Investment tips from later 1950

It is often said that investors these days are navigation uncharted territory. The world’s largest economies are inundated with massive amounts of debt, the Fed essentially locked in a zero interest rates and a weak outlook for corporate profits to grow.

Many investors are paralyzed in this environment is unlike anything I have not seen them in their adult life. As a result, they are hunkering in cash and a super-safe government bonds. But, as often happens, investors can look back and find potential guide for building a portfolio for today’s markets.

In this case, history suggests that stocks with higher dividend may for a long period of healthy returns. In view of the broad stock market, history also suggests that stocks in general, relative to government bonds, long rates by the Fed, which is contrary to conventional wisdom in the fight against today reduced. But in the longer stocks are a better choice than bonds.

Where can I get the best returns

Where can I get the best returns

For its lessons of history, investors should set your Wayback Machine for the period from the end of 1940. There was a time, do not float in the bond market, interest-free, as is usually done, but the government has closed at a low level, to manage the country, the enormous debt accumulated during World War II.

Economists have a dismal-sounding term for the bond market, where prices are directly or indirectly, is limited to below the inflation rate. This is called “financial repression”.

Today the Fed is engaged in a similar push. This means the purchase of billions of dollars of bonds, an attempt to lower market interest rates to help repair, maintenance of the economy. The Fed said it expected to keep interest rates near zero by 2014.

/>Barry Knapp, head of U.S. portfolio equity strategy at Barclays Capital, studied this period and the period after the Fed’s loose reins in prices in 1951.
Low interest rates

For the postwar period, in which the Fed reduced rates, as is the case today, investors earned a modest harvest. During this time, the Fed keeps rates were north of the 1% level, which was lower than inflation.

It is worth noting, however, that by raising prices, the Fed bond prices also fell. “The performance was about to go under the CAP price anywhere,” says Knapp.

Meanwhile, the share price struggled during this period. Conventional wisdom in the markets these days is to make this move a very low government bond investors from their money into riskier assets like equities. But, says Knapp, “that this is not what happens, go back to the (bond) prices to normal.”

As was the case in 2011, at the end of 1940, stocks usually suffer from lower prices and wage rates, fewer investors willing to pay for future growth in corporate profits rebound. In 1948, government bonds posted returns 1.1 percentage points higher than the twists and turns, when dividends are included, according to Barclays.

The bonds were in most cases better investment than stocks, as long as the U.S. Federal Reserve raised the cap on rates in 1951. Years of flooding reversed bonds and stocks are greater than 25 percentage points, according to Barclays. In addition to the years of recession, this trend out performance in equities in a decade. (It was in 1954, by the way, when the Dow Jones Industrial Average ($ INDU gained 0.15%), including its pre-1929 level.)

The downside of investing in bonds coming back are covered, it was clear when the caps were removed: Growing crops pushed prices of existing bonds.

“Investors can not invest only in bonds and expect a refund in excess of inflation,” says Jason Trennert, chief investment strategist at Strategic research partners of gas.

In early 1951, the real yield of long-term U.S. Treasury bonds – was negative and amounted to 6.5%, depending on the strategy of the gas – which measures the rate of return net of inflation.


Gold attract to younger investors

Gold’s spectacular decade-long run — abetted recently by Europe’s sovereign-debt crisis, the U.S. budget deficit and fears of a double-dip recession — has tapped a new vein of investors in their 20s and 30s.

Gold’s popularity among young investors speaks to the metal’s role as a store of wealth, and it says a great deal about a generation that has seen asset bubbles burst and governments fail to clear a path to prosperity.

Many young gold buyers have little faith in equities, and, unlike older investors, they are more inclined to consider alternative investments. Some seek tangible assets as a counterweight to stocks, bonds and cash in the aftermath of the 2008 U.S. financial crisis.

Divnain Malik, the head of retail sales at Gold Bullion International in New York, a seller of physical gold, said that while half of his clients are baby boomers, the “younger demographic seems to be catching on” to gold.

Indeed, the 25- to 35-year-old cohort is the company’s fastest-growing segment, Malik said. About half of the new accounts at his company were opened by people in their 20s and 30s. Younger clients are increasingly sophisticated, Malik said, do not want to repeat others’ mistakes and are protective of their investments.

Don’t lose faith in gold

Said Malik: For them, “it’s not about the risk in gold, it’s the risk anywhere else.”

Gold’s track record is clearly a big draw. Gold has enjoyed a string of nominal record highs for the better part of two years. Recently, though, the deepening of the eurozone crisis has skewed gold’s generally inverse relationship with stocks, with gold losing some of its allure as a safe haven even as Europe’s situation worsened. Some large investors, pressured by steep tumbles in global equity markets, have sought refuge in cash.

But gold is still comfortably ahead this year. SPDR Gold Shares (GLD +0.88%, news), an exchange-traded fund that is a proxy for the metal, was up 23.6% for the year through Nov. 16, according to investment researcher Morningstar.

Unlike Europeans and Asians, Americans don’t have a long tradition of owning gold. Yet contrary to stereotype, most U.S. gold investors are not guns-and-bunker renegades hoarding physical gold to fend off the collapse of civilization. Demographic studies on precious-metals investing done in the 1970s and 1980s actually showed a large percentage of college-educated buyers, with only a small portion owning gold for “doomsday scenarios,” said Jeffrey Christian, the managing director and founder of CPM Group in New York.

