Nonitage

If you are looking to buy property abroad try Property Index, specialists in overseas property.

Regardless the fact that PropertyIndex.com may be considered a recent company, doing business only since March 2007, they have quickly established expert status. In point of fact a very down to earth company devoted to offering instruction to any person meaning to buy, sell, rent etc. real estate across the world. They affirm to lend you a hand to discover exactly what’s required very quickly plus, of course, sans pain. Real property can be bought wherever you want in our times, one of the really elite areas being properties for sale in Spain. It’s easy as one-two-three to list some of the ripping property available in Spain, the rationale for picking realty here is property you can purchase and the ripping option of spending your life with such a enthusiastic and lively populace.

It’s one of the most fashionable regions in our times, and considering the overall attractiveness and wonderful sunshine surrounding you, how could you be wrong! Real property in Spain is very rich in history and culture, this country has long been home to numerous sophisticated civilizations. Only 25 years ago you’d find just a trickle of UK citizens keen on property in Spain. Just ask any person who has chosen to relocate to Spain and they’ll be sure to substantiate this. Most people would are viewing it as a mere fad and others are viewing it as a that’s nearly an addiction… People set on moving to this place may range from newly weds in search of a challenge to the retired who want to chill out.

There could well be obstacles when looking to purchase property abroad — you can find there are 100s of procedures to follow be it when planning, touring or buying. If you miss out on but a single procedure that is liable to well kick up great obstacles plus, of course, even more importantly, a failed investment. Obviously, as is to be assumed with this well-liked place, property may well be unbelievably high-priced in this region which is, of course, unquestionably owing to the top demand. Despite this the property buyer presently is somewhat spoilt in such a place characterized by wonderful land and beaming view. It’s patently got all anyone could yearn for, and lots more.

During every correction, I encourage investors to avoid the destructive inertia that results from trying to determine: “How low can we go?” and/or “How long will this last?” Investors who add to their portfolios during downturns invariably experience higher values during the next advance. Yes, Virginia, just as certainly as there is a Santa Claus, there is another market advance in our future.

Corrections are part of the normal “shock market” menu, and can be brought about by either bad news or good news. (Yes, that’s what I meant to say.) Investors always over-analyze when prices are weak and lose their common sense when prices are high, thus perpetuating the “buy high, sell low” Wall Street line dance. Waiting for the perfect moment to jump into a falling market is as foolish a strategy as taking losses on investment grade companies and holding cash.

Repetition is good for the brain’s CPU, so forgive me for reinforcing what I’ve said in the face of every correction since 1979… if you don’t love corrections (and deal with them like visiting relatives) you really don’t understand the financial markets. Don’t be insulted, it seems as though very few financial professionals want you to see it this way and, in fact, Institutional Wall Street loves it when individual investors panic in the face of uncertainty. Psstt… uncertainty is the regulation playing field for investors, and hindsight isn’t welcome in the stadium.

A closer examination of the news that’s fit to print (but isn’t printed often enough) should make you more confident about the years ahead, whatever your politics.

The good news is very, very good: 1. Employment, jobs, and unemployment numbers are as good or better than they have been in years. 2. Manufacturing numbers are stronger and trending upward. 3. The “core” inflation rate is historically low. 4. Interest rates are also historically low. 5. Durable goods orders are trending upward. 6. Corporate earnings reports have been strong. 7. Corporate dividend payouts have been increasing. 8. Equities, as an Asset Class, are considered the most fairly valued, when compared with Real Estate, Fixed Income, and Commodities. 9. Income Tax Rates are at low historical levels, particularly with regard to investment income. 10. Gross domestic product is growing.

The bad news isn’t all that bad, pretty much the same ole stuff: 1. Hurricane Damage. We’ve actually had fewer major storms than anticipated. The ones we’ve had were devastating, but the rebuilding/preparation task ahead will be good for the economy. 2. War in Iraq. There’s always been a war of some kind, somewhere. It’s bad, but only the battlefield has changed… and war has also always been good for the economy. 3. Politics. We have an unpopular President who can’t seem to get out of his own way. Who were the last ones that were loved? Didn’t they have wars? 4. Wall Street/Corporate scandals. Hardly new and never economy busters. 5. Energy prices. I still don’t see gas lines, and maybe somebody will push for added refining capacity. 6. Trade deficits. News would be giving foreigners more money so that they could buy more of our products. 7. High consumer debt. New? Not. 8. The terrorism threat. A major serious problem for the past how many years? The federal regulatory agencies probably do more damage to the economy. 9. The Avian Flu pandemic? Maybe, but not yet, and we’ll really need those bad boy drug companies then, won’t we? 10. The Anniston/Pitt break up, and neither the Yankees nor the Bosox in the World Series. Now we’re talking!

