Sep 18

Warren Buffet once said, We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

Businessweek has an article of how investors this years are frustrated by stock returns and are now running away from stocks.

Americans continue to be wary of stocks. The Standard & Poor’s 500-stock index is almost unchanged since the end of 2009, and mutual fund investors have yanked money from equities for four straight months. Activity in the options market shows that concern has never been higher that stocks will plunge. At the same time, other indicators, including cash flow and dividend yields, suggest equities are attractively valued.

The article continues to make an argument as to why investors should jump back into stocks. Read the rest of the article at Businessweek

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Sep 17

In a Reuters interview George Soros says the Johnnies come lately buying into gold now might end up in tears. The famous investor thinks the gold rush underway is the ultimate bubble.

The yellow precious metal has been in a super bull trend for the last ten years. The great gold party begun in 2004.George Soros now thinks many are late for the party of decade.

The following is a chronicle of the rise and rise of Gold.

2004 Gold broke beyond $400

2005 Gold Hits $500

2006 Gold hits $730

2007 Gold Hits $845

2008 Gold hits $1000

2009 Gold hits $1230

2010 Gold hits $1275

Listen to the Video at Reuters Finance.

They say whatever goes up must come down.

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Sep 16

The Yen has been on the rise and like everyone interested in the world of finance I was curious to know why the Japanese Yen was so strong.

I did Google search on why the Japanese yen was strong and on Google page one was an article from 2007 Japanese Yen The Biggest One-Way Bet of All Time by Jack Crook. Jack Crook is Yen currency expert and writes for a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts

It was the kind of article you read and you ask yourself, Why did I not see this before? The article is spot on predicting the rise of the Yen.

Jack Crook analysis the Japanese Yen.

During the Japanese recession interest rates dropped to zero. Hedge funds and large investors took advantage of zero interest rates by borrowing in Yen and converting the Yen into dollars and Euros. The new money was invested European and US stock exchanges for higher returns.

What is happening now is that those investors are selling their Euro & US investments and buying Yens to repay the debt. This Yen buying has created a demand for Yen that is driving the Yen upwards.

The whole article is a Gem.

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Sep 15

If you have limited cash and you are looking at prices listed properties you would be depressed by the prices quoted. The cost of real estate is high and small investors with limited budgets are normally priced out.

Real Estate Investing for Small Investors

One way small investors with limited budgets can invest in real estate is by investing via Real Estate Investment Trust or simply REIT.

Real Estate Investment Trust is a company that exclusively invests in real estate. The company’s shares are listed and trade in a stock exchange.Investors can buy the shares instead of directly buying the real estate.

Real Estate Investment Trust, REIF, offer individual investors a cheap chance to invest in properties.It is a route to low cost real estate investing or cheap real estate investing.

For more information on REIF visit Investopedia

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Sep 13

For investors who had the courage to buy Apple stock back in 1997 when Steve Jobs made a return, they have had a ride of their life. Back in 199os Apple stock was trading in the single digits, there was talk of bankruptcy and Michael Dell famously said he thought the company should just be broken up and the money divided among shareholders, but today Apple stock is in the $250s range.What a ride!

Can Apple stock continue rising? Some investors think Apple stock best days are behind it but some investors believe Apple stock rise is just starting and that Apple will continue blowing past expectations.

Four Reasons Why Apply Stock may continue rising

MSNBC has an interesting article as to why investors should invest in Apple.The factors driving Apple are software, design, ecosystem and underrated market.

Apple will become the most valuable company in the world. Bet on it. In fact, go out and sell all your personal belongings, liquidate your 401(k), and buy Apple stock with every last dollar you own.

OK … on second thought, I wouldn’t advise that — it’s a bit rash. But there are ample reasons to believe that the company’s rise is just starting and that Apple will continue blowing past expectations.

The author of the article shows a scenario forecasting/predicting  how Apple revenues and profits will look like in 2014.

Read the full article at MSNBC

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Sep 11

E. William Stone is the chief investment strategist at PNC Wealth Management in Philadelphia.

William Stone Financial Advice

In businessweek interview the man gave his thoughts on why this is the best time to be investing in stocks.

Widespread nervousness about the economy is “a positive” because it gives investors a chance to find “a good company that’s being dragged down by the overall market.”

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Sep 10

Paul Tudor Jones is a billionaire hedge fund manager. According to Forbes rich list his wealth is estimated at $6.5 billion. He is the founder of Tudor Investment Corporation, based in Greenwich, Connecticut

Jones is best known for foreseeing and predicting the Black Monday stock market crash in 1987. During this event he reportedly made between $80 million and $100 million.

Paul Tudor Jones Bets

Jones invests mainly via ETF and he is currently betting long on emerging markets, China, Russia.

He has position in iShares MSCI Emerging Markets Index ETF, iShares FTSE/Xinhua China 25 Index ETF and Market Vectors Russia ETF Trust.

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Sep 03

One money saving tip is reducing the amount of money you spend on energy bills. You need to get an home energy audit to determine how much money you can save. An audit of your energy use can show you areas you can use to reduce your energy bill.

For a few hundred dollars, experts using high-tech gadgets, and computer models will analyze your home, work out in detail all the ways it’s wasting energy and tell you what you can do to stop it.

How An Audit can reduce your energy bills

  1. An audit can help you rethink your heating and water systems,
  2. Identify possible sources of renewable energy, from solar paneling to a geothermal heat pump.

Implementing the above changes can help you save money over time. Another thing is you will be playing your part in helping the environment.

To find a home energy auditor check for credited auditors at Building Performance Institute

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Sep 03

We know the Iphone exclusivity has kept AT&T in wireless business. With the Iphone exclusivity set to end anytime in 2011 investors have a reason to be concerned with AT&T stock.

If you believe the loss of Iphone exclusivity will have a negative impact on AT&T, with subscribers jumping over to Verizon or slowing subscriber growth then you can profit from the loss by shorting AT&T stock.Talk to your broker about the possibility of shorting AT&T stock.

What AT&T Thinks?

According to AT& T filing with SEC, “We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations,” AT&T said

AT&T said more than 80% of its contract customers are on family or business plans that are less likely to see turnover.

What Business analyst are Saying,

Some surveys are telling us as many as 23% of AT&T users are likely to switch to Verizon when the Iphone goes to Verizon.

It’s hard to predict the impact of the loss of Iphone exlusivity, any position an investor takes on AT&T stock now will be speculative.

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Sep 02

Solar energy is in vogue! I have read a couple of business articles talking about the coming boom in Solar energy. Although solar is yet to compete with natural gas and coal as a source of cheap energy it is still used in sufficient amount to consider it an emerging force.

If you are interested in investing in Solar energy you can invest in stocks of companies supplying the solar industry. The following companies were featured in a Businessweek article on Solar Energy.

SMA SOLAR

a German producer of inverters, which convert the direct current produced by solar and wind into alternating current that can be used on the grid.

SATCON TECHNOLOGY

is the largest manufacturer of utility-scale inverters

POWER ONE

Maker of inverters

ADVANCED ENERGY INDUSTRIES

Also maker of inverters

STR HOLDINGS

Which makes adhesive encapsulants, the ethylene vinyl acetate sheets used to weatherproof solar panels and prevent yellowing. Demand for STR’s products is strong, with half the world’s solar panel makers signed up to use them

FIRST SOLAR & SUNPOWER

Photovoltaic panel makers

Source businessweek.com

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