Imagi-Natives advice on:
0 0
Daily Needs
Mind Needs
 Learn Quotes (4969)
 Imagine Quotes (1900)
Plan Quotes (1651)
 Focus Quotes (2104)
Persist Quotes (5266)
 Evolve Quotes (1489)
Progress Quotes (287)
 General Quotes (280)
Body Needs
 Health Quotes (562)
 Exercise Quotes (413)
 Grooming Quotes (145)
 General Quotes (820)
Money Needs
 Income Quotes (236)
 Tax Quotes (525)
 Save Quotes (186)
 Invest Quotes (4007)
 Spend Quotes (318)
 General Quotes (1223)
Work Needs
 Customers Quotes (135)
 Service Quotes (1018)
 Leadership Quotes (3208)
 Team Quotes (492)
 Make Quotes (280)
 Sell Quotes (1429)
 General Quotes (1034)
Property Needs
 Clothing Quotes (144)
 Home Quotes (151)
 Garden/Nature Quotes (964)
 Conservation Quotes (281)
 General Quotes (343)
Food Needs
 Food Quotes (205)
 Drink Quotes (226)
 General Quotes (529)
Friends Needs
 Friends Quotes (776)
 Partners Quotes (615)
 Children Quotes (1672)
 Love Quotes (791)
 Conversation Quotes (4565)
 General Quotes (8657)
Fun Needs
 Gratitude Quotes (1682)
 Satisfaction Quotes (951)
 Anticipation Quotes (1245)
 Experiences Quotes (625)
 Music Quotes (280)
 Books Quotes (1297)
 TV/movies Quotes (177)
 Art Quotes (652)
 General Quotes (2640)

 Imagi-Natives Search 
 
Quote/Topic  Author
Contains all words in any orderContains the exact phraseContains at least one word
[ 50 Item(s) displayed from page 32 ]


Previous<<  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  
27  28  29  30  31  32 33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  
52  53  54  55  56  57  58  59  60  61  62  63  64  65  66  67  68  69  70  71  72  73  74  75  76  
77  78  79  80  81  Next Page>>

  Quotations - Invest  
[Quote No.28686] Need Area: Money > Invest
"The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices." - Ben Graham
Famous Share investor who is considered the father of security analysis. Quoted from his famous book, 'The Intelligent Investor', first published in 1949.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28695] Need Area: Money > Invest
"[Remember when considering your share investments when inflation comes with a vengence as it always does at the end of the business-economic cycle, resource and energy related stocks do well, while the rest of the market suffers, because as people] ...are forced to pay more for fuel, they pay less for other things. The whole retail sector suffers. And much of the hospitality industry [including airlines which suffer from both falling spending and rising costs]; ...[people become so concerned they even plan] on taking 'stay-cations'." - Bill Bonner
Founder of Agora Publishing and founder and editor of the financial newsletter, 'The Daily Reckoning'.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28696] Need Area: Money > Invest
"...many investment professionals make a handsome living opining the ebbs and flow of quarterly earnings guidance, despite the fact that 59% of Wall Street's 'consensus' earnings forecasts miss the mark by a mortifyingly wide margin." - Christopher Hancock
editor of the financial newsletter, 'Free Market Investor'.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28698] Need Area: Money > Invest
"[Legendary investor George Soros confesses that he freaks out during market bubbles and busts just like everyone else.] I’m given to euphoria and despair. And I would say that I basically have survived by recognizing my mistakes." - George Soros
Chairman of Soros Fund Management, LLC and founder of The Open Society Institute. He is a Hungarian immigrant who came to the U.S. in 1956, at age 26, and made his billion dollar fortune as an international financier.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28704] Need Area: Money > Invest
"So far, the A-share [Chinese mainland] and H-share [Hong Kong] markets are beyond our understanding. The bottom and peak of the indexes are always a riddle. Now, we can’t find any proper investment targets which meet our investment criteria and have enough margin of safety as well. [Therefore we are going to liquidate these funds because...] We would rather miss an opportunity than blindly take a reckless move under whatever [market] circumstances. To survive in each investment decision is always our priority." - Zhao Danyang
Founder and general manager of Pure Heart Asset Management which managed five mainland China share investment funds until January, 2008 when he closed them all due to worries about a possible bubble in the Chinese share market. This quote is taken from his letter to his clients before the liquidation. Li Chunyu, general secretary of Shenzhen Financial Consultant Association, praised Zhao for his honesty. "To be faithful is the cornerstone for the survival and growth of private funds. Zhao is honest with his clients about his understanding of the market and returned the money to them. Not every private fund manager has his courage" [because otherwise he could still rein in management fees even if he continued running the funds at a loss]. He became famous in the West in June, 2008 when he bid over $2,000,000 to charity to have lunch with Warren Buffett.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28712] Need Area: Money > Invest
"[Short sell] ...the company that has no chance in hell of meeting the market’s expectations." - Crispin Odey
Principal of English hedge-fund-management firm, Odey Asset Management, which is backed by the billionaire George Soros and Lord Rothschild.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28713] Need Area: Money > Invest
"[Inflation, especially oil, acts like]...a tax when it's going up and a tax cut when it comes down." - James Paulsen
chief investment officer for Wells Capital Management
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28725] Need Area: Money > Invest
"[When considering investments]...never dare to judge till you've heard the other side. [that is, the cons as well as the pros.]" - Euripides
(c. 484 B.C. - 407 B.C.), Greek writer of tragedy. Quoted from his play, 'Heraclidae'.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28731] Need Area: Money > Invest
"In any business, there are going to be all kinds of factors that happen next week, next month, next year, and so forth. But the really important thing is to be in the right business. The classic case is Coca-Cola, which went public in 1919. They initially sold stock at $40 per share. The next year, it went down to $19. Sugar prices had dropped pretty dramatically after World War I. So you would have lost half of your money one year later if you'd bought the stock when it first came public; but if you owned that share today - and had reinvested all your dividends - it would be worth about $1.8 million. We have had depressions. We have had wars. Sugar prices have gone up and down. A million things have happened. How much more fruitful is it for us to think about whether the product is likely to sustain itself and its economics than to try to be questioning whether to jump in or out of the stock." - Warren Buffett
Highly successful value investor and Chairman of Berkshire Hathaway Inc. Quoted from a seminar he gave to the Columbia University Business School on March 13, 1985.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28732] Need Area: Money > Invest
"Many investors - including Warren Buffett - consider ROE to be very important. Each company's ROE is created through the interaction of three other component ratios. Being aware of these helps an investor assess each investment. The components are succinctly expressed in the following formula: ROE = NPM x TAT x FLM. [where: Return on equity (ROE): Measures the profitability of the company from the perspective of equity. Net profit margin (NPM): Measures how much the company keeps from each dollar of sales. Total asset turnover (TAT): A measure of the efficiency of the company in using its assets. Financial leverage multiplier (FLM): Measures the degree to which the company is financed through debt. Since assets are equal to equity plus liabilities, the ratio of assets divided by equity equals 1.0 plus liabilities divided by equity. This means that if the financial leverage ratio is 1.0, the company has no liabilities and the further it is above 1.0 the greater the liabilities compared to the equity.] As with any analysis of ratios, to get the maximum benefit from this formula [called the DuPont formula], the component ratios in the analysis need to be studied from two perspectives: -1 Current levels and perhaps their levels related to other similar businesses, and -2 Trends or sudden changes in the levels." - Seymour@Imagi-Natives.com

