Just barely recovering from the stock market fiasco, investors are beginning to rethink the logic of diversification of their portfolio. Many investment advisors are turning to Indian art as an emerging alternative investment option.
Although the concept of investing in art is relatively new in India, art has always been a viable investment option in the west. Art investment in India is gaining momentum with the works of M.F Husain, Tyeb Mehta and F.N Souza being lapped up by international collectors. FN Souza’s work ‘the Birth’ sold for $2.3 million, setting records in valuing Indian art. MF Husain and SH Raza are currently valued anywhere from $200,000 to $1 million. Industry experts expect prices to shoot up to between $5 million to $10 million in the next few years. The growth in Indian contemporary art also reflects the same trend. The prices of works of several famous artists like CF John, TM Azis, Yusuf Arakkal, Atul Dodiya have increased considerably since Indian art reached the international stage.
The potential for further rapid growth of the Indian art market makes it a viable investment alternative. For example, the ET art index (Art index by the Economic times) has grown phenomenally from just 116.53 points in 2000 to 3106.47 in September 2008. According to Arttatic, an independent research firm, the Indian art market in 2008 was valued at approximately $70 million from the $40 -$50 million level in 2007.
Let’s take a look at the top 3 reasons for the growth in the Indian art market which would serve as the foundation for art becoming an alternative investment option.
The increase in demand for Asian (Indian) art by international collectors
Auction houses like Christie’s and Sotheby’s realizing the potential of Asian art, opened up the international art market to Asian art. The results from the recent auctions at Sotheby’s, Christies and Saffronart have been encouraging, with a total of almost $7.7 million worth of art being sold in the summer 2009.
A new generation of art collectors from emerging economies, with their rising income levels, has created a market for Asian art internationally. The nouveau collectors relate more to art from their own cultural background which is especially true in the case of NRIs (Non-Resident Indians)
The Indian art market also benefited from the recent boom which increased the disposable income in the economy and bought with it slow but steadily growing group of art aficionados. Interestingly art auctions in India have been rising steadily starting with only 3 auctions in 2003, to 14 auctions in 2005 and approx 40 auctions in 2008.
The rise of an organized art market for Indian art
With the advent of international Auction houses, there has been a standardized approach to valuation of art, promotion and of Indian art. These guidelines will enable the efficient and consistent functioning of the art market in India.
There has been a growth in the secondary market for art with a number of art galleries, art advisors, auction houses (India’s own Saffron Art) and corporate collections established within the past decade. The secondary market provides a platform for trading in art.
Increase in liquidity of Art as a medium of investment
Liquidity is a prime factor in decision making for any form of investment. Over the years, liquidity in the Indian art market has increased considerably with a number of financial institutions introducing Art investment services in the form of art advisory or art funds. Religare, Yes Bank and Bajaj Capital are some of the traditional investment houses that have begun offering art as an alternative.
There also a number of art funds set up as an investment vehicle like Osian’s Art Fund, Crayon Capital, Yatra Art Fund etc. The Osian’s Art Fund, worth over Rs 100 crore, oversubscribed within a few days of opening allotment.
Art Summits like India Art Summit 2009 in New Delhi and the Art Expo 2009 in Mumbai, play the role of developing the art market by creating a venue for promoting Indian art.
Indices like the ET art index and the involvement of SEBI (Securities Exchange Bureau of India) has given art additional credibility and liquidity it needs.
The Indian art market is currently in a very nascent phase, where the stage has been set for enormous growth. The increase in activity from the various players could take this market much higher than predicted. All said, one should however be careful to take professional advice before plunging into the art market.
The above article can also be found on the blog
Thomas Chacko has a day job as a management consultant. Art is his actual passion. He has been promoting art for years now. Influenced by the art scene in Europe where he spend his university days and initial career. For the love of art is the motto that drives him. Thomas along with his wife also promotes selected talented Indian artists. Monsoon Canvas is the name of their venture. Monsoon Canvas believes in sincere art promotion and therefore promotes a selected group of them
We live in the information age. You can find information about anything you can imagine. There are countless news websites, blogs, and online forums discussing just about any topic under the sun. The good news for investors is that learning how to effectively utilize this information properly can lead to a seemingly limitless stream of investing ideas. The challenging part is figuring out exactly how to use all of this information to your advantage. Let’s briefly examine some of the predominant methods investors use to generate investing ideas.
