Managing your retirement money

Managing your retirement money

SC’s new measures

SC’s new measures

The Best Way to preserve your money

The BEST way to growth your money value is to avoid investment SCAM... here are detail for SCAM in Malaysia

Hottest Scam In Malaysia

Source: http://1-million-dollar-blog.com/hottest-scams-in-malaysia/

Previously, we looked at Most Commonly Used Tricks by Investment & MLM Scamswhich contributed by stopscams007 from Low Yat Forum. He also make a good compilation on the hottest scams in Malaysia. I hope with the list we are more aware of potential scams and lesser people will fall to be victims.
Here are the lists.
1.) The Cafe Scams – Island Red Cafe & Stevens Corner(strange, both in Pandan Indah) – Island Red Cafe collects members RM6,000 each and promised 5% return every month and even give you a name in the ROC as a shareholder but what’s the point when they run away ? Stevens Corner, the famous indian coffee shop follows due to drop of business since their renovation. They collect RM3,000 per member and promise return of RM150 monthly and plans to open nice fanchisee cafe called StevensTeaGarden. Someone mentioned they will make you sign an agreement that give them the rights NOT to pay you anything in future. If you really wish to join, ask for a copy of their agreement and consult your lawyer BEFORE paying them. Bet you will NOT get a copy. Both collect monies from new members with MLM recruitment schemes and pay the old members like Sunshine Empire. You never know when they will run away.
2.) Sunshine Empire – This licensed and legal Company has an impressive office at the ground level of KUB building along Jalan Yap Kwan Seng, near Menara Public Bank and AmBank Building. They also have a showroom office at the ground level inthe next building. 2 or 3 months ago, Singapore’s Straits Times and The Paper published big news reminding their people to be careful and NOT to believe in them. Hope someone can put up the link or google for it.(As expected, they STOPPED paying back members now and all investors LOST their money).
Someone below has put a link to the Singapore news. In fact there are more to it. Although Singapore is investigating them, they did not stop their business as the business is legal and so far, no Singaporean have failed to receive their commissions as promised. Thus, the government cannot stop them yet.
The news published that the founder, director and group president is someone named James Phang but he is NOT the owner. Isn’t this quite strange ? At the end of the game, James Phang can just disappear from the Company easily and claimed that he was just “employed”. Such trick always happened in scam businesses.
Now, the Company has STOPPED paying commissions and interests to members with the excuse that the Singapore government has freezed their bank account while under investigation. Do you think their boss will be so stupid to keep much monies in the bank to be freezed ? They are all transfered away. It’s just an excuses not to pay back to members and members are only paid “e-bonus-points” which is cashless. If they wish to convert to cash, they have to recruit new members to pay them cash and the recruiter less out trom the amount. So victims act like Vampires and “forced” to victimise other victims if they wish to get their monies back. And their victims will later transform to vampires and the scam carries on…..
3.) MOBILWALLET – This Company owned by 2 young men, Stanley & Rey Gan, office in Queens Avenue Park has collect multi-millions the last 2 years. Claimed that they tied up with Telekoms, Utility Board payment like Water & Electricity bills, even Maybank got fooled by them. Advertisement Billboards everywhere. They STOPPED paying back their members few months ago and the members cannot do anything because they are made to sign an agreement unaware that they have to claims if the company stopped paying them by CHANGING terms and policies.
4.) Water businesses – Oxygenated and alkaline water products – Some of these are bottled water and some are filters or equipment that claimed the trick. One of the better known Company that sold “oxygen” water is SITO(supposed to stand for Selangor International Trading Organiszation and claimed Selangor State Government owned some share in it). The key person and founder is a Dato Robert Ong from Rawang but his name is no longer in the business now. Their products are sold for RM2 to RM3 for a 350ml bottle and now concentrating mostly in the Indian market. Their Chinese and Malays market are long gone since a year or 2 ago. Their customers are made to believe that their water has more oxygen and able to give miraculous effects for the body. Water is H2O, how to put more O into it ? Anyone knows how much oxygen do we breathe into our body everyday at FOC ? Latest news is that this SITO Company is going to create new label to market under a new Company since the SITO name has already gone bad. Someone informed that this Company is owing alot of money(due to refunds) to ex-stockists but just refuse to pay them.
(Latest news, SITO shifted to another place and their MLM business has closed but planning to start again with a different name, beware !!)
Alkaline Products – Can anyone explain how it can work for the body ? The stomach’s gastric liquid is so acidic that water of any pH that goes through it will not make any difference.
5.) Car Fuel Booster – K-Link, the famous scam MLM Company that sold the footpatch TAKARA, later the “cock-ring” and energy-card launched the patrol-saving pills last year. Got so hot that even grocery shops are selling for them. Recently many of these cars that used the pills are rushing to the workshops to clean the residual. Few months ago, another MLM Company launched a fuel booster gadget, claimed that saves up to 20% fuel, that is attached to the cigarette lighter. Started off well using binary plan but businese begin to fade now and most users find it NOT effective.
6.) Perfumery Products (eg. Lampe Berger & Bel Air)(more details later). Lampe Berger is not so hot now in the neighbouring countries but there are still new victims every month in Malaysia. Must thanks to those who have contributed and kept the thread alive here in Kopitiam. Bel-Air have closed in Malaysia. LB is almost zero in Singapore. This perfumery product from France with over 100 years history are justbottles and fragrances(check the factory’s website) but the Company marketing them in Asia claimed “aromatheraphy” products. Hong Kong TVB aired a program that exposed their scam but their members claimed that HK’s TVB already apologised to them(no evidence, of course). Note that the biggest strenght in a MLM Scam is their members will go all the way to lie in order to defend for their Company. The reason is simple; these members fear that they will not be able to make their money back if the Company collapsed. Knowing that the Lampe Berger products are moving slow, they add a line of skincare products named Estebel, also claime to have over 100 years history in France.(Hardly anymore Chinese newcomers, they are now tapping the Malays in Malaysia). Mostly only Bumis active members now but their top earner Steven Yeam have already left and started a new MLM Company(see NEW SCAMS below).