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28733] Need Area: Money > Invest
"What treasures here do Mammon's sons behold! Yet know that all that which glitters is not gold." - Francis Quarles
(1592-1644), Renaissance poet. Quote from his work, 'Emblems' (bk. II, emblem V).
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28736] Need Area: Money > Invest
"Ask any big-name investor what it takes to make consistent money in the stock market and they'll all tell you the same thing: Discipline....The best way to stay disciplined and control the urge to break away from your system is to remember one thing: There will always be another opportunity. As long as you know that you'll have more opportunities to make money, you'll be less likely to go for the one that isn't really in sync with your system." - Charles Delvalle
market analyst
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28740] Need Area: Money > Invest
"The mob has many heads but no brains." - English Proverb

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28747] Need Area: Money > Invest
"[In periods of high real inflation don't believe government inflation calculations. It is not in their interest, politically or fiscally, to accurately show the general public the true state of the economy. History shows this is true. Why?] What is good from the government's point of view is a low official inflation number. Billions and billions of dollars depend on the CPI calculation - everything from tax rate adjustments, Social Security payments, to monetary and fiscal policies. In a better world, perhaps we would have honest inflation numbers. But in a better world, we wouldn't need them." - Bill Bonner
Founder of Agora publishing, founder and editor of the financial newsletter, 'The Daily Reckoning' and author.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28753] Need Area: Money > Invest
"They [brokers] never want you to sell. Why? There are many hidden fees even in no-load mutual funds. Between the fund and the brokerage company they are skimming about 2% of your money every year. There are a few that do have less than ½% expenses, but they are few and far between. In a brokerage company, if a broker had his clients go to cash he would be fired. That piddling 1% skim means a great deal to the office manager. His office is rated on the total amount of funds. If one of his brokers suddenly had his clients transfer several million to a money market account the next day the broker would not have a desk. Mutual fund managers are paid by the total amount in the fund and NOT by how well or how much they make for shareholders. When a broker gets his registration he is given two manuals. The first has all the rules and regulations of the Securities and Exchange Commission (SEC). He must not violate any of these or he will lose his license. The second is a sales manual on how to open new accounts. That is basically every broker’s job – bring in new money and lots of it." - Albert W. Thomas
President of Williamsburg Investment Company. He writes a financial market letter called 'Over My Shoulder' and views about the market are syndicated to more than 300 newspapers.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28754] Need Area: Money > Invest
"[In a boom - rising - bull market never believe people trying to sell us shares when they say 'This time it is different' [This boom will last forever]. In a bust - falling - bear market never believe people trying to calm us down and stop us from selling when they say, 'The worst is behind us'. If you need proof, here are some examples...] 'The problem ... is for the most part behind us,' Merrill Lynch CEO John Thain said in January [2008]. Now he's reportedly preparing to take another $US5.4 billion write-down on mortgage-backed securities. 'The worst is behind us,' Lehman Brothers chief Richard Fuld told shareholders in April [2008]. Then in June [2008], the firm reported its worst loss ever, $2.8 billion. 'The worst is definitely behind us,' Bear Stearns chief financial officer Samuel Molinaro said on an investor call in September [2007]. Bear Stearns collapsed in March [2008]. Apparently, inclusion of the word 'definitely' is the kiss of death. 'The worst is behind us' has always been a wishful phrase, if not a blatant manifestation of desperation. President Nixon said it in 1974, despite runaway inflation and rampant unemployment. Mikhail Gorbachev said it in 1986 when the casualties from Chernobyl tallied less than 10. Not everyone who uses the term is a liar. Delusional optimism may be an instinctive response to the impending loss of great wealth or power. 'We think the worst is behind us,' said Fred Joseph in 1989, then-CEO of Drexel Burnham Lambert. Eventually, though, junk bond king Michael Milken's insider trading scandal and the 1987 stock market crash led to the firm's demise. People like to believe that long-established institutions will always be with us, yielding the sometimes false conclusion that whatever just happened must have been the worst. 'We feel the worst is behind us, and the future looks brighter for our company than it has for a long time,' said C. Edward Acker in 1983. He was CEO of an airline. You might still remember it – Pan Am. You might also remember Midway. Its chairman, David Hinson, said 'the worst is behind us' in 1991, the last year of the Chicago airline's life. No board of directors is going to pay a CEO to believe the worst. 'Clearly, the worst is behind us and we are seeing progressively better results each month,' said Douglas McCorkindale, then-CEO of Gannett, in 2002. Economists are often paid spokesmen for industries, too. 'The worst is behind us as far as a market correction,' said David Lereah, chief economist in 2006 for the National Association of Realtors. 'This is likely the trough for sales.' [Real estate has continued to fall since then] Former Federal Reserve chairman Alan Greenspan and General Motors vice chairman Bob Lutz also declared the worst had passed in 2006. 'In five years GM is going to be better off than it ever was,' Lutz told the Chicago Tribune. So far, GM stock is only down about 40 per cent since he said it. It's scary how many economists and market mavens declared that the worst was over after the Dow Jones Industrial Average slid below 12000 in March [2008]. Now [July, 2008] the Dow is even lower. If you are managing money, what are you supposed to tell investors? Sell? Bill Miller, whose Legg Mason Value Trust got a 19.7 per cent shave in the first quarter [2008], wrote a letter to his shareholders in April [2008]: 'For planning purposes, here is my forecast: I think we will do better from here on and that by far the worst is behind us.' Some people are far more cautious when they wield these words. 'I don't think we're out of the turbulent water yet,' Richard Yamarone, chief economist at Argus Research, told Investors Business Daily in May [2008]. 'But I do believe the worst is behind us.' When CEOs are not trying to publicly defend their stocks against bearish sentiments, they will often admit that the worst is not behind us. In a recent [2008] survey of CEOs by Chief Executive magazine, only 19 per cent said 'the worst is behind us.' Nearly 36 per cent said 'the worst is yet to come.' And more than 43 per cent said 'the worst is happening right now.' Contrast that to what Enron's Ken Lay said in 2001: 'We have faced a number of challenges but the worst is behind us, and the business is doing great.' Lay suffered many misfortunes after uttering these fateful words, including a heart attack in Aspen, Colorado. He died in July 2006 between his conviction and sentencing on fraud charges." - Al Lewis
Award-Winning Dow Jones Business Editor and Columnist. Quoted from the article, 'News of the Worst Kind', published in the 'Business Spectator', 3rd July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28756] Need Area: Money > Invest
"[What advice does Warren Buffett have for a new share investor?] I would do a lot of reading before I invested. In other words I would prepare for it. I wouldn’t jump in the water until I know how to swim.... I read every book the Omaha Public Library had about investing by the time I was 11." - Warren Buffett
Highly successful value investor, Chairman of Berkshire Hathaway Inc. and one of the richest men in the world.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28758] Need Area: Money > Invest
"Before we start in on questions, I would like to tell you about one thing going on recently. It may have some meaning to you if you're still being taught efficient-market theory, which was standard procedure 25 years ago. But we've had a recent illustration of why the theory is misguided. In the past seven or eight or nine weeks, Berkshire has built up a position in auction-rate securities [bonds whose interest rates are periodically reset at auction] of about $4 billion. And what we have seen there is really quite phenomenal. Every day we get bid lists. The fascinating thing is that on these bid lists, frequently the same credit will appear more than once. Here's one from yesterday. We bid on this particular issue - this happens to be Citizens Insurance, which is a creature of the state of Florida. It was set up to take care of hurricane insurance, and it's backed by premium taxes, and if they have a big hurricane and the fund becomes inadequate, they raise the premium taxes. There's nothing wrong with the credit. So we bid on three different Citizens securities that day. We got one bid at an 11.33% interest rate. One that we didn't buy went for 9.87%, and one went for 6.0%. It's the same bond, the same time, the same dealer. And a big issue. This is not some little anomaly, as they like to say in academic circles every time they find something that disagrees with their theory. So wild things happen in the markets. And the markets have not gotten more rational over the years. They've become more followed. But when people panic, when fear takes over, or when greed takes over, people react just as irrationally as they have in the past. [which provide wonderful opportunities for the calm, patient, rational value investor]" - Warren Buffett
