Posted 1 year, 1 month ago at 4:30 pm. 0 comments
By definition, Bridging Finance or Bridging Loan is a short-term loan used to purchase commercial property. This is something that can come in very handy, depending on your particular situation. There are two main points that you need to consider before you opt for a Bridging Finance package, your needs and the state of the property market.
One of the major benefits of Bridging Finance is that it will allow you to close on a property and purchase a new property before you sell your existing one. You will need to evaluate your current situation to determine if your needs justify taking on this type of finance. Will you lose the new property if you can’t offer a deposit? Would you be eligible for a discount on the purchase price if you can come up with the cash fast?
What are the existing market conditions in regard to the sale of your existing property? Is it going to be possible to sell your existing property in the time frame set out in your finance package? Most Bridging Finance typically runs for one year and will need to be paid in full at the end of the term unless it is possible to convert it into a Commercial Loan. You will also need to be aware that the interest rates will be higher on a Bridging Finance package.
If the market is slow and you do not have an urgent need for the new property, it may not be in the best interest of your business to take on this type of loan. On the other hand if the property market conditions are good, you can be out from under a Bridging Loan fast. However, it is still something that will need to make sense for your business.
If you feel taking on this type of loan is the right thing to do, you will be far better off going through a specialist Commercial Lender.
They will shorten the entire process as a specialist will know the market and they can quickly make a judgment on the best loan for you, based on your particular circumstances. Be sure to check that the loan can be converted into a conventional Commercial Finance package. You will also want to check on the type of interest rate and the costs you will entail if you do have to convert.
Most Commercial Lenders will be willing to extend the terms of your Bridging Finance package. Let’s say, for example, you have a buyer and you are waiting for the sale to close. Bridging Finance in general is much more flexible and accommodating than you might expect in this respect.
Paying back your Bridging Loan at the end of the loan term more often than not depends on your ability to sell your existing property. If it does not sell in the required time, you will be paying the existing loan on your current property, your new property and the newly converted Bridge Finance as well. If you believe this may be a possibility be sure to take a package that can be converted to a Commercial Loan if the need arises. Otherwise you may have to come up with the full Loan sum at the end of the finance term.
Need Bridging Finance in the UK? Commercial Lifeline are Bridging Finance and Commercial Mortgage specialists.
This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the links above are intact.
Posted 1 year, 1 month ago at 8:46 am. 0 comments
I wanted to share with you some automated currency trading ideas. This is a great market to get into, with a lot of money to be made. There is over three trillion dollars a day moving around, making this the largest market in the world. A lot of people come to make a quick buck, but end up losing all their money. Knowing how to properly trade in this market is important. It is also important to know how to treat this like a business, that can be automated and that you can get away from.
Robert Kiyosaki really introduced me to the idea of “the exit”. We don’t start in this adventure into the forex market to add another 20hrs a week to our already busy schedule. The idea of making big money than cashing out is a fallacy. First, it might never come. The second reason, you’ll probably tell yourself that it isn’t enough and if you just stick around a little longer it will be the “perfect time”. This isn’t a solution because it’s just not practical. What you need is to develop an automated currency trading system that allows you earn “cash flow”. Think about it. You don’t need a million dollars. You can automate an income of $5000/mth, that means you can comfortably travel the world for the rest of your life. You can start retirement right away.
The perfect automation tool is software. In this market, we trade an detailed analysis, which is just a fancy word for math. Computers exist to do tedious math work, so obviously having software to look at currency data is in our best interest.
I use the 10 Minute Forex Wealth Builder. I like it because it is automated and only takes around 10 minutes to actually setup. This tool works for both beginners and experts.
Learn more at the 10 Minute Forex Wealth Builder Review.
Posted 1 year, 2 months ago at 3:09 pm. 0 comments
By definition, Bridging Finance or Bridging Loan is a short-term loan used to purchase commercial property. This is something that can come in very handy, depending on your particular situation. There are two main points that you need to consider before you opt for a Bridging Finance package, your needs and the state of the property market.
One of the major benefits of Bridging Finance is that it will allow you to close on a property and purchase a new property before you sell your existing one. You will need to evaluate your current situation to determine if your needs justify taking on this type of finance. Will you lose the new property if you can’t offer a deposit? Would you be eligible for a discount on the purchase price if you can come up with the cash fast?