7.) Energy Products (eg. stone pendants, bracelets, mattress and pillows). They use all sorts of gimmicks and demonstration to make you into believing them. They will do some tricks and demo to prove that these products really produce energy BUT is there any tricks in their demo ? So what if there really produce energy; is it good or strong enough to help the body ? Are those simple products made of some simple materials worth RM300 to up to RM3000 each ? The effect is actually PLACEBO which I will elaborate in a new thread soon.(more details later)
8.) Hi-Tech products (names like bio-tech, nano-tech that claimed millions of dollars of research involved, eg Bio-Young and XKL few years ago). Most of these will claimed a professor behind them(even with name and picture of a person) or used words like “U.S.A. formula”, “German Technology” or “Nanotechnology” but with no further details. If you ask for more details like the professor or factory’s address, the answer will be “trade secrets”.
9.) Investment Schemes – SWISSCASH is the King of all. Swisscash is nearly over now but there are many similar and smaller ones that are still on.(Now, it’s closed or stopped paying back members)
10.) GoldQuest – This Company that claimed to be HK-based started with some non-value gold-plated coins that are sold for over RM2,000 have several names and changed products several times. QuestVacation, QuestNet, etc. They have several offices in Amcorp Mall, PJ and their key person(in fact, the owner), a Malaysian Indian was arrested last year in Indonesia for having involved in a very big Phillipines scam. Most of their overseas offices are closed or inactive but their Malaysia business is still hot, with some “energy” products.(Can someone please provide a link which showed the news that their boss was involved in a big scam in Philippines and was arrested last year ?)
11.) Numerology & Fortune telling – A Company named Visiber is using MLM to sell fortune telling classes using your birthday based on Numerology fortune telling. Prpspects will be told that they need to buy a certain “number” between 1 to 9 in the form of pendants or bracelets made of silver with stainless steel or platinum plated, and sold from RM600 to RM20,000. Customers, or rather victims are mostly females from rural areas. Very hot in Penang now and a number of spin-off Companies have started.
12.) MJ-Life – This Company boost of a very big background with many many years of history which is NOT true. Their people or associates may be long in business but nothing to do with their MLM launched recently. Why do I consider it a scam or bad ? New members are told to pay a sum of money(up to RM1000) and you get NOTHING for it. You only get a membership can entitle you to enjoy all sorts of special price and discounts when you have medical check-ups in their centres. They will claim all those check-ups cost more if done elsewhere. It’s not true. Only the naive and those new to medical check-ups will fall victims to them. Most members who paid the money ended up with nothing.
13.) Seaweed Venture Scams – 1 such Company is located in Taman Maluri, Cheras. They will ask you to invest a few thousands ringgits for their venture of growing seaweeds in East Malaysia and you are guaranteed returns. To gain your confidence further, they will tell you your investment money is secured by “insurance” or “unit trusts” & “trustees”. When you ask for further documents to prove, they will give all sorts of excuses or just ignore you because they know they cannot get you. These Seaweed scam is one of the hottest now, warn all your friends about it before they are victimised.
14.) MXM(previously MGM) – This is a master scam owned by a Dato Kam(Pathlab) tapping the younger group, very successful 2 or 3 years ago but since they moved to their big 10-storey office at Phileo Damansara and changed name to MXM, their business dropped. They collect members RM3,000 to RM4,000 with credit card monthly easy payment and in return you get a hospital benefits insurance from Pacific Insurance worth only a few hundred RMs together with some you-don’t-need medical check-ups from their associate Company Pathlab. Also talk about fitness, lifestyles bullshit that is all worthless.
15.) Gano Excel/I-Touch Life/GEW2u – This company from the north, a copycat of DXN selling Lingzhi capsules created a new Company called Gano iTouch to cash-in on the internet like e-Cosway after their Company went down the drain since the last 2 years, selling Linzhi and some no-value energy pendants and alkaline water gadgets. They provide free transport every weekend from KL to visit their Alor Star office. It did not work well and recently in mid-2009 changed name to GEW.
16.) NuLife(HK) – This Company started by some HK people has been in Malaysia for more than 10 years but they have flopped in HK and Malaysia due to bad management and a product scam making use of a prosecuted American named Dr Jeffrey Bland, found guilty of false products claim. Since this case in the US leaked out and many Malaysians found out that the real boss in HK is a Steven Tang(he cheated many Malaysians in another scheme about 20 years ago) their business went down all the way. Now they claim Malaysian partners cheated them and start a new Company in Malaysia. Watch out, this new Company will come out with some investment scheme idea that will get many to lose their money.
17.) Arowana Fish Breeding, Oora from Germany, Biofuel (Kompleks Maluri) etc – These are some newer scams. Arowana fish venture ask you to invest some money and give you fixed return. Biofuel will tell you their Indonesia connections(just like Sunshine Empire before using Taiwan) & Oora from Germany(I never trust those cruel Germans) that market some bio-chips and a gadget that claims to give energy and therapeutic effects of accupunture, tai-chi, yoga, etc depending how you set the toy-like gadget, wear it on your body and you get the effect later. They could not explain or provide any demonstration to prove their effectiveness. Only doctors and papers claim that I will never trust. The health effect is actually PLACEBO, which I will elaborate in a different thread.
18.) Easy-Pharmax – How could I missed this out earlier. I thought I mentioned this until I got e-mails asking me about it. This is easily in the TOP 3 during the last 2 years. Owned by a Dato Yeap(another Dato !!) Members are tricked to invest up to RM40,000 with the false promise that the Company will use e-commerce and online selling to dispose their goods and recover their monies. It won’t happen, of course.
19.) Gold Investment Scheme – This is an old trick but back again by several Companies promising a GURANTEE FIXED RETURN income like many other schemes. Try to ask for a copy of their fixed return agreement and consult your lawyer. Common sense tell you any business that promises a fixed return to UNLIMITED numbers of investors, higher than bank interests must be a scam.
20.) Score-A or Skor-A – This Company sells you an online program of past Malaysian examinations papers for primary and secondary school students for self-testing for up to a few hundred RMs per membership. It actually cost them nothing. Members are told to invest in a few units, again using MLM with the promise of getting rich. The same program can be purchased from Utusan for just a fraction of their price and you can get better programs.