Highly successful value investor, Chairman of Berkshire Hathaway Inc. and one of the richest men in the world. Quoted from a question and answer session in early April, 2008, with 150 students from the University of Pennsylvania's Wharton School of Business.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28759] Need Area: Money > Invest
"I think we've got fabulous capital markets in this country, and they get screwed up often enough to make them even more fabulous. I mean, you don't want a capital market that functions perfectly if you're in my business. People continue to do foolish things no matter what the regulation is, and they always will. There are significant limits to what regulation can accomplish." - Warren Buffett
Highly successful value share market investor, Chairman of Berkshire Hathaway Inc. and one of the richest men in the world. Quoted from a question and answer session in early April, 2008, with 150 students from the University of Pennsylvania's Wharton School of Business.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28761] Need Area: Money > Invest
"Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them, basically. ...Then they just have to worry about getting greedy. You know, I always say you should get greedy when others are fearful and fearful when others are greedy. But that's too much to expect. Of course, you shouldn't get greedy when others get greedy and fearful when others get fearful. At a minimum, try to stay away from that." - Warren Buffett
Highly successful value share market investor, Chairman of Berkshire Hathaway Inc. and one of the richest men in the world. Quoted from a question and answer session in early April, 2008, with 150 students from the University of Pennsylvania's Wharton School of Business.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28762] Need Area: Money > Invest
"[What advice would you give to someone who is not a professional investor? Where should they put their money?] Well, if they're not going to be an active investor - and very few should try to do that - then they should just stay with index funds. Any low-cost index fund. And they should buy it over time. They're not going to be able to pick the right price and the right time. What they want to do is avoid the wrong price and wrong stock. You just make sure you own a piece of American [or your own country's] business, and you don't buy all at one time. [called Dollar Cost Averaging]" - Warren Buffett
Highly successful value share market investor, Chairman of Berkshire Hathaway Inc. and one of the richest men in the world. Quoted from a question and answer session in early April, 2008, with 150 students from the University of Pennsylvania's Wharton School of Business.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28763] Need Area: Money > Invest
"[How do you get your ideas?] I just read. I read all day. I mean, we put $500 million in PetroChina. All I did was read the annual report. [Berkshire purchased the shares in 2003 and sold them in 2007 for $4 billion.]" - Warren Buffett
Highly successful value share market investor, Chairman of Berkshire Hathaway Inc. and one of the richest men in the world. Quoted from a question and answer session in early April, 2008, with 150 students from the University of Pennsylvania's Wharton School of Business.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28766] Need Area: Money > Invest
"Let me remind you that credit [in moderation] is the lifeblood of business, the lifeblood of prices and jobs. [and the economy. But too much is poison.]" - Herbert Clark Hoover
(1874 – 1964), the thirty-first President of the United States between 1929 and 1933, mining engineer and author.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28769] Need Area: Money > Invest
"Typically, in a recession, the government tries to 'lean into the wind' to counterbalance the effect of an economic slowdown. Business stops investing so much. Consumers stop spending so much. The government - according to classic Keynesian economics - tries to take up the slack by spending more. But where does it [The U.S. Government in 2008] get the money? The feds already have a deficit of about $500 billion. And a 'financing gap' of $57 trillion. In the coming recession, predicts Bill Gross of the PIMCO fund, the federal deficit will go to $1 trillion. Obama will likely be the next president. He'll be tagged with the first TRILLION DOLLAR DEFICIT. But what can he do? Obama says he's going to cut spending. But every economist in the nation is going to tell him not to do it - not during a recession. It will only make the recession worse, they'll say. Instead, they'll urge him to spend more money. They'll remind him that the Japanese used fiscal stimulus on a massive scale - equal to 10% of GDP - and it still wasn't enough to light a fire under their economy. A similar fiscal stimulant in the United States would mean a deficit of $1.7 trillion! [Surely the lesson for next time, for governments as well as individuals, is 'when things are going well put a little away for a rainy day', because, without a doubt, it is coming.]" - Bill Bonner
Founder and editor of the financial newsletter, 'The Daily Reckoning'. Quoted from 'The Daily Reckoning Australia', 3rd July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28771] Need Area: Money > Invest
"[Be wary of manias:] Since 1974 we have seen many market extremes and market manias. For example, the 'Nifty Fifty' (the 50 largest stocks) declined on average 65% between 1972 and 1974, eventually selling as low as 12 times earnings. Today's 'Nifty Fifty' [1999's dot.com boom] is trading at an average of 45 times earnings and the S&P is trading at 30 times earnings, both at historical highs. In 1980, oil sold above $40 per barrel and 18 years later in November of 1998 hit a low of $10.82. This is a 25 year low, when adjusted for inflation. We have seen gold, during our 25 years, hit a high of $800 per ounce in 1980, and today, 19 years later, hit a low of $274 per ounce. Between 1972 and 1980, while gold was moving from $100 per ounce to $800 per ounce and oil was increasing from $10 to $40 per barrel, the stock market dropped. During those years, stocks were the most unpopular investment. In 1980, public participation in the stock market reached a six year low. Out of this extreme pessimism and unpopularity, the largest bull market in our history was born. Today [1999], the stock market is the most popular place to invest and the large technology stocks are getting most of the attention [dot com boom]. At the same time, investing in oil, gold, and commodities would have to rank as the most unpopular form of investments. A review of the extremes that took place in the oil, gold, and commodity markets shows that they grew to such heights, they became manias. Investors bid up the prices of commodities, oil and gold stocks to levels that even after 20 years the excesses are just now beginning to come into balance. [Therefore be wary of any investment mania. By that I mean] ...when the fundamental values no longer matter. In other words, sales and earnings don't count. All that matters is that the stock [or commodity, oil, gold, etc] is going up and everybody owns it. The pressure of not owning the stock that all of your friends and co-workers own that's going no where but up becomes too great. At this time in the market place, we refer to the euphoria as a mania. Sir John Templeton, founder of the Templeton Funds, captured this cycle [and gave some very valuable advice] with his quote, 'Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell.' " - Arnold Van Den Berg
Founder and President of fund management firm, Century Management, formed in 1974. From his article, 'The Market Comes Full Circle', published April, 1999.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28772] Need Area: Money > Invest
"[If you ever wondered whether a share can be overpriced, or at least go down a lot, here are some large drops by some very large, well-known, well-respected, profitable companies in the Australian share market - calculated from their two year high price to their recent 2008 lows:] Aristocrat Leisure Limited – DOWN -65.55% Toll Holdings Limited – DOWN -60.74% Harvey Norman Holdings Limited – DOWN -57.93% Caltex Australia Limited – DOWN -56.77% Macquarie Group Limited – DOWN -54.48% Qantas Airways Limited – DOWN – 52.15% Brambles Limited – DOWN -50.99% ASX Limited – DOWN -50.44% Fairfax Media Limited – DOWN -49.72% AMP Limited – DOWN -51.66% " - Seymour@imagi-natives.com