The Top-Down Approach
What methods typically come to mind when you think about generating investing ideas? If you’re like most people, you might consider reading the business section of the newspaper, or reading a finance-oriented publication, or visiting a finance website. There is no doubt that these types of sources can provide good information, but there are some also some potential pitfalls to exclusively using these types of sources to generate ideas.
For example, an article in the business section of your favorite website might report that GE’s profits were up in the second quarter of the year compared to the first quarter. But what does this really tell you as an investor, and is it enough to make you think that GE might be a good long-term investment? On one hand, this news could mean that the company’s products or services have improved, and this led to the increase in profits. On the other hand, the increased profits could simply be a result of a one-time event and might not be indicative of the direction of future earnings. It’s hard to say exactly what the increased profits mean without doing more research.
People who use the top-down method typically prefer a much broader approach when it comes to generating investing ideas. In addition to reading finance and business-related news stories, they like to explore a variety of other sources of information, and even look for ideas in everyday life. They look for investing ideas while watching the news, reading articles online, watching television, or even listening to a conversation between colleagues or friends.
Let’s take a look at a simple hypothetical example of how you can generate an investing idea using the top-down approach. Let’s assume that you come across an article that says that there is increasing scientific evidence that drinking green tea regularly can lead to weight loss. Since you know that there has been an increased incidence of obesity in America, you think that drinking green tea is something that people will probably start to do in to try to lose weight. You decide that you are going to find the best company that manufactures green tea products and invest in it to capitalize on this recent scientific breakthrough.
So what you have done here is taken a big picture idea (in this case, the assumption that drinking green tea causes weight loss), then considered the possible implications (that people would drink more green tea to try to lose weight), and based on the implications were able to generate an investing idea and narrow your focus to a specific company that might benefit from this trend.
This is just one example of how to come up with an idea using the top-down approach. Another popular way to use the top-down approach is to use the economic or business cycle as a guide. This is called cyclical investing. This involves pinpointing where you are in the economic or business cycle. Once you determine where you are in the economic cycle, you can then more easily locate industries that are undervalued, and thus possibly worthy of investment. You can then narrow your focus to more specific sub-industries and then to companies within the sub-industry.
In a nutshell, the top-down investment style involves looking at the big picture, thinking about what types of products and services are likely to be in demand based on your observations, and then investing in quality companies that offer these types of products and services. Using the top-down method, you’ll be surprised about how many good investing ideas you can come up with, especially if you make a habit of thinking about the implications of what you observe in everyday life.
The Bottom-up Approach
Another popular approach to investing is the bottom-up approach. This is an entirely different approach that can also be successful if properly executed. As opposed to the top-down approach looking at the big picture and then eventually narrowing their focus to an individual stock, bottom-up investors like to focus almost entirely on individual companies. This type of investor typically thinks that good companies can make money regardless of economic or other external conditions. Analysis of both the competition and industry conditions is de-emphasized and a more thorough analysis of the company’s operations and financial condition is emphasized.
For example, a bottom-up investor might start by running a stock screener to figure out which stocks meet his or her basic objective investment criteria, and then do some thorough research on each of these companies to determine which of these companies might make good investment candidates. Other methods that a bottom-up investor might use to come up with possible investment candidate companies include reading articles about individual stocks, listening to company conference calls, or reading annual reports.
Let’s look at a quick example of how I might come up with an investment idea if I used the bottom-up strategy. Let’s say I come across an article about a specific company and how well it has performed over the past several years. The article outlines some basic financial ratios and how the company’s profitability has increased over the past several years. Now interested in the company, I decide to research the company in more detail. I read the annual report, study the balance sheet, income and cash flow statements, listen to the most recent conference call, analyze the company’s management, and review some financial ratios. As a result of all of this research, I make a determination about whether this company is a suitable investment candidate.
To summarize, in contrast with the top-down approach which stresses starting with the big picture and narrowing your focus to an individual company, the bottom-up approach emphasizes analyzing individual companies on their own merits and determining their chances of success completely independent of external factors.
A Blended Approach
Maybe you decide that don’t want to exclusively use either the top-down or bottom-up approach. Maybe you like to use a stock screener to come up with a few companies that meet your basic criteria. You then do some basic research on the resulting companies. You briefly review some financial ratios, but also think briefly about how the companies compare to other companies in their respective industries, and think about whether it is the right time in the economic cycle to invest in each company. Using the aforementioned steps you narrow the original list to two or three legitimate investment candidates.
