Archive for January 13th, 2010

A US Dollar crash is looming. Analysts are of the opinion that the Dollar is headed towards a historic crash. US Dollar (USD) is already down by one third against most of the major currencies. Many analysts consider USD to be strongly bearish.

What can cause this USD crash. Warren Buffet gave a hint of this when he said that the frentic spending that is going on coupled with massive money creation will cause the USD to face a crash of historic proportions. This crash may even be more severe than what happened in 1970s. Now in 1970s too, USD had crashed due to the massive inflation caused by the government overspending during the Vietnam War. This time too, the US government is taking refuge by printing massive amounts of greenbacks to bailout bankrupt banks and insurance companies. This massive money creation is eventually going to make inflation uncontrollable for many years to come. Inflation could not be controlled during the 1970s decade. It was only controlled when Paul Volckar became the FED Chairman. He increased the interest rates so high that the economy went into recession. But it also ended the inflationary cycle. This time, the FED Chairman wants to save the financial system and ward off recession by increasing the money supply. Eventually, he will have to deal with high inflation later on. He knows it. The market knows it. This makes the market nervous and is putting a lot of pressure on USD. Continue reading ‘Market Timing – Dollar Crash Looms With Pressure on Pound Mounting and Danger of Bonds Market Crash!’ »

This article considers what advantages and disadvantages ETFs offer the individual investor, and what other factors the individual investor should consider prior to making an ETF investment.

Advantages of exchange traded funds

ETFs offer the private investor a number of advantages. These include:

Market access:

As above, ETFs give investors unprecedented exposure to international stock markets, as they span nearly every available indexed equity class.

Cost:

ETFs are a cheap, efficient and direct means for investors to get exposure to equity markets. An ETF investment typically has low transaction costs (avoiding front-end charges, early redemption penalties or exit charges, and high service charges) and can be tax efficient.

Flexibility:

ETFs offer great flexibility for the individual investor, who is now no longer faced simply with the binary choice between direct stock ownership and diversification via mutual funds. The individual investor can trade in ETFs regularly, and can use ETFs in a variety of different ways. Continue reading ‘ETF Investment – What Are the Advantages and Disadvantages?’ »

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The best investment management can be pricey, but you can get the best investment management in 2010 and beyond that is affordable for less cost than you think. The truth is that in the investment world you don’t always get what you pay for. Here’s how to get the best investment management at the best price.

There are at least 3 myths in the world of investment management. One, that rich folks get the best management and always make money. Two, that investors get what they pay for. Three, that average people can’t afford professional money management. The truth of the matter is that very few investment advisers or managers consistently outperform the market averages; and fewer yet do so and make profits for their clients every year.

For example, rich folks (qualified investors) often pay 2% a year plus 20% of profits to invest money in a HEDGE FUND. Sometimes they get great investment returns, and often they don’t. Sometimes the rich get scammed by money management organizations that somehow fly under the radar of government regulation as well. Continue reading ‘The Best Investment Management For You in 2010 & Beyond’ »