High street lenders can afford to be choosy in the current lending climate and if you have had a bad credit history during the last 5 years then watch for the computer to say no and your application being declined- Particularly if you are a first time buyer with a minimal deposit.
It's not totally the mortgage providers fault for this harsh criteria as it's more the case that they have now been forced to set the pass mark prohibitively high by the regulators even though it was the Financial Services Authority (the mortgage industry regulator) that were caught sleeping on the job in the run up to the subprime crisis and credit crunch.
Within the late nineties until the onset of the credit crunch, house prices had continuously boomed with double-digit per cent growth rates year on year and funders had to respond to this demand for greater value borrowing by improving the income multiples that they were using and easing lending criteria to enable them to deal with the significant demand created by new borrowers. Hindsight is a wonderful thing but unfortunately also about this time, to make sure that London became one of the foremost financial centres in the world, the Chancellor of the Exchequer, Gordon Brown introduced 'light touch' regulation for Banks and consequently the FSA paid little attention to the scant regard to prudent lending that mortgage providers were undertaking.
In the past, lenders would evaluate the maximum mortgage based on three and a half times the main applicant's gross annual income plus once the second applicants income or alternatively 3 times the joint applicants earnings but after deducting any existing financial debt. However, with property values booming and pay not keeping pace, providers had to react and many adapted to offering income multiple stretches of up to five x the main applicant's salary or to an affordability based lending model where some would assess maximum loan based on financial commitments (mortgage, loans and credit card payments) not exceeding 53% of net take home wage. (This was the equivalent of offering a seven x income multiple)
The poor credit market was also growing and many high street lenders were getting involved in the act and the interest rates offered between prime and near prime mortgages were getting closer and closer as competition raged in this profitable market. Bad credit lending criteria was enhanced and many lenders used a menu based process that put borrowers into categories such as near prime, light, medium, heavy or even unlimited adverse. It was possible to obtain a mortgage to stop repossession even if the borrower hadn't made a mortgage payment for the last 6 months and there was even a product to annul a bankruptcy by remortgaging available capital within a property to buy the mortgagor out of the bankruptcy or Individual Voluntary Arrangement (IVA).
The subprime crisis and credit crunch put a stop to all this as banks and building societies were not able to raise funding for specialist mortgages and the lending tap turned off overnight putting borrowers in the subprime arena with no chance of finding mortgage borrowing. Even though large numbers of the specialist lenders are no longer in existence, luckily as we start to recover and come out of recession there are some funders that are beginning to look at lending to those with a historic poor credit background.
Obviously the bad credit mortgage offering is nothing like it was in the past and if you are a first time buyer then the specialist bad credit lenders will not allow any County Court Judgments or defaults to be recorded within the previous 2 years but assuming you meet this poor credit criteria and the lender's income requirements, it's possible to obtain a loan with only a ten per cent deposit. If you are a homeowner then a small number of defaults and County Court Judgments are accepted during the last 2 years and even up to 3 missed mortgage payments within the last 12 months but watch for loan to value to be significantly restricted with this level of mortgage arrears.
Friday, September 30, 2011
Sunday, September 25, 2011
Learn How to Be a Successful Trader
The forex trade market is one of the largest markets in the world. It is conducted five days a week round the clock and it has attracted many investors who either trade online or offline. There are many seasoned players in the market and each year, the market also welcomes new and small players. This is because the business is quite accommodating to anyone who understands its basics. Those who are interested in online business should learn efficiently what is online trading as well as those interested in offline business. One of most popular ways in which one can about the business is by enrolling in a Forex trading course.
There are many institutions that offer the course online and offline. You will learn several strategies that need to be applied in the business if you are to trade productively. Being a technical market, it can take a long time for one to master all the tactics involved in the business. However, through the course and quality training, you will easily some of the most important aspects of the business including:
• Currencies and currency markets across the globe
• Trading platforms
• Automated trading software especially for those who want to learn what is online trading?
• Candlestick charts and how to use them
• Fundamental analysis of different currencies and their trading grounds
During the course, you will be taught all the technical aspects of the trade and how to venture into an existing market smoothly. There are things that one should do and those that one should avoid when investing in the trade. Basically, no one has to be an expert in order to make it in the field. The rule is to learn and stick to the rules of the business. Your teacher therefore, will take through necessary details that will make you a better trader. Most trainers are former business persons therefore; they understand when certain principles should be applied. In this case, they will ensure you learn how to make wise and informed decisions before your investment.
A Forex trading course provides an exclusive opportunity for everyone to have a better understanding of the business so as to make profits even in unfavorable economic conditions. It is very essential to beware of the risks that you may come across in the business and how to manage them. These are some of essential concepts that you will be taught.
Similarly you will learn all aspects of the business including what is online trading; its history, psychology and effective strategies that will help become a better trader.
There are many institutions that offer the course online and offline. You will learn several strategies that need to be applied in the business if you are to trade productively. Being a technical market, it can take a long time for one to master all the tactics involved in the business. However, through the course and quality training, you will easily some of the most important aspects of the business including:
• Currencies and currency markets across the globe
• Trading platforms
• Automated trading software especially for those who want to learn what is online trading?
