar wachten voordat ze rijk kunnen zijn?
Zonder betrokken te raken te veel in detail, laten we springen meteen in actie. Bij het kiezen van een ontsnapping voertuig, zou u waarschijnlijk willen een paar criteria instellen om het scherm uit wat er wel en niet voor je werken. De ideale ontsnapping voertuig of bedrijf te voorzien in:
Liquiditeit - hiermee kunt u laten uitbetalen binnen een paar dagen.
Leverage op Uw Capital - met alleen uw kapitaal kan traag. Selecteer een voertuig dat hefboomeffect dat alleen rendement, maar niet verliezen vergroot biedt.
Snelle resultaten - moet zien return on investment binnen de 1 e maand.
Eenvoudig te Set Up - mag niet langer duren dan 1 maand te beginnen.
Voorspelbare maandelijkse Return on Investment (ROI) - in staat zijn om nauwkeurig te voorspellen uw maandelijkse
Laag risico - consistent en biedt een hoog percentage voor succes
Winst met Time - met elke tik van de klok, moet u het maken van geld.
Maakt gebruik van de kracht van samengestelde interest - sneeuwbal uw rendement op uw vermogen bouwproces versnellen.
Na het uitvoeren van deze criteria over de keuzes van investeringen beschikbaar, de meeste auto's niet de cut te maken. Van alle, zou slechts 2 beleggingsvehikels de snede te maken.
Stay tuned voor stap 3 voor de beste Escape Vehicle.
CASHFLOW AVENUE is opgericht om met laag risico Options Trading Aanbevelingen leveren aan de gemeenschappelijke handelaren in hun streven naar financiële vrijheid en een betere levensstijl.
Sunday, 29 December 2013
Friday, 27 December 2013
Staying Safe In A High Risk Market
Where do you stand on the end of the third quarter of 2005? Are you making money on your bill this year? There is only one quarter of the 2005 left! The total market averages have not done well at all! At first glance it seems that if you took own large cap growth stocks, such as the well-known blue chip Dow and the S & P 500 index dominate your money might have been better off on the sidelines!
Once again, another quarter rolled by true small caps, foreign markets, technology and raw materials have run the table. And these sectors are becoming more and more buy signals, even today flashing the day. It's not too late! This is a sector driven market. These investors with money in the right sectors will do well. Those who "along for the ride" will be waiting at the curb.
Staying safe in a High Risk Market
There are many paths you can take when things start to move against you in the market. Some of the other methods of sales calls against your individual stocks, buying inverse inverse market funds and index funds. You can also move to other types of investments such as foreign markets and raw materials (as mentioned earlier, both areas have skyrocketed this year). You could always money in bonds, as interest rates in your favor. Keep in mind that bond prices go up and down, so you always have your client fluctuating in bond investments. Always.
One of the very simple, and yet, one of the most important steps you can take is to do a bit. Cleaning Throw the files that just do not seem to fit, or offer little hope of coming back anytime soon.
Looking Backward
From time to time, I will judge a backward position. That is, I will look at the trend graph and patterns, the strength of the sector, look at the relative strength of the stock against the market and the peer group.
At that time I will step back and decide if this is something I would like to buy today. Not hold, but rather, buy today. You really love it.
Once I make a decision that I have made, a buyer only then I will look at the NAME of the stock.
Try it, you may be surprised with your decisions! You see, many times we look at the name of a stock that we really like and we are pre-disposed to a "pass" if it is not performing. Sometimes, our subconscious has already had the idea for a step!
Now, if you want to try on your own business, this experiment than in tom@mullooly.net email me and give me the names of a few stocks you care about. It has more than one stock, I have to mix and remove the names, so you can not say what I can send for the first time. Map As I mentioned before, the results may surprise you!
A strategy can not see us as we are in a high risk is doing nothing, and just "sit this dance." You've worked too hard to get where you are financially, the last thing you should do is unused and let the market take your profits away from you.
Reducing the risk of a loss in your account is what should be of utmost importance when the market is on shaky ground.
Thomas P. Mullooly, President of Mullooly Asset Management, LLC has more than twenty years spent in the investment world, as a broker and as an investment advisor. Mullooly Asset Management is a fee-only registered investment advisory firm based in New Jersey, specializing in retirement accounts, especially the management of 401k, 403b, and deferred compensation accounts for individuals. Feel free to contact us to check the relative strength of your portfolio by sending an email to tom@mullooly.net or visiting or sign up to get market report and tips on how to invest your money on healthy
Once again, another quarter rolled by true small caps, foreign markets, technology and raw materials have run the table. And these sectors are becoming more and more buy signals, even today flashing the day. It's not too late! This is a sector driven market. These investors with money in the right sectors will do well. Those who "along for the ride" will be waiting at the curb.
Staying safe in a High Risk Market
There are many paths you can take when things start to move against you in the market. Some of the other methods of sales calls against your individual stocks, buying inverse inverse market funds and index funds. You can also move to other types of investments such as foreign markets and raw materials (as mentioned earlier, both areas have skyrocketed this year). You could always money in bonds, as interest rates in your favor. Keep in mind that bond prices go up and down, so you always have your client fluctuating in bond investments. Always.
One of the very simple, and yet, one of the most important steps you can take is to do a bit. Cleaning Throw the files that just do not seem to fit, or offer little hope of coming back anytime soon.
Looking Backward
From time to time, I will judge a backward position. That is, I will look at the trend graph and patterns, the strength of the sector, look at the relative strength of the stock against the market and the peer group.
At that time I will step back and decide if this is something I would like to buy today. Not hold, but rather, buy today. You really love it.
Once I make a decision that I have made, a buyer only then I will look at the NAME of the stock.
Try it, you may be surprised with your decisions! You see, many times we look at the name of a stock that we really like and we are pre-disposed to a "pass" if it is not performing. Sometimes, our subconscious has already had the idea for a step!
Now, if you want to try on your own business, this experiment than in tom@mullooly.net email me and give me the names of a few stocks you care about. It has more than one stock, I have to mix and remove the names, so you can not say what I can send for the first time. Map As I mentioned before, the results may surprise you!
A strategy can not see us as we are in a high risk is doing nothing, and just "sit this dance." You've worked too hard to get where you are financially, the last thing you should do is unused and let the market take your profits away from you.
Reducing the risk of a loss in your account is what should be of utmost importance when the market is on shaky ground.
Thomas P. Mullooly, President of Mullooly Asset Management, LLC has more than twenty years spent in the investment world, as a broker and as an investment advisor. Mullooly Asset Management is a fee-only registered investment advisory firm based in New Jersey, specializing in retirement accounts, especially the management of 401k, 403b, and deferred compensation accounts for individuals. Feel free to contact us to check the relative strength of your portfolio by sending an email to tom@mullooly.net or visiting or sign up to get market report and tips on how to invest your money on healthy
Wednesday, 25 December 2013
Dissecting Income Statement
Knowing income is really good crucial to invest your success. Profit and loss account is crucial in determining the fair value of a common stock. Why? Because I believe that the fair value of the investment is determined by the efficiency can generate for a certain price. As a common stock is trading at $ 100 and earns $ 4 per year, which is 4%. If a Treasury bond is yielding 5% now, who would want a common stock that only 4% yields buy? To be honest, there are probably a number of investors who will buy shares at any price. However, this form of investing is rarely profitable.
Analyzing profit and loss statement will tell us how much profit a company can earn. This will in turn tells us how much percentage return we can expect. So, without further ado, let us go through the components of a typical statement.
Income. Also sales, revenue is the lifeblood of a company. To earn income must sell a business. For retail companies like Walmart, must sell in stores your items. For service companies like H & R Block, it has to sell to tax filers.'s Expertise
Cost of revenue. Sometimes called Cost of Goods Sold, Cost Revenues are the direct costs of providing a particular good or service to the customers. For example, the cost of selling a can of soda at Walmart is the price they bought the soft drink manufacturers.
This gross profit is the difference between the price of goods or services a company sells and the cost of providing certain goods or services. In other words, it is the mark-up imposed on its customers an enterprise. For example, if Walmart sells a can of soda for $ 1.00, while it costs $ 0.60 from the manufacturer, then the gross profit from Walmart to sell that can of soda is $ 0.40. When gross profit is expressed in terms of percentage is called the gross profit margin. In this case, the gross profit margin of Walmart ($ 0.40 / $ 1.00) x 100% = 40%.