NEW SCAMS

21.) GRI (Global Royal International) – The boss behind this scheme is multi-billionaire James Pang(the big scammer waiting for trial in Singapore because of Sunshine Empire). Before Sunshine Empire, he operated NOP and SwissCash. This time, he is using a lot of representatives and MLM leaders since his passport is held by Singapore government and he cannot come to Malaysia. I am told that anyone who is bold enough to call himself a MLM leader in Malaysia can visit his rep in Malaysia or Singapre and they will be given at least RM5,000 as some expenses subdsidy if you are willing to market for them.
22.) One Community Worldwide – Tapping a mostly Bumi market and owned by Steven Yeam(SYN) and Willie Lim of Lampe Berger previously(the Chinese no longer trust them). They are selling a negative ion mattress for RM25,000 !! The same modal, I have seen before for RM2000 from Korea. If you cannot afford RM25K ??? You can buy therapy package for RM300. Don’t believe in such product ? You can go for some chlorostrum(virgin cow’s milk from nowhere)
23.) English-Learning Program Online – ESL(an online English learning program) You are asked to pay RM100 for one or 2 years usage of online learning. Started by a Malaysian Indian man by the name of Dr. Edward, this program has changed names at least 2 or 3 times since the last one year due to poor response and a lot of “technical problems”. I consider it a scam because you are paying money for nothing tangible to direct-selling company through MLM and their program has been very “unstable” as my source put it.
24.) Genius Theme’s vacation and rewards package. Such timeshare holidays scheme are being sold for RM400 to RM499 and you are promised a few nights stay in Thailand or Bali. Started by a Company name Max Generation, they wholesale to some MLM Company and other Company like Sen Heng, one of them is Genius Theme, a subsidy of a Maxis agent Company. Looks like many people will lose money. If this Company runs away, those hotels and the MLM Companies need NOT be responsible. Genius Theme is using MLM and direct sale to sell for RM499 or RM599(include a flying experience) while Sen Heng is giving it away free if you purchase over RM2000 products. Of course, they are othere hidden costs to be paid, it’s NOT really free unless you pay MORE upfront.
25.) Another one is an “online gaming” program using MLM, started by Steve Tan, founder of Xango in Malaysia, also aimed at youngsters.