• Candlestick charts and how to use them
• Fundamental analysis of different currencies and their trading grounds
During the course, you will be taught all the technical aspects of the trade and how to venture into an existing market smoothly. There are things that one should do and those that one should avoid when investing in the trade. Basically, no one has to be an expert in order to make it in the field. The rule is to learn and stick to the rules of the business. Your teacher therefore, will take through necessary details that will make you a better trader. Most trainers are former business persons therefore; they understand when certain principles should be applied. In this case, they will ensure you learn how to make wise and informed decisions before your investment.
A Forex trading course provides an exclusive opportunity for everyone to have a better understanding of the business so as to make profits even in unfavorable economic conditions. It is very essential to beware of the risks that you may come across in the business and how to manage them. These are some of essential concepts that you will be taught.
Similarly you will learn all aspects of the business including what is online trading; its history, psychology and effective strategies that will help become a better trader.
Wednesday, September 21, 2011
A Secret To Financial Freedom
Even with many types of investments today that provide a lot of options for an individual to pursue and take advantage of its money making potential, you still wonder how are you suppose to know what the best deals are. But with the power of the Internet and some basic research, anyone can become knowledgeable about the different financial opportunities available.
If you are looking for additional resources for your financial freedom or if you just need some extra money to pay for your daily expenses, it is important to take a look at the different investment strategies so as to identify the best one for you. Identifying the strengths and weaknesses will help you decide what type of investment you qualify for.
But after everything, the challenge now is how to have lasting financial success and why is it so difficult to achieve. Setting up business goals is fairly easy but achieving them is a different feat. So learning the magic formula for long term success is quite so easy. According to Forbes.com, there are five secrets to financial success, and these are:
1. Invest the time necessary to develop your values: What you really want and why?
2. Compare your reality to your values: Do adjustments need to be made?
3. Make small changes first. You can only eat the proverbial elephant one bite at a time.
4. Think balance: self deprivation is no way to ease into change.
5. Celebrate and savour your progress.
Depending on how you define the meaning of success, a lasting financial success varies from person to person. Setting and achieving long term goals I believe is the road to financial success. When you have set your goals in realistic terms, you'll see credible results. Such as if you have set your goals in terms of financial achievement, you need to put that plan in action.
Indeed, you can and will achieve financial freedom. If you have the right attitude and take advantage of the financial opportunities coming your way, success is within your reach. What's important is that you learn how to be in control by staying within your budget and live according to your financial capability.
If you feel you have to search the web further about the secrets of having financial freedom I recommend you do so, there's more to the above guidelines. But I believe there is not really an absolute secret to success, the only requirement needed is for you to focus on the process.
If you are looking for additional resources for your financial freedom or if you just need some extra money to pay for your daily expenses, it is important to take a look at the different investment strategies so as to identify the best one for you. Identifying the strengths and weaknesses will help you decide what type of investment you qualify for.
But after everything, the challenge now is how to have lasting financial success and why is it so difficult to achieve. Setting up business goals is fairly easy but achieving them is a different feat. So learning the magic formula for long term success is quite so easy. According to Forbes.com, there are five secrets to financial success, and these are:
1. Invest the time necessary to develop your values: What you really want and why?
2. Compare your reality to your values: Do adjustments need to be made?
3. Make small changes first. You can only eat the proverbial elephant one bite at a time.
4. Think balance: self deprivation is no way to ease into change.
5. Celebrate and savour your progress.
Depending on how you define the meaning of success, a lasting financial success varies from person to person. Setting and achieving long term goals I believe is the road to financial success. When you have set your goals in realistic terms, you'll see credible results. Such as if you have set your goals in terms of financial achievement, you need to put that plan in action.
Indeed, you can and will achieve financial freedom. If you have the right attitude and take advantage of the financial opportunities coming your way, success is within your reach. What's important is that you learn how to be in control by staying within your budget and live according to your financial capability.
If you feel you have to search the web further about the secrets of having financial freedom I recommend you do so, there's more to the above guidelines. But I believe there is not really an absolute secret to success, the only requirement needed is for you to focus on the process.
Sunday, September 18, 2011
Will September 2011 Hold for Investors and How?
Comparison charts. They can be useful or detrimental, all depending on what you are using them for. Recently, the Wall Street Journal published a comparison chart highlighting the time period between June and September for 2008-2011. The chart's purpose is to take a look at the starting point of June and use the information from previous years to determine whether the market is trending downward or set to climb in 2011.
What does the chart tell us? Well, looking at 2008, we can see the market was down slightly at the beginning of summer, then seemed to level off for a period right before plummeting. In 2010 the market was a bit choppy in June and July, but then took off. About the same occurred in 2009. So, what is the moral of the story here?
Looking for Trends
After going through the hindsight information we have from 2008-2010, the Journal made a few interesting points. The ultimate conclusion was that "although a global collapse, as seen in 2008, is unlikely, stocks do not appear to be poised for a big rally either." So, no earth shattering predictions here.
The part of this year-by-year comparison I found most interesting was the fact that the article was using the chart as a way to potentially predict what may happen, due to previous trends, but also noted that the plunge of September 2008 was greatly intensified due to the implosion of Lehman Brothers.
