Imagi-Natives advice on:
0 0
Daily Needs
Mind Needs
 Learn Quotes (5037)
 Imagine Quotes (1924)
Plan Quotes (1672)
 Focus Quotes (2129)
Persist Quotes (5316)
 Evolve Quotes (1505)
Progress Quotes (290)
 General Quotes (296)
Body Needs
 Health Quotes (568)
 Exercise Quotes (413)
 Grooming Quotes (145)
 General Quotes (824)
Money Needs
 Income Quotes (238)
 Tax Quotes (532)
 Save Quotes (186)
 Invest Quotes (4016)
 Spend Quotes (321)
 General Quotes (1230)
Work Needs
 Customers Quotes (137)
 Service Quotes (1034)
 Leadership Quotes (3233)
 Team Quotes (495)
 Make Quotes (283)
 Sell Quotes (1448)
 General Quotes (1041)
Property Needs
 Clothing Quotes (146)
 Home Quotes (152)
 Garden/Nature Quotes (966)
 Conservation Quotes (283)
 General Quotes (348)
Food Needs
 Food Quotes (205)
 Drink Quotes (226)
 General Quotes (539)
Friends Needs
 Friends Quotes (780)
 Partners Quotes (616)
 Children Quotes (1676)
 Love Quotes (792)
 Conversation Quotes (4587)
 General Quotes (8730)
Fun Needs
 Gratitude Quotes (1705)
 Satisfaction Quotes (967)
 Anticipation Quotes (1263)
 Experiences Quotes (633)
 Music Quotes (280)
 Books Quotes (1302)
 TV/movies Quotes (177)
 Art Quotes (655)
 General Quotes (2663)

 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 36 ]


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.29536] Need Area: Money > Invest
"In a credit crunch there is a link between liquidity and insolvency. Liquidity relates to short-term money required for running a company. Many companies go to the market to get these short-term loans and then roll these loans over as they come due but in a credit crisis rolling them over can become difficult especially if the new interest rates are higher, which only further increases their running costs and liquidity problems. Also liquidity problems can be compounded as rating agencies can lower the investment rating of the company which increases the borrowing costs and reduces the size of the market willing to loan them money - as often the lenders, for example superannuation companies, can only lend to top rated, investment-grade companies according to their constitutions. Rating down-grades can also trigger requirements for the company to put up new collateral in order not to break existing loan covenants, etc which would make those loans due too. This could result in a death spiral which would see it being put into administration or going into bankruptcy before it had the chance to raise further cash through new borrowings, equity raising through a rights issue or placement, asset sales or a takeover. This is a quick explanation of how companies can get into severe difficulties very quickly in a credit crunch and why investors should be very wary of high debt, highly leveraged companies at the end of a business, credit, share market cycle when inflation rises and central bank's interest rates rise dramatically to fight inflation and thereby strain the economic viability of heavily debt financed companies." - 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.29537] Need Area: Money > Invest
"If you like to buy companies on the cheap - like I do - you probably look at their P/Es. That's fine. Just know what you're looking at. If it's a forward P/E, ignore it. What's a forward P/E? Let me explain. Investors use P/E (price-to-earnings) ratios to measure how cheap a stock is. 'Value' investors love P/Es below 10 - meaning the price of a share is less than 10 times earnings per share. Since P/Es vary from sector to sector, some value investors simply look for P/Es that are below the average in their sector. A 'Ratios' report is available on the Reuters website for every listed company, and is the easiest way to look this up. To its credit, Reuters uses only 'P/E Ratio (TTM).' The TTM stands for 'trailing twelve months.' Other financial sites - including Yahoo - also give 'forward P/E.' This shows you what the company is expected to earn over the next year compared to its current price. 'Trailing' P/E and 'forward' P/E seem like close cousins, but they differ in one key respect. Trailing P/E is a real number. It records what has happened. There's no disputing it. On the other hand, forward P/E is just a guess. It's Wall Street's best estimate on what a company will earn in the future. By jacking up future earnings that haven't yet occurred, analysts can make a company look much cheaper than it is. Right now September, 2008], for example, some are projecting earnings to increase 70 percent this fourth quarter over last year's fourth quarter. And the chances of that happening are next to nothing. Forward P/E is least reliable when it's based on an economy that no longer exits. At a time like this, when the economy is undergoing a major shift - from growth to recession - you don't want to rely on analysts who are living in the past." - Andrew M. Gordon
ETR Investment Director
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.29539] Need Area: Money > Invest