Since you are reviewing both external conditions and information about the quality of the individual companies, you are using what I like to call the blended approach to generating investing ideas. I tend to think that most investors take this approach to one degree or another, and that it can also be a very successful approach if properly used.
In Conclusion
We have reviewed several different approaches that investors use to generate investing ideas. Regardless of which approach you choose, make sure the approach you decide to use makes sense to you and that you are persistent in your efforts. The best investors, even Warren Buffett, are constantly looking for new investing ideas. If you are diligent and consistent in your approach, you will be sure to find some quality investment opportunities. After all, developing the ability to pinpoint quality investment opportunities is the first step to becoming a successful investor.
Dan Cappel writes about investing and runs , a website that provides free tools that help investors research stocks and generate investing ideas.
People still ask is it wise to invest in gold? It has always been a solid investment, throughout history, and even more so today. Gold still holds an air of mystery, sure, we all know about gold, its history, jewelry, gold coins, gold watches, but how many of us have really owned gold, I mean, a substantial amount, more than a few grams?
How many of us have investigated gold investment, and where and how to it? It is simply a matter of knowing where to at the right price and from a secure licensed dealer. Providing you deal with the legitimate companies in the gold industry, your gold investment will provide you with the financial security you have dreamed about. If these criteria can be met, then the answer to should I invest in gold is always a definite yes.
Investors who purchase gold will find that they have a hedge against market crashes, political disasters, currency crises, economic turmoil, taxes and devaluation.
Gold has always been a steadying influence throughout history, with investors achieving financial security and stability, due to the steady rise in gold, a safe haven for their investments.
Most people would want to find an investment that is secure, that can’t nosedive. With rapid fluctuations in forex and stock markets, investors want a safe place to put their money, and there are many reasons why gold ticks all the boxes.
Governments can’t make gold, they can make paper money, which is devaluation, but gold holds its value. Gold has always been around and will be around for a long time yet, steadily, or rapidly rising in value. Gold is the one perfect investment instrument which has the means to survive any financial catastrophe.
The Chinese and the Indians are starting to invest heavily in gold, they are increasing their gold reserves, and so is Russia. Investors in these countries are also looking for safe investments, and of course, realize the value of gold. Many Governments have dropped restrictions on the purchase of gold and so it is now possible to store gold with very low overheads, making gold a very viable investment.
You now can take control of your investments and protect against inflation, and create wealth when others are seeing their finances deteriorate. Governments can always rescue themselves by printing more and more money. The US and UK are printing more money now than at any time in history. This of course makes your cash worth less, but it also means that gold is worth more, gold always rises when confidence in Governments is at its lowest, with confidence in the economy at an all time low and markets sliding, what do you feel confident investing in?
In a turbulent time, if you have invested in gold, you have secured your assets, which means peace of mind for the future. Your risk is minimal against other investments because it tends to outperform others in times of turbulence. Gold has quite rightly been called the ‘crisis’ commodity.
With the US Dollar falling over 40% since 2001, and stocks at an all time low, the dollar could soon be in freefall, but gold is still a solid haven for hard earned cash, why?
Because since 2001 the value of gold has increased by 150%, try beating that. Over the last eight years it has outperformed all markets, and unlike stocks which can quickly fall, gold remains valuable and stable. For gold to collapse in line with other markets, it would need to rocket to over $6,000 per ounce (I hope it does, but if it does get out quick). Gold remains stable, therefore, is a secure way to protect your money and assets.
As a more promising outlook for the economy emerges, the focus should then fall on the possibility of inflation, which will increase with time, therefore increasing the demand for gold. The demand for gold investment in 2008 increased by 10% over previous years, and is expected to rise year on year as supply dwindles.
Gold is still going strong despite many critics predicting a fall in gold prices during last year, of course this was not the case, the bubble did not burst, with gold investors making a steady profit, from $800 to $950 per ounce, and certainly not losing as predicted. Gold is not subject to a bubble, unlike real estate or stocks; it is very rare to see a sudden movement in precious metals. No, there was no crash, indeed gold proved what a reliable investment it is, with its price during the first half of the year still producing a steady return, and should continue to do so.
Summing up, gold has, throughout history always been a strong, reliable, solid investment. Crashes in the economy, stocks and real estate we have all seen, but who can remember a serious crash in gold? If you don’t believe it now, you never will.
A good investment?
Make up your own mind.