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28778] Need Area: Money > Invest
"[After any stock market boom comes the bust. If you want proof then between 2004-08 most stock markets doubled which is twice as fast as the historical average. Then early 2008 the markets overheated and the the wheels fell off, the asset bubble burst with a nasty credit squeeze and then out of control inflation. Any time a market gets too far ahead or behind its long-term mean return expect it to correct - often savagely!] But think you’ve got it bad? Think again. Inflation in the Ukraine is running at 30% per year. In Latvia, it’s 18%. Egypt is suffering 16% inflation. And, oh yes...there’s Zimbabwe. The average worker’s salary in Zimbabwe is 15 billion Zimbabwe dollars per month. The poor fellows are billionaires, every one of them. But it takes 19 billion Zimbabwe dollars just to buy a pack of 10 cookies – if you find it. A pound of margarine is 25 billion. Consumers are getting shellacked all over the world. So are investors. Europe’s stock markets are down nearly twice as much as Wall Street. And many foreign markets are down twice as much. China and Vietnam, for example, are both down more than 50% from their peaks." - Bill Bonner
Founder and editor of the financial newsletter, 'The Daily Reckoning'. Quoted from 'The daily Reckoning Australia', 4th July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28779] Need Area: Money > Invest
"The [2008] recession, then, is not an aberration crying out for correction; it is itself the correction for the unsustainable economic bubble that preceded it. It should be welcomed in the same way we welcome a sober day after a drunken evening, or the detoxification of an addict after a period of addiction. [The lesson for the wise in the future is when you see these euphoric booms get ready for the inevitable crash.]" - Llewellyn H. Rockwell, Jr.
Founder and president of the Ludwig von Mises Institute in Auburn, Alabama, U.S.A. Published in 'The Daily Reckoning Australia', 4th July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28783] Need Area: Money > Invest
"[During the great bear market of 1974, when anyone could buy great companies cheaply, Warren Buffett was asked by a rather staid fellow how he felt. He replied:] Like an over-sexed guy in a whorehouse." - Warren Buffett
Highly successful value investor, Chairman of Berkshire Hathaway Inc and one of the richest men in the world.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28785] Need Area: Money > Invest
"[According to data compiled by Bespoke Investment Group:] The post-1940 average bear market (as defined by the Standard & Poor's 500 index) produced a decline of 30.4% from a peak that took 386 days to reach its trough. By the time the market was down the requisite 20%, the average bear market was 74% completed...What seems consistent among bear markets is the tendency of investors to despair in their later stages, dumping everything indiscriminately. For instance...in the early stages of a decline, from the peak to the down-20% bear print, the traditional defensive redoubts - consumer staples and health care - hold up relatively well, shedding about 4% each. But after the bear market becomes 'official' at minus 20%, the two actually do slightly worse through the rest of the decline - down 11.6% for consumer staples and down 13.9% for health care, versus minus 10% for the S&P at that stage, as investors tend to dump anything and everything... [What did best during past bear markets?] During the first phase on the way to the minus-20% mark, gold prices were virtually unchanged while oil was up 18.7%. Bond yields, as measured by the 10-year Treasury, actually were up by about 7% in the early phase, which would result in negative returns. But after the S&P was down 20%, gold gained an average of 6.6%, oil was up 19%, and bond yields were down 0.5% for a positive return [as their price moves opposite to their yield]." - Bespoke Investment Group
Founded by Paul Hickey and Justin Walters, Bespoke runs the Think B.I.G. finance blog, provides timely investment ideas through its Bespoke Premium subscription service and also manages money for high net worth individuals.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28789] Need Area: Money > Invest
"[There are a number of different economic theories. One of the most popular especially among free market proponents is] the Austrian school of economics, whose most famous exponents include Ludwig von Mises and the Nobel laureate Friedrich von Hayek. Austrians are obsessed with interest rates, and most particularly about what happens when central banks apply the wrong rates. When interest rates are too low, they argue, credit expands too rapidly. This stimulates investment and fosters asset price bubbles [booms]. Eventually, credit 'inflation' shows up in rising consumer prices. But by then, it's too late to stop the damage. The end of the boom reveals the misallocation of capital, or 'malinvestment' as the Austrians insist on calling it. After which, there follows a painful process [a bust] as the economy is forced to adjust back to equilibrium. The type of boom described by the Austrians typically occurs at times when consumer price inflation is quiescent. This allows the authorities to keep rates low and for credit to expand rapidly without any immediate impact on costs. These conditions held in the US in the 1920s... this era was characterised by low inflation, technological innovation, rising productivity, rapid increases in the prices of equity and real estate and strong fixed investment [and created one of the worst bubbles and subsequent busts -the Great Depression- the world has ever experienced. Therefore contrary to popular opinion low interest rates are not necessarily good for an economy or investors in the long run as they discourage saving and encourage borrowing and speculation leading almost inevitably to irrationally exuberant asset prices that eventually bust painfully.]" - Edward Chancellor
Financial journalist. Quoted from the 'Business Spectator', published 7th July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28790] Need Area: Money > Invest
"Markets run on sentiment as much as anything else " - Rob Patterson
Chief of Australian listed investment company, Argo Investments. [ARG]
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28796] Need Area: Money > Invest
"[Like guns] Derivatives don't kill people; people kill people. [or should that be greedy people kill their own and others wealth?]" - Frank Partnoy
Morgan Stanley salesman from the early 1990s in his classic book 'F.I.A.S.C.O.'
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28798] Need Area: Money > Invest
"If you've spent some time in the investing world, you have probably heard the terms 'triple witching' and 'quadruple witching'. But that doesn't mean you know what they are or why they should concern you as an investor. A triple witching day is when stock options, stock index options, and stock index futures all expire on the same day. A quadruple witching day is when stock options, stock index options, stock index futures, and single stock futures all expire on the same day. These days happen on a quarterly basis, and the financial media usually makes a big deal out of it. Why? Because the expiration of these derivatives can, and will, cause increased volatility in the market. If you are a short-term trader, you certainly need to be aware of witching days. They occur on the third Friday of March, June, September, and December. If you are a long-term investor, triple witching and quadruple witching days will have little impact on you. Just be aware that when they happen, the market may get a little crazy. When you're prepared for some volatility, you won't overreact. [in the same way that you are prepared for volatility around other dates, for example, when central banks report, or companies go ex-dividend or report earning surprises or downgrades in the pre-reporting 'Confession Season'.]" - Rick Pendergraft

