Agrees to invest in the stock exchange or Forex?
When it comes to investment is the opportunity to enter the currency market, the question that faces beginners and those wishing to invest their capital is: Why should I choose to operate in the Forex instead of on the stock market ?
Both markets in fact contain the same risks they are subject to constant change and you need to know the players and the nuances before beginning to operate within.
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- Posted in Forex, stock market
The risks arising from sovereign funds
The sovereign funds are so much feared as courtship. The global economic crisis has affected all countries much more vulnerable to climbing and hostile takeovers.
The industries that have had their assets listed on a stock exchange.
But now that the shares collapse and are much less than before, it is much easier for those who, like the six countries that are part of the Gulf Cooperation Council such as Arabia, Kuwait, Qatar, Bahrain and United Arab Emirates, invest in order " rebounds.
Holders of so-called "sovereign funds" could also make a key contribution to the international economic recovery.
The Secretary to the Treasury U.S. Kimmet, has appealed to the six countries to put in motion the economy.
Massimo Capuano, CEO of Borsa Italiana in this regard noted that "sometimes the sovereign funds possoni be a risk and should be very careful about a phenomenon that can grow without too many obstacles. Until recently all were very happy as an investor and liquid liabilities. The sovereign funds have bought large stakes but did not do any action. Today they are viewed with more suspicion because they could buy large stakes in a reduced cost. " And then, says Capuano, the stock market is not able to 'filter' the type of investor: "We have only identified the intermediary."
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- Posted in stock market, European stock markets, funds
As agreed to invest in the stock exchange during this time and do their own actions?
In this period are many investors who are losing on the stock market more than 30% of its initial investment due to the crisis and the turmoil they have collapsed the stock exchange.
One wonders if he can agree liquidate part of their actions and investments. But experts in this situation are all agreed: To sell shares when the market share lost quickly is a big mistake.
But the same specialists also suggest to be very attentive to their risk profile. So in some cases it may be useful (or necessary) to reduce the share capital in the portfolio, especially if this is too high. With a warning. Never forget that when savers, now frightened, decided to return on equity positions prior to the crisis, probably covering the same securities at higher prices than they had sold.
For the price these days valuations of many blue chips seem cheap. It 'too risky groped purchase some?
Make purchases on the stock market, these days, it's certainly risky. And who decides on the route to Piazza Affari must be well aware of the choices is making. However many people are suggesting to buy at low prices today, primarily by selecting among the major blue chip. The names are considered most suitable are those of companies less exposed to financial risk. Then the shares of companies in debt just linked to industrial production and high value "real." In practice, the less industrial-related business cycle, the utilities and oil industry groups. One of the most efficient criteria for building a garden stock is then in shopping staged. In this way, mediating between different prices, the investor can approach the price of cargo more convenient for him.
Some companies that have dividend in excess of 5-6%, may be reason enough to buy?
Dividends are only one of the criteria for choosing to invest in shares, and often not the principal. But when the dividend yield for a given company is higher than the coupon paid by a ten year issued by the State this parameter provides a good basis for selection. Of course there is the risk that the slowdown in overall economic burdens on future profits, lowering the dividend. Historically, however, the Italian companies have always focused on the stability of the remuneration of shareholders.
During their most difficult market it is better to invest in individual stocks, or buy "the market", with investment funds or the Etf?
Increases when the uncertainty is a good idea to increase the diversification of portfolios. Consequently rely on a professional manager by buying a mutual fund may be a better choice to be on a garden of a few titles. Diversification is the most extreme buy 'whole market', and through Etf index funds. Instruments' passive 'that replicate the basket of all companies listed on the stock market and that in 80% of cases were more efficient mutual funds' assets. " Etf funds and also allow you to invest by choosing between all the bags.
How to protect your savings and investments
Stock market, bonds, cash and loans. Never before in the crisis we are experiencing these days, all major sizes suffer financial shocks and uncertainty simultaneously suffer large.
Here are our tips for avoiding panic and lock up the most of their savings.
First, you must avoid to get caught up in fear, constantly repeated refrain in these cases by the experts of the market, it risks becoming a form of ritual. We must think instead, case by case, what is the solution best suited to their specific needs and situations of the portfolio.
Answering some basic questions concerning, specifically, each of the major classes of investment under the portfolio of every Italian family, to suggest who is losing a lot on the stock market to buy low price today, for example, may seem foolish. "And it is, if the share portfolio is very high, perhaps above 50%. In these cases it may reduce some 'exposure, even at the cost of money lost, "says Claudio Izzo, partner of B & I Consulting, a firm of independent financial advice.