Raymond Carr has worked for government security for many years.He has also worked for a leading central gold bullion dealer and has also been a partner in a successful life coaching practice.A successful gold investor, he is proud to say that many people who have taken his advice on gold investing have enjoyed returns of over 30% in the last two years. If you would like to learn more about gold investing for the small investor go to > secretsofgoldinvesting.com
An Indian Medicine Bag can be an effective and amazing good luck amulet or good luck charm to have! These babies sometimes help people to WIN when they are gambling! Many investors have been known to sometimes use a ritual, spell, or a good luck coin, pair of dice, or other such Lucky item to help them make big gains!
Currency traders, day traders of stocks, and many other investors, both long term and short term, can also use some good luck and a powerful amulet or good luck charm, such as the Indian Medicine Bag might be able to help them from time to time!
Whether you bet fifty bucks on a football game, or a thousand dollars on a roll of the dice at a casino, or if you are trading foreign currencies by the minute, you could certainly use some Good Luck, and there’s no better way to attract some of that good luck or good fortune, than with a magical, mystical good luck amulet, such as the Indian Medicine Bag featured on the FatherTimePublishing.com website!
For countless centuries, man has played sports, and has often made bets on the outcomes of the games! During that time, many people have used various stones, crystals, dice, coins, bones, feathers, and other lucky items to bring them some good luck and to attempt to attract Fate on their side!
You don’t have to tell anyone if you have one of these in your briefcase or pocket, but they will be amazed when you begin winning like crazy! By the way, these types of good luck amulets, are always described (by law) as being for entertainment purposes only. Although we all know that they can sometimes have an amazing ability to turn your luck around and help a person to start winning lots of money! For less than the cost of a few fancy coffee drinks, what have you got to lose?
When you do eventually get on a huge winning streak, or make a big score, please donate some money to Breast Cancer Research! Thanks!
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Good Luck With All Of Your Games and Investments! May You Profit Greatly!
Many Blessings!
Father Time has been a published writer for over thirty two years and particularly focuses on motivational and self-help writing and speaking! He also has many years of experience and writes & marketing training and materials. He has a fabulous new eBook out that features over 111 Ideas How YOU Can Make Money From Home With Your Very Own Home Based Business!
Father Time currently does a lot of writing for hire, especially article marketing pieces for folks who have their own websites to promote. IF you have a website, you should contact him for some good writing to promote your site; right away! You will be glad that you did!
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There are a number of different types of investment available to today’s investor. One of these is buying into a company by purchasing stocks or shares.
When you stocks in a company you are essentially buying part of the company. You will receive a certain number of shares, depending on how many you have bought. The amount of profit or loss a company make will then affect the worth of your shares. The share value can go up or down, and you can sell at any time. So if you sell when shares are higher than when you bought them you will make a profit, while if they are lower you will make a loss.
There are many reasons why someone will make investments. Some would just like to make a little extra money by buying a few shares in a company they hope will grow, or continue to grow. Others though, look to make a significant amount and spread their investment around many investment opportunities, worth large amounts. This is obviously more risky. Some people invest as part of their retirement plans.
There are investors who really look at their investment as more of a project. This may be the case if they are investing in a company they are genuinely interested in or believe has a future. They may purchase a number of shares to try and have a say in the business.
That is one of the advantages or owning stock in a company. You have a part to play in decision making by having a vote on important issues. Normally when certain decisions are being made each person who owns shares will have a vote, with each share meaning a vote. Therefore someone who owns fifteen shares will have fifteen votes. A high percentage of shares, and therefore votes, will mean you can have a significant say in the direction the business takes. If you own 80% of a company’s shares then you have more say than everyone else put together. Having this amount of shares means you can really be part of the business.
Another major advantage in stock investment is that it typically out-performs other types of investment.
There is a risk with stocks, though, as shares can go down as well as up. Returns are never guaranteed. There are times when the value of a companies shares fall dramatically in a short space of time. It is therefore important to get out at the right time. If you envisage a fall it is best to sell while you can for a good price. The best time to sell your shares is when they are at their peak. If there has recently been a significant rise in the share price, you then have to decide whether to sell and make a good profit, or risk keeping hold of them and hoping the rise continues. This could mean massive returns, but could also mean they fall and your shares loose all of their value.
Investing in stocks is often all about timing. Buying shares just before they have a significant rise can bring an excellent return, but buying them just before a dramatic fall will have the opposite effect. The challenge is knowing the right time to and the right time to sell.