"The term 'shadow banking system' was apparently invented by Paul McCulley of Pimco (or at last that’s what his colleague Bill Gross says). It was in a piece McCulley wrote last year [2007] in which he made the nice observation that 'liquidity is not a pool of money but rather a state of mind', the truth of which is now clear. Trying to understand shadow banking is a bit like getting your mind around 'cloud computing', and in fact the analogy is quite apt. With cloud computing, the services or software you want are supposed to just appear from somewhere 'out there' in the internet; the shadow banking system has been producing money from a cloud of mysterious intermediaries for about a decade. It is now in the process of collapsing, like a galaxy imploding into a black hole. That’s because, like banks, shadow banks borrow short and lend long, but with less capital, less regulation and greater risk. When the providers of the short funding lose confidence, the money required to pay them out is not available. What are they, these shadows? Investment banks, hedge funds, monoline insurers, structured investment vehicles (SIVs), conduits, money market funds and thrift institutions. The traditional investment banking model – the broker and fund manager variety – proved too boring for the men and women of Wall Street enticed with colossal bonuses to get their firms’ profits up, so they turned themselves into trading hedge funds as well. An SIV is simply a fancy acronym for a hedge fund that specialises in debt paper. It borrows short on the commercial paper market and then lends long by buying asset-backed and mortgage-backed securities. Conduits, or special purpose entities (SPEs), are similar to SIVs, except that they are usually set up by banks and other companies to get a specific activity off the balance sheet – in the case, of banks, usually mortgage securitisation. Monoline insurers lend their credit ratings to the SIVs and conduits. Hedge funds are the omnivores of the jungle. They'll eat anything. The thrifts fund themselves from retail deposits as well as wholesale markets (the other vehicles are all wholesale funders only). Money market funds are like thrifts, except for bigger deposit amounts. All of these shadow banks are now in trouble because the 'state of mind', to quote Paul McCulley, of their suppliers of liquidity has entirely changed. They no longer have confidence in the institutions, if you can call them that, and want their money back." - Alan Kohler
Highly respected Australian financial journalist. Quoted from an article in 'The Business Spectator', published 18th September, 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.29542] Need Area: Money > Invest
"How to Avoid the 3 Biggest Pitfalls in Real Estate: Unlike many so called 'real estate experts,' I am more than a teacher... I'm truly an active investor. I started investing in real estate at age 18, when I bought and fixed up a rundown apartment building in my hometown. And in the past 20 years, I've made millions of dollars. Right now [in 2008], I'm working on more than 25 deals. This allows me to share winning strategies from the past as well as cutting-edge techniques that work in today's down market. Yes, investing in real estate has some risk associated with it. Some people lose tons of money in the real estate game. But for every tale of woe and failure, you can find a tale of victory. You see, real estate isn't rocket science. And many of the problems that precede a failure can be prevented. In my experience, there are three major pitfalls that new investors encounter: 1-Buying in the wrong location 2-Buying at the wrong time 3-Buying without examining the facts Did you notice that none of those things are complex or technical? They all seem to be just 'common sense.' Let's look at each one and expose the iceberg under the surface. Real Estate Pitfall #1: Buying in the Wrong Location: You've heard it many times... real estate is all about location, location, location. And while there's no doubt that this is true, it's a bit of an oversimplification. Some of the ways location influences real estate investment values include: -Population demographics related to people moving in and out of the area -Quality of living factors (and these can change over time) -Over-exuberance on the part of buyers and builders because of the area's past history -Major lifestyle trends that may not yet be apparent These influences can apply to large areas of a state... or to local subdivisions or neighborhoods. The wise investor will focus on a local neighborhood he's familiar with, but not to the exclusion of the entire city or county. Location is more than just a pretty street with views. Here are some questions you should ask yourself before you invest in a property: -Is there job growth, stagnation, or shrinkage here? (If an area has a sudden increase in jobs, more people will flood in, driving up real estate prices and apartment rentals. If an area suddenly loses jobs, more people will leave, depressing real estate prices and lowering rental demand. Both situations create different but profitable opportunities.) -Are industry and commercial ventures moving in or out? Has there been a recent trend for government to dedicate large tracts of land for parks or green space? (This reduces land inventory for building, makes life more pleasant in the