Why Gold?

Why Gold?

A DIFFERENT CLASS OF ASSET:

Most investment portfolios are invested primarily in traditional financial assets such as stocks and bonds. The reason for holding diverse investments is to protect the portfolio against fluctuations in the value of any single asset class.

In building an investment portfolio, investors should avoid unnecessary risk through wise diversification. Diversification is the allocation of investable funds to a variety of investments. By diversifying, investors can reduce the risk that they would otherwise bear. Also, the risk reduction benefits of diversification can be achieved without reducing the overall return on your portfolio.

The Power of Diversification

The key to diversification is finding investments that are not closely correlated with one another. Other things being equal, the less the correlation between two investments, the better suited they are for effective diversification. This gives rise to a problem for most investors because most stocks are relatively closely correlated with one another and most bonds are relatively closely correlated with each other. In addition, there is also a close correlation between stocks and bonds. Investors need to find investments that are not closely correlated to stocks and bonds and include them as additional elements in their portfolios.

Diversification Reduces Risk

Many investors combine tangible assets with their stock and bond portfolios to reduce risk. This is due to the fact that tangible assets have historically had a very low, even negative, correlation with stocks and bonds. This means that they are useful to hold in conjunction with paper investments in order to reduce total risk. Not only is the risk reduced due to negative correlation between tangible and paper assets, but tangible assets have produced exceptional investment returns on their own. Every sign today points to increasing importance for diversification; that also means increasing importance for tangible assets.

I. GOLD – STORE OF VALUE

One major reason investors look to gold as an asset class is because it will always maintain an intrinsic value. Gold will not get lost in an accounting scandal or a market collapse. Economist Stephen Harmston of Bannock Consulting had this to say in a 1998 report for the World Gold Council,

“…although the gold price may fluctuate, over the very long run gold has consistently reverted to its historic purchasing power parity against other commodities and intermediate products. Historically, gold has proved to be an effective preserver of wealth. It has also proved to be a safe haven in times of economic and social instability. In a period of a long bull run in equities, with low inflation and relative stability in foreign exchange markets, it is tempting for investors to expect continual high rates of return on investments. It sometimes takes a period of falling stock prices and market turmoil to focus the mind on the fact that it may be important to invest part of one’s portfolio in an asset that will, at least, hold its value.”

Today is the scenario that the World Gold Council report was referring to in 1998.

II. GOLD - PORTFOLIO DIVERSIFIER

The most effective way to diversify your portfolio and protect the wealth created in the stock and financial markets is to invest in assets that are negatively correlated with those markets. Gold is the ideal diversifier for a stock portfolio, simply because it is among the most negatively correlated assets to stocks.

Diversification: The Key to Gold Investing

One of the most important aspects of investing is the control of risk in your portfolio, relative to the expected return. Tangible assets are an extremely useful tool for investors in that regard.

Portfolios that contain gold are generally more robust and better able to cope with market uncertainties than those that don’t.

Adding gold to a portfolio introduces an entirely different class of asset. Gold is unusual because it is both a commodity and a monetary asset. It is an ‘effective diversifier’ because its performance tends to move independently of other investments and key economic indicators.

Recent independent studies have shown that traditional diversifiers (such as bonds and alternative assets) often fail during times of market stress or instability. Even a small allocation of gold has been proven to significantly improve the consistency of portfolio performance during both stable and unstable financial periods.

There are six primary reasons why investors own gold:

1. As a hedge against inflation.
2. As a hedge against a declining dollar.
3. As a safe haven in times of geopolitical and financial market instability.
4. As a commodity, based on gold’s supply and demand fundamentals.
5. As a store of value.
6. As a portfolio diversifier.

