John Paulson famously made a cool US 3.5 billion in 2007. He was among the few who had seen the housing boom was built on sand and bet against it.
How did he see it.
In a Wall street journal interview, I found this Paulson quote
“Where is the bubble we can short?” He was asking his staff. They found it in housing.
I think that is the one example on how to make money. Find a bubble and short it!
In the same interview Paulson gave a vague assessment of the market
He’s also betting against other parts of the economy, such as credit-card and auto loans. He tells investors “it’s still not too late” to bet on economic troubles.
Not to fast that was way back in January 2008.
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\\ tags: Auto Loans, Bet, Credit Card, Economic Troubles, Economy, Housing Boom, How To Make Money, Investors, John Paulson, Market Predictions, Quote, Wall Street, Wall Street Journal
2009 has to be the year of commodities. If you are a follower of trend following you must have made lots of cash by trend of gold, Silver & Platinum.
Look at this 2009 Price trends of this metals
2009 Gold Price Trend – up 34%
2009 Silver price trend – up 63%
2009 Platinum price trend – up 56%
2009 Palladium price trend – up an impressive 98%
If your mind was focused on the falling prices of real estate & non-starter stock market recoveries, you might have missed this commodities bull.
Should investors jump in? No! I don’t think just because this metal commodities have done well in the past they will continue doing well.
Strategy for making money in Metal commodities.
Whatever goes up, eventually comes down, one strategy is to focus on shorting the metals or sell the futures contract.
Strategy two, only for the seasoned pro, if you know how to play the speculation game keep buying the futures contract.
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\\ tags: Amp, Contract Strategy, Follower, Futures Contract, Game, Gold Price, Gold Silver, Investors, Making Money, Metal Commodities, Metals, Palladium Price, Platinum Price, Price Trend, Price Trends, Real Estate, Silver Platinum, Silver Price, Speculation, Stock Market
Jim Rogers, a commodities guru and creator of the Rogers International Commodities Index, gave an interview to businessweek, giving his assessment of the ever rising gold price.
Jim Rogers Gold price prediction
Jim Rogers expects it to be over a couple thousand dollars an ounce sometime in the next decade.
Jim Rogers on what is driving the price of gold
- Demand from Central Banks, central banks which were selling gold a few years ago are now buying.
- The US Fiscal & Monetary Deficit – Throughout history, printing money has led to weaker currencies and higher prices for real assets.
- The Herd Mentality – Everyone is bullish about Gold and this is enough reason to drive prices up.
Read the whole Jim Rogers interview at this businessweek article.
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Dominica Republic is a major player in the Caribbean offshore centres. Dominica promotes itself as a leading offshore tax haven.
Incorporating an Offshore company in Dominica can take less than 48 hours. The Island offers a low cost of Incorporating an offshore company in Dominica.
Benefits of Setting up and Offshore Company in Dominica
Offshore companies formed in Dominica enjoy total exemption from local taxes including:
* income and capital gains taxes
* withholding taxes
* transfer taxes
* stamp duties
No minimum paid up share capital
Capital may be denominated in any currency
Shareholders/directors may be individuals or corporations
No annual general meeting of shareholders is required.
No annual returns must be filed or published.
Source Caribbean Offshore Services
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Warren Buffet is a contrarian investor. So who is a contrarian investor? This article explains / defines a contrarian investor?
Contrarian Investor Explanation from Warren Buffet.
A great way to make money is to go against the crowd. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful,” Buffett explained in a 1986 letter to shareholders.
To put it simply a contrarian investor is an investor who goes against the popular direction. When the majority are buying into an investment he is busy selling, when the majority are selling he is buying.
So, how does a contrarian investor make money.
When the stock market is unpopular like during a bear market, the value of stocks tend to decline and most investors are selling. This is the time a contrarian investor invests, buyin cheap stocks. When the bull market returns and stocks are popular and everyone is getting in, the demand for stocks pushes stock values higher and higher and this the time a contrarian investor start selling the shares he had bought when everyone was selling.
To make money as a contrarian investor you must have a good timing of the market, be it stock market, bond market, futures market, commodity market and even real estate. You must understand markets work in cycles of bear market and bull market; markets go up and down. Buy during the bear market and sell during the bull market.
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\\ tags: Bear Market, Bond Market, Buffett, Cheap Stocks, Commodity Market, Contrarian Investor, Crowd, Futures Market, Investors, Letter To Shareholders, Market Commodity, Market Futures, Market Markets, Real Estate, Stock Market, Stock Values, Warren Buffet, Way To Make Money
The price of Gold futures continue to shoot over the roof. One driver of the price is the recent gold purchases by India Central bank from the IMF.
The central bank of India has purchased 200 metric tonns of gold from IMF.
According to this economics time article.
India is spreading its assets which are said to be currently over-weighted with foreign currency, mainly in the form of sovereign US Treasury bonds. In other words, it is a hedge against a falling dollar.
India is the world’s largest private gold consumer, but the government’s holding of gold as an asset is modest. Even so, the latest purchase puts it at Number 10 among the list of top 10 gold-holders in the world.
