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	<title>Fund Hot News &#187; Investments</title>
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		<title>Absolute Return Investing &#8211; Fixing the 3 Biggest Reasons Why Traditional Investments Lose Money</title>
		<link>http://fundhotnews.com/absolute-return-investing-fixing-the-3-biggest-reasons-why-traditional-investments-lose-money/</link>
		<comments>http://fundhotnews.com/absolute-return-investing-fixing-the-3-biggest-reasons-why-traditional-investments-lose-money/#comments</comments>
		<pubDate>Fri, 20 Jan 2012 07:38:18 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Investing]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Lose Money]]></category>
		<category><![CDATA[Money]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=1013</guid>
		<description><![CDATA[How have your investments been doing over the last year or two? Probably not so well. Would you like a way to prevent a repeat performance? Read on to find out how the absolute return approach to investing can help you grow your money quickly &#8212; yet safely.
There are three reasons why people lose money [...]]]></description>
			<content:encoded><![CDATA[<p>How have your investments been doing over the last year or two? Probably not so well. Would you like a way to prevent a repeat performance? Read on to find out how the absolute return approach to investing can help you grow your money quickly &#8212; yet safely.</p>
<p>There are three reasons why people lose money in the stock market, all of which are reduced or eliminated by absolute return investing: Emotional decisions, mutual funds, and the buy &amp; hold approach to investing. Fortunately, the absolute return investing approach has the perfect fix for all three of them.<span id="more-1013"></span></p>
<p>1) Emotional Decisions</p>
<p>Our gut may be reasonably good at telling us whom we should fall in love with. But it&#8217;s not at all good at telling us which stocks to pick. Or when to buy and when to sell.</p>
<p>Absolute return investing takes the emotions out of the decision-making process. A sophisticated computer, fed with all the right programs and analytics software &#8212; and all the data it needs &#8212; will make the decisions for you.</p>
<p>2) Mutual Funds</p>
<p>Mutual funds seem so easy. You just pick some good ones, put them in your portfolio, and then you keep your fingers crossed. However, all that ease comes with a big price tag. First, there are the fees that will be deducted from any gains &#8212; and will still be deducted from your principal even when the funds lose money.</p>
<p>In addition, most funds are pitiful underperformers even as compared to their very own benchmarks. That&#8217;s because even though they probably contain a few good stocks, they also contain a lot of clunkers.</p>
<p>Fortunately, absolute return investing will eliminate the clunkers from your portfolio. Stocks are selected for high performance under hundreds of criteria &#8212; and if any of them should stop performing well, they&#8217;re dropped from the portfolio.</p>
<p>3) Buy &amp; Hold</p>
<p>It sounds so noble: Buy and hold! Don&#8217;t be swayed by the scary gyrations of the market! Hang in there! Show some courage and faith!</p>
<p>Ouch! That&#8217;s how a huge amount of money was lost over the last couple of years. The problem? Most people wouldn&#8217;t know when to sell if they tried.</p>
<p>The absolute return investing approach, however, hinges on making exactly those decisions, and making them correctly. Sophisticated computer models analyze numerous indicators and can thus predict the likelihood of a recession.</p>
<p>There are no guessing games involved when it comes to deciding whether it&#8217;s a good idea to stay in the stock market or not. And neither will there be guessing games about when it&#8217;s time to dive back in. In the meantime, the money is held in cash, ready to be deployed again as soon as it&#8217;s safe.</p>
<p>Where can you find absolute return investing? Find a financial advisor who uses it as his or her main approach. Be sure to ask your prospective advisors about their results as well. If they truly work the model, their results should be superior, and they&#8217;ll be proud to show them to you. If they&#8217;re trying to hide behind &#8220;confidentiality,&#8221; run the other way.</p>
<p>You should also ask them how they&#8217;ll get paid. If they work on commission, they won&#8217;t be working for you, and their recommendations may not be in your best interest. Instead, look for a fee-only financial advisor who uses the absolute return investment model and won&#8217;t try to push mutual funds.</p>
<p>So let&#8217;s recap: The best way to fix the biggest mistakes investors make is to move to absolute return investing. This way, you can enjoy a low stress and high-yield approach to investing that allows you to minimize any losses and maximize gains.</p>
<p>Check out fee-only investment advisor <a href="http://www.feeonlyfinancial.net/steven-floyd.php" target="_blank">Steven Floyd</a>&#8217;s free 1 hour video to learn all about it. Steven has been assisting senior investors for the past eight years, helping them protect their principal and ensure that their money will last. And if you have questions or would like to discuss your own portfolio needs, just call Steven at 310-540-6197.</p>
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		<title>High Rate Investments That Have Consistent Yields and Short Duration</title>
		<link>http://fundhotnews.com/high-rate-investments-that-have-consistent-yields-and-short-duration/</link>
		<comments>http://fundhotnews.com/high-rate-investments-that-have-consistent-yields-and-short-duration/#comments</comments>
		<pubDate>Tue, 27 Dec 2011 19:40:04 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Investing]]></category>
		<category><![CDATA[Consistent Yields]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Short Duration]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=835</guid>
		<description><![CDATA[One of the less known high rate investments is the binary options trade. With a typical payout in the sixty to seventy five percent (60-75%) range and a holding period in many cases of less than an hour it is among the highest yielding investments ever created. I can&#8217;t even begin to try to compute [...]]]></description>