Buy, just at this stage, well-selected securities may be paying a choice for a couple or a family that has a little part 'of money which does not have an immediate need. "In this case, following a defensive tactic, you may choose securities industry, or companies that have a high real value," suggests Lorenzo Marconi, advisor of Intra Private Bank. "Why in May 2007, all thought to increase without an end, whereas now there is just as absurd the idea of an unlimited downside," he adds.
But at the heart of the portfolios of savers Italians are mainly bonds. Cleared up any fears unnecessarily catastrofistici default arises, even in this financial segment, the need to diversify asset for broadcasters, not only for deadlines. "It always has in government bonds portfolio are not only Italian but also Dutch, French, German or Finnish, 'warns Drusiani Angelo, head of operations of Banca Albertini Syz.
And if the instruments of liquidity, but secure parking arranca chasing the rate of inflation, are of no particular concern, it remains open to the eternal worry of those who buy a house with a mortgage rate fixed or variable rate? Renegotiate with your bank if it is too expensive or seek alternative solutions? Sometimes the crisis can become an opportunity to improve their choices both financial and non.
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- Posted in action, banks, stock exchange, investments, bonds
Risk of panic by investors and the logic of Cerino
The crisis is like a bomb on several stages, triggered by deregulation, detonate with mortgages, amplified by speculation downward, in a game maybe got out of hand at all.
The greatest danger, and no doubt very real, at this point is the panic, as was lucidly explained Tommaso Padoa Schioppa in Forum Czech TV. When the collapsing one after another and are sized cyclopean, the race to sell at whatever price, is no longer just a characteristic of small investors - are not they, after all, that move the markets - but spreads to the professionals. It is no longer, now down to speculation, especially since uncovered sales (which are its main weapon) has been banned virtually everywhere. The speculation is down that which initiated the game, but this seems to have got out of hand to anyone.
Also because of this size collapse sparked a chain reaction even on technical grounds. The Investment Funds, for example, in these cases are taken by assault by the requests for redemption and are forced to liquidate the shares in the portfolio to meet the repayments which are required within limited time. Take all the "stop loss" ( "stop-loss"), sales of protection intended to be performed if the title in the portfolio falls below a certain quote. And a host of other devilry that in normal times are in the normal functioning of markets, but in these cases contribute to precipitate the catastrophe.
There are still, fortunately, outside the ranks of banks to withdraw money and put them under the mattress: and we hope to not see them, because that would be the end. Not everyone has the correct perception of the relationship between stock market price of risk to the bank and its deposits. There is virtually relationship between the two, besides the fact that, as everyone should know by now, the liquid deposited on current accounts in Italy are guaranteed up to 103,000 euros for each account, by the interest of protection: therefore, if the bank fails (but not the collapse in value of its shares, which makes it fail!), that amount would be reimbursed.
The mountain of paper from the virtual value built in recent years by the sorcerer's apprentice finance is to markets and how to dissolve self. This crisis is proving like a bomb in most stadiums. The powder magazine was built by financial deregulation and the use that it is done, with many compliments to the theories iperliberiste that the markets will self-regulate. The detonator were subprime mortgages. The second stage was the bearish speculation, and after having actually attacked banks in crisis has expanded also to those where there was no immediate risk, and even those few, paradoxically, as indicated by still sufficiently liquid they can either of the fallen giants, such as Santander el'Hsbc, just to name two.
It would be incorrect to say that these moves have no logic. Do you have, but it is not a logic that has to do with the real values: it has to do with the hopes of gain for the stock exchange operators. We could call it "logic of Cerino," and we view the work on countless occasions, the big upside of the century the "new economy" of the recent madness of oil to $ 150 a barrel. Take a phenomenon that has a real (economy based on the Internet is truly a revolutionary epoch, for example, and the potential scarcity of oil, although not imminent, is not an invention of the disaster). On that basis we threw himself building mountains of paper which exacerbate the upward or downward, as appropriate. No matter the fact that at a certain point values are reached entirely irrational: what matters is going in the direction where the market goes. All the attention - and tension - is focused on one goal: move the Cerino turned into other hands at the last moment possible, which of course nobody knows what, after having gained as much as possible. If we are unable to free time in the paper by turning it into money, that's it.
The trouble is that he is not a Cerino, but a great fire, it burned all those who did not participate in the game, that is, ordinary citizens who now have to pay to stop the crisis and then bear the consequences - the inevitable - in 'real economy. That at least have a minimum compensation, a set of rules to prevent future excesses so senseless.