Clearly, there are no new (economic) problems to be overly concerned about. And for now, we simply (and I mean simply) have to deal with the opportunities at hand. Low, but increasing, interest rates force fixed income prices down and yields up… Opportunity One! Economic good news encourages higher rates to reduce inflationary pressures causing equity prices to trend downward… Opportunity Two! These forces of good are intersecting with the dark side of calendar year mentality Wall Street, causing premature tax loss selling and portfolio Window Dressing… Opportunities One and Two squared!

There is an Investment Mindset Solution for the problems that most people have dealing with corrections, and rallies too, for that matter. I’ve never understood why “yard sale prices” here are so scary. What if you cut off a finger each time you get a splinter? Wounds heal, and so do the prices of high quality securities.

In recent years, Wall Street and the media have turned the process of investing into a competitive event of Olympic proportions and stature. What was once a long term (a year is not long term), goal directed activity, has become a series of monthly and quarterly sprints. The direction of the market isn’t nearly as important as the actions we take in anticipation of the next change in direction. Performance evaluation needs to be rethunk (sic) in terms of cycles!

The problems, and the solutions, boil down to focus, understanding, and retraining. It would be impossible to cover each of these issues here, but here are a few teasers. You need to focus on the purposes of the securities in the portfolio. You need to understand and accept the normal behavior of your securities in the face of different environmental conditions. You need to overcome your obsession with calendar period Market Value analysis, and switch to a more manageable asset allocation approach that centers on your portfolio’s Working Capital.

But for now, relax and enjoy this correction. It’s your invitation to the fun and games of the next rally.

Steve Selengut
sanserve@aol.com
800-245-0494
http://www.sancoservices.com
Professional Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

Steve Selengut
sanserve@aol.com
800-245-0494
www.sancoservices.com
Professional Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

Some time ago I attended a seminar where participants were told to burn some money; a reasonably-sized amount of money. You should have heard the gnawing and gnashing of teeth in that room! Step right up, folks, and light it on fire. Come on now. It’s only money.

Some people, likely less adept at saving than others, actually rushed forward in an attempt to show how money had no hold over them. There was a principle in there somewhere. Not sure what it was.

Others cowered into the corner, refused to take out their wallets, looking for the exits. It does seem reasonable to me to avoid torching cash. After all, you’ve worked hard for it. Put in years worth of work and put off many luxuries to accumulate what nest egg you have. Burning it would somehow seem to indicate a crack in the psyche.

But what if I told you that many people are geared right up to burn tens of thousands of dollars? Oh, they’re not going to march forward to the front of some hotel ballroom and pull out stacks of cash from a briefcase and toss them all onto a controlled, indoor bonfire. Nope. That’s dramatic. Their method is much harder to picture, but let’s try and create a vivid picture nonetheless.

Imagine a retired widow or widower. Or, perhaps, a senior single person. A person who is finished working, and has been enjoying the fruits of their savings. They have accumulated several hundred thousand dollars in their RRSP, which has since been transferred to a RRIF. They receive income from this RRIF. Let’s say it has $400,000 in it.

Like most of us, this person does not want to think about their own demise. Their focus is on their grandchildren, perhaps. Hobbies. The garden. Other things. They are, of course, surprised when they die, and even more surprised when they get a box of popcorn and a front row seat for the posthumous show called ‘distribution of your assets’.

Let’s go straight to the grand finale, shall we? In this last part of the show, the contents of the person’s RRIF are put in an over-sized briefcase, sawed in half, and one half is tossed onto the gigantic bonfire known now as the Canada Revenue Agency. Let me explain…

The proceeds of an RRSP or RRIF can roll, tax-free, to a surviving spouse without any tax consequences. In our example, however, there is no spouse to roll the proceeds to. As a result, the full amount of the RRSP or RRIF comes into income in the year of death. What happens when you get a sudden influx of cash? Say, $400,000 worth of cash? Well, first of all it will put you in the very highest tax bracket. Second, you’re taxed. (Hence the idea of just sawing that over-sized briefcase in half and tossing one half on the bonfire.)

Not convinced. Okay, forget the bonfire idea. Instead, half of the briefcase contents, $200,000 in our example, are put into a box, tied up with a nice red ribbon and hand delivered to … the Prime Minister. Like that better? Hmm.

Well, at least now you know what happens when you die. There’s a big fire. There’s gnawing and gnashing of teeth. People rushing for exits. And a few, good people, are sitting there calmly because they planned ahead, or had already gone through all of this at some weekend seminar.

Strategies do exist to avoid the erosion (torching) of your assets when you die. Talk to your financial advisor.

About The Author

Rick Hoogendoorn is an ‘associate’ with Cheri Crause & Associates Inc. . Cheri Crause is a certified financial planner in Victoria, British Columbia. www.chericrause.com

rick.hoogendoorn@shaw.ca

One of the holy grails of investing is the ability to achieve a
decent return without volatility. After all, I think we all
learned somewhere along the line that the shortest distance
between two points is a straight line. To say we are a long way
from achieving that goal is certainly an understatement. But,
until we do achieve that goal, dollar cost averaging can help.