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28809] Need Area: Money > Invest
"I could be on a beach, but I can’t wait to get to the office every day. Risk-taking is like a giant jigsaw puzzle." - Sam Zell
(1941 - ), U.S.-born billionaire and real estate entrepreneur. He is co-founder and Chairman of Equity Group Investments. A self-proclaimed 'professional opportunist', he founded his privately-held investment company, Equity Group Investments, with Robert Lurie, a fraternity brother, in 1968. They started out buying up cheap real estate throughout the U.S. from distressed owners, and then kept buying when values recovered and boomed. Zell made his first appearance on the Forbes 400 list of the richest Americans in 1986, with a net worth of $200 million. Thirty two years later his company, EOP, is valued at $37 billion.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28810] Need Area: Money > Invest
"How do we know when this [or any] bear market ends? We don't necessarily need technical chartists to answer this question for us. As long as the overall risks to corporate earnings (thus economic growth) and share price valuations (based upon forecasts by securities analysts) remain tilted to the downside, we are and will remain in bear market territory. To make the transition into the early stages of the next bull market, a majority of investors (not just one or two brave share market gurus) will need to be genuinely convinced that the odds have clearly turned in favour of likely surprises to the upside for both corporate earnings and share price valuations. Until then, and not one moment earlier, investors will have to continue reminding themselves the bear market is still alive and dominating. In my view, investors should approach this matter not as a punter, but as the bookmaker who has to make sure he puts up the right odds so he makes money, instead of losing it. Wouldn't you have loved to take all the bets from those hopeful punters who were willing to bet... that all this would soon be over? When the moment comes that you feel the odds have clearly shifted and you are more likely to start losing money on those 'all will soon be over'-bets, you can probably start betting on a sustainable recovery for the share market yourself....[but at present] Analyst expectations remain way too high, and will have to come down, and come down a lot. And as those forecasts come down, so too will valuations, price targets and recommendations. Until they are so low that upside surprises will become more likely than not. Only then will the last bear market rally prove to be the first one into the new bull market. [So as the saying goes, 'Cash is King' at present. Be patient, but if you can value a company confidently and it becomes a screaming bargain, with a huge margin of safety, and you are prepared to hold it for up to three years or longer for the market to recognize the value too, then you are following in the footsteps of famed value investor Warren Buffett and you may do very well. But remember not everyone has his business valuation talent, mental patience or ongoing income.]" - Rudi Filapek-Vandyck
editor FNArena [Financial News Arena], published Wednesday, 9 July 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28813] Need Area: Money > Invest
"A bear market is typically defined as a drop of at least 20% off the cyclical highs... 'It's often when the market feels so terrible that that's when the best opportunities arise,' said Katie Townshend, chief market technician at MKM Partners. 'When everyone jumps on the bear.' Townshend said a variety of factors she looks at are in that 'so bad it's not so bad' category of contrarian indicators, including measures of investor sentiment and the percentage of stocks in the S&P 500 that have been beaten up enough to warrant being called 'oversold'... Going back to 1956, there have been 9 other bear markets, according to Standard & Poor's chief investment strategist Sam Stovall. According to Stovall, the S&P typically fell into bear territory about 9 months after the previous market top and the average bear market lasted about 14 months... Looking at stock market performance in the year after hitting bear market territory, Stovall found that the average results were always positive. In the one, two, three, six and 12 months after seeing a bear, the S&P 500 gained an average of 3%, 5.6%, 4.7%, 6.7% and 16.5%, respectively. Bill Stone, chief investment strategist at PNC Financial Services Group also conducted a survey of stock performance in the months after first falling into bear market territory and found equally promising results. But there are of course exceptions. Big ones. '1973 was bad,' Stone said. The S&P 500 was down 27% around 12 months after that bear. 'The end of the early 2001 bear market also proved unimpressive,' Stone said, 'with the S&P 500 down 1.2% a year later.' But the aftermath of the most recent bear market was more positive. Wall Street last saw a bear in 2002, following the collapse of the late 1990s tech bubble, the recession of 2001 and the 9/11 terrorist attacks. That year, the Dow was in a bear market for about 7 months and dropped 31.5%, according to the Stock Trader's Almanac, while the S&P 500 was in a bear market for 9 months and shed almost 46%. The Nasdaq was also in a 9-month bear market and lost nearly 34%. After bottoming in October 2002, stocks rallied back more or less for the next 5 years, seeing the third-longest bull market in history before hitting the current hump [2007-8]. Between the October 2002 lows and the October 2007 all-time high for the S&P 500, the index gained 101%. Other big bounces happened in 1980, 1987 and 1990. In all three instances, the S&P 500 was up at least 20% six months later. On the downside, bear markets don't typically end once the index in question has slumped 20%. Some last a lot longer [the longest bear market was from 1939-42 which lasted 959 days and the market lost just over 40%]. On the upside, bear markets don't typically last as long nowadays as they used to, with the biggest collapse in history happening in 1929 [with a drop around 85%] - a year that is unlikely to be replicated." - Alexandra Twin
CNNMoney.com senior writer, published in the article, 'Wall Street: Three Cheers For the Bear', July 8, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28815] Need Area: Money > Invest
"Buy shares in good businesses (ones with high returns on capital) but only when they are available at bargain prices (priced to give us a high earnings yield [earnings/price])." - Joel Greenblatt
Founder and a managing partner at Gotham Capital which has achieved the remarkable average annualized returns of 40% for over twenty years, since its inception in 1985. He has written a number of investing books including one called 'The Little Book That Beats The Market' which very simply explains his value investing philosophy and a simple way for it to be used by ordinary investors.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28816] Need Area: Money > Invest
"Choosing individual stocks without any idea of what you are looking for is like running through a dynamite factory with a burning match. You may live, but you're still an idiot." - Joel Greenblatt
Founder and a managing partner at Gotham Capital which has achieved the remarkable average annualized returns of 40% for over twenty years, since its inception in 1985. He has written a number of investing books including one called 'The Little Book That Beats The Market' which very simply explains his value investing philosophy and a simple way for it to be used by ordinary investors.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28817] Need Area: Money > Invest
"Investing without sufficient theoretical knowledge and company research can be hazardous to your wealth." - Seymour@imagi-natives.com

