Daily Investment Tips

Forecaster Harry Dent has made a big splash after he came out with a bold prediction that a Major Crash is around the corner.

Harry Dent Dow Forecast : Harry Dent Stock Market Forecast

Harry Dent has looked at his charts and predicts the Dow will trade as high as 13,200 by mid-summer 2011 and the S&P 500 as high as 1430, or more-than 7% above current levels.

“Then we could see another major crash,” Dent says, forecasting the Dow could trade as low as 3300 in a worst-case scenario. “Bubbles go back to where they started or a little lower,” he says. “The stock market bubble started at (Dow) 3800 in late 1994.”

Harry Dent Gold Forecast : Commodities Forecast : Oil Forecast

Dent predicts the Dow’s crash will play out over several years, he foresees present danger in gold, silver, oil and other commodities. “All investors should lighten up on or sell oil, silver, and gold as the U.S. dollar looks like it has bottomed and should rise ahead,” he writes in the March issue of HS Dent Forecast.

written by Constantine Njeru \\ tags: Amp, Bold Prediction, Bubbles, Crash, Dow, Forecast Forecaster, Gold Commodities, Harry Dent, Investment, Investors, Present Danger, Silver And Gold, Stock Forecast, Stock Market Bubble, Worst Case Scenario

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

An interesting list for 2011 is the ranking of top ten hedge funds manager. It is a list of largest generator of profits for investors among hedge funds. The ranking calculates how much profits a hedge fund manager has generated since he opened for business.

This is the list of top ten hedge fund managers as December 2010.

1. George Soros – $35.2 billion

2. John Paulson – $32.2 billion

3. Ray Dalio’s of Bridgewater Pure Alpha -$22 billion

4. Seth Klarman of Baupost Group’s – $15.6 billion

5. David Tepper of Appaloosa – $14.5 billion

6. Bruce Kovner’s of Caxton – $13.1 billion.

7. Moore Capital Management Partners – $13 billion

8. Brevan Howard Fund – $12.5 billion

9. Farallon Capital – $12.2 billion.

10. Ed Lampert’s ESL Partners – $12 billion

written by Constantine Njeru \\ tags: 1 Billion, Appaloosa, Baupost Group, Bridgewater, Bruce Kovner, Capital Management Partners, Caxton, David Tepper, Ed Lampert, Esl, George Soros, Hedge Fund Manager, Hedge Fund Managers, Hedge Funds, Investors, John Paulson, Moore Capital Management, Profits, Ray Dalio, Seth Klarman

Athens,Georgia is a university town in the hills of northeastern Georgia.Athens is located in Athens-Clarke County. The town economy depends on the University of Georgia with its 26,000 students.

Locations for Property Investment Athens, Georgia

For investors interested in property investment in Athens, Georgia can choose locations such as west of Pulaski Street, where there are a number of historic homes. Five Points is another neighborhood near the downtown and the university.

House Prices Athens, Georgia

According to National Association of Realtors, the median price of homes in Athens was $130,000 in 2010. Because of high demand it can be hard to find an affordable apartment.

written by Constantine Njeru \\ tags: Apartment, Association Of Realtors, Athens Clarke County, Athens Georgia, Athens University, Five Points, Georgia Athens, Georgia University, House Prices, Investors, Median Price, National Association Of Realtors, Neighborhood, Northeastern Georgia, Property Investment, Pulaski Street, Town Economy, University Of Georgia

Even after being sent to Jail, it seems Bernie Madoff will not go away easily. The man has given an interview to New York Magazine. In the telephone interview Bernie Madoff warned that the federal government is a Ponzi scheme.

Bernie is right, Governments are large Ponzi schemes. This is how the government works : Governments borrows new money to retire old debts.So long as there will be people willing enough to lend the government money this scheme will continue rolling. But if creditors pull the plug, governments go bankrupt. It has happened before in Argentina and other South American countries.

In a Ponzi scheme Early investors are paid out of money put in by later investors and when there are no new investors, the Ponzi scheme collapses.

A detailed explanation as to how US Government is a large Ponzi Scheme is at Seeking Alpha website.

I think during his case with the government Bernie Madoff should have declared to the court that his “investment” scheme was modeled directly after Social Security.

Read the whole interview at NY Magazine

written by Constantine Njeru \\ tags: Argentina, Bernie madoff, Creditors, Debts, Detailed Explanation, Federal Government, Government Money, Governments, Interview Magazine, Investment Scheme, Investors, Magazine Interview, New Money, Ponzi scheme, Ponzi Schemes, Seeking Alpha, Social Security, South American Countries, Telephone Interview

Bloomberg news is reporting Zynga is in talks to raise funding from T. Rowe Price Group Inc. and Fidelity Investments at a valuation of close to $10 billion.