III. HEDGE AGAINST INFLATION

Gold is renowned as a hedge against inflation. The most consistent factor determining the price of gold has been inflation - as inflation goes up, the price of gold goes up along with it. Since the end of World War II, the five years in which U.S. inflation was at its highest were 1946, 1974, 1975, 1979, and 1980. During those five years, the average real return on stocks, as measured by the Dow, was -12.33%; the average real return on gold was 130.4%.

Today, a number of factors are conspiring to create the perfect inflationary storm: extremely stimulative monetary policy, a major tax cut, a long term decline in the dollar, a spike in oil prices, a mammoth trade deficit, and America’s status as the world’s biggest debtor nation. Almost across the board, commodity prices up despite the short-term absence of a weakening dollar which is often viewed as the principal reason for stronger commodity prices.

Oil, Inflation and Gold Although the prices of gold and oil don’t exactly mirror one another, there is no question that oil prices do affect gold prices. If oil prices rise or fall sharply, investors can expect a corresponding reaction in gold prices, often with a lag. There have been two major upward moves in the price of gold since it was freed to float in 1968. The first occurred between 1972 and 1974 when oil prices climbed 325%, from US$2.44 to US$10.36. During the same period, gold prices rose 268% (on a quarterly average basis) from US$47.45 to US$174.76. The second major price move occurred between 1978 and 1980, when oil prices increased 105%, from US$12.70 to US$26.00. Over the same period, quarterly average gold prices rose 254% from US$178.33 to US$631.40.

IV. GOLD - HEDGE AGAINST A DECLINING DOLLAR

Gold is bought and sold in U.S. dollars, so any decline in the value of the dollar causes the price of gold to rise. The U.S. dollar is the world’s reserve currency - the primary medium for international transactions, the principal store of value for savings, the currency in which the worth of commodities and equities are calculated, and the currency primarily held as reserves by the world’s central banks. However, now that it has been stripped of its gold backing international banks and Countries are reviewing there currency reserve options

V. GOLD AS A SAFE HAVEN

Despite the fact that the United States is the world’s only remaining superpower, there are a myriad of problems festering around the world, any one of which could erupt with little warning. Gold has often been called the “crisis commodity” because it tends to outperform other investments during periods of world tensions. The very same factors that cause other investments to suffer cause the price of gold to rise. A bad economy can sink poorly run banks. Bad banks can sink an entire economy. And, perhaps most importantly to the rest of the world, the integration of the global economy has made it possible for banking and economic failures to destabilise the world economyAs banking crises occur, the public begins to distrust paper assets and turns to gold for a safe haven.

When all else fails, governments rescue themselves with the printing press, making their currency worth less and gold worth more. Gold has always risen the most when confidence in government is at its lowest.

VI. GOLD - SUPPLY AND DEMAND

First, demand is out pacing supply across the board. Gold production is declining; Copper production is declining; the production of lead and other metals is declining. It is very difficult to open new mines when the whole process takes about seven years on average, making it hard to address the supply issue quickly. Gold output in South Africa, the world’s largest gold producer, fell to its lowest level since 1931 this past year as the rand’s gains prompted Harmony Gold Mining Co. and rivals to close mines despite 16 year highs in the gold price.

Growing Demand - China, India and Gold India is the largest gold-consuming nation in the world. China, on the other hand, has the fastest-growing economy in modern history. Both India and China are in the process of liberalizing laws relating to the import and sale of gold in ways that will facilitate gold purchases on a mammoth scale.

China is teaching the West something new. Its economy, growing at 9 percent per year, is expected to become the second largest in the world by 2020, behind only the United States. Last year Americans spent $162 billion more on Chinese goods than the Chinese spent on U.S. products. That gap has been growing by more than 25 percent per year. China’s consumer class, meanwhile, is spending on everything from bagels to Bentleys – and will soon outnumber the entire U.S. population. China’s explosive growth “could be the dominant event of this century,” says Stapleton Roy, former U.S. Ambassador to China. “Never before has a country risen as fast as China is doing.”

 Source: www.newzealandmint.co.nz/downloads/why_should_you_invest.pdf

A snap shoot on correlation within S&P 500, GOLD and US Dollar

How the Stock Market Works

"Ladies and gentlemen, place your bets! 


For a new investor, the stock market can feel a lot like legalized gambling!!! Randomly choose a stock based on gut instinct and water cooler chatter! 


If the price of your stock goes up -- and who knows why? -- you win! If it drops, you lose!" Isn't that why so many people got rich during the dot-com boom -- and why so many people lost their shirts (not to mention their retirement savings) in the recent recession?