Research & development.This is the cost of doing research with a view to improving future revenues or costs. Anyway, it is designed to significantly enhance the future earnings of the company. For example, Walmart can spend some dollars to its inventory, which in turn will improve to reduce the costs of operating her business.
Selling General & Administrative. This really is a broad category. In short, this is the fixed cost of doing business. Marketing costs, the office rent, manager and the salary of CEOs included here. So depreciation costs do. For your information, depreciation expense is the cost incurred per year for buying a long-term assets, such as machinery or vehicles. Depreciation is the cost incurred to obtain goodwill, which is obtained from the acquisition of enterprises above the intrinsic value. If a company is considering layoffs, it is these costs that they are trying to reduce.
Operating income. This is the difference between gross profit and operating costs. Operational cost here is the total cost of the development of research and sales and general administration. Operating can be thought of as the revenue due to the primary business of a company. Generated
Other income / expenses. This is the income or costs arising outside business activities of the company. For example, gain on the sale of assets or expenses resulting lawsuit punitive damages.
Interest expense. This is the costs of borrowing long-term debt. A company receives additional funding by borrowing money. In turn has to pay for the loan interest. This interest is called interest.
Income before taxes, income taxes. Once you have all the other income / expense and interest expense from operating, you get income before taxes. A profitable company must pay tax on this income. The tax paid by the company is found in the income statement under income tax category.
Net income. This is our final destination. This is why we go through all the components of a profit and loss account. Also known as the net profit, net profit is what a company earns in a given time frame. From here you can then calculate the market value of the company. Provides less than 4% treasury bond, which is considered as a safe haven? If so, the ordinary shares should definitely be sold or avoided.
Please note that all companies have different ways of presenting their profit and loss accounts. However, most companies present similar to the above criteria. If some companies give a totally different ways of presenting their financial performance, it is best to question them or to avoid the common stock at all.
Analyzing profit and loss statement will tell us how much profit a company can earn. This will in turn tells us how much percentage return we can expect. So, without further ado, let us go through the components of a typical statement.
Income. Also sales, revenue is the lifeblood of a company. To earn income must sell a business. For retail companies like Walmart, must sell in stores your items. For service companies like H & R Block, it has to sell to tax filers.'s Expertise
Cost of revenue. Sometimes called Cost of Goods Sold, Cost Revenues are the direct costs of providing a particular good or service to the customers. For example, the cost of selling a can of soda at Walmart is the price they bought the soft drink manufacturers.
This gross profit is the difference between the price of goods or services a company sells and the cost of providing certain goods or services. In other words, it is the mark-up imposed on its customers an enterprise. For example, if Walmart sells a can of soda for $ 1.00, while it costs $ 0.60 from the manufacturer, then the gross profit from Walmart to sell that can of soda is $ 0.40. When gross profit is expressed in terms of percentage is called the gross profit margin. In this case, the gross profit margin of Walmart ($ 0.40 / $ 1.00) x 100% = 40%.
Research & development.This is the cost of doing research with a view to improving future revenues or costs. Anyway, it is designed to significantly enhance the future earnings of the company. For example, Walmart can spend some dollars to its inventory, which in turn will improve to reduce the costs of operating her business.
Selling General & Administrative. This really is a broad category. In short, this is the fixed cost of doing business. Marketing costs, the office rent, manager and the salary of CEOs included here. So depreciation costs do. For your information, depreciation expense is the cost incurred per year for buying a long-term assets, such as machinery or vehicles. Depreciation is the cost incurred to obtain goodwill, which is obtained from the acquisition of enterprises above the intrinsic value. If a company is considering layoffs, it is these costs that they are trying to reduce.
Operating income. This is the difference between gross profit and operating costs. Operational cost here is the total cost of the development of research and sales and general administration. Operating can be thought of as the revenue due to the primary business of a company. Generated
Other income / expenses. This is the income or costs arising outside business activities of the company. For example, gain on the sale of assets or expenses resulting lawsuit punitive damages.
Interest expense. This is the costs of borrowing long-term debt. A company receives additional funding by borrowing money. In turn has to pay for the loan interest. This interest is called interest.
Income before taxes, income taxes. Once you have all the other income / expense and interest expense from operating, you get income before taxes. A profitable company must pay tax on this income. The tax paid by the company is found in the income statement under income tax category.
Net income. This is our final destination. This is why we go through all the components of a profit and loss account. Also known as the net profit, net profit is what a company earns in a given time frame. From here you can then calculate the market value of the company. Provides less than 4% treasury bond, which is considered as a safe haven? If so, the ordinary shares should definitely be sold or avoided.
Please note that all companies have different ways of presenting their profit and loss accounts. However, most companies present similar to the above criteria. If some companies give a totally different ways of presenting their financial performance, it is best to question them or to avoid the common stock at all.
Monday, 23 December 2013
7 Simple Steps to Financial Freedom and Wealth Building - Step 1
STEP 1: Make Up Your Mind and Setting Your Goals
The first step to any kind of planning is to determine your goals and to set your goals. Although it is to do, the easiest, most people do not. So, in this case, take a piece of paper and write down your financial goals and objectives.
Keep it sweet and simple. And constantly refer back to recall the goals that you have set to yourself. Believe me - you will forget your goals and waving off course if you are not documented on your goals.
Decide on what you would like to achieve financially, develop a plan to achieve, to hold to ensure that you stay on track with your goals this. Put your spirit, soul and determination to achieve these goals and be on time.
Your goals should include:
- Your Targeted Net Worth
- Your Targeted monthly residual income
- Your initial capital
- The time (in years and months) to achieve these goals
- How much time per day you would assign to achieve the above goals?
For seed, it is best to only use risk capital because if you use your life savings to achieve this would normally be too scared to lose, that's when your emotional, rather than rational decisions. As we know, in any business, emotional decisions, the main part of the time, turn to poor decisions. We're talking about your financial future - so make only rational decisions - consider all options when things do not go your way.
Now that we have decided on your goals and your seed money to achieve these objectives, we are now ready for Step 2 - Achieving financial freedom.
CASHFLOW AVENUE is set to Low-Risk Options Trading Recommendations to deliver the common traders in their pursuit of financial freedom and a better lifestyle.
The first step to any kind of planning is to determine your goals and to set your goals. Although it is to do, the easiest, most people do not. So, in this case, take a piece of paper and write down your financial goals and objectives.
Keep it sweet and simple. And constantly refer back to recall the goals that you have set to yourself. Believe me - you will forget your goals and waving off course if you are not documented on your goals.
Decide on what you would like to achieve financially, develop a plan to achieve, to hold to ensure that you stay on track with your goals this. Put your spirit, soul and determination to achieve these goals and be on time.
Your goals should include:
- Your Targeted Net Worth
- Your Targeted monthly residual income
- Your initial capital
- The time (in years and months) to achieve these goals
- How much time per day you would assign to achieve the above goals?
For seed, it is best to only use risk capital because if you use your life savings to achieve this would normally be too scared to lose, that's when your emotional, rather than rational decisions. As we know, in any business, emotional decisions, the main part of the time, turn to poor decisions. We're talking about your financial future - so make only rational decisions - consider all options when things do not go your way.
Now that we have decided on your goals and your seed money to achieve these objectives, we are now ready for Step 2 - Achieving financial freedom.
CASHFLOW AVENUE is set to Low-Risk Options Trading Recommendations to deliver the common traders in their pursuit of financial freedom and a better lifestyle.
Saturday, 21 December 2013
Did Warren Buffett Buy BUD?
Does Warren Buffett buy BUD? What if he did not!
Back in April, it is widely reported by media that Warren Buffett bought the shares of Anheuser-Busch (BUD). These reports are based on a press release from Anheuser-Busch entitled "Anheuser-Busch welcomes Berkshire Hathaway as a shareholder." Anheuser-Busch (BUD) announced Berkshire Hathaway (BRK-A?) "Has become a major shareholder" of Anheuser-Busch, and "Anheuser-Busch welcomes Berkshire Hathaway as a shareholder."
Who does not? On the day that this news was released, Anheuser-Busch stock shot up by 6.4% and closed $ 48.04, but the weather is set to $ 41.8 as of today.