			<content:encoded><![CDATA[<p>One of the less known high rate investments is the binary options trade. With a typical payout in the sixty to seventy five percent (60-75%) range and a holding period in many cases of less than an hour it is among the highest yielding investments ever created. I can&#8217;t even begin to try to compute what the compounding rate of return on a binary option would be.</p>
<p>When Thinking of High Rate Investments, Do You Think of&#8230;<br />
When people typically think of high rate investments they think of perhaps day trading forex on margin, or buying stock options, or perhaps buying penny stocks but in truth none of these investments can be traded with the consistency and yield of a binary option trade. The key to understanding what makes a binary option different is that all of the elements of the contract are fixed at purchase. The strike price equals the spot price at purchase. The expiration is at the top of the hour or the end of the day. The payout is a fixed percentage depending on the amount invested and whether the trade is a in the money or out of the money result. Nothing is left to chance except the binary nature of the result &#8211; in the money or out of the money.<span id="more-835"></span></p>
<p>What Other Types of Fixed Return Investments Have Similar Structure?<br />
The only similar investment that comes to mind in terms of its rigid structure is a bank CD, which has a fixed payout based on amount invested and a percentage yield set at initial purchase. Having said that, I don&#8217;t think anyone will ever confuse a CD with high rate investments.</p>
<p>Check out some examples of how binary options act as high rate investments, and compare them to other similar but unpredictable and highly leveraged <a href="http://www.squidoo.com/high-rate-investments" target="_blank">high rate of return</a> investments.</p>
<p>Steve B. Wise</p>
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		<title>Mutual Funds &#8211; The Down-to-Earth Basics</title>
		<link>http://fundhotnews.com/mutual-funds-the-down-to-earth-basics/</link>
		<comments>http://fundhotnews.com/mutual-funds-the-down-to-earth-basics/#comments</comments>
		<pubDate>Mon, 26 Dec 2011 07:37:31 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Mutual-Funds]]></category>
		<category><![CDATA[financial guide]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Investments]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=887</guid>
		<description><![CDATA[Mutual funds are designed for average investors who wants to invest but do not want to select and manage investments like stocks and bonds on their own. In other words, they are the investment of choice for most people.
When you invest in them, professional money managers deal with all the details. You select the fund(s) [...]]]></description>
			<content:encoded><![CDATA[<p>Mutual funds are designed for average investors who wants to invest but do not want to select and manage investments like stocks and bonds on their own. In other words, they are the investment of choice for most people.</p>
<p>When you invest in them, professional money managers deal with all the details. You select the fund(s) you want to invest in and they do the rest for you. The average person can have a diversified and balanced portfolio of securities (investments) by simply owning shares of the appropriate mutual funds.<span id="more-887"></span></p>
<p>If you know little about how to invest, you might want to know if mutual funds are good investments. The answer to that question is that the less you know about investing, the more attractive mutual funds are. I&#8217;ll take that a step further. Most people who invest in stocks and bonds and other investments on their own would be better off just owning mutual fund shares, because few of them are capable of managing a portfolio (list) of investments on their own.</p>
<p>So, getting down-to-earth, you need to know your choices before you rush out and invest in mutual funds. Here they are in a nut shell.</p>
<p>There are 4 basic types of mutual funds based on what they invest in.</p>
<p>MONEY MARKET FUNDS are the safest and they pay interest in the form of dividends. These funds invest in safe short-term IOUs like CDs and U.S. Treasury bills, the safest investment in the world. The value of these funds does not fluctuate.</p>
<p>BOND FUNDS pay higher interest, also in the form of dividends. There is moderate investment risk here, and the value of your investment will fluctuate. These funds invest in bonds.</p>
<p>STOCK FUNDS are the riskiest type of fund, and there are many varieties. This is where investors go for higher returns (profits). The share price (value) can fluctuate significantly, because these funds invest in stocks.</p>
<p>BALANCED FUNDS go by various names. Examples include asset allocation funds, lifecycle funds, and target retirement funds. All of them invest in some combination of the three types of investments mentioned in the above three fund types.</p>
<p>There are 2 basic types of mutual funds based on how you buy them and what it will cost you to buy (or sell) and own them.</p>
<p>LOAD FUNDS are sold to you by someone in the investment business. You pay a commission or sales charge (called a LOAD) to buy, hold or sell these funds. Yearly expenses are also deducted from each fund you own.</p>
<p>NO-LOAD funds you must purchase on your own, traditionally through a mutual fund company directly. For your efforts you avoid a sales charge (load). Yearly fund expenses still apply, but if you know where to shop, they can amount to less than 1% a year.</p>
<p>There&#8217;s a lot more to learn, but now you know the bare-bones basics.</p>
<p>A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals. Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to<a href="http://www.investinformed.com/" target="_blank"> http://www.investinformed.com</a></p>
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		<title>Mutual Funds Are Not Your Friends</title>
		<link>http://fundhotnews.com/mutual-funds-are-not-your-friends/</link>
		<comments>http://fundhotnews.com/mutual-funds-are-not-your-friends/#comments</comments>
		<pubDate>Sat, 26 Nov 2011 07:37:41 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Mutual-Funds]]></category>
		<category><![CDATA[Investments]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=698</guid>
		<description><![CDATA[There&#8217;s a huge conflict of interest in the mutual fund industry. If you don&#8217;t understand what it is, you are likely to get badly hurt. If you own a mutual fund, then keep reading.