When the 158 year old Lehman Brothers declared itself insolvent, there were no trend charts to predict it would occur, and although CEO Dick Fuld probably saw the writing on the wall for quite some time, average investors like you and me played golf while Fuld met with Bank of America and Barclays, desperate to save his firm from bankruptcy.
Bottom line? If an unpredictable event was a key issue in 2008's financial crisis, than looking at the chart to try to determine future trends is essentially futile. Why? Because, of course, another unforeseeable event could be currently looming on the horizon, or it may not be. That's the thing about unpredictable events...They're unpredictable. Such an event could either send the market into an strong recovery, or pull it into a downward spiral.
What's The Answer? More Information?
Maybe the answer is to break out more charts, because to really get an accurate picture, we'll need to look at the strengths and weaknesses of each current investment possibility. This will make our predictions much more accurate, right? No. This will turn us into crazy people with highly irrational behavior who can't sleep at night because we have to keep up with every news story, not to mention quarterly earnings reports, financial strength calculations, debt ratios, and numerous additional statistics and projections for all our investments. Of course, you realize this is impossible. Even with today's technology and the millions of reports that can be run, no one can predict the future.
The Real Answer to the Investment Strategy Question
Since unforeseen events will always be a huge factor, trying to time the market, even with the best and most up to date information, is unwise. It is, essentially, a form of gambling. The only way to invest prudently is by using the investment strategy that has been proven to outperform any rise or drop in the market, and it's pretty simple; short term volatility is always trumped by long term performance.
In order to perform well over time, smart investors will also do the following:
* Be aware of and cut fees and unnecessary costs.
* Determine your risk potential. The closer you are to retirement age, the less loss you can absorb. Be aware of that and work inside of your set risk parameters.
* Properly diversify your portfolio by spreading investments over a wide enough range to minimize risk as much as possible.
* Do not get in and out of the market based on fear or panic. Investing with the crowd will cause you to put your money in popular, trending investments. It will also set you up to pull out during times of panic when you see others doing the same.
* Return to the basics of buying low and selling high. This involves rebalancing according to a set plan; selling off gains and reinvesting in poor performers to keep your portfolio from becoming improperly weighted in areas that can leave you vulnerable.
What Will This September Bring?
That remains to be seen, but with all the possible scenarios, one thing is certain; trying to time the market or predict the future is not only impossible, but will keep you up at night.
When you understand how the market really works and learn that it will continue to perform over time, you will not have to stress over the news, past performance charts, or even sudden catastrophes or turns of events.
For more practical insights on investment strategies, be sure to take advantage of my resources including my 7 Deadly Investor Traps CD & Workbook. These resources will bring clarity to the most common investment mistakes, such as taking advice from a financial salesperson instead of a fiduciary, and how to discover if you are paying hidden fees and commissions along with your financial advisor's fees. This information can make the difference in thousands of dollars each year that can go directly into your nest egg instead of someone else's pocket.
Bryan's logical approach to investing and his determination to expose corrupt practices in the industry has led him to spearhead his own financial education company and gained him recognition with publications such as the Wall-Street Journal, US Senior News, Investment News, Financial Advisor Magazine, Forbes, Fortune, Kiplinger's, Investment Advisor Magazine. Bryan can also be heard on his weekly radio show, The Financial Coach, which is broadcast in St. Louis, MO, where he resides.
What does the chart tell us? Well, looking at 2008, we can see the market was down slightly at the beginning of summer, then seemed to level off for a period right before plummeting. In 2010 the market was a bit choppy in June and July, but then took off. About the same occurred in 2009. So, what is the moral of the story here?
Looking for Trends
After going through the hindsight information we have from 2008-2010, the Journal made a few interesting points. The ultimate conclusion was that "although a global collapse, as seen in 2008, is unlikely, stocks do not appear to be poised for a big rally either." So, no earth shattering predictions here.
The part of this year-by-year comparison I found most interesting was the fact that the article was using the chart as a way to potentially predict what may happen, due to previous trends, but also noted that the plunge of September 2008 was greatly intensified due to the implosion of Lehman Brothers.
When the 158 year old Lehman Brothers declared itself insolvent, there were no trend charts to predict it would occur, and although CEO Dick Fuld probably saw the writing on the wall for quite some time, average investors like you and me played golf while Fuld met with Bank of America and Barclays, desperate to save his firm from bankruptcy.
Bottom line? If an unpredictable event was a key issue in 2008's financial crisis, than looking at the chart to try to determine future trends is essentially futile. Why? Because, of course, another unforeseeable event could be currently looming on the horizon, or it may not be. That's the thing about unpredictable events...They're unpredictable. Such an event could either send the market into an strong recovery, or pull it into a downward spiral.
What's The Answer? More Information?
Maybe the answer is to break out more charts, because to really get an accurate picture, we'll need to look at the strengths and weaknesses of each current investment possibility. This will make our predictions much more accurate, right? No. This will turn us into crazy people with highly irrational behavior who can't sleep at night because we have to keep up with every news story, not to mention quarterly earnings reports, financial strength calculations, debt ratios, and numerous additional statistics and projections for all our investments. Of course, you realize this is impossible. Even with today's technology and the millions of reports that can be run, no one can predict the future.