Not exactly. But unfortunately, that's how many new investors think of the stock market -- as a short-term investment vehicle that either brings huge monetary gains or devastating losses. 

With that attitude, the stock market is as reliable a form of investment as a game of roulette. But the more you learn about stocks, and the more you understand the true nature of stock market investment, the better and smarter you'll manage your money.

The stock market can be intimidating, but a little information can help ease your fears. Let's start with some basic definitions. A share of stock is literally a share in the ownership of a company. When you buy a share of stock, you're entitled to a small fraction of the assets and earnings of that company. Assets include everything the company owns (buildings, equipment, trademarks), and earnings are all of the money the company brings in from selling its products and services.

Video Link on  How the Stock Market Works 

Why would a company want to share its assets and earnings with the general public? Because it needs the money, of course. Companies only have two ways to raise money to cover start-up costs or expand the business: It can either borrow money (a process known as debt financing) or sell stock (also known as equity financing).

The disadvantage of borrowing money is that the company has to pay back the loan with interest. By selling stock, however, the company gets money with fewer strings attached. 

There is no interest to pay and no requirement to even pay the money back at all. Even better, equity financing distributes the risk of doing business among a large pool of investors (stockholders). If the company fails, the founders don't lose all of their money; they lose several thousand smaller chunks of other people's money.

Happy Investing....to be continue...in next posting...remember to come back often ..

Are you always at a loss while planning your finances? 



Are you aware of the investment options available in the market? 

How best can you plan your finances? 

What are the crieria for evaluating an investment option? 

Are mutual funds profitable investment options? When and how should one buy mutual funds? 




We would provide answer to above questions soon 

Warren Buffett Predicts Good Times Ahead for America

Buffett's Bull Market

Warren Buffett Predicts Good Times Ahead for America

By Brian Hicks
Tuesday, February 28th, 2012

On October 17, 2008, the world’s greatest living investor wrote an op-ed piece in the New York Times.

Titled “Buy American. I am,” Warren Buffett wrote:

The financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary. 

So... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. 

If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities. 

Why?

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.

When Warren’s article was published, the Dow was sitting at 8,975. Five months later, the Dow hit a low of 6,440.

Many believed Buffett had lost his fastball.

After all, the Oracle was approaching 80 years old...

But had you purchased the Dow on the day Buffett told you to do so, you’d be up nearly 45% right now.

This past Saturday, Buffett released his Annual Letter to Berkshire Hathaway shareholders. Many investors consider this to be the stock market equivalent of the Farmers' Almanac.

His letter was quite upbeat and bullish.

Buffett said, "Equities are still cheap relative to any other asset class" as the economy continues to improve.

He explained that even though stocks aren't as cheap as they were during the depths of the recession in 2008, they're still a more attractive long-term option than bonds, gold, cash, or anything else.

In his letter, Buffett devotes two pages to an explanation of why he prefers owning a piece of a productive business instead of bonds or gold.

He believes houses are another attractive investment at current prices.

The fact of the matter is Warren is right.

Things are looking a lot better in the U.S. economy.

Take auto sales, for instance. They’re skyrocketing.

According to reports out of Detroit:

Auto sales are growing so fast that Detroit can barely keep up.

Three years after the U.S. auto industry nearly collapsed, sales of cars and trucks are surging. Sales could exceed 14 million this year, above last year's 12.8 million.

The result: Carmakers are adding shifts and hiring thousands of workers around the country. Carmakers and parts companies added more than 38,000 jobs last year, reaching a total of 717,000. And automakers have announced plans to add another 13,000 this year, mostly on night shifts.

You don’t need a report to see the recovery...

Living in Maryland, I’m close to the Marcellus drilling boom.

I’m seeing a ton of new Ford F-150s and Dodge Ram 1500s on the road... and I mean a ton.

Housing is on the rise, too.

Contracts to purchase previously-owned U.S. homes neared a two-year high in January.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in January, increased 2% to 97.0 — the highest reading since April 2010.

New contracts generally lead sales by a month or two.

Of course, all of this has been predicted by the stock market...

The Dow sits at a four-year high. The NASDAQ is at a 12-year high. And the Russell 2000 is within 40 points of an all-time record high.

If Warren Buffett is correct — and stocks are relatively cheap right now — then these indexes will be at record highs soon.

The original bull on America,

Brian Hicks

The Best Way To Invest Money Now: Gold Bullion Investment

The Best Way To Invest Money Now: Gold Bullion Investment

The Best Way To Invest Money Now: Gold Bullion Investment

The Best Way To Invest Money Now: Gold Bullion Investment: Back to Basic: Investing in physical GOLD Successful investing is about the diversification and management of risk. In layman's terms thi...