Studies in the 1990s offered similar findings and detected rising participation of women investors, Christian added. This finding is consistent with broader trends of women taking the lead in family investing decisions.

These days, young buyers’ interest in gold is hampered by the metal’s high price, Christian said. Student loans, the financial pressures on young families and other obligations leave little money for investing or speculation, Christian noted.

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What John Paulson’s exit means for gold

Despite such obstacles, the recent financial crisis was severe enough to make younger investors re-evaluate their investing strategies, he said.

Kurt Brouwer, the chairman of Brouwer & Janachowski in Tiburon, Calif., has noticed greater interest in gold across all age brackets. “Any time you have something doing well, people get interested in it,” he said.

Brouwer walks new clients through the three main avenues of precious-metals investing. For speculators, a good alternative is to buy one of the several exchange-traded funds backed by gold. Funds are more liquid than bullion, Brouwer said.

Shares of gold-mining companies are another alternative, Brouwer said, since stocks “have not soared nearly so much as gold” futures.

Become a successful day trader : Tips & Strategies


Day Trading Strategy

Day traders Day Trading strategies and stock options and futures online businesses are bombarded with all kinds of advice. It’s hard to explain, the following should be discarded. Day trading online has been difficult for novice traders each day there are hundreds of people who die due to market pressure. They lose money and never returned. Some of the key strategies for day trading, you are going to see that the survivors can take.

Day Trading Scheme # 1:
Therefore, a detailed plan developed to ensure business days. This leads to benefits in the long run and help keep the game business. Write a business plan with specific rules on how the business plan. We also offer business day mentor program to help develop and business practices.

To reduce the risk # 2:
Indiana Jones and the dealers you are not at risk is not gold. If you are a novice trader, the business problems of a size that you do not. Happy with the size of your building and start from there.

day traders lose from time to time # 3:
Markets go up, they are down. Finance day traders, day traders lose money. Let your ego trick you can not beat. I cling, business just because your ego does not get lost. Day use and market analysis based on business decisions for the indicator.

time, time of day traders win # 4:
It is funny that the day traders are the least threat to win, because they lose. If the deal goes through, and jump on the fear that others will be closed on the day the Stock Exchange. Instead of monitoring indicators and their business plan. Make sure you and your reading goal, set your fears and feelings to make decisions based on the Markt.

Day Trading Course # 5:
Streategy a very important day for business, all you have to do your homework and you can learn about how markets work. Business day is a new concept at least, try to learn every day online. Present a seminar on business every few months. The more you expand your boundaries, learn from others, and what, you better understand your business and are able to identify their trading in their own style. Outside of their profession, and you have a good shop.

Be prepared to share the day # 6:
This day trading strategy, day trading online do not really need. It is not with your mind. Make sure you make the business day on-line focus. It may well be a good Mother’s night sleep, and it represents a concern. Empty your mind, try a couple of weeks away, and enjoy physical activity. If you are mentally prepared to dominate the market if you make your decision a lot of wind, tiredness, and will be better than a bad mental state.

Do not try to not be a millionaire # 7:
So severe that day trading is a very good day winning the lottery online. Day trading strategies do not hit the pot of gold and be an instant winner. Instead, a day trader, who is a professional online trading day of the tax should be made gradually. Online trading is a business day, business as well, but this time, effort and patience it takes.

Multi-Commodity Exchange and types of commodities

Commodity market is where raw and primary products are sold and bought. These commodities product are regularly traded where they are sold and bought within a contract. Trading in commodities began in Japan in the 18th century with the trading of rice and silk. Organized commodity derivatives started in India early as 1875. Trading in the US began in the 1957 century.

There are two types of exchanges in commodity market-

1. MCX (Multi Commodity Exchange)

2. NCDEX (National Commodity and Derivatives Exchange)

MCX stands for multi commodity exchange. This is India based commodity exchange market. MCX headquarter establishes in 2003 in Mumbai. Multi commodity Exchange is India’s number one commodity exchange and its offers more than 40 commodities for trading. MCX covers the three types of assets-

1. Energy:- WTI crude oil, Brent Crude, Ethanol, Natural Gas, Heating Oil, Gulf Coast Gasoline, Uranium etc.

2. Base metal:- Copper, Lead, Zinc, Tin, Aluminum, Nickel, Aluminum alloy, Steel etc.

3. Precious metal:- Gold , Platinum, Palladium, Silver etc.

The MCX achieved first rank in Silver, the second rank in Gold, Natural Gas and Copper and achieved third rank in crude oil futures in all over the world. Commodity exchange decides the lots size and base value of different commodities. The MCX trading timing in a week Monday to Friday is 10:00 AM to 11:30 PM and on Saturday its timing is 10:00 AM to 02:00 PM.

Commodity trading is totally future contract based trading and the future market prices are affected by many factors. There are many economic and political factors that are affecting to mcx commodities price. Political factors as like restriction on new businesses, lack of well developed legal system, corruptions affects to market price. During the gulf war in Iraq the oil price changed. Agricultural assets are affected by weather and crops. The demand and supply is directly affected to commodity market price.