The Real Answer to the Investment Strategy Question
Since unforeseen events will always be a huge factor, trying to time the market, even with the best and most up to date information, is unwise. It is, essentially, a form of gambling. The only way to invest prudently is by using the investment strategy that has been proven to outperform any rise or drop in the market, and it's pretty simple; short term volatility is always trumped by long term performance.
In order to perform well over time, smart investors will also do the following:
* Be aware of and cut fees and unnecessary costs.
* Determine your risk potential. The closer you are to retirement age, the less loss you can absorb. Be aware of that and work inside of your set risk parameters.
* Properly diversify your portfolio by spreading investments over a wide enough range to minimize risk as much as possible.
* Do not get in and out of the market based on fear or panic. Investing with the crowd will cause you to put your money in popular, trending investments. It will also set you up to pull out during times of panic when you see others doing the same.
* Return to the basics of buying low and selling high. This involves rebalancing according to a set plan; selling off gains and reinvesting in poor performers to keep your portfolio from becoming improperly weighted in areas that can leave you vulnerable.
What Will This September Bring?
That remains to be seen, but with all the possible scenarios, one thing is certain; trying to time the market or predict the future is not only impossible, but will keep you up at night.
When you understand how the market really works and learn that it will continue to perform over time, you will not have to stress over the news, past performance charts, or even sudden catastrophes or turns of events.
For more practical insights on investment strategies, be sure to take advantage of my resources including my 7 Deadly Investor Traps CD & Workbook. These resources will bring clarity to the most common investment mistakes, such as taking advice from a financial salesperson instead of a fiduciary, and how to discover if you are paying hidden fees and commissions along with your financial advisor's fees. This information can make the difference in thousands of dollars each year that can go directly into your nest egg instead of someone else's pocket.
Bryan's logical approach to investing and his determination to expose corrupt practices in the industry has led him to spearhead his own financial education company and gained him recognition with publications such as the Wall-Street Journal, US Senior News, Investment News, Financial Advisor Magazine, Forbes, Fortune, Kiplinger's, Investment Advisor Magazine. Bryan can also be heard on his weekly radio show, The Financial Coach, which is broadcast in St. Louis, MO, where he resides.
Friday, September 16, 2011
The Advantages of ISA's
An ISA is a tax free way of saving. Adults in the UK can invest up to £10,680 a year in an ISA and they will not be required to pay tax on any gains. This article looks at the advantages of ISA's.
Non-Taxable Income
The main, and most obvious, advantage of an ISA is that you do not have to pay tax on the interest gained. For those in the regular tax bracket this means saving the 20% tax they would otherwise have to pay on the interest.
No Capital Gains Tax
As well as being exempt from income tax, an ISA is also exempt from capital gains tax. This would normally be paid at 28%.
You Have Easy Access to Your Money
Unlike some investments you have access to your money if you need it. If you realise you have invested money that you now need, it is simple to withdraw this from the investment.
Can Split Between Cash and Stocks and Shares ISA's
ISA investments can be split between the two types of ISA; cash ISA's and Stocks and Shares ISA's. The total investment that can be made per year in £10,680. A maximum of £5,340 can go towards a Cash ISA, so anything above this must go towards a Stocks and Shares ISA. Should investors wish, anything up to £10,680 can go towards a Stocks and Shares ISA.
Can Invest Long Term
Money invested into an ISA can be invested for as long as the investor wishes. Although the yearly limit is £10,680, this can be invested every year with no overall limit.
Can Invest from the Age of 18
Stocks and Shares ISA's can be opened from the time someone turns 18. It is even younger for Cash ISA's, which can be invested in from someone's sixteenth birthday with the £5,340 a year limit.
More Beneficial for Long Term Investments
An ISA is most beneficial where invested in over a long-term period. One way it can be used is as an extension to a pension. The longer term an investment is for, the more interest that can be gained and the more there is in the investment in total. If someone is able to invest the full £10,680 a year, that is £213,600 if they do it every year over a twenty year period. Once interest is put on top of that it is a very healthy amount.
There are also fewer risks if investing over a long period. There are ups and down in the financial markets - especially in the current economy - but over a long-term period investment will usually grow. This is even more likely if spread around among various investments products, as is the case with most investment plans and investment trusts.
Benefits to Regular Investors
Some ISA providers will reward customers for making regular investment over a certain amount. For example, they may offer higher interest rates in exchange for a specific minimum investment.
ISA's are a great way to invest with the tax-free benefits particularly good news for investors. Stocks and Shares ISA's are particularly advantageous as they will almost always grow more over a long-term period.
Non-Taxable Income
The main, and most obvious, advantage of an ISA is that you do not have to pay tax on the interest gained. For those in the regular tax bracket this means saving the 20% tax they would otherwise have to pay on the interest.
No Capital Gains Tax
As well as being exempt from income tax, an ISA is also exempt from capital gains tax. This would normally be paid at 28%.
You Have Easy Access to Your Money
Unlike some investments you have access to your money if you need it. If you realise you have invested money that you now need, it is simple to withdraw this from the investment.