We&#8217;re going to review the conflict of interest that exists in the world of mutual funds and Wall Street financial planners. I [...]]]></description>
			<content:encoded><![CDATA[<p>There&#8217;s a huge conflict of interest in the mutual fund industry. If you don&#8217;t understand what it is, you are likely to get badly hurt. If you own a mutual fund, then keep reading.</p>
<p>We&#8217;re going to review the conflict of interest that exists in the world of mutual funds and Wall Street financial planners. I call the whole scheme, the fund managers, financial advisors, regulators and legislators, the investment-industrial complex.  The problem is, their earnings and your earnings run in different directions.<span id="more-698"></span></p>
<p>Their combined job is to make sure your earnings keep flowing to them.</p>
<p>Let&#8217;s start with mutual fund families, or mutual fund companies. These companies are paid from assets under management, and fees are charged based on assets under management. &#8220;Assets under management&#8221; is your money, your future, your retirement, and your kids&#8217; future. The funds are not paid on performance. They&#8217;re paid on how many dollars they can manage. This means the attention of the managers of fund families, their focus, is going to be on getting more assets under management and more fees to charge and not on investment performance.</p>
<p>This is a huge conflict of interest with the investor, you and me. This means that because most of the companies that manage money are publicly traded, they&#8217;re going focus on how to increase fees and how to get more assets under management.</p>
<p>The first duty of the board of directors of a fund family or a fund company is to its shareholders and not to the people investing in the fund, not to the investors. This is also true with banks. The only job of the board of directors of every publicly traded bank and money center (which are essentially large banks) is to focus on the needs of the shareholders. So they do what&#8217;s best for the shareholder and not for the investor.</p>
<p>Here&#8217;s an example: T. Rowe Price is a publicly traded mutual fund company. They&#8217;re a fund family. From 2001 to 2005, their assets under management grew 70%. Now, during the same time period, their stock price grew 250%. During this time, the stock market itself grew minus 6%, and TRP pretty well matched that. So you lose six percent of your wealth, and the mutual fund company grows their stock price 250%. I would call that a disconnect. This means that for these companies&#8217; managers, their job is to do what&#8217;s best for the shareholder and not for the investor. That&#8217;s a huge systemic disconnect.</p>
<p>Here&#8217;s another example: The chief investment officer (the CIO) of this same investment fund company had $100 million in company stock, but only $1 million invested in the mutual fund that this company managed. This was back in 2005. He was really not investing in the same investment that you and I were invested in.</p>
<p>Now, I&#8217;m not just picking on T. Rowe Price. They&#8217;re very large, and most people know them. Most fund families have the exact same thing going on. Another officer in this company, Edward Bernard, sat on 80-plus mutual fund boards in 2006. In that year, the most he had in any one of those mutual funds was about $100,000, but he had over $20 million in the stock of the parent company, with another $40 million in stock options. Which investment does it appear he personally believed in? Where was his allegiance during 2006; was it to the investors who put their retirement money and their savings money and their college money into the mutual fund, or was it to the company&#8217;s performance and its shareholders?</p>
<p>This problem is systemic, a problem that is not going to go away or change. Take any publicly traded mutual fund company or financial advisor company. These companies all have the same underlying motivation. Of the 50 largest mutual fund companies, more than 40 are either publicly traded or owned by large conglomerates that are publicly traded. It means their allegiance is to the shareholders &#8211; and their personal wealth &#8211; and not to you and me.  That&#8217;s why they always focus on increasing assets under management and increasing fees, because that makes for a higher share price.</p>
<p>In the examples I used before, where these officers had $50 million and $100 million in stock, their allegiance is to the profit of the company and not the investor. It&#8217;s simply their only job. So if you think someone in the mutual fund industry is watching out for you, think again. They watch your money, all right, because your money makes them rich, not you.</p>
<p>RC Peck, CFPÂ®<br />
Registered Investment Advisor, Founder of Fearless Wealth<br />
Investment Education for Successful Professionals.</p>
<p>http://www.fearlesswealth.com</p>
<p>With over 20 years of investment success, RC Peck is a Certified Financial Planner, Registered Investment Advisor, and an NLP Practitioner, which means he knows what you should do to grow your money and how to get you to do it.</p>
<p>RC has recently released a special report called, &#8220;29 Minutes to Investment success,&#8221; which outlines &#8220;One Tool&#8221; that causes mutual fund managers to tremble and stockbrokers to weep with fear.</p>
<p>Discover how the &#8220;One Tool&#8221; can revolutionize your investments today. Click here to get the &#8220;One Tool&#8221; http://<a href="http://www.thestockmarketstrategy.com/" target="_blank">www.TheStockMarketStrategy.com</a></p>
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		<title>How to Triple Your Investments Overnight With Automated Stock Trading Picks</title>
		<link>http://fundhotnews.com/how-to-triple-your-investments-overnight-with-automated-stock-trading-picks/</link>
		<comments>http://fundhotnews.com/how-to-triple-your-investments-overnight-with-automated-stock-trading-picks/#comments</comments>