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28822] Need Area: Money > Invest
"Pegging is a method of fixing a country's currency to stay at a certain rate below or above another country's currency. Pegging is characterized by having a fixed exchange rate [rather than a floating exchange rate]. When a country pegs their money to a commodity - gold, silver, uranium - The value of the currency would then be in direct proportion to the value of the commodity. A country can have control of its currency by trading it in the world exchange market: if the exchange rate is too low and imports become too expensive, they can sell some of their currency; if the exchange rate is too high, then their exports are reduced and the likely result is a recession; this happened in 1998 in South East Asia. In 1995, the US dollar began to rise in value. Many of the Asian countries had currencies pegged to the American dollar. When the dollar rose, the value of the Asian currencies rose correspondingly. However, this caused the inflation rates to rise considerably in the Asian markets due to the increased costs of imported goods. As a consequence of the exchange rates rising, exports fell and the Asian countries fell into recession. As of June '98, the Hong Kong currency has been pegged to the US dollar; this has helped Hong Kong survive the Asian Crisis because their currency has not dropped extensively. However, their peg may have to be dropped due to inflation and rising costs of real estate. Most developing countries will peg their currency [to the currency of their major trading partner - usually the U.S.A.] to help them get stay economically competitive when beginning opening up their markets. Importantly, they have also to agree to trade their currency at any given time with the country they are pegged to." - Unknown
This definition was derived from information provided by the website www.library.thinkquest.org
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28823] Need Area: Money > Invest
"If a property is said to have a cap rate of 7%, this means its value is the net rental income after all expenses multiplied by 1/7% = [100/7] = 14.286. One million dollars of net rental income would therefore translate to $14,286,000 of property value. Historically, office buildings in prime locations have the lowest cap rates while industrial buildings (warehouses, manufacturing and service type facilities) have the highest cap rates. Shopping centre cap rates fall somewhere in between...While in the long-term, using constant cap rates, capital appreciation is entirely attributable to rental increases; in recent years, much of the capital appreciation of REITS [Real Estate Investment Trusts] has come from reduced cap rates due to limited supply and increased demand for investment properties" - Brian McNiven
Author of a number of value investing books and the developer of the StockVal value investing software.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28824] Need Area: Money > Invest
"Stocks with unproven business models are inherently [very] risky." - Dan Denning
Editor of 'The Australian Small Cap Investigator'.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28828] Need Area: Money > Invest
"When inflation [including the cost of energy/petrol] and the cost of money [interest rates] are high, expect all businesses to suffer [margins reduce and sales volume falls] due to lower demand and higher costs, both for materials and labour [especially with wage inflation]. Unfortunately the solution is usually a recession, which allows an economy to get back to levels where economic growth is again possible. This is one of the reasons that central banks try hard to manage an economy's growth so that it never grows so quickly that it gets into a period of severe inflation because it is very painful to fix, including greater unemployment and drops in the value of financial markets - including people's homes and superannuation." - Seymour@imagi-natives.com