Can Split Between Cash and Stocks and Shares ISA's
ISA investments can be split between the two types of ISA; cash ISA's and Stocks and Shares ISA's. The total investment that can be made per year in £10,680. A maximum of £5,340 can go towards a Cash ISA, so anything above this must go towards a Stocks and Shares ISA. Should investors wish, anything up to £10,680 can go towards a Stocks and Shares ISA.
Can Invest Long Term
Money invested into an ISA can be invested for as long as the investor wishes. Although the yearly limit is £10,680, this can be invested every year with no overall limit.
Can Invest from the Age of 18
Stocks and Shares ISA's can be opened from the time someone turns 18. It is even younger for Cash ISA's, which can be invested in from someone's sixteenth birthday with the £5,340 a year limit.
More Beneficial for Long Term Investments
An ISA is most beneficial where invested in over a long-term period. One way it can be used is as an extension to a pension. The longer term an investment is for, the more interest that can be gained and the more there is in the investment in total. If someone is able to invest the full £10,680 a year, that is £213,600 if they do it every year over a twenty year period. Once interest is put on top of that it is a very healthy amount.
There are also fewer risks if investing over a long period. There are ups and down in the financial markets - especially in the current economy - but over a long-term period investment will usually grow. This is even more likely if spread around among various investments products, as is the case with most investment plans and investment trusts.
Benefits to Regular Investors
Some ISA providers will reward customers for making regular investment over a certain amount. For example, they may offer higher interest rates in exchange for a specific minimum investment.
ISA's are a great way to invest with the tax-free benefits particularly good news for investors. Stocks and Shares ISA's are particularly advantageous as they will almost always grow more over a long-term period.
Wednesday, September 14, 2011
How to Avoid a Market Crash As Opposed To Enduring One
A highly regarded monetary periodical just recently printed an article within which they indicated various ways to endure a market crash right after the market went down. They suggest things such as not listening to your specialist, getting rid of specific classes of stock such as small caps, and not trying to find the market bottom. These strategies are usually okay and suitable nevertheless they appear to have missed a major factor. Why hold off until after the market has moved directly down to evaluate your alternatives, rather create a risk management plan so that you can secure your investment funds prior to when a market crash occurs.
A Buy and Hold Strategy is Uncertain
The majority do this strategy. They re-balance their investment portfolios or take some other conservative approach depending on the ongoing condition around the globe, i.e. debt situation, real estate mess, mid-east chaos, and so forth. Then they maintain and wait until the market rises. On the flip side, whenever there is a substantial market downward spiral this kind of strategy does not get the job done because 401Ks, IRAs, mutual funds, stocks along with other investment funds are typically going to have substantial market losses in any event, which has been proved in past times.
This is actually what happens to average individual who make use of this buy and hold strategy. They undergo market losses in a decline and the majority times they never fully recover. That being said how does one sidestep a market crash and the following bear market without having the above circumstances play out? The painless solution is to move a 401K or IRA to an investment non-correlated to the stock market of which generally there are several however the simplest is to transfer to a cash status. The real question is undoubtedly when to shift to hard cash? An individual is provided with absolutely no assistance from your specialist or investment expert on this since there are basically no fees directly to them if the accounts are in money markets. And so how to proceed?
A specific Answer
There is a market crash subscription service available which indicates the potential direction of the market implementing a bull or bear market signal. The service features a 6 year confirmed history that averted the ordeal of 2008 as well as the "flash crash" of 2010. It does not time the market but enables investors to take advantage of the greater part of upturns in the market while avoiding significant market downturns. By adhering to this signal, individuals may easily move their assets to a stable/money market cash status until the signal switches after which individuals can move once again to equities and take benefit of market gains.
This service additionally allows individuals to assess their 401Ks, IRAs or additional market investments and locate which assets are really performing and which are not. Equipped with this unique service an investor can easily also do a mutual fund assessment to find out how the assets in ones own 401K or IRA would have performed if they had been utilizing the program.
A Buy and Hold Strategy is Uncertain
The majority do this strategy. They re-balance their investment portfolios or take some other conservative approach depending on the ongoing condition around the globe, i.e. debt situation, real estate mess, mid-east chaos, and so forth. Then they maintain and wait until the market rises. On the flip side, whenever there is a substantial market downward spiral this kind of strategy does not get the job done because 401Ks, IRAs, mutual funds, stocks along with other investment funds are typically going to have substantial market losses in any event, which has been proved in past times.
This is actually what happens to average individual who make use of this buy and hold strategy. They undergo market losses in a decline and the majority times they never fully recover. That being said how does one sidestep a market crash and the following bear market without having the above circumstances play out? The painless solution is to move a 401K or IRA to an investment non-correlated to the stock market of which generally there are several however the simplest is to transfer to a cash status. The real question is undoubtedly when to shift to hard cash? An individual is provided with absolutely no assistance from your specialist or investment expert on this since there are basically no fees directly to them if the accounts are in money markets. And so how to proceed?
A specific Answer
There is a market crash subscription service available which indicates the potential direction of the market implementing a bull or bear market signal. The service features a 6 year confirmed history that averted the ordeal of 2008 as well as the "flash crash" of 2010. It does not time the market but enables investors to take advantage of the greater part of upturns in the market while avoiding significant market downturns. By adhering to this signal, individuals may easily move their assets to a stable/money market cash status until the signal switches after which individuals can move once again to equities and take benefit of market gains.