One of the best ways of generating a passive stream of income is by trading on the stock market. The allure and mystique of stock investing keeps many new investors from taking the plunge. This is unfortunate. Many people start a small investment businesses that start building wealth instantly. There is no real trick. There is no secrets. It is just a matter of mathematics. If you can follow patterns, are artistic, or are good at organizing then you should be able to follow the patterns and make money investing. Yes, there are pitfalls the uninitiated will fall in. And yes, those who do not follow the proven formulas, and do their homework, will end up losing money. But, this does not need to be the case. The Investor The word investing means ‘managing your resources so you can preserve your buying power and generate income. One you decide to ‘work as an investor, and you realize that it is a job as opposed to a hobby, then youll find yourself far ahead of the pack. The first step is to sit down with a blank piece of paper and define your goals. Be as critical as you can. Write down where you are now, including your debts. Calculate how much money you spend in a year on interest. Take a good look. If the average American paid down their credit card and overdraft debts they could generate more than $5000 a year in saved income. Next, ask yourself where you want to be in 10 and 20 years. Each of these charts should be on their own page. Do not try to combine them. The trick is to do this when you are not under pressure or stressed. Now, create a 10 and 20 year projection of the ‘lowest stage you want to be. This is the bare minimum lifestyle you want to be. Once you have this you can calculate the maximum and the minimum you need to earn each year. Most people reach this stage and quit. The amount looks impossible. They may need an extra $20 000 a year, or more to reach their goals. But, remember that investing builds like a snowball. For argument sake, lets say the new investor may start with $5000 and turn it into $8000 in the first year. But they will earn $12000 in the second year. That will turn into $20 000, $30 000, $50 000. Within ten years the investor may have a half million dollar portfolio that generates far more than they ever dreamed. Most new investors skip this step. It has nothing to do with investing. They want to start trading ‘right now. This is a mistake. The charts above will give you an idea of the risk level you need to take. Each time you make a purchase you will stop and ask yourself ‘is a vacation the best long-term investment for my money. They may decide to drive their car one more year before trading it in. The investor might decide to avoid luxuries for two or three years to ‘build their portfolio. This exercise has another benefit. It will teach the mindset followed by stock brokers and help new investors choose stocks like a pro. The Investment Broker The next step is to determine what type of investments fit your goals. High risk investments can earn money fast, but it can also lose money. How long will it take you to recover the loss? Some investors are good with investing for 5 – 10 years and patiently waiting to sell. Others cannot handle the suspense. They want to see the ‘fruits of their labors grow almost weekly. The risk and recovery period will play a significant roll in the stocks chosen. Todays investors are also starting to take a social and environmental look at their investments. Once you have a good idea which types of stocks you want, it is time to find a broker. The cost should be the first consideration. The type of trading should be the second. The Strategy There are a few good strategies out there. They are not secrets. You do not need to pay a guru $3000 and join their secret group to learn how to invest. These strategies are followed by everyone from ‘floor traders to the hobby investor playing from their computer. Once you have a goal, a good broker, and a strategy, you can start investing without fear.
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So you have decided that you are prepared to invest, but you are not sure where to begin. You have heard a large amount of talk about the lengthy paperwork and all the risks involved and you’d like to know a bit more about the process without feeling pressured to make one certain type of investment. Well, you’ve come to the right place. Some of the most straightforward forms of ( and investment generally ) are, naturally, savings accounts. However [*COMMA] money market deposit accounts ( which are usually competitive with money market retirement funds ) are basically the same, and interest rates can sometimes be up to 4 or five percent. There is not any risk involved in this type of investment. To participate in this form of online investing, simply head off to the website of your preferred bank to line up an account. Another secure, though less flexible form of investment is the certificate of deposit, or CD. Some buyers find this kind of online investing to be beneficial, as it is easier to let the funds grow ( since early withdrawal often ends up in loss of most or all of the interest already accumulated ). Next there are bonds. Interest on bonds is not taxed. Bonds are essentially a loan to a government or monetary establishment, which then must repay the buyer of announced bond. Like certificates of deposit, bonds have a specified term, at which all funds, with interest, must be repaid. These can regularly be a great sort of investment to combine with stocks, as bonds have a tendency to increase in worth when the stock market decreases, and vice versa.