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28829] Need Area: Money > Invest
"When the market crashes many investors become fearful of more losses driven by panic and crisis - the 'Let's just get the hell out of here!' attitude and they 'throw the baby out with the bathwater.' Intelligent value investors, with their heightened ability to value companies and to 'keep their heads when others are losing theirs', often find that great companies are being sold too cheaply at these times, and buy them for a song. This is why value investing can be so profitable, but it is not for the faint-hearted or the inexperienced as many companies really aren't worth even what they are being sold for and will fall further and perhaps never recover." - Seymour@imagi-natives.com

Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28830] Need Area: Money > Invest
"The US sub-prime [loans] incentives were based around the selling principles of the used car market, where those doing the selling clipped the coupon with no regard for the quality of the product being sold. Additionally, managers who needed to be removed were given huge payments. In Australia, for the most part, our bankers have not been caught basing incentives around the American used car system, although they have been very guilty of handing out big rewards to failed managers.... Nevertheless the management reward system adopted by Australian banks helped them avoid US-style excesses. Conversely,the rewards at Australian listed property trusts [and funds managers - i.e. the Management Expense Ratio MER] were often a percentage of the assets managed and so there was a huge incentive to increase the size of a fund with very little regard to the potentially damaging consequences of gearing levels on long term performance. This has contributed to the demise of many of the local [R.E.I.T.] trusts [in the 2008 share market bust as well as the poor performance of many superannuation funds, which failed to move into cash at the height of the boom]." - Robert Gottliebsen
Highly regarded Australian financial journalist. Quote from the 'Business Spectator', 10th July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28831] Need Area: Money > Invest
"[In general, fixed-income securities are classified according to the length of time before maturity. These are the three main categories: Bills - debt securities maturing in less than one year. Notes - debt securities maturing in one to 10 years. Bonds - debt securities maturing in more than 10 years. Marketable securities from the U.S. government - known collectively as Treasuries - follow this guideline and are issued as Treasury bonds, Treasury notes and Treasury bills (T-bills). There are other types of fixed income securities, ranging from 'munis' - municipal bonds to corporate bonds to foreign denominated bonds to name just a few. These are types of loans with various maturities. Investing in these is a specialist field like share investing. For example here is a portion of a report about them:] Aussie [interest] rates underperformed USTs [U.S. Treasuries] in the rally last night. Aussie 3s [3 year] are only up 0.5 ticks (93.445) and 10s [10 year] are up 1 tick [tick = The minimum upward or downward movement in the price of a security. Historically, stocks didn't trade in decimals. A stock would move in amounts of 1/8, 1/16, or 1/32 of a dollar (the tick). This changed when the decimal system was brought in. Therefore how we got the name for the stock ticker-tape.] (93.68) – however I’d expect that they’ll catch up a touch so long as employment (figures out at 11.30 a.m.) isn’t large. From their 1630 levels, US 2s [2 years] are down 9.8bps [bps = basis points = 100th of 1% of interest rates = 0.01%'s = bps/100 X 1%] (2.3936 per cent), 5s [5 years] are down 11.4bps (3.0847 per cent), 10s [10 years] are down 7.9bps (3.8151 per cent), and 30s [30 years] are down 4.4bps (4.4176 per cent); the t.note [Treasury Note] is +35/64, 115*22 in overnight trade. [Following interest rates for fixed-interest securities can help share investors as well as bond, currency and commodity traders make better guesses about the behaviour of their respective financial markets.]" - Matthew Johnson
senior economist at ICAP Australia, which provides comprehensive information on global markets across a broad range of asset classes, including interest rate and foreign exchange.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28837] Need Area: Money > Invest
"[When thinking about a company rebuilding its asset base by raising capital through corporate bond issues or institutional placements or share rights issues, keep the following example from July, 2008, in mind.] The two pillars of the U.S. mortgage market, Fannie Mae and Freddie Mac, wobbled again yesterday. The U.S. market shuddered. It shows you how important mortgage finance has become to the whole U.S. financial system, and how precarious things are today. Shares in Freddie were down 24% yesterday while Fannie's shares fell 13%. Investors are now convinced that the firms are going to have to raise new capital and that existing shareholders face massive dilution... The trouble is that Fannie Mae and Freddie Mac may not have enough capital to cover losses on the mortgages they own and have guaranteed. A bank's capital is basically its cushion against future losses. If the losses greatly exceed the available capital, you're not sitting on a cushion. You're sitting on a black hole. Fannie and Freddie have trillions of dollars in assets. But remember, a bank's assets are someone else's liability - a loan is a promise to pay. The trouble for Fannie and Freddie is that combined, they own or