This service additionally allows individuals to assess their 401Ks, IRAs or additional market investments and locate which assets are really performing and which are not. Equipped with this unique service an investor can easily also do a mutual fund assessment to find out how the assets in ones own 401K or IRA would have performed if they had been utilizing the program.
Monday, September 12, 2011
2012 Alternative Investments
As fears of a debt crisis in the Eurozone converge with poor economic data from the US, investors turn away from volatile traditional investment assets such as equities and bonds, choosing instead to investigate a range of alternative investments that provide shelter for the value of capital, and are less affected by market 'noise'.
Here are three alternative investment strategies that are proving popular with investors heading towards 2012.
* Coins and Stamps
Numismatic investment (investing in coins) and philatelic Investment (investing in stamps) is one area that is receiving an increased attention. As with many alternative investments, the value of rare coins and stamps is driven by supply and demand. The rarer an item, the greater the value, although with coin investing the value of the metal is also a considered factor in the value of the coin, such as is the case with gold coins for example.
Investing in stamps was popular in the 1970s, but the bubble burst and prices took many years to recover. Investing in stamps, as with any type of investment in collectibles, require in-depth knowledge and skill to identify and value the assets.
With coins, many gold coins are still considered to be legal tender in the UK, and therefore offer tax advantages with regard to capital gains tax.
* Timber Investments
Another of my current selection of alternative investments would be to invest in trees. As tress grow no matter what happens in the financial markets, investing in timber plantations, either directly or through an investment fund or timber business, provide the investor with growth whilst the performance of other assets may falter.
Returns from timber investments are three-fold; the majority of return comes from the tree growing into valuable timber over many years, also, the price per unit of timber (usually cubic metres) also rises, with many of the main indices in developed markets showing timber prices rising by around 6% per annum. Finally, in some cases investors may also profit from increases in the value of the land on which the plantation is established.
* Forex
The third and final of this small selection of alternative investments is Forex, or foreign exchange. This is a highly risky investment strategy, and can inv9ovle betting for or against the movement in value of one currency against another.
Investors may place their bet per unit of a rise or fall in value, and can easily lose more than the value of their original stake if the currency moves the wrong way.
So, there are a great many alternative investments to consider for the investor keen to divorce the performance of their portfolio from the performance of traditional markets.
According to recent research, institutional investors are holding up to 25% of their investment portfolios in alternatives in an effort to rebuild value lost after the recent economic crisis of 2008.
Here are three alternative investment strategies that are proving popular with investors heading towards 2012.
* Coins and Stamps
Numismatic investment (investing in coins) and philatelic Investment (investing in stamps) is one area that is receiving an increased attention. As with many alternative investments, the value of rare coins and stamps is driven by supply and demand. The rarer an item, the greater the value, although with coin investing the value of the metal is also a considered factor in the value of the coin, such as is the case with gold coins for example.
Investing in stamps was popular in the 1970s, but the bubble burst and prices took many years to recover. Investing in stamps, as with any type of investment in collectibles, require in-depth knowledge and skill to identify and value the assets.
With coins, many gold coins are still considered to be legal tender in the UK, and therefore offer tax advantages with regard to capital gains tax.
* Timber Investments
Another of my current selection of alternative investments would be to invest in trees. As tress grow no matter what happens in the financial markets, investing in timber plantations, either directly or through an investment fund or timber business, provide the investor with growth whilst the performance of other assets may falter.
Returns from timber investments are three-fold; the majority of return comes from the tree growing into valuable timber over many years, also, the price per unit of timber (usually cubic metres) also rises, with many of the main indices in developed markets showing timber prices rising by around 6% per annum. Finally, in some cases investors may also profit from increases in the value of the land on which the plantation is established.
* Forex
The third and final of this small selection of alternative investments is Forex, or foreign exchange. This is a highly risky investment strategy, and can inv9ovle betting for or against the movement in value of one currency against another.
Investors may place their bet per unit of a rise or fall in value, and can easily lose more than the value of their original stake if the currency moves the wrong way.
So, there are a great many alternative investments to consider for the investor keen to divorce the performance of their portfolio from the performance of traditional markets.
According to recent research, institutional investors are holding up to 25% of their investment portfolios in alternatives in an effort to rebuild value lost after the recent economic crisis of 2008.
Saturday, September 10, 2011
Automated Decisioning and Demand Deposit Accounts: Getting the Whole Package
Demand deposit accounts (DDAs) are evolving. With traditional decisioning software, consumers had wait time involved when opening a demand deposit account--they had to wait to find out if they were approved and if they were they had to wait to start using the account. However, now with new solutions, financial institutions (FIs) can use automated decisioning to open accounts effectively and efficiently and realize profits in the process. Automated decisioning is used to not only analyze consumer data to find out if they are credit-worthy, but is also used to incorporate steps into the decisioning process that enhance the customer experience, builds deeper relationships, and increases profitability for FIs.