What are the existing market conditions in regard to the sale of your existing property? Is it going to be possible to sell your existing property in the time frame set out in your finance package? Most Bridging Finance typically runs for one year and will need to be paid in full at the end of the term unless it is possible to convert it into a Commercial Loan. You will also need to be aware that the interest rates will be higher on a Bridging Finance package.
If the market is slow and you do not have an urgent need for the new property, it may not be in the best interest of your business to take on this type of loan. On the other hand if the property market conditions are good, you can be out from under a Bridging Loan fast. However, it is still something that will need to make sense for your business.
If you feel taking on this type of loan is the right thing to do, you will be far better off going through a specialist Commercial Lender.
They will shorten the entire process as a specialist will know the market and they can quickly make a judgment on the best loan for you, based on your particular circumstances. Be sure to check that the loan can be converted into a conventional Commercial Finance package. You will also want to check on the type of interest rate and the costs you will entail if you do have to convert.
Most Commercial Lenders will be willing to extend the terms of your Bridging Finance package. Let’s say, for example, you have a buyer and you are waiting for the sale to close. Bridging Finance in general is much more flexible and accommodating than you might expect in this respect.
Paying back your Bridging Loan at the end of the loan term more often than not depends on your ability to sell your existing property. If it does not sell in the required time, you will be paying the existing loan on your current property, your new property and the newly converted Bridge Finance as well. If you believe this may be a possibility be sure to take a package that can be converted to a Commercial Loan if the need arises. Otherwise you may have to come up with the full Loan sum at the end of the finance term.
Need Bridging Finance in the UK? Commercial Lifeline are Bridging Finance and Commercial Mortgage specialists.
This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the links above are intact.
Posted 1 year, 3 months ago at 11:55 am. 0 comments
Property finance can be rather complicated, especially if you don’t understand the basics of home loans. Before signing that contract, you should do adequate research in order to find the best possible mortgage finance available in South Africa.
Buy versus Rent
Although renting a property often seems simpler than buying, the fact remains that at the end of the day you don’t own the property. Renting has the benefit of mobility should your career or lifestyle demand it, but as a lessee, you have minimal rights and most of the time you are at the mercy of an unscrupulous landlord.
In South Africa the property market has seen a lot of changes over the past few years, and indeed the property finance market has undergone many ups and downs in this time too, but there has been consistent growth overall in property values.
Therefore investing in a property rather than just renting it will, in the long-run, make more financial sense.
How a home loan works
A very basic definition of a home loan is that it is a financial loan from an established institution in order for you to purchase a house.
When your home loan or bond has been approved, the balance owed for the purchased house is paid by the lending institution directly to the seller. This holds you liable to pay the home loan provider according to the contract’s installment agreement. The installments may fluctuate according to variable interest rates. What you need to acquire is a loan package that has the best interest plan for you.
The bank will hold onto the deed to your property until the bond has been paid in full. During this period you cannot alienate the house, which means that you cannot change any of the conditions stipulated in your contract including renting out the property or undertaking major alterations without consulting the bank first.
Equity affects your alienable rights over the property. In other words, until the whole the mortgage is paid in full, you cannot be granted full equity, but can only alienate a portion of the property estimated to the value of the equity you have accumulated.
In South Africa, the major banks offer a variety of home loan options. You need to ascertain which one of these will best suit your financial needs by educating yourself about the pros and cons of each of the options available.
The four major types of home loans are:
- Variable interest rate home loans;
- Fixed interest rate home loans;
- Capped interest rate home loans; and
- Reducing interest rate home loans.
Mortgage Evolution
There are also different ways of going about applying for a bond. You can either decide to do all the work yourself, or you could use a mortgage broker or take advantage of the next step in mortgage evolution - an online mortgage originator.
If you decide to apply for your home loan independently, you’ll have to approach each loan institution to which you’d like to apply for different quotations and information. This process can be quite tedious and you’d have to approach several banks so that you can suss out the most suitable option for you.
Another option is to utilise the expertise of a mortgage broker. They’ll apply on your behalf to the banks, and will then be able to give you a list of options and offers. You can then choose the option you feel would be best suited to your needs.
The last option, and definitely the easiest way to apply for property finance is through an online mortgage originator. Mortgage originators are giving the power back to the average investor and it is definitely affecting the way home loans are processed in South Africa.
