Daily Investment Tips

In a speech given in New Delhi March 25, 2011, the chairman of Berkshire Hathaway, Warren Buffet predicted the decline of the U.S. dollar.

The billionaire investor warned investors to avoid “long-term fixed-dollar investments” such as 10-year U.S. Treasury bonds. Buffett worries that the $2.3 trillion in new money the US government has pumped into the economy, when combined with interest rates so low they’re practically giving money away, are combining to dilute the value of the dollar.

U.S Dollar Projection: Forecast : Prediction

As a result, Buffett warns: “If you ask me if the U.S. Dollar is going to hold its purchasing power fully at the level of 2011, 5 years, 10 years or 20 years from now, I would tell you it will not.”

written by Constantine Njeru \\ tags: 10 Years, Berkshire Hathaway, Billionaire, Buffett, Decline, Dollar Investments, Economy, Giving Money, Interest Rates, Investor, Investors, March 25, New Delhi, New Money, Purchasing Power, Trillion, U S Treasury, U S Treasury Bonds, Us Government, Warren Buffet

The best way to get credit or loan from the mainstream lenders is to have a good FICO score. FICO credit scale runs from 300 points to 850 points; the higher the score, the better your credit standing.

FICO credit scores of under 620 is considered poor and it means obtaining loans and credit cards with reasonable terms difficult.

While a FICO credit score above 760 means you can get the best and lowest interest rates.

Tips to Improve Your FICO Credit Score

Get a free copy of your credit score from the three major credit bureaus. Read the reports thoroughly and find if they have outdated information. If there is incorrect information, file a dispute with the credit bureaus.

Start paying your debts on time. Credit bureaus report late payments every month. Every time they report your late payment the lower your FICO credit score gets. Start paying your debt on time and you will see gradual rise in your FICO credit score.

Focus on paying off the credit card debt. Call your creditors and try to renegotiate the debt. If you call them and tell them your problems and offer a realistic repayment plan they will be glad to listen to you and make accommodations.

written by Constantine Njeru \\ tags: Credit Bureaus Report, Credit Card Debt, Credit Cards, Credit Debt, Credit Report, Creditors, Debts, Fico Credit Score, Fico Credit Scores, Focus, Good Fico Score, Interest Rates, Late Payments, Lenders, Loans, Mainstream, Major Credit Bureaus, Repayment Plan, Three Major Credit Bureaus, Time Credit

Back in 1992 George Soros’ bet against the British pound.

George Soros bet (correctly) that the Bank of England would not support the pound participation in the European Exchange Rate Mechanism (ERM) indefinitely by jacking up interest rates in an economy already in recession. Soros made $1 billion overnight when the Bank of England let the British currency devalue.

For indepth research on the events that led to pound devaluation and how Soros’ and other investor took advantage, read the following article, George Soros’the man who broke the bank of england

written by Constantine Njeru \\ tags: 1 Billion, Bank Of England, Bet, British Currency, British Pound, Devaluation, Economy, European Exchange, Exchange Rate Mechanism, George Soros, Interest Rates, Investor, Participation, Recession

For hungry investors looking at the rising price of Gold, It feels like the good times will never end.In this frenzy it is easy to forget that whatever goes up will one day come down.

Three Signs Gold is in Bubble State

According to the classic book “Manias, Panics, and Crashes: A History of Financial Crises” by Kindelberger and Aliber, past bubbles have occurred during good economic times when interest rates are low, credit is plentiful and easy to obtain, and national optimism is running high.

One major event that has fueled the Gold frenzy is the massive stimulus programs by governments around the world. As governments try to reduce spending that could be the strike that will burst the Gold bubble. The recent Republican take over of the house could just be the beginning of the end.

written by Constantine Njeru \\ tags: Beginning Of The End, Bubbles, Crashes, Economic Times, Financial Crises, Frenzy, Good Times, Governments, Interest Rates, Investors, Kindelberger, Optimism, Panics, Price Of Gold, Running, Stimulus, Three Signs

Bill Gross, director of Pimco, best known as the most successful bond investor of his generation, has given his thoughts on how Federal Reserve plan to pump money into the US Economy will affect the bond market in the future.

He has termed the move by Federal Reserve bank a giant ponzi scheme. Yes, the entire federal money system is a Ponzi scheme, but this isn’t news. This system has been in place for about 100 years.

The Future of Bond Market Prices and Interest Rates

The actions of the Fed, led by Chairman Ben Bernanke, will “likely signify the end of a great 30-year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment,” he wrote in a commentary posted on Pimco’s website Wednesday. See Gross’s full commentary.

Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme,” he said.