		<pubDate>Fri, 28 Oct 2011 19:40:48 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Automated Stock Trading]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Stock trading]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=572</guid>
		<description><![CDATA[The stock market is a great place to supplement your income and now that this recession is beginning to turn there is honestly no better time to begin investing than right now with so many stocks bottomed out and ripe for the picking. There a lot of great investments to make right now and here [...]]]></description>
			<content:encoded><![CDATA[<p>The stock market is a great place to supplement your income and now that this recession is beginning to turn there is honestly no better time to begin investing than right now with so many stocks bottomed out and ripe for the picking. There a lot of great investments to make right now and here is how to identify them to triple your investments overnight in the stock market with automated stock trading picks.</p>
<p>Penny stock profit is an automated stock trading program which specifically deals in penny stocks and generating effective penny stock picks. How it works is by constantly analyzing real-time market data and finding profitable stock picks by factoring in the past with every pick.<span id="more-572"></span></p>
<p>This form of trading with the full scope of the market in mind is very effective because the market repeats itself every several years through patterns which repeat themselves, so by looking for overlaps between the past and present this automated stock trading program can find the origins of profitable trends in certain stocks.</p>
<p>Penny Stock Prophet&#8217;s focus on entirely penny stocks is a major advantage. Penny stocks are much cheaper than other stocks and as such they are more easily influenced in the market with less trading activity. As such it&#8217;s quite common to see a penny stock greatly fluctuate in value over a short period of time and if you have the right information you can easily exponentially increase your investment quickly.</p>
<p>For example, the very first penny stock pick which I received from profit was stock valued at $.18 a share. I bought 1000 shares or so via my online trading account and I checked back on the stock later that day to find it jumped to $.41 a share, effectively doubling over the course of the day.</p>
<p>I began checking on that stock on and off as it continued climb from the top and $.59 a share more than tripling overall by the time I got now I tripled my initial investment. There literally is no better feeling than seeing a stock which you are invested in steadily climb and climb.</p>
<p>I especially recommend Penny Stock Prophet for anyone looking to make money in the stock market but for those who haven&#8217;t had a lot of experience doing so. All the analysis work is done for you so that all you&#8217;ve got to do is enact the trades.</p>
<p>I&#8217;ve put together a more elaborate review of this automated stock trading program which you can review at<a href="http://www.yourreviewsite.com/penny-stock-picker.html" target="_blank"> http://www.yourreviewsite.com/penny-stock-picker.html.</a> Don&#8217;t put off realizing your financial independence any longer, give it a risk free try today.</p>
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		<title>Best Investments in a Down Economy</title>
		<link>http://fundhotnews.com/best-investments-in-a-down-economy/</link>
		<comments>http://fundhotnews.com/best-investments-in-a-down-economy/#comments</comments>
		<pubDate>Fri, 07 Oct 2011 17:20:39 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Mutual-Funds]]></category>
		<category><![CDATA[Best]]></category>
		<category><![CDATA[Down]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Investments]]></category>

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		<description><![CDATA[A down economy often translates to poor investment and return opportunities for business owners. This gave birth to the notion that it is unwise to invest during a recession. However, if you are to look at how the economy and cash flow works closely, you&#8217;ll find out that there are investments that are worth the [...]]]></description>
			<content:encoded><![CDATA[<p><!--</p>
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<p>A down economy often translates to poor investment and return opportunities for business owners. This gave birth to the notion that it is unwise to invest during a recession. However, if you are to look at how the economy and cash flow works closely, you&#8217;ll find out that there are investments that are worth the risk even if the economy stinks. Listed below are three of the best investments in a down economy.</p>
<p><span id="more-1940"></span></p>
<p><strong>Real Estate</strong></p>
<p>This may not look very appealing to you at first, but wait until we explain our reasons for including real estate in this list. Sure, it is possibly the real estate industry which have caused the economic downturn, but that is the exact same reason to think about looking at the opportunities that lies behind. A down economy would bear real estate prices down. Therefore, it is the excellent time to make a purchase!</p>
<p>If you are a business owner looking to develop your business soon, commercial spaces are a lot cheaper to own or to rent during a down economy. In addition, buying real estate properties with intentions of selling them in the future is also a proper move. After all, as soon as the economy recovers, real estate prices will recover as well, giving you tripled returns for a relative low investment.</p>
<p><strong>Precious Metals</strong></p>