As GuruFocus updated its research on the stock purchase / sale of Warren Buffett, Anheuser-Busch did not show up in the second quarter 13F filings Berkshire Hathaway's. At GuruFocus, we feel that it is our responsibility to make sure that indeed Buffett bought Bud? We contacted Anheuser-Busch to confirm its news this is the answer we got from investor relations Anheuser-Busch:
"Anheuser-Busch has no additional information to report beyond our press release on April 21, which is posted on our corporate website site.While Anheuser-Busch did not comment on the securities filings made by Berkshire Hathaway not, Anheuser-Busch understands that under certain circumstances investment managers are allowed to set in their portfolios. "disclosure of investments
Is it possible that Buffett sold Anheuser-Busch between April 21 and June 30? Very unlikely, as we all know that Buffett's "preferred holding period is forever." Is intentionally keep this information confidential Buffett Buffett did keep some information confidential, which is related to HR Block (HRB) and Torchmark (TMK) and which we believe that Buffett has sold, as stated in the 13F filing:
"Confidential information has been omitted from the public Form 13F and filed with the Commission. Included in this information is information regarding the positions of Berkshire's in H & R Block, Inc. and Torchmark Corp. included in its March 31, 2005 public Form 13F."
No Anheuser-Busch was said! Does Warren Buffett buys BUD? Stay tuned.
Dr. Charlie Tian, Director of Research the website that the stock picks of Warren Buffett, George Soros and other guru investors tracks as Bill Nygren, Mason Hawkins, Ken Fisher, David Dreman, Martin Whitman, James Gipson, Robert Rodriguez, Ronald Mühlenkamp, Wallace Weitz, William, Ruane, Edward Lampert, Edward Owens, Richard Aster, Jr., Robert Olstein, John Keeley, Brian Rogers and Tweedy, Browne
Back in April, it is widely reported by media that Warren Buffett bought the shares of Anheuser-Busch (BUD). These reports are based on a press release from Anheuser-Busch entitled "Anheuser-Busch welcomes Berkshire Hathaway as a shareholder." Anheuser-Busch (BUD) announced Berkshire Hathaway (BRK-A?) "Has become a major shareholder" of Anheuser-Busch, and "Anheuser-Busch welcomes Berkshire Hathaway as a shareholder."
Who does not? On the day that this news was released, Anheuser-Busch stock shot up by 6.4% and closed $ 48.04, but the weather is set to $ 41.8 as of today.
As GuruFocus updated its research on the stock purchase / sale of Warren Buffett, Anheuser-Busch did not show up in the second quarter 13F filings Berkshire Hathaway's. At GuruFocus, we feel that it is our responsibility to make sure that indeed Buffett bought Bud? We contacted Anheuser-Busch to confirm its news this is the answer we got from investor relations Anheuser-Busch:
"Anheuser-Busch has no additional information to report beyond our press release on April 21, which is posted on our corporate website site.While Anheuser-Busch did not comment on the securities filings made by Berkshire Hathaway not, Anheuser-Busch understands that under certain circumstances investment managers are allowed to set in their portfolios. "disclosure of investments
Is it possible that Buffett sold Anheuser-Busch between April 21 and June 30? Very unlikely, as we all know that Buffett's "preferred holding period is forever." Is intentionally keep this information confidential Buffett Buffett did keep some information confidential, which is related to HR Block (HRB) and Torchmark (TMK) and which we believe that Buffett has sold, as stated in the 13F filing:
"Confidential information has been omitted from the public Form 13F and filed with the Commission. Included in this information is information regarding the positions of Berkshire's in H & R Block, Inc. and Torchmark Corp. included in its March 31, 2005 public Form 13F."
No Anheuser-Busch was said! Does Warren Buffett buys BUD? Stay tuned.
Dr. Charlie Tian, Director of Research the website that the stock picks of Warren Buffett, George Soros and other guru investors tracks as Bill Nygren, Mason Hawkins, Ken Fisher, David Dreman, Martin Whitman, James Gipson, Robert Rodriguez, Ronald Mühlenkamp, Wallace Weitz, William, Ruane, Edward Lampert, Edward Owens, Richard Aster, Jr., Robert Olstein, John Keeley, Brian Rogers and Tweedy, Browne
Thursday, 19 December 2013
Dealing With Market Corrections: Ten Dos and Don'ts
A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, even technically I'm told, to adjust equity prices to their actual value or "support levels" corrections. In reality, it's much easier than that. Prices go down because of speculator reactions to expectations of news, speculator reactions to actual news, and investor profit taking. The two former "because" are more powerful than ever before because there are more "self directed" money out there than ever before. And therein lies the core of correctional beauty! Mutual fund unit holders rarely take profits but to take. Often lose Opportunities abound!
Here is a list of ten things to do and think about doing during the correction of some size / or after:
1. Your present Asset Allocation should be tailored to your goals and objectives. Resist the urge to decrease your Equity allocation because you expect a further decline in stock prices. That would be an attempt to reduce the time of the market, which is (of course, in place) are impossible. Proper Asset Allocation has nothing to do with market expectations.
2. Take a look at the past. There has never been a correction that has not proven to have been a buying opportunity so start collecting a diverse group of high quality, dividend paying, NYSE companies as they move lower in price. I start shopping at 20% below the 52-week high water mark, and the shelves are full.
3. Do not hoard that "smart cash" you accumulated during the last rally, and do not look back and you get restless because you can buy some issues too soon. There are no crystal balls, and no place for retrofit into an investment strategy.
4. Take a look at the future. Nope, you can not tell when the rally will come or how long it will last. If you are buying quality equities now (as you certainly could be) you will be able to hold the rally even more than you did the last time ... if you have a round of profit. Smiles broaden with each new realized gain, especially when most people are still head scratchin '.
5. If (or when) the correction continues, buy more slowly as opposed to more quickly, and establish new positions incompletely. Hope for a short and steep decline, but prepare for a long. Before There is more to shop at The Gap than meets the eye.
6. Your understanding and use of the Smart Cash concept has proven the wisdom of The Investor's Creed. You must be out of cash while the market is still correct. [It is becoming less scary every time.] As long your cash flow continues unabated, the change in market value is merely a perceptual problem.
7. Note that your capital is still growing, despite falling prices, and examine your holdings for opportunities to average down on cost per share or to increase (on fixed income) yield. Examine both fundamentals and price, lean hard on your experience, and not force the issue.
8. Identify new buying opportunities using a consistent set of rules, rally or correction. That way you always know which of the two you are dealing with in spite of what the Wall Street propaganda mill spits. Focus on value stocks, it's just easier, but also less risky, and better for your peace of mind. Just think where you would be had you this advice years ago ... now
9. Examines the performance of your portfolio: with your asset allocation and investment objectives clearly in focus, in terms of market and interest rate cycles as opposed to calendar Quarters (never do that) and Years, and only with the use of the Working Capital Model, because it allows for your personal asset allocation. Remember, there really should be used for comparison with a well-designed portfolio value. No index number
10. Finally, ask your broker / advisor why your portfolio has not yet surpassed the levels it boasted five years ago. If it has, thanks and continue with what you've done. This is like golf, if you get a better score than the reality, you will end up losing money.
11. Another thought to consider. As long as everything is down, there is nothing to worry about.
Corrections (of all types) will vary in depth and duration, and both characteristics are clearly visible only in institutional grade rear view mirrors. The short and deep ones are most lovable (kind of men, I'm told), the long and slow ones are more difficult to treat. Most of the corrections are "45s" (August and September, '05), and difficult to take advantage of with Mutual Funds. But amid all this uncertainty, there is one indisputable fact: there has never been a correction that has not succumbed to the next rally ... the more popular side. So smile through the hum drum Everydays the correction, you might meet Peggy Sue tomorrow.
Steve Selengut
Professional Investment Portfolio Manager since 1979
BA Business, Gettysburg College, MBA Professional management, Pace U.
Author of: "The Brainwashing of the American Investor:?? The Book that Wall Street does not want you to read, and A Millionaire's Secret Investment Strategy?
Here is a list of ten things to do and think about doing during the correction of some size / or after:
1. Your present Asset Allocation should be tailored to your goals and objectives. Resist the urge to decrease your Equity allocation because you expect a further decline in stock prices. That would be an attempt to reduce the time of the market, which is (of course, in place) are impossible. Proper Asset Allocation has nothing to do with market expectations.
2. Take a look at the past. There has never been a correction that has not proven to have been a buying opportunity so start collecting a diverse group of high quality, dividend paying, NYSE companies as they move lower in price. I start shopping at 20% below the 52-week high water mark, and the shelves are full.
3. Do not hoard that "smart cash" you accumulated during the last rally, and do not look back and you get restless because you can buy some issues too soon. There are no crystal balls, and no place for retrofit into an investment strategy.
4. Take a look at the future. Nope, you can not tell when the rally will come or how long it will last. If you are buying quality equities now (as you certainly could be) you will be able to hold the rally even more than you did the last time ... if you have a round of profit. Smiles broaden with each new realized gain, especially when most people are still head scratchin '.