An online mortgage originator allows you to sit in the comfort of your own home while getting the mortgage process started. The mortgage originator will submit your application to all the home loan institutions in South Africa on your behalf. Apart from applying for home loans on your behalf, a mortgage originator would also be doing the negotiations with the different loan institutions on your behalf, securing you a better interest rate.
All you have to do is fill in application form after which the mortgage originator will start the process and negotiate the best available rates, leaving you to select the most suitable home loan option for you.
Author Bio
PropertyGenie is affiliated with ooba, a provider of home loans and mortgage finance in South Africa, offering you property finance without any complications.
Posted 1 year, 4 months ago at 12:56 pm. 0 comments
Don’t Panic: So you know you owe taxes. You didn’t file, thinking the IRS couldn’t catch up. If you owe the IRS money, they already know. And it won’t be long before they find you! When you don’t file a tax return, the IRS will go ahead and file it for you. That’s right!
Money Out of Your Pocket: You’re entitled to your money. So you don’t want the IRS to file your tax return for you. When the IRS files your taxes it’s called “Substitution For Return” (SFR). When they do this, they give you the bare minimum amount of deductions. For instance, If you’ve never filed jointly, they’ll consider you “single.” If you’ve filed as married-jointly, they’ll consider you “married filing separate.” That’s less money in your pocket.
…And MORE Money Out Of Your Pocket: It doesn’t end there. If you have any stock or real estate sales, they’ll be added to your income at gross sales. But they won’t consider how much you originally paid. Let’s say you sell some stock for $10,000. They’ll add that to your amount of gross income, even though you actually paid $100,000 for that stock five years ago. The difference is not their problem. It’s up to you to report that kind of information. And you can’t if the IRS does a “Substitution For Return.”
Penalties and Fines: You thought it was over. No such luck. After the IRS files the “Substitution For Return” they’re still going to add Penalties for not filing. They also add Penalties for not paying, and Interest on both the Taxes and the Penalties. Failure to File penalties are applied each month. Your Tax Debt will skyrocket out of control.
Break the Habit: The lesson is simple. File your Tax Returns! A “Substitution For Return” will always be filed in a way that is in the best interest for the IRS; not you. And if you haven’t filed yet, seek to file now. It’s better late than never. It’s not easy to file late, but you can decrease or even eliminate your debt.
Now You Have the Smoking Gun…Use it!
Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he’s partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.
Posted 1 year, 4 months ago at 5:46 pm. 0 comments
As a full-time Forex trader for the last few years and throughout all the time I have spent learning and trading Forex, I have come across hundreds of novice Forex traders wanting to know: “How to Trade Forex”. If have been considering learning to trade Forex but don’t know where to start - this Beginner’s Guide to Forex should help.
1) Find a Forex Education Provider - A wise friend once taught me, the difference between gambling and investing is EDUCATION. Learn everything you can about Forex. Learn what makes the market move and how to anticipate those moves. Find a reliable Education source with your best interest in mind. Start learning, and never stop.
2) Find a Forex Broker - There are literally hundreds of Forex brokers and many are NOT worth your time. Forex brokers come in all shapes and sizes. The Forex broker you choose should depending on your Forex Trading Strategy, your place of legal residence, and your risk appetite. Research everything you can about Forex brokers. Find a source that will teach you the difference between the brokers and help you choose the RIGHT broker for you.
3) Find a Forex Trading System - This is actually easier than you may think. There are plenty of profitable systems available for free on line. Ask around and you will soon find one that fits your trading personality.
4) Practice - Open a demo account at the broker of your choice and practice your Forex Trading System. Use what you learned in your Forex classes to improve your system and make it your own. Do NOT trade live money until you have successfully traded your system on a demo account for a least a couple of months.
5) Continue Learning - Even when you are no longer a beginner, it is important to continually learn and improve. The day you stop learning and improving is the day you stop making money in Forex.
Echo FX prides itself on being an experienced, honest, disciplined, and emotion-free Forex Account Manager and quality Forex Trading Education provider. For more information about the company, their Managed Forex Account Programs, or Forex Trading preparation solutions - visit http://www.echocurrency.com (Forex Managed Account) and http://www.AcademyofForex.com (Forex Education)
Posted 1 year, 4 months ago at 3:07 pm. 0 comments
Having an offshore banking account, corporation or trust are common themes in legal thrillers, spy novels and eastern European politics. There is a reason to be concerned about the legality of such accounts, for although many people would like to include them in their estate planning, a legal misstep regarding the use of any of these asset management tools could result in thousands of dollars lost in back tax payments and legal problems tax none other than the IRS in addition to the possibility of spending time in prison. With that in mind, it is not surprising that many Americans shy away from offshore banking altogether.
