Best Opportunities to Invest your Money In 2012

Facebook IPO in 2012

You can’t talk of investment opportunities in 2012 without mentioning Facebook. 2012 is the year this social network will go public. I have big feeling Facebook is another Google: it will keep getting bigger and bigger. Other tech IPOs in 2011, Linkend and Groupon, opened high on first day but came to down later. The only people who made money were the early investors and the few who were lucky to buy the IPO.

Buying Short Term Bonds

As rates go up, the value of bonds that have long dated maturities go down, sometimes significantly. For that reason, stick with short term bonds (both government and corporate), Inflation Linked Bonds (TIPs) and Floating Rate Notes. Once rates go up — and they have nowhere to go but up — gradually change those holdings into longer term bonds.

Buying Under Water Properties

There are millions of mortgages across US that are under water, the value of this properties have fallen low and the return on investment is now high. If you have enough cash and you buy this properties, you can get a good return renting out the properties.

Investing In Companies Catering in Luxury Goods

2011 was the year the middle class disappeared. Companies that target the upper end of the market have continued to do well. Stats indicate the number of super rich people has gone up, these group continues to spend on luxury cars, boats etc. Companies like Lululemon Athletica (targeting Yoga lovers) have continued to see year-over-year earnings growth at or above 50%.

Investing in Low End companies

As the middle class disappears, the majority of these people are finding themselves in the lower end. As numbers of low income people continue to swell, discount retailers such as Wal Mart will continue to do well.

To find best opportunities to invest your Money In 2012 you need to look at individual stocks and not the whole market.

Best Places To Invest Your Money In 2012 is a post from: Daily Investment Tips

Buffett’s long term investing strategy is arguably the most successful ever. No one has come close to matching his annual stock market returns.

Warren Buffet Secret  of long term investing is summed up by the following three quotes by him:-

• I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
• Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
• Our favourite holding period is forever.

More Warren Tips For Long Term Investing

• Always invest for the long term.
• Does the business have favourable long term prospects
• Do not take yearly results too seriously. Instead, focus on four or five-year averages.
• As far as you are concerned, the stock market does not exist. Ignore it.
• Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.

Long Term Investing

Warren Buffet Secret : Long Term Investing is a post from: Daily Investment Tips

 . . . Go out there and get rich. Get so obnoxiously rich that when that tax bill comes, your first thought will be to choke on how big a check you have to write. Your 2nd thought will be “what a great problem to have,” and your 3rd should be a recognition that in paying your taxes you are helping to support millions of Americans that are not as fortunate as you. . . . While some people might find it distasteful to pay taxes. I don’t. I find it Patriotic.

I’m not saying that the government’s use of tax money is the most efficient use of our hard-earned capital. It obviously is not. In a perfect world, there would be a better option. We don’t live in a perfect world. We don’t live in a perfect time. We live in a time where the government plays a big role in an effort to help lead us out this Great Recession. That’s reality.

So I will repeat my point. Get out there and make a boatload of money. Enjoy the shit out your money. Pay your taxes.

Mark Cuban On getting Rich and Paying Taxes is a post from: Daily Investment Tips

Payment of Premiums

Whole life insurance is a good way of securing your family’s future in the event of your death. The amount of premiums to be paid varies depending on factors such as age. A young person taking a whole life insurance policy will be required to pay a less amount for his premiums while a one who is in his old age will be required more for his premiums.

Another factor determining amount is the health of the insured. A healthy person will be required to pay fewer premiums compared to a person with unstable health condition. The amount of premiums paid will also vary from one insurance company to another depending on their rates and interests. One with a high income earning can also choose to increase the value of his premiums hence the amount assured after maturity of the policy will be higher.

Why Invest in Whole Life Insurance

There are many benefits that come with taking a whole life insurance policy. Although most of these will not directly benefit you as the policy holder, they will be of great importance to your family or the beneficiaries after your death. Here are some benefits of whole life insurance.

o It offers financial security to your family. In case of death, one is assured that their spouse and children will continue living a comfortable life afterwards. This is usually the main reason people take this policy and is quite reasonable.

o It can be used for a loan. A life insurance policy holder can take a loan out against the cash value. In this case the money taken belongs to him therefore he will not be required any interest or pay back the amount taken.

o It offers tax benefits to beneficiaries. The insured amount in most cases is free from income tax to your named beneficiaries.

o The amount assured can be used to pay off mortgage loan in the case of death of the insured party.

o A whole life insurance policy can be used to cover expenses after death of the insured. These include funeral costs or family expenses such as the children’s college funding.

Having a life insurance is with no doubt a good investment strategy not only to your benefit but also to those you leave behind. It saves you the worry of wondering what will happen to your family and loved ones once the time of your death comes.

Article courtesy of auto insurance.

Investing In Life Insurance is a post from: Daily Investment Tips

Warren Buffett said in his 2011 letter to Berkshire Hathaway shareholders Saturday that he still believes America’s best days are ahead.