The term that is, perhaps, most related to investment is stocks, which are thought to be highly dodgy, not to mention pricey. And, not all stocks are thousands of greenbacks per share. In the world of net investing, sharebuilder.com boasts of stocks at only $4 per share under certain membership conditions. Stocks, like bonds, are a form of loan-essentially loaning cash to a growing business that will then return that loan with interest. The neat thing about stocks, though, is that interest is not fixed and has the capability for a much larger return. However [*COMMA] if businesses start to decrease, that’s where the risk comes in. Never forget to look at www.prosper.com when you are looking at options for . Some people think of net investing as investing in online commodities ; while that could be a probability, don’t forget what has happened to the dot com market at the turn of the millennium. Usually, online investing speaks of looking online to find and apply for investment options.
Each of these options can be discovered in the world of online investing, which often provides step-by-step guides and online forms to help the method. Some notable sites are : www.scottrade.com ; www.sharebuilder.com ; and www.fidelity.com.
I got my english degree from Colorado State University and I have been writing ever since. I really enjoy writing and telling stories to people.
One of the fundamental issues in Finance is the relationship between risk and return. Investors are willing to commit their resources for a period of time in the expectation of receiving future cash flows that will compensate them for the time they have committed their money, the expected rate of inflation and the risk they have undertaken.
Individuals invest for a variety of reasons: for creating a retirement fund; for funding their children’s education; for putting a down payment on a new house. Organizations invest for numerous reasons: for creating payouts for their retired employees (pension funds); for providing scholarships (endowment funds); for providing adequate funds to policy holders when policies need to be cashed out or benefits need to be paid (insurance companies).
In any case, investing covers three basic needs:
Income: investments are made in the hope of providing future income. Investors are trading their money today for expected income streams that will outweigh the current outlay.
Capital preservation: investments are made to preserve capital. Investors put their money on conservative investments because they are not willing to undertake any risk. On the contrary, they are looking for the assurance that the funds will be available, with no risk of loss. In this context, capital preservation refers to the preservation of the real value of the investment as the nominal value will increase according to inflation.
Capital appreciation: investments are made so that capital grows in value and meet future needs. The goal for those investors who are wiling to undertake a certain risk is to grow their funds at a faster rate than inflation so that they enjoy a higher return on their investment after inflation and taxes have taken effect. Normally, investments made for capital appreciation involve risk exposure and risk can affect returns both positively and negatively.
Speculation refers to the undertaking of extra risk to achieve above-average returns in a relatively short-term horizon. Unlike investing, that is a well-informed decision after having taken into consideration a series of economic, market and company factors, speculating is, in effect, a betting on future movements of the market. Speculators take specific positions in the market, either by betting that the price of an asset will rise or by betting that the price of an asset will decline and use derivatives to get extra leverage.
For example, a US speculator believes that the British Pound will strengthen relative to the US dollar over the next 2 months and takes a position of 100,000GBP. The speculator buys 100,000GBP in the spot market hoping that GBP can be sold later at a higher price. We assume a spot price at 1.6580 and a futures price at 1.6530. If over the next 2 months the exchange rate rises to 1.7000 USD/GBP, the futures contract enables the speculator to realize a profit gain of (1.7000 – 1.6530) x 100,000 = $4,700. The spot market alternative gives a profit of (1.7000 – 1.6580) x 100,000 = $4,200. If over the next 2 months the exchange rate declines to 1.600 USD/GBP, the futures contract gives a loss of (1.6530 – 1.6000) x 100,000 = $5,300. The spot market alternative gives a loss of (1.6580 – 1.600) x 100,000 = $5,800. The difference between the two alternatives is that if the speculator goes with the spot price, he would have to make an initial investment of 100,000GBP x 1.6580 = $165.800, while if he uses futures contract he would deposit the margin account, that is an amount around $20,000. This how using derivatives allows speculators to gain leverage.
For Adam Smith, speculators are always ready to pursue short-term opportunities for profit; for John Maynard Keynes, their activities are aimed at forecasting the psychology of the market. On the contrary, investments forecast the prospective yields of the invested assets based on fundamental or technical factors that support investors’ expectations.
The problem between investing and speculating is that many investors do speculate although they are sure they don’t. For instance, investors who do proper analysis of the market know that they can hold a stock even if the stock price falls. If they are really savvy investors, they will increase their position in the particular stock to take advantage of its future uptrend. However, the opposite is true for speculators, who will sell the stock betting that the stock price will decline further. In general, speculation may mean different things to different people, but in its essence it has one original meaning, which is theorizing without a factual basis.