The End Game

Such a plan “raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead-end where those prices can no longer go up,” Gross wrote. “Having arrived at its destination, the market then offers near 0% returns and a picking of the creditor’s pocket via inflation and negative real interest rates.”

written by Constantine Njeru \\ tags: 100 Years, Ben Bernanke, Bill Gross, Bond Market, Bond Prices, Bondholder, Bonds, Creditor, End Game, Equity Managers, Federal Money, Federal Reserve, Federal Reserve Bank, Illusion, Inflation, Interest Rates, Money System, Ponzi scheme, T News, Trillions

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.

written by Constantine Njeru \\ tags: Amp, Bet, Currency Prediction, Google, Hedge Funds, Interest Rates, Investment Newsletter, Investments, Investors, Jack Crooks, Japanese Recession, Japanese Yen, Japenese, Martin D Weiss, New Money, Research Analysts, Stock Exchanges, Weiss Research, Yen Currency, Yens, Zero Interest

If you’re ready to purchase a new home or refinance your existing mortgage you can get online mortgage quotes for the lowest interest rates and lowest total cost mortgages.

The best way to find the lowest mortgage rate is to compare lenders loan terms with those of others online. The following websites provide services for online mortgage quotes.

American Lender Resource

“one-stop shopping” for consumers seeking lenders with the knowledge and information they need to make the best home financing decisions for themselves and their families. Visit Website American Lender Resource

Mortgage Quotes

A detailed website providing a section for advice and articles. Visit website Mortgage quotes

Shoprates

Another well designed website packed with ton of information to help you naviagate around the mortgage market. Visit their website shoprates

Zillow Mortgage Marketplace

The best place to shop mortgage quotes anonymously. Visit website Zillows

Loan Network

It is not just about mortgage loan, they also provide quotes on student loans and auto loans. Visit site Loan Network

UK Online Mortgage loan quotes

Mortgage Quotes UK Visit site Mortgage quotes

Go Direct UK. Visit site GO Direct

written by Constantine Njeru \\ tags: American Mortgage, Auto Loans, Best Websites, Existing Mortgage, Home Financing, Interest Rates, Loan Terms, Lowest Mortgage Rate, Mortgage Lender, Mortgage Lenders, Mortgage Loan, Mortgage Market, Mortgage Marketplace, Mortgage Quotes Uk, Mortgage Uk, Online Mortgage, Refinance Mortgage, Resource Mortgage, Student Loans, Uk Mortgage

Advertisement for debt consolidation services are everywhere. Like this one I got in my Inbox.Making the following claims :-

* “DEBT RELIEF IS JUST A CLICK AWAY!”

* “CUT YOUR MINIMUM MONTHLY PAYMENTS BY 50% OR MORE!”

* “SLASH YOUR INTEREST RATES DOWN TO ZERO!”

When this message is bombarded to a desperate borrower it is hard to say NO! But taking a debt consolidation loan can do more harm than.

Two disadvantages or Negatives of using debt consolidation loan company.

1. Service Fee -

This debt consolidation company charge you fees to consolidate the debt.In the end you end up paying more.

2. Higher Interest rates.

In the end the debt consolidation company end up charging you higher interest rates than you’re paying now — as high as 21% or 22%.

Hiring a debt consolidation company is a waste of time and money. What they do is something you can do for yourself. To consolidate you debt you just need to visit your credit union, credit unions charge lower interest. The credit Union will be more than willing to negotiate a debt consolidation plan.

written by Constantine Njeru \\ tags: Advertisement, Consolidate Debt, Consolidation Debt, Consolidation Service, Credit Unions, Debt Consolidation Company, Debt Consolidation Loan, Debt Consolidation Plan, Debt Consolidation Services, Debt Loan, Debt Relief, Debt Services, Inbox, Interest Rates, Loan Companies, Loan Company, Time And Money, Waste Of Time

The consensus in wallstreet is that mortgage rates in US will continue to rise in 2010, 2011 and beyond.

According to this New York times article, this is what the analyst had to say:-

Bill Gross (he has made millions, NO! billions, investing in bonds) – It’s been a great thrill as rates descended, but now we face an extended climb.

The Mortgage Bankers Association expects the rise to continue, with the 30-year mortgage rate going to 5.5 percent by late summer and as high as 6 percent by the end of the year.

Morgan Stanley, are predicting that rates could rise by a percentage point and a half by the end of the year.

JPMorgan Stanley are forecasting a more modest half-point jump.

They cant agree mortgage interest rates will go up by how much but the consensus is up.

written by Constantine Njeru \\ tags: Bill Gross, Billions, Consensus, Half Point, Interest Rate, Interest Rates, Investing In Bonds, Morgan Stanley, Mortgage Bankers Association, Mortgage Interest Rate, Mortgage Interest Rates, Mortgage Rate, Mortgage Rates, New York Times, Percentage Point, Wallstreet, Year Mortgage, York Times Article