Automated decisioning can be used to enhance DDA opening in a variety of ways. Because manual steps are eliminated, the process takes less time and DDAs can be originated at the point of sale. This means that consumers can sign up for an account, the bank can make a decision in realtime, and the consumer can start to use the account immediately if approved. The automated decisioning process can be used in this way to increase customer satisfaction because of the "instant gratification" that it provides.
Automated decisioning can also be used to incorporate a number of steps that would not be possible in manual decisioning processes. Some of these steps include pulling consumer information from a data network, leveraging effective cross-sell, using multichannel integration, calculating attributes, and generating documents.
Pulling information from a data network includes pulling data from both traditional and alternative data sources. This is valuable in decisioning because banks can gain a holistic view of consumers because the data they are collecting is from multiple sources. With manual processing this would be inefficient due to time restraints, but through automated decisioning software, banks can access multiple data vendors quickly. When banks have access to such a large supply of data, their decisioning is more accurate because they have a more complete view of the consumer.
Automated decisioning can also be used to leverage cross-sell. This means that when a consumer is applying to open an account, decisioning software can be used to determine if they qualify for the product for which they are applying as well as additional financial products. When automated decisioning is used, consumers can be "matched" to products they qualify for and are likely to be interested in. When this occurs, they are more likely to accept the offers because they are personalized for them.
Automated decisioning can also use multichannel integration to enhance demand deposit account opening. When channels are integrated, consumers have a consistent experience regardless of how they choose to interact with the bank. When consumers have this consistent experience, cross-sell offers are the same across channels and banks can use data collected from various channels to make better offers. For instance, if a consumer regularly interacts with the bank online, but rarely in the branch, the FI can focus on offering benefits available through the online channel, such as personal financial management or online bill pay.
When automated decisioning is used during demand deposit account opening, banks can realize higher profitability. By combining the components mentioned above, banks will be able to not only originate more accounts, but have happier customers in the process. Accounts can be originated faster, additional steps can be built into the decisioning process, effective cross-sell can be utilized, and channels can be integrated. When all of these are combined, consumers will have fast and effective transactions with their FI. This leads to increased customer satisfaction and wallet share for the institution.
Overall, there are a number of ways that automated decisioning can be used to enhance DDA openings for consumers. When account opening is enhanced, the financial institution can experience higher profitability, wallet share, and positive customer experiences.
Automated decisioning can be used to enhance DDA opening in a variety of ways. Because manual steps are eliminated, the process takes less time and DDAs can be originated at the point of sale. This means that consumers can sign up for an account, the bank can make a decision in realtime, and the consumer can start to use the account immediately if approved. The automated decisioning process can be used in this way to increase customer satisfaction because of the "instant gratification" that it provides.
Automated decisioning can also be used to incorporate a number of steps that would not be possible in manual decisioning processes. Some of these steps include pulling consumer information from a data network, leveraging effective cross-sell, using multichannel integration, calculating attributes, and generating documents.
Pulling information from a data network includes pulling data from both traditional and alternative data sources. This is valuable in decisioning because banks can gain a holistic view of consumers because the data they are collecting is from multiple sources. With manual processing this would be inefficient due to time restraints, but through automated decisioning software, banks can access multiple data vendors quickly. When banks have access to such a large supply of data, their decisioning is more accurate because they have a more complete view of the consumer.
Automated decisioning can also be used to leverage cross-sell. This means that when a consumer is applying to open an account, decisioning software can be used to determine if they qualify for the product for which they are applying as well as additional financial products. When automated decisioning is used, consumers can be "matched" to products they qualify for and are likely to be interested in. When this occurs, they are more likely to accept the offers because they are personalized for them.
Automated decisioning can also use multichannel integration to enhance demand deposit account opening. When channels are integrated, consumers have a consistent experience regardless of how they choose to interact with the bank. When consumers have this consistent experience, cross-sell offers are the same across channels and banks can use data collected from various channels to make better offers. For instance, if a consumer regularly interacts with the bank online, but rarely in the branch, the FI can focus on offering benefits available through the online channel, such as personal financial management or online bill pay.
When automated decisioning is used during demand deposit account opening, banks can realize higher profitability. By combining the components mentioned above, banks will be able to not only originate more accounts, but have happier customers in the process. Accounts can be originated faster, additional steps can be built into the decisioning process, effective cross-sell can be utilized, and channels can be integrated. When all of these are combined, consumers will have fast and effective transactions with their FI. This leads to increased customer satisfaction and wallet share for the institution.
Overall, there are a number of ways that automated decisioning can be used to enhance DDA openings for consumers. When account opening is enhanced, the financial institution can experience higher profitability, wallet share, and positive customer experiences.
Education for Option Trading - Keep Your Capital Safe now!
I feel like a broken record, but as I've said before: you need to trade in order to trade. This guideline runs alongside another important rule, which is: keep your capital safe.
People in professional occupations around the world all use tools for their jobs. These tools may be physical things such as a hammer or a computer, or other things that you can't necessarily touch, like expertise and education.
All professionals take great care of their tools, whether physical or not. A writer doesn't skimp on virus protection for their laptop and a doctor doesn't study something just one time.
People who are professional traders are no different. They use tools just like everyone else. As a trader, your tools are mostly intangible; you can't hold them in your hand. Your tools include reading and understanding things. You also need an incredible amount of discipline for your mind and emotions in order to stick to your specific trading guidelines.