5. If (or when) the correction continues, buy more slowly as opposed to more quickly, and establish new positions incompletely. Hope for a short and steep decline, but prepare for a long. Before There is more to shop at The Gap than meets the eye.
6. Your understanding and use of the Smart Cash concept has proven the wisdom of The Investor's Creed. You must be out of cash while the market is still correct. [It is becoming less scary every time.] As long your cash flow continues unabated, the change in market value is merely a perceptual problem.
7. Note that your capital is still growing, despite falling prices, and examine your holdings for opportunities to average down on cost per share or to increase (on fixed income) yield. Examine both fundamentals and price, lean hard on your experience, and not force the issue.
8. Identify new buying opportunities using a consistent set of rules, rally or correction. That way you always know which of the two you are dealing with in spite of what the Wall Street propaganda mill spits. Focus on value stocks, it's just easier, but also less risky, and better for your peace of mind. Just think where you would be had you this advice years ago ... now
9. Examines the performance of your portfolio: with your asset allocation and investment objectives clearly in focus, in terms of market and interest rate cycles as opposed to calendar Quarters (never do that) and Years, and only with the use of the Working Capital Model, because it allows for your personal asset allocation. Remember, there really should be used for comparison with a well-designed portfolio value. No index number
10. Finally, ask your broker / advisor why your portfolio has not yet surpassed the levels it boasted five years ago. If it has, thanks and continue with what you've done. This is like golf, if you get a better score than the reality, you will end up losing money.
11. Another thought to consider. As long as everything is down, there is nothing to worry about.
Corrections (of all types) will vary in depth and duration, and both characteristics are clearly visible only in institutional grade rear view mirrors. The short and deep ones are most lovable (kind of men, I'm told), the long and slow ones are more difficult to treat. Most of the corrections are "45s" (August and September, '05), and difficult to take advantage of with Mutual Funds. But amid all this uncertainty, there is one indisputable fact: there has never been a correction that has not succumbed to the next rally ... the more popular side. So smile through the hum drum Everydays the correction, you might meet Peggy Sue tomorrow.
Steve Selengut
Professional Investment Portfolio Manager since 1979
BA Business, Gettysburg College, MBA Professional management, Pace U.
Author of: "The Brainwashing of the American Investor:?? The Book that Wall Street does not want you to read, and A Millionaire's Secret Investment Strategy?
Tuesday, 17 December 2013
SPX Multi-Year Support & Resistance Levels
In 2 1/2 days last week, SPX declined from 1230 to 1182 breaking a number of key short-term support levels. Energy and utility stocks, which together 15% of the SPX plummeted. OIH (oil ETF), for example, fell 124-110 on the 2 1/2 days of sales. Many institutions held positions in heavy oil for the end-of-the-quarter window dressing, and then quickly began heavily sold. After the new quarter
A barrel of oil fell less than oil. Oil dropped from about $ 66 to $ 61 over the 2 1/2 day sell-off, and closed at approximately $ 62 Friday. Oil has held for two months $ 60. However, it seems inevitable that oil will fall further in the next few weeks, perhaps to the low $ 50s, because of seasonal and cyclical factors. Consequently, there is rotation of the stocks in the non-oil reserves are in the fourth quarter. Many non-oil supplies were severely beaten down by persistently high oil prices, especially when the oil kept $ 60. If earnings growth slows down slowly, many non-oil stocks are cheap enough to rise sharply.
There is no statistically significant correlation between the oil (and oil) and non-oil stocks (and stock market), because sometimes the economy will both oil and non-oil drive in the same direction, and at other times oil prices, oil and non- oil stocks driving in the opposite direction. Last quarter, the price of oil and oil stocks rose, many non-oil stocks fell, and the stock was flat overall. And real economic growth, which has slowed, stabilizes at 2 1/2% to 3% over the next two quarters, should benefit many non-oil short term.
The graph below is an SPX monthly chart, since 1998. SPX has strong (long) resistance around 1250, ie 61.8% Fibonacci level, and monthly upper Bollinger Band. Strong support is around 1165, ie mid Bollinger Bands, Parabolic SAR buy signal (blue dots), 50% Fibonacci level, and extended the Price-by-Volume bar (on the left side of the graph). If SPX closes below 1160, then I would expect a correction of 10% below 1125 (the four-year high) in any case. SPX can easily stand retest in 1250. However, it is more likely to solidify above SPX 1165 to grind higher to 1250 (more specific information has been paid in the other five categories of the section).
Tickets available at Forum Index Market Overview section.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimize risks at the same time and developed over time. This methodology has resulted in excellent returns with low risk over the past four years.
A barrel of oil fell less than oil. Oil dropped from about $ 66 to $ 61 over the 2 1/2 day sell-off, and closed at approximately $ 62 Friday. Oil has held for two months $ 60. However, it seems inevitable that oil will fall further in the next few weeks, perhaps to the low $ 50s, because of seasonal and cyclical factors. Consequently, there is rotation of the stocks in the non-oil reserves are in the fourth quarter. Many non-oil supplies were severely beaten down by persistently high oil prices, especially when the oil kept $ 60. If earnings growth slows down slowly, many non-oil stocks are cheap enough to rise sharply.
There is no statistically significant correlation between the oil (and oil) and non-oil stocks (and stock market), because sometimes the economy will both oil and non-oil drive in the same direction, and at other times oil prices, oil and non- oil stocks driving in the opposite direction. Last quarter, the price of oil and oil stocks rose, many non-oil stocks fell, and the stock was flat overall. And real economic growth, which has slowed, stabilizes at 2 1/2% to 3% over the next two quarters, should benefit many non-oil short term.
The graph below is an SPX monthly chart, since 1998. SPX has strong (long) resistance around 1250, ie 61.8% Fibonacci level, and monthly upper Bollinger Band. Strong support is around 1165, ie mid Bollinger Bands, Parabolic SAR buy signal (blue dots), 50% Fibonacci level, and extended the Price-by-Volume bar (on the left side of the graph). If SPX closes below 1160, then I would expect a correction of 10% below 1125 (the four-year high) in any case. SPX can easily stand retest in 1250. However, it is more likely to solidify above SPX 1165 to grind higher to 1250 (more specific information has been paid in the other five categories of the section).
Tickets available at Forum Index Market Overview section.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimize risks at the same time and developed over time. This methodology has resulted in excellent returns with low risk over the past four years.
Sunday, 15 December 2013
Are You Afraid to Start Investing?
"It is not because things are difficult that we do not dare, it is because we do not dare that things are difficult!"
Lucius Annaeus Seneca (5 BC - AD 65)
If you are just starting out as an investor, no matter your age, it is a bit scary!
You know you are supposed to do with your money, anything but what?
Where do you start and what really is considered safe?
First ... Relax!
Do not think you need to know everything today. It takes years to understand investing, and no one knows just exactly what is happening all the time.
So you are not alone if you feel a bit overwhelmed and under-informed. Eventually you to contact as many facts as you can mount your investment decisions, but you must realize that you never really know everything.
The best part of investing is to learn to live with the fear of the unknown!
There are always naysayers who will tell you that investing is for professionals, or that the market is too high, or it crashing!
The first statement is false! The second is relatively dependent on a lot of factors and the third is always a possibility, depending on how you define crash!
If the index goes to 10,000 and "crashes" back to 8000 and you invested in 7000 did not really suffer! Is this a crash?
Well, that depends on how you define crash. If you bought 10,000 shares, and sold at 8000, then you have experienced a "crash".
If you bought and held on, or used down market strategies you have learned to cover your investment, then you have not experienced a crash.
You've been through an educational event!
And when the market recovers and goes to 11,000 and you stayed the course, you have made some good money.
The point is to understand the purpose of the investment world, you have to go ahead and to start you must promise that you can achieve your goals.
To achieve your goals you need to learn about the markets and investing a portion of your income to get where you want to be.
It's as simple as that!
You can try and chances are that you will be happy when you are at a point a few years down the road and look at your brokerage account, you will say ...
"I did that and I'm proud!"
So, do not listen to discourage the bad vibe. Most of them said the same things as the Index was half the size it is today!
Copyright © 2006 I.E.C. Haramis
Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an investment bank.
Lucius Annaeus Seneca (5 BC - AD 65)
If you are just starting out as an investor, no matter your age, it is a bit scary!
You know you are supposed to do with your money, anything but what?
Where do you start and what really is considered safe?