Valuation of these new generation tech companies seems to be rising every passing month. Facebook has hit $50 billion, little Twitter has just hit $6 billion and now Zynga valuation is estimated now at $10 billion.

Zynga Secondary Market Valuation

As off  February 2011, Zynga was valued at $6.2 billion on secondary exchange SharesPost Inc.

The stunning thing about this rush to buy shares in private market is, investoras are punting their money without having a look at the tech companies financial statements.

Investors are betting on making a killing in the IPO market. They were right when they said, IPOs are for gamblers!

Zynga 2011 revenues

Zynga is a private company and the only revenue numbers out are rumours  from people close to the company. The latest estimate is Zynga revenue topped $600 million in 2010. With the successful launch of latest game, cityville in 2010, these revenue can only rise in 2011.  Zynga is thought to be profitable.

written by Constantine Njeru \\ tags: Bloomberg News, Cityville, Facebook, Fidelity Investments, Financial Statements, Gamblers, Investors, Ipo Market, Ipos, Launch, Market Valuation, New Generation, Private Company, Private Market, Revenue Numbers, Rush, T Rowe Price, T Rowe Price Group, T Rowe Price Group Inc, Twitter

In January 2011 Groupon raised near $1 Billion from investors. In the same month dealbooks NYtimes reported Groupon was discussing with bankers about a possible IPO.

Groupon IPO Date.

The New York times reported Groupon may go public as early as this spring. (end of 2011). Making the young internet company one of the Tech IPOs of 2011.

Groupon IPO Price

The article further claim, bankers value the three-year-old online coupon distribution site at  $15 billion. This figure is no too ambitious if you keep in mind Groupon, was profitable after just eight months of operations.

The major risk about Groupon is that many people believe their business model of making money can easily be copied. Group is minimising this by going for scale, it has bought copy cats all around the world.

written by Constantine Njeru \\ tags: 1 Billion, Business Model, Copy Cats, Coupon Distribution, Eight Months, Internet Company, Investor, Investors, Ipo Price, Ipos, Making Money, New York Times, Nytimes, Risk

Investing in Emerging Markets is easier today than at any other time. In the last few years Global Emerging funds have produced stellar returns for investor. The performance has been good because the Emerging markets have enjoyed robust economic growth. Countries such as China, Brazil, India, Russia & even the forgotten African countries have been on growth mode for the last decade.

Investing in Emerging Market Funds in 2011

Am I late by investing in Emerging Market fund in 2011? The answer is NO. China just reported that their 2010 GDP Growth was 10%. It is also estimated that by 2050 the BRIC economies of Brazil, Russia, India and China will all be among the world’s half-dozen biggest, along with the US and Japan. China is expected to have overtaken the US to become the most powerful economy on earth.

What this means is, investors risking money in Emerging Market funds may continue to enjoy massive profits.

written by Constantine Njeru \\ tags: African Countries, Amp, Brazil, Earth, Economy, Emerging Market Funds, Gdp, Gdp Growth, Growth Mode, India, Investing In Emerging Markets, Investor, Investors, Japan China, Last Decade, Massive Profits, Money Market, Robust Economic Growth, Russia, What This Means

Goldman Sachs is reportedly raising $1.5 billion for Facebook. Goldman Sachs has sent out a Facebook offer document to it’s list of wealthy clients.

Other investors targeted are hedge funds and private equity funds. Goldman Sachs partners have also been given the opportunity to buy Facebook stock.

According to Goldman Sachs Facebook offer, investors must promise to invest at least $2 million and not sell shares until 2013.

written by Constantine Njeru \\ tags: Buy Stock, Facebook, Goldman Sachs, Hedge Funds, Investors, Opportunity, Private Equity Funds, Promise, Wealthy Clients

Goldman Sachs has been busy receiving orders from hungry investors wanting to buy  a piece of Facebook. According to Wallstreet Journal article, the demand for Facebook stock is so high and now Goldman Sachs plans to stop taking orders for shares of Faceboook inc.

Scanty Facebook Financial Report & Statement

This high demand is despite the scanty financial disclosure from Facebook inc. The journal reports, Goldman has provided some potential investors with little more than a snapshot of Facebook’s online traffic, advertisements and other basic measurements, with no disclosure of the Palo Alto, Calif., company’s bottom line.

Facebook Financial Report & Statement 2009

The journal reports, in the offering document, Facebook had net income of $200 million in 2009 on revenue of $777 million. Financial report & statement for 2010 weren’t disclosed.

written by Constantine Njeru \\ tags: Advertisements, Amp, Bottom Line, Facebook, Faceboook, Financial Disclosure, Financial Statement, Goldman Sachs, Investors, Journal Article, Measurements, Net Income, Online Traffic, Palo Alto, Snapshot, Stock, Wallstreet Journal, Weren