A freelance writer, top MBA graduate with Finance major, passionate about business, finance, history and music; this is pretty much me in a nutshell.
I provide high quality writing services since 2005 in the field of Business & Finance, Movie Reviews, Book Reviews, Health & Fitness, Internet and Relationships. I also have a very good knowledge of Politics and History.
My advanced familiarity with financial modeling, financial statement analysis, capital budgeting and market research has helped me a lot, not only to be a successful professional, but mostly to see life under a more creative and innovative perspective. Besides, having lived for two years in Chicago, IL and Boca Raton, FL and for quite some time in Paris, France has provided me with an international aspect and has enlarged the way I see and understand life.
I currently work as a financial and investment advisor at an international financial institution. Yet, my dream is to be able to make a living as a writer.
How do you explain to your children that someone who has just started a job has no experience, then wins a Nobel Prize – it is a kin to running a 100 yard dash and winning after running only 10 yards. How do you explain drug laws to your children, – most politicians actors, athletes take or have used illegal drug but if you do my darlings its against the law!
To the point how does one explain that they have invested in one of the largest companies in the world – a safe bet – and it goes bankrupt! My daughters look at me with frustration. Is dad really all together?
Dad, Mr. “X”, our neighbor, has just made millions of dollars; he bought shares of a penny stock – stock X that has the rights to explore some land in Northern Canada. He sold the stock at 500 times his investment Daddy, Mr.”X” is rich, you are not.
Well there 3 explanations come to mind –
(1) Stock X is controlled by criminals;
(2) Stock X was lucky and it so happened that it found “Eldorado”. (the proverbial needle in the haystack is easier to find;)
(3) Or Stock X has a solid foundation, good management, and a good marketing team.
So I must explain to my daughters that the chances that company X discovered the biggest gold reserve on the planet is highly unlikely – or as likely as me taking Angelina Jolie on a midnight cruise. I must explain to them that perhaps there was a little manipulation going on, payoffs, insider trading, which begs the question was Mr.”X” involved, or dare I say it aware of contraband marketing techniques.
Well, is their hope? Certainly no one will a stock if they don’t know about it. No one should a stock if it has no real asset, no solid management and not a good marketing plan.
So what am I saying – I told my daughters that if the fundamentals are in place – perhaps investment into the world of Penny Stocks is a wise move. After all did I really check to see if real fundamentals were in place before I bought General Motors?
So in a way my discussion with my daughters caused me to reflect – if I had listened to my own advice I would not have bought the Cadillac but would have been satisfied with a smaller investment in a foreign vehicle, say Mr. “X”‘s stock.
Well all is said and done – I don’t like Mr. “X”.
John Taylor
Pennystock-promoter.com
staff@Pennystock-promoter.com
JT was raised and educated in some the finest educational institutions in the world. He settled in Hong Kong a number of years ago
There are two terms in the English language that bring a smile those of us who are looking to make money with our savings – “the best” and “investing”. The problem is that not all of us can ever be sure these terms will consistently be used in one sentence to describe our performance when putting our money to work for us.
Today we’ll be looking at the term “the best” as it applies to the different ways of investing and gain a better understanding of what that means. And in to rate ourselves, it helps to put “the best” into context so that we can then determine how we measure up.
Best Place to Invest Money
Let’s start with the best place to invest money. Well, this differs from person to person. There are a number of factors to be taken into consideration when making any type of investment. Regardless of your choice of investment, the best way to invest is to do it intelligently.
The best way to invest money requires proper planning. Questions have to be asked of oneself to determine if it will be either a short-term or long-term investment. The resulting strategy to be used might actually be different. But one thing is for sure – money must only be invested where its value will continue to grow.
Have a plan with specific goals in mind. Then make a decision on the type of investment. If investing in stocks is your decision, be prepared to do the appropriate amount of research before spending any of your money. As a matter of fact, the same rule applies to any type of investing.
Hobbies are good examples of when investing can be fun and deal with a person’s passion for a specific focus of interest. Whether it has to do with coins, stamps, trading cards, paintings, etc., they take great pride on the money they spend on what they accumulate. And because they share a common passion with other individuals, for the most part, these investments bring value to them in interaction with others as the collection continues to grow.
But unless the collection contains some type of are commodity sought by other people, the chance of recovering one’s investment cannot always be guaranteed. These types of investors are OK with that because they see value not in what the collection can be sold for but rather the feeling of pride and accomplishment the hobby affords the collector.