area, and is, thus, a predictor of more people wanting to live there.) -Has the trend for more parks and green space driven builders to over-construct new homes... beyond the current demand for them? -Are trends unrelated to the immediate area going to impact prices or the demand to live there? (For example, U.S. home prices fell 4.8 percent in the second quarter of 2008 compared with a year ago, a new record low. This could indicate that a home that was appraised for $200,000 a year ago and is on the market for $190,000 still may not be a good deal.) -Are high gas prices going to cut into the demand for more rural living... or increase the demand for homes in urban areas? The changes in demographics and/or trends that make a location more or less desirable happen gradually - and a careful investor makes every effort to uncover them. Real Estate Pitfall #2: Buying at the Wrong Time: Look not only at what is happening in an area, but also how long it's been happening. The announcement of major new land allocations to green space, for example, can be a good thing - but buying several years after the fact could be a purchase into a market about to change. One of my students bought a nice three-bedroom brick home in a good rental area. Based on his research and knowledge of the area, he purchased the home with 100 percent financing and rented it for a $100 per month positive net cash flow (after paying mortgage, taxes, and insurance). He bought this home because he could see that the path of commercial development was headed right through the area where it is located. And he plans on holding onto it until commercial development drives up the property's value and he can apply for rezoning to office/commercial and either sell or lease it. He knows that he will need to hold onto this property for four to five years to maximize his profits, but since he bought it with 100 percent financing and the place actually makes him money every month, he is in no rush. Real Estate Pitfall #3: Buying Without Examining the Facts: Any successful investment starts with a good buy. Making a good buy in real estate requires a great deal of valuation analysis. The following story about two of my friends illustrates the dangers of relying too heavily on your emotions and not enough on objective information that could be staring you in the face. 'John' and 'Joan' fell in love with a beautiful Victorian home the moment they stepped inside. Although the house was in bad shape, it had leaded-glass windows, carved woodwork, built-in hutches, and hardwood floors. They bought it, cleaned it up, and made it sparkle. 'We loved the house even though it was in a questionable neighborhood. As a result, we violated the number one principle of real estate: Location, location, location. To make a long story short, the beautiful house we loved could be rented only to less than desirable tenants, because the type of tenants we'd hoped to attract didn't want to live in that neighborhood.' Although John and Joan eventually sold the house for a small profit, they would have been better off had they examined the facts and made a decision to buy a different home in a much better neighborhood. Keep in mind that though real estate is local, major national and international events and trends can help the worst of markets... and damage the very best. So be sure to analyze a real estate investment's national and local factors. Still, one very positive local factor can outweigh multiple national factors. Start by researching location and market timing, then research them again. Get the picture for the area before you narrow your search to specific properties. Once you've decided that timing and location are right, then look at individual homes. It is now number-crunching time. There simply is no substitute for a thorough property evaluation using all of the mathematical valuation tools available. What is your gross potential income - the rents you can count on to be paid regularly and on time? What is your breakeven ratio calculation (fixed costs/gross profits) for that magic turn to positive cash flow? What are all your potential expenses and risks? What is the property's investment potential? (Use the cap rate calculator at www.deangraziosi.com for this.) Your lender may keep you focused, because they will likely want to see numbers that assure them of a performing loan asset. But in the end, doing the math well is your responsibility... and to your benefit. Sure, it takes work to find the right properties. But it's not complicated. You don't need any special education or skills. It's all about gathering information and making decisions based on hard factual data, proven calculations, and a little bit of luck. Hey, if a naive kid like me - who came from no money, had no mentors, and never went to college - can do it... you can too! By acquiring the right knowledge and taking the right actions, your first deal could be just weeks away." - Dean Graziosi
He's a real estate expert, teacher, and author who's been investing since age 18! His book Be a Real Estate Millionaire is a New York Times, Wall Street Journal, Amazon.com, and USA Today best-seller.