Just as other professionals take care of their tools, you must also care for yours; you can't afford to be reckless. The balance of your account is your biggest asset and tool, which is why it needs to be kept safe.
According to statistics, within the first six months, or first year, of professional trading, people fail. The longer you're in the game, the better chance you have of survival in the trading game. After your first year your chances improve quite a bit, but after two your chances are dramatically greater.
The biggest problem is that people get too caught up in the excitement of trades and start getting reckless. Even as you read this from the safety of your home, someone is starting to make mistakes. They're chasing the wrong trades, changing their stops to give trades more space, vastly overtrading, purchasing at a retail point, selling at wholesale prices or opening a position that's simply too big for them. In short, they're getting far too reckless and are no longer keeping their capital safe.
I have enough losses of my own to prove that I've been down this road, so I know what I'm talking about. You should always stay aware of the fact that anything can happen with a trade, even if it sounds perfect. Although you may be confident, and you may have done your homework, the fact is that some trades will simply make you lose money. If you accept this fact, you'll be less likely to get reckless and add to your losses.
Professional traders that make up to six and seven figures a year are as protective of their accounts as a mother is of her children. They have learned to be wary of every trade and their self discipline does not falter.
All businesses have business expenses and trading is no exception to this rule. But all you have to remember is that a trade that results in a loss is not necessarily a loss, but a business expense. This is an entirely normal part of any business, trading or otherwise.
Professional traders know that there are expenses associated with trade, and know not to make their costs higher by getting careless with their capital. Jesse Livermore is known for this famous quote; "I made most of my money sitting on my hands." Translation: unless conditions were absolutely ideal, he didn't trade.
Here are three questions to ask yourself as a professional trader before you open a position:
1. What purpose does this trade serve? How is the setup? Is the market good for it now?
2. How ideal is the entry time frame? If it isn't, wait.
3. Have you taken stop loss points and profit targets into consideration and planned for them?
Planning your trade and trading your plan are key parts of trading discipline.
After you have had consistent success with trades, your process will become second nature to you. You'll be able to answer those questions in seconds because you will know exactly what you're doing. In a business driven by the odds, you want as many of those odds in your favor as possible. Maintaining discipline and creating solid trading plans will allow you to get the best trades, sending you down the road to success and keeping your capital safe.
People in professional occupations around the world all use tools for their jobs. These tools may be physical things such as a hammer or a computer, or other things that you can't necessarily touch, like expertise and education.
All professionals take great care of their tools, whether physical or not. A writer doesn't skimp on virus protection for their laptop and a doctor doesn't study something just one time.
People who are professional traders are no different. They use tools just like everyone else. As a trader, your tools are mostly intangible; you can't hold them in your hand. Your tools include reading and understanding things. You also need an incredible amount of discipline for your mind and emotions in order to stick to your specific trading guidelines.
Just as other professionals take care of their tools, you must also care for yours; you can't afford to be reckless. The balance of your account is your biggest asset and tool, which is why it needs to be kept safe.
According to statistics, within the first six months, or first year, of professional trading, people fail. The longer you're in the game, the better chance you have of survival in the trading game. After your first year your chances improve quite a bit, but after two your chances are dramatically greater.
The biggest problem is that people get too caught up in the excitement of trades and start getting reckless. Even as you read this from the safety of your home, someone is starting to make mistakes. They're chasing the wrong trades, changing their stops to give trades more space, vastly overtrading, purchasing at a retail point, selling at wholesale prices or opening a position that's simply too big for them. In short, they're getting far too reckless and are no longer keeping their capital safe.
I have enough losses of my own to prove that I've been down this road, so I know what I'm talking about. You should always stay aware of the fact that anything can happen with a trade, even if it sounds perfect. Although you may be confident, and you may have done your homework, the fact is that some trades will simply make you lose money. If you accept this fact, you'll be less likely to get reckless and add to your losses.
Professional traders that make up to six and seven figures a year are as protective of their accounts as a mother is of her children. They have learned to be wary of every trade and their self discipline does not falter.
All businesses have business expenses and trading is no exception to this rule. But all you have to remember is that a trade that results in a loss is not necessarily a loss, but a business expense. This is an entirely normal part of any business, trading or otherwise.
Professional traders know that there are expenses associated with trade, and know not to make their costs higher by getting careless with their capital. Jesse Livermore is known for this famous quote; "I made most of my money sitting on my hands." Translation: unless conditions were absolutely ideal, he didn't trade.
Here are three questions to ask yourself as a professional trader before you open a position:
1. What purpose does this trade serve? How is the setup? Is the market good for it now?
2. How ideal is the entry time frame? If it isn't, wait.
3. Have you taken stop loss points and profit targets into consideration and planned for them?
Planning your trade and trading your plan are key parts of trading discipline.
After you have had consistent success with trades, your process will become second nature to you. You'll be able to answer those questions in seconds because you will know exactly what you're doing. In a business driven by the odds, you want as many of those odds in your favor as possible. Maintaining discipline and creating solid trading plans will allow you to get the best trades, sending you down the road to success and keeping your capital safe.
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