Simply put, dollar cost averaging is investing at specific
intervals over a specified period of time. Instead of buying at
a single share price with a lump sum investment, dollar cost
averaging buys when prices are both high and low, thus averaging
the share price.

There is some argument that dollar cost averaging (DCA) can
actually inhibit the return on investment, and I have no
disagreement with that argument. If a purchase is made when the
share price is low and the price soars in the future, the
results will show better than when purchases are made at a
higher average price. Secondly, short-term, dollar cost
averaging often does not give the process enough time to show
its true colors.

Thus, in order to truly benefit from dollar cost averaging, an
investor needs to understand that it is a long-term process, and
more a function of decreased volatility than of absolute return
on investsment.

Looking at returns over a 1 year, 3 year, and 5 year period is
helpful in determining investment research. We must remember,
though, that these are only “frozen” snapshots of investment
returns at specified intervals of time. With dollar cost
averaging, our need for funds is not only at the end of these
specified intervals, it continues throughout the entire period.
This lends credence to the continual need for decreased
volatility.

For those investors who practice asset allocation, dollar cost
averaging can be a great way to continually rebalance a
portfolio. Instead of buying and selling to rebalance, investing
on a regular basis (monthly, quarterly, etc.) can bring the
allocation percentages back to their desired levels. Because
trading is kept to a minimum, this strategy also manages the tax
bite on potential gains.

There is a good chance that you may already be participating in
a dollar cost averaging program. Monthly 401(k) contributions
and quarterly dividend reinvestment plans are two prime examples
of dollar cost averaging. Mutual funds also have “systematic
deposit” programs that are set to automatically sweep funds from
checking or savings accounts on a regular basis.

Naturally, there is no guarantee that you’ll actually profit
from dollar cost averaging. This strategy does not protect
against losses in a declining market. Such a plan involves
continuous investments in securities regardless of fluctuating
price levels. Before engaging in a dollar cost averaging
strategy, you should consider your financial ability to continue
purchasing through periods of low price levels.

The strategy also isn’t a substitute for investment research.
Bad investments will always lose money whatever your approach.

But if you are into investing for the long term and you want to
take some volatility out of your portfolio, take a look at
dollar cost averaging.

If you have any questions or comments, Chip would love to hear
from you. You may contact him by email at
dahlkefinancial@sbcglobal.net. You may also contact him at the
Living Trust Network. It’s URL is
http://www.livingtrustnetwork.com.

Copyright 2005. Living Trust Network, LLC. All Rights Reserved.

Decide and Have a Strategy

The strategies will depend on if you are a day trader or an investor. The strategies for day traders will not work for an investor and the other way round. Therefore you have to decide if you are going to be a day trader or the investor. Remember that day trading is a full time job and you get married to the trade. Investing is not a full time job but you can make similar money as a day trader makes.

Strategies for Day Traders

The day trader is there to make money for him/her. The strategy for each one is to maximize the income. In this the day trader has two tools Wiz technical analysis and arbitrage. Speed of working and attention to details are the stock in trade for the trader. Since not everyone can become a day trader, we will leave the strategies for each one to be developed separately and will not go further than this.

Strategies for Investors

There can be a number of strategies for investors. Before you go ahead and adopt a strategy or a combination of strategies, it is necessary to follow a strict code of working. The code may not be written but, but it is based on common sense and it is in your interest if you are an investor.

1. Study the market before investing: It is your own hard earned money. You should not be reckless with your investment. Therefore study the market before you investment. Find out if the market trend is up or down.

2. Study the market segment: It is necessary to study market in which your company operates before you purchase the shares of a company. Find out everything you can about the company.

3. Timing of purchase: The share of good company expecting increase in quarterly half yearly or annual results, go up before the actual announcement of results. If you are not sure about the purchasing, avoid purchasing the shares at this time.

4. Rumors about the company: You should avoid buying on the basis of rumors about company. You should also avoid buying on the basis of unconfirmed company reports and tips.

Having done your basics, now you can go for determining the strategy of purchase of company shares.

1. Buy low and sell high: This is the best strategy and everyone will tell you to adopt it. In practice however, a newcomer will find difficult to adopt this in practice. Over a period of time you will be able to fine tune your skills and adopt this strategy.

2. Buy and Hold: This works for nearly all the new entrants in the stock markets. When choosing a company to invest, choose carefully and after a thorough study of the company and the market in which this company operates. However the exit strategies also have to be fixed in advance to ensure that you are not left holding the baby after every one has the profit from company shares. Some options can be

• Exit after your returns from this share are fulfilled in a certain period. The money you have received can be invested in another company promising a higher rate of return.

• Exit to limit your losses. In case the market is falling down, have a predetermined limit below which you are not going to hold the shares of company. This is called stop loss limit and has to be followed rigorously.

3. Buy and Change Frequently: If you have studied the markets carefully, you might find that that there is a limit on the expected gains from shares of a company. If you really have reached this limit, you can exit out of this stock and choose another.

Choose a combination of strategies that suits you the most.

For more information on shares and investing in stock market, please visit http://stockmarketpages.info