First ... Relax!
Do not think you need to know everything today. It takes years to understand investing, and no one knows just exactly what is happening all the time.
So you are not alone if you feel a bit overwhelmed and under-informed. Eventually you to contact as many facts as you can mount your investment decisions, but you must realize that you never really know everything.
The best part of investing is to learn to live with the fear of the unknown!
There are always naysayers who will tell you that investing is for professionals, or that the market is too high, or it crashing!
The first statement is false! The second is relatively dependent on a lot of factors and the third is always a possibility, depending on how you define crash!
If the index goes to 10,000 and "crashes" back to 8000 and you invested in 7000 did not really suffer! Is this a crash?
Well, that depends on how you define crash. If you bought 10,000 shares, and sold at 8000, then you have experienced a "crash".
If you bought and held on, or used down market strategies you have learned to cover your investment, then you have not experienced a crash.
You've been through an educational event!
And when the market recovers and goes to 11,000 and you stayed the course, you have made some good money.
The point is to understand the purpose of the investment world, you have to go ahead and to start you must promise that you can achieve your goals.
To achieve your goals you need to learn about the markets and investing a portion of your income to get where you want to be.
It's as simple as that!
You can try and chances are that you will be happy when you are at a point a few years down the road and look at your brokerage account, you will say ...
"I did that and I'm proud!"
So, do not listen to discourage the bad vibe. Most of them said the same things as the Index was half the size it is today!
Copyright © 2006 I.E.C. Haramis
Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an investment bank.
Friday, 13 December 2013
Investing the Right Way
De wereld van de beleggingen biedt een gevaarlijke gelijkspel: enorme beloningen met de kans op vreselijke verliezen. Beleggers houden van het idee van het vergaren van rijkdom, maar niemand houdt van het verliezen van geld. De truc is om te weten hoe om te investeren met minimale risico's. Niemand kan de schommelingen van de markt volledig nauwkeurig te voorspellen, maar als je begint te investeren, zult u leren om de verliezen te nemen en kijken uit naar de volgende markt hoog.
De markt is niet te beheersen, maar het helpt om te weten wat je investeert in Word vertrouwd met de producten en bedrijven die u investeert in voordat u de sprong. Te veel nieuwe beleggers investeren in een hete bouillon van het voorgaande jaar, enthousiast door de markt hoog. Vergeet niet: de markt highs nooit afgelopen. Het is slim om te investeren in een sterke voorraad met een record dan een trend die is in een jaar en het volgende.
Net zo belangrijk als het product is de redenering achter uw keuze het. Als je weet waarom je investeert in een voorraad, zult u altijd weet wat je volgende zet is. Bijvoorbeeld, als je investeert in het belang van winst alleen, wanneer de prijzen dalen dan weet je uit te vallen, in plaats van piekeren over de vraag of om te wachten en steek uw vingers voor de volgende markt hoog, of je verlies.
Investeringen zijn allemaal om timing - niet de timing van de markt hoogte-en dieptepunten, maar de timing van uw bewegingen in relatie tot hen. Je moet weten wanneer om winst te nemen en bij te verliezen te beperken. Sommigen zeggen dat als de markt omhoog, draaien een winst in het geval dat de markt blijft klimmen. Echter, anderen maken de markt zal vallen, dus het is best om een back-out terwijl je bezig bent. Wanneer de markt laag is, iedereen weet om uw verliezen te snijden - weer uit voordat het erger wordt.
Niet investeren in wat je niet kunt veroorloven, en niet investeren zonder een goede reden. Terwijl de markt highs zijn satisfyingly belonen, de markt dieptepunten zijn onderdeel van de rit. Hoewel veel van beleggen is buikgevoel, kan je niet veroorloven om roekeloze beslissingen te nemen. Investeer in uw voordeel, in plaats van laat de markt rippen op je bankrekening.
Het beste ding om te doen is de studie van de markt. Niet springen om te investeren voordat u opneemt van het product te bestuderen en na te denken over je redenering. Een aantal goede boeken over beleggen zijn The Real Life Investing Gids door Kenan Pollack en Eric Heighberger, The Only Investment Guide u ooit nodig hebt door Andrew Tobias, en The Wall Street Journal Guide to Understanding Geld en Beleggen (3e editie) door Kenneth M. Morris en Alan M. Siegel. Weet wat je doet en waarom voordat u begint te investeren.
Wanneer u weloverwogen keuzes maken, kunt u veel voordelen halen uit de markt. De zakelijke wereld is onvoorspelbaar, maar als de markt omhoog is, zijn de beloningen ook de gok waard.
Beleggen op de juiste manier
© Copyright 2005
Alan Jason Smith is de eigenaar van dat is een geweldige plek om te investeren banden, middelen en artikelen.
De markt is niet te beheersen, maar het helpt om te weten wat je investeert in Word vertrouwd met de producten en bedrijven die u investeert in voordat u de sprong. Te veel nieuwe beleggers investeren in een hete bouillon van het voorgaande jaar, enthousiast door de markt hoog. Vergeet niet: de markt highs nooit afgelopen. Het is slim om te investeren in een sterke voorraad met een record dan een trend die is in een jaar en het volgende.
Net zo belangrijk als het product is de redenering achter uw keuze het. Als je weet waarom je investeert in een voorraad, zult u altijd weet wat je volgende zet is. Bijvoorbeeld, als je investeert in het belang van winst alleen, wanneer de prijzen dalen dan weet je uit te vallen, in plaats van piekeren over de vraag of om te wachten en steek uw vingers voor de volgende markt hoog, of je verlies.
Investeringen zijn allemaal om timing - niet de timing van de markt hoogte-en dieptepunten, maar de timing van uw bewegingen in relatie tot hen. Je moet weten wanneer om winst te nemen en bij te verliezen te beperken. Sommigen zeggen dat als de markt omhoog, draaien een winst in het geval dat de markt blijft klimmen. Echter, anderen maken de markt zal vallen, dus het is best om een back-out terwijl je bezig bent. Wanneer de markt laag is, iedereen weet om uw verliezen te snijden - weer uit voordat het erger wordt.
Niet investeren in wat je niet kunt veroorloven, en niet investeren zonder een goede reden. Terwijl de markt highs zijn satisfyingly belonen, de markt dieptepunten zijn onderdeel van de rit. Hoewel veel van beleggen is buikgevoel, kan je niet veroorloven om roekeloze beslissingen te nemen. Investeer in uw voordeel, in plaats van laat de markt rippen op je bankrekening.
Het beste ding om te doen is de studie van de markt. Niet springen om te investeren voordat u opneemt van het product te bestuderen en na te denken over je redenering. Een aantal goede boeken over beleggen zijn The Real Life Investing Gids door Kenan Pollack en Eric Heighberger, The Only Investment Guide u ooit nodig hebt door Andrew Tobias, en The Wall Street Journal Guide to Understanding Geld en Beleggen (3e editie) door Kenneth M. Morris en Alan M. Siegel. Weet wat je doet en waarom voordat u begint te investeren.
Wanneer u weloverwogen keuzes maken, kunt u veel voordelen halen uit de markt. De zakelijke wereld is onvoorspelbaar, maar als de markt omhoog is, zijn de beloningen ook de gok waard.
Beleggen op de juiste manier
© Copyright 2005
Alan Jason Smith is de eigenaar van dat is een geweldige plek om te investeren banden, middelen en artikelen.
Wednesday, 11 December 2013
International Investment in Bulgaria Still Strong
GE Commercial Finance Real Estate has recently announced that it will acquire a 50% interest in the Mall of Sofia. The Mall is a huge trade, business and entertainment center currently under construction in the center of the capital.
The acquisition costs approximately EUR 37M and was made by a consortium of GE Commercial Finance Real Estate and Quinlan Private.
This real estate investment can stimulate only the current growing trend in the Bulgarian market and extend to the countries of Central and Eastern Europe. Gives intentions of GE
Copenhagen Airports has announced increase in Bulgaria Varna and Burgas airports from EUR 106m to EUR 140M by the end of 2008. Their planned investments The added investment is used to update the airport and its facilities and to cope with the increasing passenger traffic.
A collective analysis of the airports of Varna and Burgas shows that unless urgent reforms at both facilities, the airports can be seen as early as next season. Decline expected traffic
Tour operators are to lead to alternative destinations due to insufficient quality of services likely to tourists and this would have a knock-on effect for hotels with poor bed occupancy and a possible slowdown in the overall economic development of the region. Bulgaria's top three airports in Sofia, Varna and Burgas have seen a 20% increase in passenger traffic.