<p>The rarity of precious metals like gold, platinum and silver makes them a right investment all throughout the year, even during economic downturn. Precious metals provide the guaranteed return of investment because people just love them. And when demand rises without enough provide to encounter it, prices go up which is satisfactory news to anyone who has invested on these metals. Gold also has a continually increasing demand because most currencies are still dependent on the number of gold in possession of the country.</p>
<p><strong>YOURSELF: Education, Career and Business</strong></p>
<p><!--</p>
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<p>Probably the excellent investment that you can create during a recession is to invest in yourself. During an economic downturn, layoffs are a natural instance. Keepsafe your current situation by being irreplaceable. Bank on your skills. Take courses. Alternatively, you can also select to become your own boss and invest on your own business. Your own business, unlike all other investments mentioned, offers you the resilience to command its fortune. In addition, investing on a business in a down economy also allows you to begin on a short capital with prices of commercial spaces and manpower at smallest level. Definite, income may not be impressive at primary, but economy would finally recover and you would be a happy business owner by then.</p>
<p>Your decision to invest even during an economic downturn would only prove to be profitable if right considerations are made. Carefully study your resources, your intentions and your goals. Knowing what you can manage at the instant and what you contemplate to execute with your investment in a specific duration of time will support you determine the excellent investment that you can create in a down economy. Develop a future forward thinking and you should be marvellous.</p>
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		<title>Sector Rotation Investing &#8211; How to Uncover the Hottest Stock Market Investments</title>
		<link>http://fundhotnews.com/sector-rotation-investing-how-to-uncover-the-hottest-stock-market-investments/</link>
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		<pubDate>Fri, 07 Oct 2011 07:37:42 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Investing]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Stock market]]></category>
		<category><![CDATA[Stock Market Investments]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=496</guid>
		<description><![CDATA[Sector rotation is the practice of shifting investments through the course of a regular business cycle into sectors that are expected to perform the best in each phase of the business cycle. Within each phase of the business cycle there are different economic factors at work and some sectors will thrive while others will struggle. [...]]]></description>
			<content:encoded><![CDATA[<p>Sector rotation is the practice of shifting investments through the course of a regular business cycle into sectors that are expected to perform the best in each phase of the business cycle. Within each phase of the business cycle there are different economic factors at work and some sectors will thrive while others will struggle. By investing in the strongest sectors of the current phase of each economic cycle, practitioners of sector rotation are able to significantly boost their investment returns. Instead of investing in the entire stock market index, why not invest in the top performing sectors and harvest greater investment gains? Not only are greater investment gains made, but the process automatically weeds out poor performing sectors of the economy.</p>
<p>The Leverage Effect of Sector Rotation</p>
<p>Over time, following a sector strategy in your investment portfolio will have a magical compounding leverage effect. Time is your greatest friend with this strategy as you will find that in the long run you will avoid making investments in poor performing areas of the economy. What this does is creates an upward bias to your long run performance results by avoiding any significant declines in your portfolio value. Over time, your portfolio does not have to work as hard as other portfolios fully exposed to the market index.<span id="more-496"></span></p>
<p>Bear Proof Your Portfolio</p>
<p>The mutual fund industry has brainwashed investors to just blindly &#8220;buy and hold&#8221; investments forever, and to stay invested no matter what the stock market or economy is doing. This buy and hold strategy has decimated millions of retirement portfolios during the 2008 bear market, and some may never recover their past portfolio values for the rest of their lifetime. Why didn&#8217;t anyone think to sell equities and shift into bonds or treasuries at the start of the bear market? Practitioners of a sector strategy saw the shift and rotation of capital months before the market started to crash and were able to get their capital onto the safety of the sidelines.</p>
<p>Buy and Rotate, Not Buy and Hold</p>
<p>Why ride down a market decline by 50% buy holding losing investments? If you do that, it will take a 100% return on your shrunken portfolio value just to get back to a break-even starting point. With sector rotation you never get attached to your investment holdings because you know in advance you will be exiting them as soon as the business fundamentals favor better sectors. Once new sectors emerge as market leaders you simply rotate out of your old sectors and into the new ones. It really is that simple.</p>
<p>The Automatic Asset Allocation Effect of Sector Rotation</p>
<p>The real secret of portfolio sector rotation is knowing what asset classes are outperforming the markets. There are several famous studies on asset allocation strategies that have concluded that asset allocation accounts for over 92% of an investments performance success. The hidden beauty of a sector rotation strategy is that the process automatically allocates your portfolio holdings into these top performing asset classes. Over the long run these asset allocation decisions will have a powerful effect on the future value of your investment portfolio.</p>
