Daily Investment Tips

It was a day to remember for lucky investors who bought into Zillow IPO. Zillow, a Seattle-based real estate listings website, tripled in value as it began its first day of trading on Wednesday, continuing a series of successes for dotcom companies this year in an echo of the 1990s boom.

Zillow sold IPO shares for $20, then on the opening date on Wednesday on Nasdaq, the shares skyrocketed to $60. By the close, the shares had settled at $35.77, for a valuation of $965m, a gain of 79 per cent.

Money To Be Made In Tech IPOs

Zillow was just repeating a pattern that has been set by other Tech companies: Shares skyrocketing on the first day of trading. A word of caution. although this tech stock have shot up on the first day of trading, they have thereafter struggled to stay at their peak levels.

written by Constantine Njeru \\ tags: 1990s, Boom, Caution, Dotcom Companies, Investors, Ipo Shares, Ipos, Lucky, Money, Nasdaq, Peak Levels, Real Estate Listings, Seattle, Stock, Successes

The following commodities price chart is courtesy of Investor John Hussman. The chart shows historical trend of Commodities prices. Beginning in 1802 to 2011.

Commodities boom years

• 1812 – 1814
• 1824 – 1840
• 1854 – 1864
• 1880  – 1924
• 1933 – 1952
• 1962 – 1984
• 2004 – 2014

As you can see, the trend during the boom years is not linear. Prices move up then reverse a little then move up and up.  The general conclusion is nothing lasts forever don’t get sucked up in a bull market have an exit strategy.

written by Constantine Njeru \\ tags: 1864, Boom, Commodities Price, Commodities Prices, Conclusion, Exit Strategy, Investor, John Hussman, Trend

Marc Faber is nick named ‘Doctor Doom’ He dishes out his market predictions and Forecast advice in his newsletter Gloom Boom & Doom Report.

Marc Faber is famous for predicting 1987 stock market crash. He advised his clients to get out of the stock market one week before the October 1987 crash.

Marc Faber Current Market Predictions & Forecast

1. US is going to go bankrupt – His current tag-line is: ‘buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years’
2. As world population expand, food prices will continue to rise – Faber advises stock pickers to play on future food and water shortages by buying into companies with exposure to agriculture and water treatment technologies.
3. Commodities – Gold and other metals are still long term buys.
4. One of his most controversial forecast is imminent dirty war between US  and China over access to limited oil resources.

written by Constantine Njeru \\ tags: Bond Value, Boom, Commodities, Current Market, Dirty War, Doctor Doom, Food Prices, Future Food, Gloom, Inflation, Marc Faber, Market Predictions, Metals, Oil Resources, Stock Market Crash, Stock Pickers, Tag Line, Water Shortages, Water Treatment Technologies, World Population

One strategy to take advantage of the rolling boom in US farmland prices is buying a US farmland ETF ( exchange traded fund)

Data from US farmland prices & statistics show, since 2000, U.S. farmland prices have risen by 58% after inflation, according to the FDIC. And since 2003, they’ve risen by over 10% annually.

To put it in real numbers, the average price of an acre of U.S. farmland more than doubled from $1030 in 1999 to $2350 in 2008.

Investing In farmland Via ETF

One strategy to take advantage of this boom in US farmland prices is buying a US farmland ETF ( exchange traded fund). ETFs investing in farmland are not plentiful but they are out there.

Market Vectors Agribusiness ETF

One US farmland ETF that we are aware of is the Market Vectors Agribusiness ETF (NYSE:MOO). This farmland ETF is listed in NYSE.

It is cheaper to buy an ETF than to go out and buy a farmland.

written by Constantine Njeru \\ tags: Acre, Amp, Boom, Exchange Traded Fund, Farmland Prices, Fdic, Inflation, Investing, Nyse, Real Numbers, Statistics, Vectors

Loan modification enables distressed mortgage holders to reduce their principal and interest. But statistics show many American mortgage holders cant tap into the benefit of loan modification.

According to a Wall Street Journal piece on mortgages,

Most delinquent mortgages aren’t available for sale because they are locked up in so-called private-label securities (the ones packaged by Wall Street during the boom) or in the hands of Fannie Mae or Freddie Mac.

What this means is, Although a mortgage company has issued the loan, the loan is owned by third parties. The rules governing this arrangement prevent the issuer from modifying the loans. A modification would subject the servicing firm to the risk of lawsuits by the owners of the securities.

Because of this tight arrangement the mortgage companies find their hands tied and they cant help their borrowers.

written by Constantine Njeru \\ tags: American Mortgage, Boom, Borrowers, Delinquent Mortgages, Fannie Mae, Freddie Mac, Lawsuits, Loan Mortgage, Mortgage Companies, Mortgage Company, Mortgage Holders, Mortgage Loan Modification, Principal And Interest, Private Label, Qualify For Mortgage, Tap, Third Parties, Wall Street, Wall Street Journal, What This Means