As any good tax attorney will be able to explain to you there is a difference between tax avoidance and tax evasion. Tax avoidance is the use of legally employable strategies to reduce the amount of tax one has to pay. Tax evasion, on the other hand, is the use of illegal means to do the same thing. So the goal of any transaction that you would like to undertake offshore is to make certain that you are a tax avoider and not a tax evader. tax lawyer will never be a willing party to tax evasion, if that lawyer is behaving within the cannon of professional ethics as well as the accepted norms of safeguarding their client’s best interest.
To begin with it is illegal to have a secret bank account in another country that you don’t tell the IRS about. It is also illegal to move unreported cash even if it is your money. The penalty for either of these offenses makes bank robbery look like a more attractive option.
However, with our own country continuing to advance the goal of globalization, of course it is legal to invest in, and to interact with, foreign markets and there are some tremendous incentives to do so. The key to taking advantage of these opportunities is to start modestly and remember that if it sounds too good to be tax mistakes then it probably is too good to be true. Secondly, it is your duty as an American citizen to report your financial activities to the IRS. So divest yourself of notions of secrecy in the absolute and think in terms of tax savings rather than not paying taxes. If someone tells you that they can help you avoid paying any tax whatsoever, they are offering to help you engage in a criminal enterprise. And if you already are a criminal of some sort then perhaps you should look into the matter, but for the vast majority of those reading this article, don’t endanger a life spent being a law abiding citizen by buying into an outrageous scheme.
As I said before, U.S. citizens and permanent residents are required to disclose their banking accounts abroad, where they are located and what the account numbers are, on a form called a TDF 90-22.1. However, there are exceptions to having to file this report and taxpayers are confused about the definition of these exceptions as well as the meaning of key terms within the document. One excellent way to begin to understand what must be reported, and when, is to look to the Jacobs Report. The Jacobs report which can be found at http://finance.groups.yahoo.com/group/jacobsreport/ and it is an extensive document filled with the applicable law and IRS instructions as well as the accumulated wisdom of many web sites and foreign bank reports.
Remember, the cardinal rule when beginning your inquiry into offshore banking is to find out about these matters in detail. You need to check into things yourself and keep in mind that if a deal sounds too good to be true then it is. In addition, keep in mind the fact that you want to be a tax avoider not a tax evader. Consult your estate planner and a tax specialist because the laws in many of the nations that provide tax havens have changed somewhat since the beginning of the War with Afghanistan and Iraq, because the U.S. is looking for hidden terrorist cash reserves and that has changed the way discretion is handled in many tax haven nations that are friendly with our government.
Ronald Hudkins is a consumer advocate and champions awareness to issues needing personal attention. For free Ebook downloads he has written about important issues that save money, protected identities, help in estate planning, wish fulfillment foundations for adults and more visit http://stores.lulu.com/rhudkins
For computer optimization, security, registry repair and just about every other software need visit his site at http://www.registryfixing.com
Posted 1 year, 4 months ago at 11:21 am. 0 comments
Professional athletes are some of the highest earners in the world personal it is pertinent that they employee financial advice, help, and guidance from highly trained, trusted, and experienced financial professionals. The financial professionals that are able to take on the job of handling the unique needs of these athletic professionals are CPA firms that specialize in tax and financial planning needs of pro athletes specifically.
The pro athletes that these CPA firms work with can come from a variety of different professional sports leagues. Clients could be from the NBA, MLBA, NFL, PGA, NHL, and any other sort of league that has pro sports figures. The partners in the CPA firms will work with the client to generate customized financial plans that can help to provide for the future of the athlete and their family. They will also help the client complete monthly accounting compilations and form tax minimization approaches. Many athletes will also have to file numerous income returns for the many different states in which they play and compete. CPA’s who understand the specialized issues involved with this will be able to help the players correctly file all of these forms.
There are great deals of services that Certified Public Accountants can offer their specialized athlete clients. Some of the services that may be offered by a CPA firm handling pro athletes would be tax proficient investment plans, international tax minimization approaches, duty day strategies, bill pay services, charitable donation plans, state tax residency tactics, and compound state income tax minimization policies. They are also able to utilize services such as mortgage interest abstraction approaches, athlete exclusive payment plans, Internal Revenue Service problem resolution, and individual toll free phone numbers for direct sessions with a CPA, all-inclusive individual financial retirement planning, and registered player financial advisors with players associations from specific professional leagues, such as the NFL..