<p>How to Started with Sector Rotation</p>
<p>Implementing a sector rotation strategy inside your own portfolio can be easily achieved after a little reading and understanding of the 11 basic sectors in the economy, the 4 phases of the business cycle, and knowing which sectors perform best in each phase. For those that need a little more confidence you should read more about how to identify the business cycles and which sectors perform best in the Sector Rotation Model. By reading and understanding the basic sector timing model you will see it is quite easy to follow as it lays out exactly which sectors will perform the best during each phase of the business cycle.</p>
<p>Sector rotation is best practiced with a longer investment time horizon in mind, and inside tax deferred accounts like 401Ks, IRAs, Thrift Savings Plans, and Roth IRAs. With a little reading and research almost anyone can develop a simple sector rotation model. If you don&#8217;t have the time there are many free resources and newsletter subscriptions that can offer sector rotation advice to follow.</p>
<p>S.A. Smith is a freelance author, writer, and contributor to several investment portals including <a href="http://www.sectortimingreport.com/" target="_blank">http://www.SectorTimingReport.com</a> &#8211; The Next Generation of Market Timing</p>
<h4>Incoming search terms:</h4><ul><li>nrss indicator</li><li>best fund sectors for 2012</li><li>best sectors to invest 2012</li><li>sector rotation for business cycle for 2011 and 2012</li><li>sectors to invest in 2012 malaysia</li><li>sector rotation strategy 2012</li><li>sector rotation for 2012</li><li>nrss indicator and sector rotation</li><li>market sector rotation 2012</li></ul><!-- SEO SearchTerms Tagging 2 Plugin --><p>There are no posts related to Sector Rotation Investing - How to Uncover the Hottest Stock Market Investments.</p>]]></content:encoded>
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		<title>Is it the Right Time to Buy Biotechnology Investments?</title>
		<link>http://fundhotnews.com/is-it-the-right-time-to-buy-biotechnology-investments/</link>
		<comments>http://fundhotnews.com/is-it-the-right-time-to-buy-biotechnology-investments/#comments</comments>
		<pubDate>Mon, 05 Sep 2011 17:21:49 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Mutual-Funds]]></category>
		<category><![CDATA[Biotechnology]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Right]]></category>
		<category><![CDATA[Time]]></category>

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		<description><![CDATA[July has been a good month for biotech investors. Share prices in the biotech sector as measured by the NYSE Biotechnology Index are up 24% compared to the 6.6% gain for the S&#38;P 500. Earlier in the month, Amgen (AMGN) reported better-than-expected results from a trial of its experimental bone-protecting drug denosumab in patients with [...]]]></description>
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<p>July has been a good month for biotech investors. Share prices in the biotech sector as measured by the NYSE Biotechnology Index are up 24% compared to the 6.6% gain for the S&amp;P 500. Earlier in the month, <strong>Amgen</strong> (AMGN) reported better-than-expected results from a trial of its experimental bone-protecting drug denosumab in patients with advanced breast cancer. Amgen&#8217;s shares vaulted 16% on the news.<br />In the week just ended, the momentum in biotech shares has continued further. While a host of favorable clinical trial results was the bigger driver, a large buyout announcement added the icing to the cake.</p>
<p><span id="more-1838"></span></p>
<p><strong>Clinical Trial Results</strong></p>
<p>Bringing back memories of the dotcom era, shares of <strong>Human Genome Sciences</strong> (HGSI) rose nearly 300% to $12.50 a share after the company reported favorable results for its experimental lupus drug Benlysta. <strong>Targacept</strong> (TRGT) shares more than doubled to $7.25 a share after its depression drug candidate met its goals in a mid-stage trial. <strong>Onyx Pharmaceutical</strong> (ONXX) reported encouraging results for its breast cancer treatment Nexavar to push its shares higher by 21%. Shares of <strong>Celgene</strong> (CELG) jumped nearly 16% after the company announced significant improvement in progression-free survival of patients taking Revlimid as a first-line treatment for multiple myeloma.</p>
<p><strong>Buyout</strong></p>
<p>Continuing the trend of major pharma-biotech mergers, as in <strong>Roche</strong> (RHHBY.PK)-<strong>Genentech</strong>, and <strong>Eli Lilly</strong> (LLY)-<strong>ImClone</strong>, <strong>Bristol-Myers Squibb</strong> (BMY) announced it is buying <strong>Medarax</strong> (MEDX) for $16 a share. The Medarex takeover implies a net price tag of over $2 billion. Medarax shares jumped nearly 90% on the announcement.</p>
<p><strong>Is it too Late to Board the Biotech Bandwagon?</strong></p>
<p>Given strong gains in biotech shares in recent weeks, it is logical to ask if it is too late to get on the biotech bandwagon. I believe the answer, generally speaking, is no. Notwithstanding uncertainties surrounding health care reform, the fundamentals for biotech companies are reasonably favorable. Yet, one needs to take appropriate care in getting the timing right and in choosing proper investment vehicles.</p>
<p><strong> </strong></p>
<p><strong>Fundamentals</strong></p>
<p>Several factors favor the long-term growth of biotech companies. These include an aging population, rising incidence of cancer and other degenerative diseases, and growing recognition that biotech products offer the best solutions for management of these diseases.</p>