Highlights From the Warren Buffet Shareholder Letter 2011

Don’t trust companies financial statement, do your own homework – Buffett urged investors not to focus on the net income figures that companies report because they are easily manipulated through accounting tricks or by selling investments.

Dangers of investing in borrowed money – “When leverage works, it magnifies your gains. Your spouse thinks you’re clever, and your neighbors get envious. But leverage is addictive,” Buffett said. “Once having profited from its wonders, very few people retreat to more conservative practices.”

This is the time to invest – He plans to put to use Berkshire Hathaway $38 Billion cash hoard. “We’re prepared,” Buffett wrote. “Our elephant gun has been reloaded, and my trigger finger is itchy.”

Housing is set for recovery- He said a housing recovery will likely begin within the next year, which would help the economy and several Berkshire subsidiaries, including ones that make carpets and bricks.

To download a copy go to Berkshire Hathaway Shareholder Letters.

Warren Buffet Shareholder Letter 2011 is a post from: Daily Investment Tips

The latest news is John Paulson did it again by earning an estimated $5 billion in 2010 thanks mainly to bets the economy would recover. This is better than the $4 billion haul made off the subprime bet.

How John Paulson Makes Money

John Paulson runs his own hedge fund investment firm, Paulson & Co. Inc. (PCI). It is an employee owned hedge fund sponsor, primarily providing services to pooled investment vehicles. He is earns money through commissions on funds under management plus a share of profits.

John Paulson Investing Strategy

The firm manages separate client-focused portfolios, employing merger arbitrage, long/short, and event-driven strategy to make its investments. Paulson & Co. Inc. utilizes fundamental analysis to make its investments, benchmarking the performance of its investments against the S&P 500 Index.

John Paulson Investment Philosophy

In a Wallstreet Journal interview this is how he summarizes his investment philosophy: “The flexibility of having long and short exposure across the capital structure allows us to optimize performance across market cycles. Our goals are capital preservation, above average returns over the long term, and low correlation to the markets.” As the market recovers from its shortfalls of the past years, Paulson is betting on strong economic growth in the recovery: “it is time to be in the stock market,” he says, and that now is not the time “to be under-invested”.

John Paulson Investing Strategy is a post from: Daily Investment Tips

Michael Covel trading tips

1. IPOs are for gamblers, unless you are an insider.
2. No one knows what the stock market ceiling will be. If they say so, they are making it up. Buy only now if you know exactly how much you can afford to lose.
3. No one can predict market direction, so you have to be ready to exit and protect your capital. This all requires a trading plan well in advance of entering the market.
4. The main drivers of sentiment in the stock market is herd behavior, not fundamentals [even though they may say its fundamentals]. People want to get rich fast, so they jump on board [with no exit planned]. That usually ends badly.

Michael Covel website is full of trading and investing resources. You can vist Michael Covel website to read finance articles or even buy one of his books or buy one of his trading course.

Michael Covel Trading Tips is a post from: Daily Investment Tips

I like the following websites for investment advice. They are parked with information that I use to better understand the markets.

Businessweek Online.

I have been a subscriber since I first opened my good old yahoo email account. I have never been disappointed. The recent merger with bloomberg will only make them stronger.

UK Financial Times Online.

To access the full articles you need you need to be a paid up member. They have free account that limits you to read 10 articles a month. But they will send you headlines of all top business news.

Wallstreet Journal Online.

The biggest business publication in the world. With such a large financial support you can be assured they will find business information that matters.

Yahoo Finance.

The beauty of Yahoo Finance is syndicated feed they run on the site. They have articles written from top finance blogs.

Google Finance.

This is not a single site but an aggregator of business news. They have fabulous charts that can help you track trends over a period of time.

Best Investment Advice Sites is a post from: Daily Investment Tips

Offshore scam artist have beautiful websites, luxurious literature, and “educational” tutorials.

They ask investors to put money in non-existent companies inside foreign countries. They promise investors high returns and tax-free results with absolutely no danger.

Offshore scam artist use sophisticated lingo such as “bank debentures” or “standby letters of credit,” complicated-sounding aspects like “offshore fund leasing,” and inexplicable instruments similar to “interbank trading” and also “seasoned notes.”

Tutorials are quite often held in thrilling areas and cost thousands of dollars to go to; marketers tout “connections” and a assurance of “no taxes” on your investment

Because this scams are outside the jurisdiction of united states, law- enforcement organizations simply cannot investigate when investors cry foul.

Offshore Investing Scams is a post from: Daily Investment Tips

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Some of the books review on Market Psychology I read were

1. Art of Contrary thinking by Humprey Bancroft Neil

2. The Crowd : A study of popular minds by Gustva Le Bon

3. Speculation as a fine art of life by Dickson G Watts

4. Why You Win or Lose : The Psychology of speculation by Fred C. Kelly

5. The Nature of Risk by Justin Marris

Stock Market Psychology Books Reviews is a post from: Daily Investment Tips