New European low-cost air carrier Wizz Air's first flight with destination Sofia completed.
Tickets for the flight started selling in Bulgaria for three months, and 155 passengers were on board the new beginning.
Wizz Air is now the Sofia-Budapest route flies four times a week, and is looking to expand the number of flights from other Bulgarian airports and increase the destination sites throughout Europe, focusing on the markets of Central and Eastern Europe. The airline took the end of May from the southern Polish city of Katowice, initially flying to London Luton Budapest, Rome, Milan, Venice and Berlin.
Finally, the above investments in the real estate, infrastructure and travel reflect the growing confidence in the future of Bulgaria as a major player in the region and move the country closer to the expected integration of the EU in 2007.
Tim Wright is an international real estate investor and author of "Bulgarian Property - The Overseas Buyers' Kit available
The acquisition costs approximately EUR 37M and was made by a consortium of GE Commercial Finance Real Estate and Quinlan Private.
This real estate investment can stimulate only the current growing trend in the Bulgarian market and extend to the countries of Central and Eastern Europe. Gives intentions of GE
Copenhagen Airports has announced increase in Bulgaria Varna and Burgas airports from EUR 106m to EUR 140M by the end of 2008. Their planned investments The added investment is used to update the airport and its facilities and to cope with the increasing passenger traffic.
A collective analysis of the airports of Varna and Burgas shows that unless urgent reforms at both facilities, the airports can be seen as early as next season. Decline expected traffic
Tour operators are to lead to alternative destinations due to insufficient quality of services likely to tourists and this would have a knock-on effect for hotels with poor bed occupancy and a possible slowdown in the overall economic development of the region. Bulgaria's top three airports in Sofia, Varna and Burgas have seen a 20% increase in passenger traffic.
New European low-cost air carrier Wizz Air's first flight with destination Sofia completed.
Tickets for the flight started selling in Bulgaria for three months, and 155 passengers were on board the new beginning.
Wizz Air is now the Sofia-Budapest route flies four times a week, and is looking to expand the number of flights from other Bulgarian airports and increase the destination sites throughout Europe, focusing on the markets of Central and Eastern Europe. The airline took the end of May from the southern Polish city of Katowice, initially flying to London Luton Budapest, Rome, Milan, Venice and Berlin.
Finally, the above investments in the real estate, infrastructure and travel reflect the growing confidence in the future of Bulgaria as a major player in the region and move the country closer to the expected integration of the EU in 2007.
Tim Wright is an international real estate investor and author of "Bulgarian Property - The Overseas Buyers' Kit available
Monday, 9 December 2013
How to Invest with Success
Whether they feel now working in business or stay-at-home mothers, many people today are drawn to the risky allure of investments, which can mean either huge rewards or painful losses. Although it is impossible to predict with 100% accuracy, the fluctuations of the market as you build your portfolio, you will learn to accept the loss and consider the successes always waiting around the corner.
No one can control the market, but you can control what you invest in. Research products and know the companies you your confidence - and, more importantly, your dollars - in. One of the most common mistakes new investors clamoring to invest in a hot stock of the previous year. It is a common pattern for a market to decline to a low market high - at the time you invest right. This is not always the case, but it pays to invest in a strong stock rather than a fad that is one year and the next.
It is also important to know why you invest in that particular stock. For example, if you strictly invest some momentum, get when prices fall you'll know to fall out, otherwise see you sitting there wondering whether to wait or you lose.
Ironically, while it is impossible to predict the market's investment is all about timing. Two of the most important decisions when investors to take profits and limit losses. If the market is up, some say it is best to turn a profit - a risky choice that could mean a huge loss or a huge reward. However, many prefer to take their money while the market is rising, in case of a fall is on the way. When the market is down, almost everyone agrees it is best to close before it gets worse to avoid even more money, cutting your losses.
More importantly, only invest what you can afford, and have a good reason to invest. Losses are a real part of the investment, which means that you can not afford too many hasty decisions, especially when you start. Let the market determine your bank account, unless you use it to your advantage, whatever that may be.
The smartest thing a new investor can do is study the market. Before investing in a product, look at her record. Do not jump into any investments - they think about first. Some good sources of information on the investments include The Wall Street Journal Guide to Understanding Money and Investing (3rd Edition) by Kenneth M. Morris and Alan M. Siegel, The Real Life Investing Guide by Kenan Pollack and Eric Heighberger, and The Only Investment Guide You ever have by Andrew Tobias.
If you stay well informed and make careful decisions, the market can be an exciting tool. In the business world, anything can happen, and with the market highs come enormous rewards that are well worth the risks.
Alan Jason Smith is the owner of which is a great place to invest links, resources and articles.
No one can control the market, but you can control what you invest in. Research products and know the companies you your confidence - and, more importantly, your dollars - in. One of the most common mistakes new investors clamoring to invest in a hot stock of the previous year. It is a common pattern for a market to decline to a low market high - at the time you invest right. This is not always the case, but it pays to invest in a strong stock rather than a fad that is one year and the next.
It is also important to know why you invest in that particular stock. For example, if you strictly invest some momentum, get when prices fall you'll know to fall out, otherwise see you sitting there wondering whether to wait or you lose.
Ironically, while it is impossible to predict the market's investment is all about timing. Two of the most important decisions when investors to take profits and limit losses. If the market is up, some say it is best to turn a profit - a risky choice that could mean a huge loss or a huge reward. However, many prefer to take their money while the market is rising, in case of a fall is on the way. When the market is down, almost everyone agrees it is best to close before it gets worse to avoid even more money, cutting your losses.
More importantly, only invest what you can afford, and have a good reason to invest. Losses are a real part of the investment, which means that you can not afford too many hasty decisions, especially when you start. Let the market determine your bank account, unless you use it to your advantage, whatever that may be.
The smartest thing a new investor can do is study the market. Before investing in a product, look at her record. Do not jump into any investments - they think about first. Some good sources of information on the investments include The Wall Street Journal Guide to Understanding Money and Investing (3rd Edition) by Kenneth M. Morris and Alan M. Siegel, The Real Life Investing Guide by Kenan Pollack and Eric Heighberger, and The Only Investment Guide You ever have by Andrew Tobias.
If you stay well informed and make careful decisions, the market can be an exciting tool. In the business world, anything can happen, and with the market highs come enormous rewards that are well worth the risks.
Alan Jason Smith is the owner of which is a great place to invest links, resources and articles.
Saturday, 7 December 2013
Investment Strategies for Novices
With so many options available, beginners think that investment is just a matter of choice. But in reality, making the "right" investment choice is the core of making smart investments. Yes, what are the strategies investing for beginners?
Asset allocation is one of the first investment strategies that must be learned. It's the way you divide your investment portfolio under three primary asset classes: equities, bonds and money markets. This can increase your potential returns and ensuring long-term investment success. It can also help channel your investments. For example, if your goal is to continue the growth and you are willing to take the market, you want invest more in equities. Asset allocation also helps you lower your investment risk, without diluting your investment goals.
As a first time investor, you also need the time frame and tolerance for risk in your strategy, because the choice of investments depends on these two factors. You must remember that each instrument has its own risk value.
Stocks are known to often fluctuate in value, carry a high degree of market risk in the short term, earn high returns and normally outpace inflation. Bonds on the other hand have less severe short-term price fluctuations and therefore much lower market risk. Offer Money market instruments are the most stable of all asset classes in terms of efficiency. They carry relatively low market risk, but lack the ability to surpass inflation.
Diversification should be. Another part of your investment strategy When you diversify you reduce the risk. Your investments It also helps you a decline in the value of an instrument balance with gains in the value of another.
Finally, you should plan for the long term. The investors who benefit most are those who reduce their short-term investments and focus on long-term gains.
Asset allocation is one of the first investment strategies that must be learned. It's the way you divide your investment portfolio under three primary asset classes: equities, bonds and money markets. This can increase your potential returns and ensuring long-term investment success. It can also help channel your investments. For example, if your goal is to continue the growth and you are willing to take the market, you want invest more in equities. Asset allocation also helps you lower your investment risk, without diluting your investment goals.
As a first time investor, you also need the time frame and tolerance for risk in your strategy, because the choice of investments depends on these two factors. You must remember that each instrument has its own risk value.
Stocks are known to often fluctuate in value, carry a high degree of market risk in the short term, earn high returns and normally outpace inflation. Bonds on the other hand have less severe short-term price fluctuations and therefore much lower market risk. Offer Money market instruments are the most stable of all asset classes in terms of efficiency. They carry relatively low market risk, but lack the ability to surpass inflation.