<p>Several biotech drugs like Roche&#8217;s Avastin and Amgen&#8217;s Enbrel have the potential of becoming major blockbuster drugs by 2014. Biotech companies are seeking to expand uses of their approved drugs to treat more diseases. And, unlike drugs made by major pharmaceutical companies, biotech drugs are to a degree insulated from generic competition. Major pharmaceutical companies are also actively working to strengthen their biotech forte and increasingly acquiring biotech companies for their intellectual properties.</p>
<p><!--</p>
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<p><strong> </strong></p>
<p><strong>Timing</strong></p>
<p>Equity prices have been strong across the board since the market bottomed on March 9 and the S&amp;P 500 is up nearly 46%. Biotech shares are no exception. The market as well as biotech shares could be due for a pull-back. From a timing standpoint, it makes sense to put money to work in the biotech sector on a pullback.</p>
<p><strong> </strong></p>
<p><strong>Investment Vehicles</strong></p>
<p>Stocks of established biotech companies like Amgen, <strong>Biogen Idec</strong> (BIIB), <strong>Genzyme</strong> (GENZ), and <strong>Gilead Sciences</strong> (GILD) typically move with little correlation to the broad market. That said, such shares carry some degree of event risk. Adverse results from key drug development efforts can cause such shares to swoon in a jiffy. As such, they may only be suitable for investors with well-diversified portfolios.<br />Smaller biotech companies often promise riches based on the success of one or two key drugs. They carry a high degree of event risk as failure in pivotal drug development activity can quickly break a company. Only the most risk-tolerant investors usually tend to court such shares.<br />Bundled products like biotech sector funds and ETFs are better suited for most investors since they reduce most of the event risk. And, there are plenty of biotech sector funds and ETFs to choose from. Investors looking for no load mutual funds can consider <strong>Fidelity Select Biotechnology</strong> (FBIOX) or <strong>Rydex Biotechnology</strong> (RYOIX).<br />In the ETF space, <strong>iShares Nasdaq Biotechnology</strong> (IBB) and <strong>SPDR S&amp;P Biotech</strong> (XBI) are among the more popular ones. Investors looking for a global investment vehicle can look at PowerShares Global Biotech (PBTQ).<br />Aggressive traders looking for explosive short-term returns can turn to <strong>Biotechnology UltraSector ProFund</strong> (BIPIX). This mutual fund uses leverage to boost returns.</p>
<h4>Incoming search terms:</h4><ul><li>best biotech mutual funds 2012</li><li>2012 biotech mutual funds good</li><li>best biotech mutual fund 2012</li><li>best biotech share 2011 2012</li><li>biotechnology mutual funds</li><li>IBB compared to xbi in performance for 2011-2012</li></ul><!-- SEO SearchTerms Tagging 2 Plugin --><p>There are no posts related to Is it the Right Time to Buy Biotechnology Investments?.</p>]]></content:encoded>
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		<title>Successful Investments Using Mutual Fund Ratings</title>
		<link>http://fundhotnews.com/successful-investments-using-mutual-fund-ratings-2/</link>
		<comments>http://fundhotnews.com/successful-investments-using-mutual-fund-ratings-2/#comments</comments>
		<pubDate>Mon, 29 Aug 2011 19:38:40 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Mutual-Funds]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Mutual Fund Ratings]]></category>

		<guid isPermaLink="false">http://fundhotnews.com/?p=334</guid>
		<description><![CDATA[Understanding mutual fund ratings is another critical aspect of successfully investing in mutual funds. Using the ratings, you&#8217;ll be able to know how well any fund is performing. The mutual funds that are performing the best will get the top numerical ratings. You can well imagine what kind of impact these ratings have on the [...]]]></description>
			<content:encoded><![CDATA[<p>Understanding mutual fund ratings is another critical aspect of successfully investing in mutual funds. Using the ratings, you&#8217;ll be able to know how well any fund is performing. The mutual funds that are performing the best will get the top numerical ratings. You can well imagine what kind of impact these ratings have on the decisions investors make. Unfortunately, the ratings are hard to come by because of the small number of companies which offer them.</p>
<p>Even With Ratings, Proceed with Caution</p>
<p>Even though ratings on mutual funds are based on what experts feel will be the growth and performance of the fund in the future, you can&#8217;t just blindly rely on the ratings. There are just too many other factors that can also affect the way a mutual fund performs. A good indicator of how a fund will perform in the future is to study its past performance. However, there is no way to predict the future 100%.<span id="more-334"></span></p>
<p>If you can find an identical type of mutual fund so that you can study its performance, it may help give you ideas of how the similar fund will perform. Look for funds that invest in similar assets and perform on the same level. Funds that are this much alike generally perform in much the same way. You can know that if the identical fund you are tracking loses money, the fund you looked at initially will, too.</p>
<p>Most often, funds with higher ratings will outperform all other funds other than those much like themselves. Because two funds are based on the same assets, it stands to reason that they will continue to perform in much the same way.</p>
<p>Check Out Morningstar</p>
<p>Mutual fund rating systems, as mentioned before, are limited to only a few companies, because it&#8217;s very difficult to develop a reliable criteria on which to rate the funds. It takes a long time to come up with a tool that will give reasonably accurate predictions. Therefore, if you use ratings in your decision-making process, you&#8217;ll want a company with a long, proven track record.</p>