To be able to receive services, such as the ones mentioned previously, and to receive such individualized attention professional competitor have to make sure that they are using a trusted firm. A CPA firm that deals with professional sports figures should be versed in specialized tax issues, financial planning, international tax law, and business planning. Each advisor should always have the best interest of the player in mind, taking into consideration what the clients concerns and interests are all while doing what is best for that particular client and their situation. It may be necessary for the CPA to help the sports figure plan for a retirement so that they are still able to live the lifestyle that they have grown accustomed to once they are off of the field finance court or they could have to help the client recover thousands or millions of dollars in overpaid taxes, but whatever the financial situation may be the CPA will do what is best for their professional athlete client.
Kathleen Whitlow is a copywriter and marketing agent of Piascik. The international accounting firm provides professional accounting services throughout the world. For more information on their International and Pro Athlete Accounting Services please visit their website.
Posted 1 year, 4 months ago at 5:25 pm. 0 comments
In the current competitive banking market deciding to open a high interest rate savings account is the sign of you being a savvy investor. Whether you are saving money for a home, your family, an education, or for unexpected expenses, this type of savings account is a great way to grow your money over time, while earning high interest rates and keeping your money safe.
In contrast to standard big bank savings accounts that pay close to nothing, now you will find available an expanding category of saving accounts that offer high interest from on line banks, brick and mortar banks, credit unions and other institutions that are paying interest hovering around 5 percent and better, many fee-free. Essentially these accounts offer a higher annual yield than standard savings accounts. This translates into higher earnings for you.
So, how can banks offer these great rates? Well, many especially the online banks offer high interest rate savings accounts because they do not have the overhead that brick and mortar banks have. The savings is then passed along to you in the form of higher interest. In response to stiff competition for depositors some of the traditional banks have entered the fray by developing online savings products of their own, this allows them to offer high yield savings accounts.
This is good news for you, the competitive nature of the market makes it this an ideal time to consider shopping for a savings account with the best interest rate. You can compare high interest savings accounts fast and conveniently on line. You can find out the rates offered, limitations and terms of multiple financial intuitions accounts being offered with a click of the mouse.
In some cases you may also find that you have to have another account with the bank you are involved with, such as a checking account or even another savings account. So always
Because of stiff competition though high interest rate savings accounts now come in many more attractive forms. Some now offer no minimum balance fee, easy online access, direct deposit, free on line banking that allows you to view your balance, transfer funds,convenient fee free ATM transactions and checking account options. The ability to setup external banking that allows you to transfer to and from accounts that you have at different financial institutions is now becoming common practice or some banks.
It is very important that you understand the terms of any savings account that you are considering. Some may have limitations or restrictions that do not meet your needs. With the high interest savings arena now so competitive, there really is no longer any excuse for you to let your money gain low interest rates or give your business to just any bank. To protect and grow the deposits you invest quickly and conveniently do some research. You may find that it is prudent to move your money into a high interest rate savings account online or offline that yields better financial results.
Get More information on savings accounts click here Internet Savings Accounts. Also go to http://SavingsAccount.Totalinfoguide.com where you can get more info on your savings account options including high interest savings accounts. Internet savings accounts, child savings accounts, interest rates for savings accounts and more…
Posted 1 year, 4 months ago at 5:01 am. 0 comments
Sixteen years ago, I considered myself a rookie trader on the floor of the Chicago Mercantile Exchange. Bright eyed and eager to learn, I followed every market I could. I actively traded the S&P 500 but, I always went in early for the currency and interest rate openings, as well. I actively and, knowingly took advantage of any of the major market players willing to have a cup of coffee with me. The economic times were significantly different than those of today. Trading volume was ushering in a major stock market bull- run, even as memories of the ‘87 crash still lingered. The trading floors were flush with people who made more in one day than most make in a year or some, in a lifetime. The technology wave was just beginning to trickle in and financial modeling was at the forefront of quantitative investment strategies.
I still come in early and I still actively trade the stock indices. I still actively and knowingly pick the brains of the market players I am fortunate enough to gain an audience with. Sixteen years later, I find myself at the beginning of the cycle…..again.