Diversification should be. Another part of your investment strategy When you diversify you reduce the risk. Your investments It also helps you a decline in the value of an instrument balance with gains in the value of another.
Finally, you should plan for the long term. The investors who benefit most are those who reduce their short-term investments and focus on long-term gains.
Thursday, 5 December 2013
Investments and Tracking Your Return on Investments
Every investor should know how well their investments are performing. One way to evaluate the performance is to calculate on investment (ROI) and compare it to a market index your return. The problem is that most financial institutions offer no personal return (ROI) of their statements and doing the calculations yourself is not easy, especially if you have contributions or withdrawals for a period.
Why is it important to track your ROI? Let's use an analogy. You know how much you make. You probably also know if your salary is comparable to people with similar features. Knowing these facts, ie a reference point to compare with others your own salary, you can determine whether a reasonable compensation. Likewise, it is equally important for you to know not only what are worth your investment, but also back they have earned and how they compare with a reference such as a market index (the Dow, S & P 500, etc these returns .)
What's the ROI? In its simplest form, the return earned on an investment. For example, if you have $ 1,000 in a bank account and you earned $ 50 in interest at the end of the year, your ROI would be 5%. The calculation is more complex when:
You have several portfolios in several financial institutions and you want to calculate the individual performances. Portfolio or a return of your portfolio on a combined basis
You have contributions or withdrawals made during the accounting period, which must then be weighed for accurate return calculations.
You can not access index have rates of returns for comparison purposes.
How do you determine how well your investments perform? You need to consider three factors as follows:
Invested amount
If you invested $ 100,000 earned $ 1,000, your ROI is 1%.
But if you invested $ 10,000 and still earned $ 1,000, your ROI is 10%.
Period
If you invested $ 100,000 and earned $ 1,000 after 5 years, your ROI is 0.2%.
But if you invested $ 100,000 earned $ 1,000 after one year, your ROI is 10%.
Similar Return
If your investments earned 10%, but a comparable market index such as the S & P 500 return of 18% that you do not do as well as the market in general.
Even if your investments earned only 4%, but the market yield of 2%, you did well.
Knowing how well relative to the market have performed your investments over a long period of time is an important step in managing your investments in an intelligent way. Empowered with this information you can determine whether you need to make changes and maximize your return relative to the risk you are comfortable with.
Fauzi Zamir is a chartered accountant and founder of Solutionera Inc., a web site that allows investors to easily track, calculate and compare doing their ROI against market indices without the complicated mathematical calculations developed. You can visit the site at:
Why is it important to track your ROI? Let's use an analogy. You know how much you make. You probably also know if your salary is comparable to people with similar features. Knowing these facts, ie a reference point to compare with others your own salary, you can determine whether a reasonable compensation. Likewise, it is equally important for you to know not only what are worth your investment, but also back they have earned and how they compare with a reference such as a market index (the Dow, S & P 500, etc these returns .)
What's the ROI? In its simplest form, the return earned on an investment. For example, if you have $ 1,000 in a bank account and you earned $ 50 in interest at the end of the year, your ROI would be 5%. The calculation is more complex when:
You have several portfolios in several financial institutions and you want to calculate the individual performances. Portfolio or a return of your portfolio on a combined basis
You have contributions or withdrawals made during the accounting period, which must then be weighed for accurate return calculations.
You can not access index have rates of returns for comparison purposes.
How do you determine how well your investments perform? You need to consider three factors as follows:
Invested amount
If you invested $ 100,000 earned $ 1,000, your ROI is 1%.
But if you invested $ 10,000 and still earned $ 1,000, your ROI is 10%.
Period
If you invested $ 100,000 and earned $ 1,000 after 5 years, your ROI is 0.2%.
But if you invested $ 100,000 earned $ 1,000 after one year, your ROI is 10%.
Similar Return
If your investments earned 10%, but a comparable market index such as the S & P 500 return of 18% that you do not do as well as the market in general.
Even if your investments earned only 4%, but the market yield of 2%, you did well.
Knowing how well relative to the market have performed your investments over a long period of time is an important step in managing your investments in an intelligent way. Empowered with this information you can determine whether you need to make changes and maximize your return relative to the risk you are comfortable with.
Fauzi Zamir is a chartered accountant and founder of Solutionera Inc., a web site that allows investors to easily track, calculate and compare doing their ROI against market indices without the complicated mathematical calculations developed. You can visit the site at:
Tuesday, 3 December 2013
Investment Ideas for Small Investors
Je hoeft niet te worden gemaakt van het geld om een investeerder te zijn. Er zijn veel investeringen ideeën voor kleine beleggers die u waarschijnlijk niet bewust van. En deze investeringen kan een stuk dichterbij en eenvoudiger dan je denkt.
Een investering idee voor kleine beleggers is voorraden. Nu kan dit komen als een verrassing, omdat de meeste mensen denken dat je nodig hebt om scads van geld te hebben om mee te doen met de aandelenmarkt.
Veel bestanden echter niet kost een arm en been te kopen. Ze kan heel betaalbaar en je kunt beginnen met een paar aandelen en werk tot grotere investeringen.
Aandelen in het opstarten van bedrijven in een hete-industrie zijn een voorbeeld van een goede investering idee voor kleine beleggers. Een paar aandelen van een blue chip aandelen is een andere.
Enkel ben zeker om eerst wat onderzoek te doen en bereid zijn om op te hangen aan uw voorraad door ups en downs, zoals de voorraden de neiging om meer winstgevend te zijn op de lange termijn en zal zeker zien wat ups en downs.
Staatsobligaties en effecten zijn andere beleggingsmogelijkheden voor kleine beleggers.
Veel staatsobligaties kunnen worden gekocht tegen een lage tot matige prijs, en zij zullen een belegger het voordeel van rentebetaling geven.
Deze rentebetalingen kunnen gebruikt worden voor een andere investering idee. In feite kan de rente op staatsobligaties en aandelen het mogelijk om beleggingen te diversifiëren voor kleine beleggers.
Investering ideeën voor kleine beleggers kunnen worden in meer tastbare vormen van items ook. Voorwerpen zoals munten, auto's en collectibles zijn vaak een goede plek voor kleine beleggers om te beginnen.
Deze types van investeringen maken vaak een investeerder zich veiliger voelen dan wanneer ze te maken hebben met wat vaak wordt aangeduid als "papier" geld. Ze vinden het leuk te kunnen houden hun investeringen dicht bij hen.
Het voordeel dit kan hebben is dat als een munt of collectible heeft een plotselinge piek in de waarde die het kan gemakkelijk worden gekregen tot en verkocht voor een winst. En, tenslotte, de beste investering idee voor kleine beleggers is degene die ze voelen zich het meest veilig en comfortabel maken.
Een investering idee voor kleine beleggers is voorraden. Nu kan dit komen als een verrassing, omdat de meeste mensen denken dat je nodig hebt om scads van geld te hebben om mee te doen met de aandelenmarkt.
Veel bestanden echter niet kost een arm en been te kopen. Ze kan heel betaalbaar en je kunt beginnen met een paar aandelen en werk tot grotere investeringen.
Aandelen in het opstarten van bedrijven in een hete-industrie zijn een voorbeeld van een goede investering idee voor kleine beleggers. Een paar aandelen van een blue chip aandelen is een andere.
Enkel ben zeker om eerst wat onderzoek te doen en bereid zijn om op te hangen aan uw voorraad door ups en downs, zoals de voorraden de neiging om meer winstgevend te zijn op de lange termijn en zal zeker zien wat ups en downs.
Staatsobligaties en effecten zijn andere beleggingsmogelijkheden voor kleine beleggers.
Veel staatsobligaties kunnen worden gekocht tegen een lage tot matige prijs, en zij zullen een belegger het voordeel van rentebetaling geven.
Deze rentebetalingen kunnen gebruikt worden voor een andere investering idee. In feite kan de rente op staatsobligaties en aandelen het mogelijk om beleggingen te diversifiëren voor kleine beleggers.
Investering ideeën voor kleine beleggers kunnen worden in meer tastbare vormen van items ook. Voorwerpen zoals munten, auto's en collectibles zijn vaak een goede plek voor kleine beleggers om te beginnen.
Deze types van investeringen maken vaak een investeerder zich veiliger voelen dan wanneer ze te maken hebben met wat vaak wordt aangeduid als "papier" geld. Ze vinden het leuk te kunnen houden hun investeringen dicht bij hen.