<p>One company you can rely on for mutual fund ratings is Morningstar. Morningstar uses a simple rating system which consists of recommendations based on the number of stars a mutual fund has been given. A one-star fund will be the poorest performer whereas a five-star fund will be at the top of the performance ladder. It doesn&#8217;t take much investment expertise to understand a rating system like this one.</p>
<p>Like all rating services, Morningstar can only predict based on past performance. As you know, there&#8217;s no assurance of future performance in any stock or fund. As long as you only use ratings to help you choose mutual funds which you will study in more detail before deciding to invest, you&#8217;ll make playing the rating game into a winning proposition.</p>
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		<title>Infrastructure Sector And Infrastructure Funds The New Dawn For Investments in India</title>
		<link>http://fundhotnews.com/infrastructure-sector-and-infrastructure-funds-the-new-dawn-for-investments-in-india/</link>
		<comments>http://fundhotnews.com/infrastructure-sector-and-infrastructure-funds-the-new-dawn-for-investments-in-india/#comments</comments>
		<pubDate>Mon, 29 Aug 2011 17:20:28 +0000</pubDate>
		<dc:creator>Morgan</dc:creator>
				<category><![CDATA[Mutual-Funds]]></category>
		<category><![CDATA[Dawn]]></category>
		<category><![CDATA[Funds]]></category>
		<category><![CDATA[India]]></category>
		<category><![CDATA[Infrastructure]]></category>
		<category><![CDATA[Investments]]></category>
		<category><![CDATA[Sector]]></category>

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		<description><![CDATA[Today people are more focused on improving their lifestyle and achieving their goals. Higher education, availability of multiple career options has led to rising income levels and rising aspirations and an increased focus on planning for the present and the future. Living costs on the other hand are getting higher because of the rising inflation [...]]]></description>
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<p>Today people are more focused on improving their lifestyle and achieving their goals. Higher education, availability of multiple career options has led to rising income levels and rising aspirations and an increased focus on planning for the present and the future. Living costs on the other hand are getting higher because of the rising inflation which acts as a frictional force in the individuals attempt to realize his goals. People now realize that their savings will not be enough to keep pace with rising inflation and are therefore seeking different investment avenues which help them grow their money.</p>
<p><span id="more-1812"></span></p>
<p>We have various investment options available today ranging from fixed deposits, mutual funds, stocks, shares, etc. of these mutual funds are gaining more momentum and popularity because of their ability to generate long term wealth and the inability of common people to devote the time and effort that investment research demands.</p>
<p>In India, infrastructure as an investment destination has been making quite a buzz over the past few years. India is the second most populous nation and among the world&#8217;s fastest growing economies. With all this growth there is a huge need for infrastructure in the country. Rising income levels leading to consumption demand is fueling demand for products and services and infrastructure needs are increasing very rapidly with increasing consumption demand For eg, next year India will see a new car sold every 2 secs, leading to a high demand for roads, highways and bridges. This demand for infrastructure can lead to a virtuous cycle of growth and economic momentum. This presents the investor with a great opportunity to benefit from investing in this sector with huge growth and profit potential.</p>
<p>Infrastructure assets generally have high development costs and long asset life. This means that they are generally managed and financed on a long-term basis and thus give steady returns in the long-term.</p>
<p>Though there is some skepticism in the markets about the infrastructure because these funds have not performed very well in the last few years. That&#8217;s probably because the theme was overplayed; the valuations went high making the stocks expensive leading to poor returns.</p>
<p>Some companies underperformed, some did well but at the cost of the profitability very few companies could match the balance sheet build up with commensurate profits. All this was further aggravated with the challenges that long term projects face &#8211; timely availability of cheap capital, execution delays, material availability and policy risks. But now when some of these projects are near completion and are ready to be monetized, valuations in infra sector are getting corrected and appear attractive and government has increased infrastructure spends drastically; it seems like the right time to invest in infrastructure funds and benefit from growth the sector promises.</p>
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<p>Other factors which make the growth in this sector as significant as ever are the new initiatives the government has taken in the area of public- private partnerships. If we take roads, we have one of the largest private public partnership programmes in the world. Investment in ports by the private sector is dotting the coastline and a private port in the next couple of years with is amongst the top two in the country. Airports, Metros etc are all assets that have been tendered out to the private sector.</p>
<p>Infrastructure sector has a good chance to see return of profitability in 2012, with sizeable reduction in balance sheet/debt by all companies operating in this space. The projects which are near completion will start functioning and will probably move towards becoming higher yielding assets. All this coupled with the attractive valuations at which the companies in the sector are available, makes it a great time to invest in infrastructure funds.</p>
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