Investing in Gold - How to Go About It?

Gold continues to be a popular form of investment right for a very long time. People prefer to invest in gold because the returns are usually high and above all gold is a very famous ornament. Even if they don't get good returns they wont face losses because their cosmetic purposes will be served. Some tend to posses gold even as a matter of prestige. It is regarded to be a good source of investment as it controls inflations and even helps you to raise finances in the future.

Gold Markets
Gold is traded in many markets around the globe. London and New York are supposed to be large markets for gold and they function through the day. It is worth mentioning that Kong Kong and Zurich market are also open to trading for 24 hours. The gold market functions like a stock exchange in l aspects of buying selling and determination of prices though the fact remains that different factors influence the price.

World Gold Council
World gold council is a forum of gold producers around the globe. The basic objective of this body is to disseminate information regarding investing in gold and also to create an awareness among the masses. They also lay down lot of guidelines for small scale producer's traders, consumers and other stakeholders. The association is headquartered in Geneva. 

Is investing in Gold a Good Idea?
If you are thinking of returns or results in the short term then gold is probably not the right option. Investing in gold is no doubt a profitable option as it can be quickly converted to cash. It is a convenient as you can carry it easily wherever you go unless the quantity is very high. Since the performance of gold market s directly proportional to stock market it becomes easy to make calculations.

Gold-A Precious Metal as Investment
Gold enjoys innumerable advantages over other metallic forms. Platinum investment is very risky and moreover it is not easily convertible to cash. If you take the case of silver, it does not enjoy huge prospects in terms of financial gain. Moreover silver occupies lots of space when compared with gold and so you it can cost you more for transporting. This should sound out to be worthless propositions given the monetary benefits are not promising.

Factors to be considered before Investing in Gold
You need to be very careful about investing in gold because unlike stock or other markets you don't have the option of investing a small amount. You must do lot of research and have a strong knowledge about the market information. You must decide how you are going to allocate it in the portfolio. Some investors choose to invest only in gold and not in any other sources. However this practice won't be suitable for all. Therefore you must first check up if you are falling under this category. Some other issues that are to be considered are as follows:

Factors that Influence Gold Price
Like any other resource the supply and demand constitutes to be an important factor in determining the price of gold. Since gold is a precious asset people even hoard it and its demand and price could increase drastically during inflation and even when there are wars. The price of gold shows an upward trend in most cases irrespective of the consequences due to the sentiment which people owe to the metal. They are prepared to pay any price for it.

Gold Investment Strategies 
Some of the investors prefer to buy gold when the price increases because of the popular belief that it will increase further more and they can make profits by selling them thereafter. Other investors choose to buy gold when prices decline so that they can sell them at a higher profit when the prices increase. Another group of investors will make their decisions by testing if the current trend in pricing changes or not. 

Savings or invests

Savings or  invests ?

Since our early education, primary school, high school, we been often told from a young age that it is vital to save money in bank and its safe to do so. In the current state of the current economy, however, investing money into stocks, bonds and other various forms of securities may prove to be a wiser course of action than letting money sit in a bank savings account.

The Best Way To Invest Money Now: MARKET WRAP: WEEK ENDED 17 FEBRUARY‘12As at 17th...

The Best Way To Invest Money Now:
MARKET WRAP: WEEK ENDED 17 FEBRUARY‘12
As at 17th...: MARKET WRAP: WEEK ENDED 17 FEBRUARY‘12 As at 17th February 2012, the local stock market is valued at a P/E of about 15.6x on 2012 ear...

MARKET WRAP: WEEK ENDED 17 FEBRUARY‘12

As at 17th February 2012, the local stock market is valued at a P/E of about 15.6x on 2012 earnings, which is lower than its 10-year average P/E ratio of 16.7x. The local market is also supported by a gross dividend yield of 3.5%, which exceeds the 12-month fixed deposit rate of 3.15%.

Looking ahead, the local market is anticipated to move in tandem with overseas markets as investors continue to monitor the outlook for global economic activities.

The best way to grow your money is to make regular and systematic investments.

In most peoples dreaming is the easy part. It's the fulfilment of the dream that demands diligence. How much money will you need to achieve your goal, say; 


1.Education fund your child, 
2.Build a substantial retirement expenses, or 
3.Finance an expensive vacation? 

Rome is not builds overnight, In Investment you need TIME and CAPITAL

What is the amount you will need to invest every year to get there? 


To know this, you should be able to estimate how much the invested money will grow in a fixed time period. Can you amass this sizeable amount? To answer these questions and resolve your dilemma, Blue Ocean Revolution Team will help you make these calculations. 