have guaranteed over US$5.3 trillion in debt and securitised mortgages. Their capital, on the other hand, is slender by comparison, with Fannie having US$38.8 billion in capital and Freddie US$16.3 billion. Many of Fannie and Freddie's assets are held in off-balance sheet vehicles. That means the banks don't have to boost capital to protect against asset losses since the assets aren't official. They are more like illegitimate children that are maintained in a second home, technically existing but not officially acknowledged. Yesterday's big hubbub was based on what would happen if the GSEs [Government Sponsored Enterprises] had to move those assets on to the balance sheet (move the kids from the mistress into the household with the wife and kids from the Christmas cards). Near - panic ensued. The longer-term and not at all trivial or amusing question is how fundamentally sound are the assets owned and guaranteed by the GSEs? The GSEs have a lot of subprime debt that was issued late in the game to the riskiest borrowers. They say they can hold to maturity and don't have any need to sell it. But what about the soundness of the rest of their portfolios? According to the credit market action yesterday, the answer is that those portfolios appear 'increasingly less sound, or at least much riskier.' Fannie sold US$3 billion worth of bonds this week to finance its mortgage operations [with the share market removing 13% of its price.] Those two-year maturity bonds were priced at a 3.27% yield - which is nearly three quarters of a percentage (74 bps - basis points) higher than what U.S. Treasury notes of the same duration pay... 'You wanna borrow money Fannie? You're gonna pay.'[a lot more, because you're very risky, which is why the large difference/spread between their interest rate and same duration Treasury notes.] That's what the market's telling us. That spread between Fannie notes and U.S. Treasuries is the biggest since 2000. And the cost of insuring Fannie and Freddie debt against default has gone up too. We will not ruin your day by discussing credit default swaps in detail. But think of it this way, when you get in a car accident, your insurance premiums go up. Rising credit default swap rates are the market's way of telling us it thinks Fannie and Freddie are more likely to get in an accident, so the cost of insuring their bonds against default has gone up. All of this is enough to make the market - and anyone who owns debt guaranteed by the GSEs - very very nervous." - Dan Denning
Editor of the financial newsletter, 'The Daily Reckoning - Australia'. Published 10th July 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28838] Need Area: Money > Invest
"[If you are ever thinking of buying art as an investment in periods of high inflation as a hedge against a stock market or real estate crash remember that you will pay top dollar for the art because that is when everyone else will be trying to do the same, as the following describes:] The housing and mortgage crisis is far from having burnt itself out [as of July, 2008]. The oil price crisis also started in August 2007, when the oil price was only $70 a barrel, half what it now is. The price of other commodities, particularly foodstuffs, has moved with the price of oil. Equity markets behaved as though they were immune from the recession. That pretence lasted until last October [2007]. Since that time the U.S. stock market has fallen by 20 per cent. Only the art market seems to be exempt, with billionaires buying conceptual art at speculative prices. This may reflect the sheer weight of billionaire money, or it may follow the precedent of the art market being the lagging indicator among all asset classes. [having its high point at the very end of market booms when those made richer by the boom go in search of luxury and/or status symbols thereby driving up prices.]" - Lord William Rees-Mogg
former editor-in-chief for The Times and a member of the House of Lords. He has been credited with accurately forecasting glasnost and the fall of the Berlin Wall - as well as the 1987 crash. His political commentary appears in The Times every Monday. His financial insights can only be found in the Fleet Street Letter, the UK's longest-running investment newsletter. Published in 'The Daily Reckoning', 10th July, 2008.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

[Quote No.28841] Need Area: Money > Invest
"Speculators Extrapolate, Investors Think 'Regression to the Mean'. " - Chris Leithner
He runs Leithner & Co. Pty Ltd which is a private Australian investment company that adheres strictly to the Graham-and-Buffett 'value' approach to investment. He wrote a book about his approach called 'The Intelligent Australian Investor'.
Author's Info on Wikipedia  - Author on ebay  - Author on Amazon  - More Quotes by this Author
Start Searching Amazon for Gifts
Send as Free eCard with optional Google Image

Previous<<  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  
27  28  29  30  31  32 33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  
52  53  54  55  56  57  58  59  60  61  62  63  64  65  66  67  68  69  70  71  72  73  74  75  76  
77  78  79  80  81  Next Page>>

 
Imagi-Natives'
Self-Defence
& Fitness Training

because
Everyone deserves
to be
Healthy and Safe!
Ideal for Anyone's Personal Protection Needs
Simple, Fast, Effective!
Maximum Safety - Minimum Force
No Punches, Kicks, Chokes, Pressure Points or Weapons Used
Based on Shaolin Chin-Na Seize and Control Methods
Comprehensively Covers Over 130 Types of Attack
Lavishly Illustrated With Over 1300 illustrations
Accredited Training for Australian Security Qualifications
National Quality Council Approved