Of India’s current foreign exchange reserves of nearly $285 billion, foreign currency assets account for more than 90% ($268.3 billion), followed by gold ($10.3 billion), IMF’s Special Drawing Rights ($5.2 billion) and a reserve position in the IMF of $1.59 billion.
While India’s current gold holdings, accounting for just 3.7% of assets, are said to be historically low, buying 200 tons in addition to the 358 tons it already holds is expected to bump up the gold reserves to more than 6%.
As India, China and Brazil buy gold it means more Dollars sales. The dollar may continue sliding downward.
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\\ tags: Bank Of India, Brazil, Buy Gold, Central Bank Of India, Currency Assets, Foreign Currency, Foreign Exchange Reserves, Gold Futures, Gold Holdings, Gold Reserves, Imf, India Central, India China, Private Gold, Reserve Position, Sovereign, Special Drawing Rights, Time Article, Tonns, Us Treasury Bonds
The common wisdom was that the stock market mirrored the economy. If the economy is on an upswing the stock market went up.
But looking at US data, a strange thing is happening. The buoyant S&P 500 has risen 53 percent since the March bottom while the economy has remained flat.
An article in slate.com explains this anomaly.
For much of the past two years, virtually all growth in economic activity has taken place outside America’s borders. As a result, U.S.-based companies are becoming even more reliant on non-U.S. customers and operations for sales.
Globalization is changing the way we do business. It’s not a matter of U.S. companies exporting goods—burgers, soda, cars, software—made in the United States to Beijing but rather, making goods overseas and selling them overseas.
The US economy might be flat but the rest of the world economy is growing fueling growth for American companies with overseas subsidiaries. That explains why American companies may report higher profits despite the US economy slowing
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In a tough economy other people may be looking for “alternative” sources of money. This alternatives may be suing others.
The fact is that anyone can find themselves a target of an overblown lawsuit. If you have a house, cash or investments – heck, if you just have a job – you could be seen as a cash cow by someone else . . . someone who could “slip” on your sidewalk or “fall down” your steps.
There are affordable ways to protect yourself. Your home insurance provides liability protection up to certain amount (sometimes $300,000). But that’s not enough to protect your assets if someone gets greedy or can prove that they suffered a substantial injury that’s your fault. Personal umbrella coverage, which gives you liability insurance above and beyond your home and car insurance, is relatively inexpensive and is a vital part of fortifying your finances.
According to the Insurance Information Institute, you can buy a $1 million umbrella policy for about $150 to $300 a year. The next million will cost about $75, and about $50 for every million after that.
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\\ tags: 1 Million, Assets, Car Insurance, Cash Cow, Economy, Heck, Home Insurance, Insurance, Insurance Information Institute, Insurance Institute, Insurance Protection, Investments, Liability Insurance, Liability Protection, Personal Umbrella, Sidewalk, Substantial Injury, Target, Umbrella Coverage, Umbrella Policy
Money fraud is a big problem. If you take simple protection ideas you can prevent yourself from being a victim of money fraud from con artist
Keep checks in a safe place
- Don’t sign a blank check allowing someone else to fill in the amount.
- Never give someone your ATM, credit card or PIN or Social Security number.
- Check your bank statements carefully for unauthorized withdrawals.
- Be careful of joint accounts as both parties have equal access to the money.
- When in doubt, contact the bank to stop payments or checks, to flag or put a hold on the account or to close an account.
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\\ tags: Atm, Bank Statements, Blank Check, Checks, Close Account, Con Artist, Contact, Credit Card, Joint Accounts, Money Fraud, Safe Place, Social Security, Social Security Number, When In Doubt, Withdrawals
Anguilla offshore centre is another british overseas territory. The island has local plus international banks offering offshore bank accounts, offshore companies incorporation.
Anguilla is a pure tax haven. There are no income taxes, no corporate taxes, no sales taxes, no value added taxes, etc.
Barclays PLC Anguilla
A full range of domestic banking facilities are offered including deposit and chequing accounts in both US$ and EC$ currencies, money transfer services, merchant card services and borrowing facilities (both personal and corporate), to name a few.
Caribbean Commercial Bank Anguilla
A wholly locally owned private corporation established in 1976. Offers personal, corporate and offshore banking.
Hansa Bank & Trust Company Limited Anguilla
The Group includes The Hansa Bank and Trust Company Limited, an international merchant bank supervised under British banking regulations, and other corporations such as Span Corp Limited specifically focused on international commerce.
National Bank of Anguilla
The National Bank of Anguilla was incorporated in Anguilla on 20th December 1984. It also has interest in a Visa licensed credit card issuing and processing company, and is affiliated with American Express.
Scotia Bank Of Anguilla Ltd.
Offers an extensive range of commercial and retail banking services in U.S. and Eastern Caribbean dollars.
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\\ tags: American Express, Banking Regulations, Barclays Plc, British Overseas Territory, Chequing Accounts, Corporate Taxes, Eastern Caribbean Dollars, Hansa Bank, International Banks, International Merchant, Merchant Card Services, Money Transfer Services, Offshore Bank Accounts, Offshore Banking, Offshore Banks, Offshore Centre, Offshore Companies, Private Corporation, Scotia Bank, Span Corp
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