Let us consider how to estimate the money you will need to invest periodically to build the desired corpus. The concept of periodic investments is based on the theory of compounding, according to which, the interest earned on the principal is reinvested. When the interest is calculated at any given interval, the reinvested interest too earns an interest. Suppose that you invest Rm. 10,000 in Unit Trust Fund for two years, which pays 8% interest rate compounded annually. 


At the end of the first year, the investment grows to Rm. 10,800, and at the end of second year, you will have Rm 11,664. However, if the bank was paying simple interest, you would have earned only Rm 11,600. The additional Rm 64 that you have received is due to the effect of compounding, wherein the interest of Rm 800 earned in the first year is included in the principal when the interest for the second year is computed.


Your money needs to be invested at regular intervals (monthly, quarterly or yearly) for a set time period to reach the desired financial goal. 

The Best Way To Invest Money Now: THE TRUTH IS ALL MARKETS ARE MANIPULATED!!!

The Best Way To Invest Money Now: THE TRUTH IS ALL MARKETS ARE MANIPULATED!!!: My Investment experience continues growth day-to-day. I learned something everyday. Isn’t that exciting? What ever market event, the e...

THE TRUTH IS ALL MARKETS ARE MANIPULATED!!!

My Investment experience continues growth day-to-day. I learned something everyday. Isn’t that exciting?

What ever market event, the essential is knowing When, Where and Why an event happen......

THE TRUTH IS ALL MARKETS ARE MANIPULATED!!!

Most people incorrectly assume that trading or investing is all about understanding the fundamentals of the market or knowing the balance sheet of a company. It doesn’t have as much to do with that as it does with understanding people.

People’s perceptions or expectations of a company, or even the entire economy, are what drive prices of securities. Prices of equities, commodities, and currencies are all subject to the same laws of supply and demand as is any other product. In fact, this is why you will often see prices drop after a company meets expectations for an announcement.

Insiders buying or professional buying and selling makes up 80-90% of the trading volume. So when they are not present in the market, why should you. Professionals or smart money has more resources and $$$ to access company information prior being released to the public.

Doesn't it make sense to follow the smart money ?

The demand for the shares prior to the release overwhelmed the supply. Insider sellers realized this and raised their prices they were asking for shares. Retail Buyers, in a desperate attempt to own shares, will raise the amount they are willing to pay for them. Smart money buy on wholesale and sell it at retail prices to the average Joe Investor.

For instance, if a company know that they would release a very good news e.g. higher earnings for the quarter  than expected, but traders have already anticipated this, then the price will not move up as you might expect. The smart money who were expecting positive sales results have already bought their shares prior to the announcement. This should have caused a rise in price for the reasons I stated above.

Once the data is known by everyone and there is no surprise, some buying may come in. However, the insiders who already own shares are disappointed that the price isn’t rising more, or they are satisfied with their profits and begin to sell slowly – distributing at the top of the market – area of distribution according to R. Wyckoff of which Tom Williams refined Wyckoff Trading method for today’s market environment .

Without increased selling pressure from smart money, these sellers must buy their price in smaller quantity to attract more retail buyers to take their shares.

So, you see how human emotion, basically fear and greed, will motivate retailers,traders or investor to act in the market. This is what causes price spread dominated by trading volume. Price charts with volume never tell lies. Human does !

So to be successful in trading, you need to know how to read this emotion and the strength of it. That is what volume spread analysis or price and volume does. The charts show us the actions of the traders who are involved in that security. In looking at candlesticks , we can read the strength of the emotion of those who will move the markets. For more information on how to learn about price and volume analysis. Call or sms me at 012-3278718

We can see when this emotion is shifting and leading market turns.

Take, for instance, at the bottom of the market, retailers would be selling as the market break lowers as they cannot afford to see their investment turn into dust. The end of the bottom is often called selling Climax  -a situation characterized by the highest intensity of heavy selling occurring within a downtrend.

This situation occurs only after a downtrend has been in effect for some time like what we had in late 2008 – Mar 2009.

This condition marks the end or the approaching end of a particular downtrend. This panic selling creates an extreme expansion of the price spread and an expansion of the volume, this action may occur over one day or over several days. If it does NOT HAVE THIS IT IS NOT A SELLING CLIMAX.

So by viewing price spread and daily volume’s actions in a candlestick chart, we can make assumptions about the strength of the movement of the stock price. These observations are part of our decision-making process to time proper entries and exits in the market. That is what volume & spread analysis (VSA) can offer you as a trader or investor.

Have a great day!!