If your thinking is that the stock market is the best way to invest money, do it right or else your experience can end very abruptly with the loss of all the funds committed by you to this activity.
Investing in the Stock Market
Saying that you want to invest in stock market assets may be interpreted differently by many people. It could be that you are either buying and selling shares in publicly-traded companies or mutual funds, trading stock options, trading currencies, and so on.
If you’ve decided on stocks, the natural assumption is that you have not only looked at stock prices for companies that are of interest to you but have completed a proper analysis. This includes reviewing stock market history for these companies along with looking at stock charts to ensure their stock market results are heading in the direction you want.
Everybody knows the stock market attracts many investors. For the most part, stock prices are reasonable and stock market results can be amazing. A large percentage of the population consider stocks as the best place to invest money.
Investing in stocks is an activity that can help increase your net worth. That is if you do it properly. Shares in publicly-traded companies fall into one of about a dozen major stock sectors. Regardless of the stock sectors, companies fall into one of three different classes each of which can be further classified into one of five separate categories.
Stock prices for shares in companies can be in a range from pennies to over a hundred thousand dollars each. Smart investors do the proper research and analysis of companies that are of interest to them before spending any money.
But unfortunately, most investments made without the proper up-front work can also turn out to be very disastrous. That’s one of the reasons why many people use stock market history, stock charts, stock market metadata analysis as well as a number of other sources of information to help plan their buying and selling decisions.
Why does the stock market attract so many investors? The answer is probably because stock market results can be amazing. But unfortunately, most investments made without the proper up-front work can also turn out to be very disastrous. That’s one of the reasons why many people refer to stock market history, stock charts, and a number of other sources of information like stock metadata reports on the company before make their buying decisions.
The best stocks to are those that consistently appreciate in value. It also helps if they pay dividends. The problem is deciding on a specific stock to invest in. One way to start is by examining companies that you are familiar with and whose products and services you use. Look at publicly-traded companies with good reputations.
Popular Investing Techniques
There are some stock trading trends that have been gaining popularity, more specifically, buying stocks online and day-trading stocks.
Buying stocks online has become an ever growing phenomenon. Investors and traders alike seem to enjoy the power of doing the deal without the help of a broker. Because online access is a 24-hour event, people have the ability to immediately check on the latest stock prices and stock charts for companies of interest to them.
Day-trading stocks can be very exciting and quite profitable, that is if you know what you’re doing. It’s a game where timing is everything. Make the right decision and you’re a hero. The wrong decision and you’re a loser.
Day trading is most often done by stock traders who do the deal when stock prices are right for them. They can be going long or short on a specific number of shares because they know the target company’s stock market history and stock market results.
Regardless of the technique or approach you finally decide to use, there are always some basic steps that must be followed when investing in stocks. Check out the stock market history and more specifically, the direction of prices for the stocks. Then compare the performance of those company shares to stock market results for companies in similar stock sectors. How do they compare to overall stock market results?
Remember to always analyze a company’s stock performance over an extended period of time. Carefully review the available stock metadata to determine facts like how much the price can typically vary during the day, when their stock prices are usually at their highest or lowest points during the day, and so.
But no matter if you use do your investing online or follow the time-proven standard of using a reliable stock broker with whom you have a good business relationship, you still have to complete the work necessary to ensure your investing success when buying or selling stocks.
Remember, always refer to the stock metadata reports on companies in which you want to invest. This can help you spot directional trends that these stocks may be following. If you are unfamiliar with stock market metadata, which is also simply referred to as stock metadata, more information can be found .
Numerous examples of stock metadata reports can be found on the page of the site. It also helps to review their stock charts which you can easily find online. Links to this type of information can also be found there.
Closing Comments
Although the stock market dropped quite a bit over the past year, indications show the economy is improving and with that, the market is going up. Now only time will tell if stocks will be the best investment for people to make.
Stan Pokutylowicz is a senior Information Technology consultant who has been providing his services to major industry sectors (automobile manufacturing, airplane manufacturing, banking, engineering, food production, pharmaceuticals, rail transportation, telecommunications, etc.) across North America. He is recognized as a methodology expert (SDLC and PMM) and has both taught and coached Information Technology project team members the skills they need to deliver results, on time and within budget.
Stan has combined his technology skills with his passion for helping people understand the stock market. He is the System Architect and site-design specialist for .