I know many of you are thinking that I must be nuts. However, if you give me a chance to explain, I think I can tease this out in terms simple enough for myself to understand. I’ve read so much over the last month that I feel like I’ve learned an entirely new language. Separating the wheat from the chaff and allowing myself an opportunity to collect my thoughts, thank goodness for rainy weekends, I’ve come to the conclusion that we’re near equilibrium and will extend beyond the mean before finally reverting and building a base very similarly to the process of the early 1990’s.
Economically, the circumstances couldn’t be more different. In the 90’s, many of the excesses of the eighties had already been purged. The savings and loan crisis had been effectively dealt with (net cost- 85 billion) and the stock market crash provided everyone with a whole new perspective on what risk really was. Interest rates had been coming down for more than a year, falling from 7.25% to under 3% in less than a year. The U.S. Dollar was still king having been defended effectively from the Pound by George Soros. This helped check global inflation and kept commodity prices low while commodity demand remained, primarily, domestic. Finally, on a quantitative note, the S&P 500 was at 415 and had a price/earnings ratio of 19.6.
Trading volumes are soaring as technology has removed so many of the barriers between the pits, the customers and finally, the world. Money has never moved at a more rapid pace (good or bad). This same technology brought with it a generation of misguided applications. Historically, it will be my generation that brought computer modeling to the financial and commodity markets. We are the poster generation for “GIGO” garbage in - garbage out. Computer modeling and optimization provided us with “statistically valid” risk models that would allow us to take on more leverage and increase the bottom line. Apparently, the one market excess able to survive the savings and loan crisis as well as the ‘87 crash was greed.
History has proven time and time again that there is no economic free lunch. The tech boom of the ’90’s made millionaires out of John Doe’s the same way that the crash made overnight millionaires out of pit traders. Intelligence and ability should never be confused with being in the right place at the right time. The separation of those with ability from those with geographical good fortune can only be told over the course of time. The trading pits took away the free lunch of pit traders (The Epitome of Free Trade) just as the dot com bust erased other, unearned fortunes. Currently, it is the financial industry being forced to endure their comeuppance. Their computer modeled diversification of bundled risk and carefully designed tranches sold to global institutions allowed them to over leverage low interest rates and put people into homes and businesses that should never have been put into existence. The models that were designed were put into action based on their ability to compress risk while adding to the bottom line. Does anyone remember Long Term Capital Management or Enron?
Finally, it is the long term global nature of hubris and contrition that drives the long term cycles of the stock market. Contrition is clearly the leading factor since October. Fortunately, just like the oil market, we have tools to tell us when the fat part of the move may be over. Fundamental analysis has allowed us to determine under and overvalued markets fairly successfully while our humility has allowed us let the markets tell us just what over and undervalued means in real terms. I’ve been writing for more than six months that the stock market will revert to its mean… and then some. Markets always overshoot. If this is a normal bear market, we can assume the following set of parameters.
1) P/E ratios decline by approximately 60%. The peak for this run was around 43.
2) Average decline is approximately 30% form peak.
3) Average length is around 14 months.
If we look at these figures, it appears as though it’s going to be a gloomy holiday season. I believe we entered an, “official” bear market at a 20% decline from market peaks. Depending on the index, this started in July. The P/E ratio, even with today’s declines, remains near fair value, at 17 and change. Just as markets tend to overshoot on the upside, so too do they overshoot on the downside. We will grind our way through and there will be rallies and failures, just as there always are. The question investors should be asking themselves is, “How do I best manage my way through this period without affecting my long term goals or, giving into short term emotions?”
I believe that this is where the futures industry, through stock index futures like the S&P 500, Dow, Nasdaq 100 and Russell 2000 should be employed. They are offered in a wide range of sizes and can be tailored to cover most any equity portfolio. The margins and account sizes are exceptionally favorable, as well. Currently, an individual can still protect $30,000 worth of tech holdings with a $5,000 account.
Individuals who don’t utilize the futures markets to limit their losses on the way down or, to maximize their return on the way up are simply hiding their heads in the sand and pretending that they don’t know better. Any investor who feels they are responsible for the lifestyle of their retirement should act in their own best interest and take advantage of these opportunities. I thank goodness that I can see the beginning of the next sixteen years far more clearly than I was able to see the beginning of the first sixteen.
Andy Waldock
http://www.commodityandderivativeadv.com
866-990-0777