Het voordeel dit kan hebben is dat als een munt of collectible heeft een plotselinge piek in de waarde die het kan gemakkelijk worden gekregen tot en verkocht voor een winst. En, tenslotte, de beste investering idee voor kleine beleggers is degene die ze voelen zich het meest veilig en comfortabel maken.
Sunday, 1 December 2013
Using Standard Deviation and the Sharpe Ratio: Tools of the Pros
If you choose investments based on total returns over specific time periods (ie, 1 year, 3 yrs, 5 yrs and 10 yrs), without assessing the risk, it's time to meet your selection to add another component .
Standard Deviation and Sharpe ratio are two basic tools used by professional investors to determine risk and, with a little practice, you can use it too.
Although standard deviation is not limited to the field of investment, it is a measure of the volatility that translates into danger. High standard deviations indicate a wide range of investment returns and low deviations indicate a narrow range of returns.
A word of warning: standard deviation will not do you much good unless you use it to compare among other investments as the standard deviation. Taking things a step further, if you compare the standard deviation of a benchmark (ie a standard deviation indices), you can see how closely these investments perform their benchmark for a risk-adjusted basis.
Now for the fun part. Let's calculate standard deviations using hypothetical investments:
Suppose Large Cap Investment A has a 9% average return over a period of three years (the most common time frame for measuring the standard deviation). Also assume that a standard deviation of 6.
Now also assume that the Large Cap Investment B has an average return of 9% compared to the same three-year period, but that it is a standard deviation of 7.
For the range of returns for our hypothetical investments are, you need to take the average rate of return and add (or subtract) the standard deviation for that investment. The result gives you the range of returns for that investment 68% of the time.
In our hypothetical example above, while both investments have a 9% average return, Investment A has a range of return of 3% to 15%. Investment B has a range of efficiency of 2% to 16%. Because Investment B has a wider range of performance, would be deemed to be the more volatile (or risky) of the two investments.
Now let's look at a hypothetical benchmark to compare these investments. Let's assume that the market return for Large Cap Investments is 7.25%, with a standard deviation of 5.5. Using the above formula, the benchmark set of efficiencies for Large-Cap Investments 1.75% (7.25% minus 5.5) to 12.75% (7.25% plus 5.5) are.
So far so good, but how can we compare Investment A (with a 9% average return and standard deviation of 6) to the benchmark (with a 7.25% average return and standard deviation of 5.5)? Before we look at the Sharpe ratio.
Developed by Bill Sharpe, the Sharpe Ratio tries to quantify. Risk of an investment in relation to its investment return The higher the ratio, the better the performance of the investment after adjusting for its risk.
Our formula takes the difference between the return on a particular investment and the return on a risk-free investment. This difference is divided by the standard deviation. That should give us the answer.
Although no investment is truly risk free, let's use a low-risk, 90-day Treasury Bill, with an average yield of 2%.
Our Sharpe Ratio for Investment A would be as follows:
9 (Investment A's average return) minus 2 (average yield T Bills) = 7 (Excess return over a risk free investment)
7 (Excess return over a risk-free investment) divided by 6 (Investment A's standard deviation) = 1.67 (Sharpe Ratio)
Our Sharpe Ratio for the benchmark would be as follows:
7:25 (average yield Benchmark's) minus 2 (average yield Bills T) = 5.25 (Excess return over risk free)
5:25 divided by 5.5 (Benchmark's standard deviation) = 0.95 (Sharpe Ratio)
Because Investment A has a higher Sharpe ratio (1.67) than the benchmark (0.95), it is considered a better risk adjusted returns have.
If you want more information on the standard deviation and the Sharpe ratio, there are several sites on the internet that will be happy to accommodate you.
Remember, these are just two tools used in the process of selecting securities. They are not infallible, but they can be effective in keeping your portfolio in top-notch shape. Tremendous help
Glenn (? Chip?) Dahlke, a senior contributor to the Living Trust Network, has 28 years in the investment business. He is a Registered Representative of Linsco / Private Ledger and a principal with Dahlke Financial Group. He is licensed to securities transactions with persons who are residents of the following states: CA. CT, FL, GA, IL. MA, MD. ME, MI. NC, NH, NJ, NY.OR, PA, RI, VA, VT, WY.
If you have any questions or comments, Chip would love to hear from you. You can t with him e-mail contact. You can also contact him at the Living Trust Network. Her website is
Copyright 2005. Living Trust Network, LLC. All rights reserved.
Get a free list of websites which provide information on the standard deviation and the Sharpe ratio offer - the Living Trust Network please send an e-mail to
Standard Deviation and Sharpe ratio are two basic tools used by professional investors to determine risk and, with a little practice, you can use it too.
Although standard deviation is not limited to the field of investment, it is a measure of the volatility that translates into danger. High standard deviations indicate a wide range of investment returns and low deviations indicate a narrow range of returns.
A word of warning: standard deviation will not do you much good unless you use it to compare among other investments as the standard deviation. Taking things a step further, if you compare the standard deviation of a benchmark (ie a standard deviation indices), you can see how closely these investments perform their benchmark for a risk-adjusted basis.
Now for the fun part. Let's calculate standard deviations using hypothetical investments:
Suppose Large Cap Investment A has a 9% average return over a period of three years (the most common time frame for measuring the standard deviation). Also assume that a standard deviation of 6.
Now also assume that the Large Cap Investment B has an average return of 9% compared to the same three-year period, but that it is a standard deviation of 7.
For the range of returns for our hypothetical investments are, you need to take the average rate of return and add (or subtract) the standard deviation for that investment. The result gives you the range of returns for that investment 68% of the time.
In our hypothetical example above, while both investments have a 9% average return, Investment A has a range of return of 3% to 15%. Investment B has a range of efficiency of 2% to 16%. Because Investment B has a wider range of performance, would be deemed to be the more volatile (or risky) of the two investments.
Now let's look at a hypothetical benchmark to compare these investments. Let's assume that the market return for Large Cap Investments is 7.25%, with a standard deviation of 5.5. Using the above formula, the benchmark set of efficiencies for Large-Cap Investments 1.75% (7.25% minus 5.5) to 12.75% (7.25% plus 5.5) are.
So far so good, but how can we compare Investment A (with a 9% average return and standard deviation of 6) to the benchmark (with a 7.25% average return and standard deviation of 5.5)? Before we look at the Sharpe ratio.
Developed by Bill Sharpe, the Sharpe Ratio tries to quantify. Risk of an investment in relation to its investment return The higher the ratio, the better the performance of the investment after adjusting for its risk.
Our formula takes the difference between the return on a particular investment and the return on a risk-free investment. This difference is divided by the standard deviation. That should give us the answer.
Although no investment is truly risk free, let's use a low-risk, 90-day Treasury Bill, with an average yield of 2%.
Our Sharpe Ratio for Investment A would be as follows:
9 (Investment A's average return) minus 2 (average yield T Bills) = 7 (Excess return over a risk free investment)
7 (Excess return over a risk-free investment) divided by 6 (Investment A's standard deviation) = 1.67 (Sharpe Ratio)
Our Sharpe Ratio for the benchmark would be as follows:
7:25 (average yield Benchmark's) minus 2 (average yield Bills T) = 5.25 (Excess return over risk free)
5:25 divided by 5.5 (Benchmark's standard deviation) = 0.95 (Sharpe Ratio)
Because Investment A has a higher Sharpe ratio (1.67) than the benchmark (0.95), it is considered a better risk adjusted returns have.
If you want more information on the standard deviation and the Sharpe ratio, there are several sites on the internet that will be happy to accommodate you.
Remember, these are just two tools used in the process of selecting securities. They are not infallible, but they can be effective in keeping your portfolio in top-notch shape. Tremendous help
Glenn (? Chip?) Dahlke, a senior contributor to the Living Trust Network, has 28 years in the investment business. He is a Registered Representative of Linsco / Private Ledger and a principal with Dahlke Financial Group. He is licensed to securities transactions with persons who are residents of the following states: CA. CT, FL, GA, IL. MA, MD. ME, MI. NC, NH, NJ, NY.OR, PA, RI, VA, VT, WY.
If you have any questions or comments, Chip would love to hear from you. You can t with him e-mail contact. You can also contact him at the Living Trust Network. Her website is
Copyright 2005. Living Trust Network, LLC. All rights reserved.
Get a free list of websites which provide information on the standard deviation and the Sharpe ratio offer - the Living Trust Network please send an e-mail to
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