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.29556] Need Area: Money > Invest
"The current investment banking model is [in 2008], quite obviously, not built to withstand a credit crunch. Why? Investment banks borrow short term so they can buy long-term assets. So far so good. When interest rates are low, borrowing is easy and tempting. The trouble is that asset prices can fall while liabilities remain fixed [reducing the owners equity and the creditors' margin of safety]. When asset prices fall, the creditors to the investment banks demand more collateral on their loans [to keep their margin of safety, as often these loans are like margin loans that have covenants stipulating LTV -Loan To asset Value- ratios, which if breached allow the creditor to demand immediate payment of their loan from the investment bank, hedge fund, private equity company, or other member of the 'shadow banking' community - which is not as prudentially regulated as banks and insurance licencees.]. And here comes the other flaw in the investment banking model. Not only have the investment banks borrowed short-term (with lots of exposure to unexpected rises in short-term interest rates, which make it a lot more expensive to refinance your debt) they don't really have liquid assets to sell in order to post new collateral [especially as potential buyers can't access cheap loans either during a credit crisis!]. Can't borrow cheap. Can't sell quickly. Commercial banks have deposits. Investment banks do not. That's why the last year saw Wall Street Investment banks trolling through global financial markets looking for new capital. All they had were assets. And those assets were either falling in value, or so dangerous in market conditions that a price for them couldn't be established [using mark-to-market valuing rather than mark-to-model valuing. The latter being use to 'value' assets that sell so rarely that they are hard to reallistically value -i.e. airports, bridges, toll roads, etc.] The banks did have some good assets. But the management was reluctant to sell those, hoping the crisis would pass. And there were a few suckers out there who traded billions in capital for equity. They also thought it was a liquidity crisis instead of a solvency crisis. Well, the solvency crisis is upon us. And part of the endgame is that the investment banks are forced into shotgun marriages of convenience with commercial banks. Lehman [which went bankrupt] waited too late and was not only left at the altar. The doors to the church were locked while the building was set on fire. Barclay's is now picking through the rubble. Merrill wised up early and fell into the arms of Bank of America [which immediately lost 20% of its share value]. And now it is Morgan Stanley's turn. It was jilted by investors today and fell 24%. This must've caught the eye of another spurned financial, Wachovia Bank. It looks like an arranged marriage is in order. 'Do you, remaining but humbled investment bank, take you, struggling commercial bank, to be your lawfully wedded financial partner, for richer or for poorer, until bankruptcy do you part?' " - Dan Denning
Financial journalist with 'Daily Reckoning Australia'. Published Thursday, 18 September 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.29557] Need Area: Money > Invest
"About two hours' drive south of Calgary, Alberta, there's a place called Head-Smashed-In Buffalo Jump. It's located in the Porcupine Hills, where the foothills of the Canadian Rocky Mountains meet the Great Plains of the North American interior. Head-Smashed-In Buffalo Jump bears witness to a custom practiced by the native people of the plains for nearly 6,000 years. The native people were hunter-gatherers, so they understood both topography and animal behavior. And the native people killed large numbers of bison by chasing them over a cliff. The bison used to graze on the plateaus adjacent to a deep river valley. The early human inhabitants would sneak up on the bison. Then they'd scare them with loud screams and burning torches. The bison would spook, run over the edge of a sandstone cliff and fall to their deaths on the rocks below. Then the natives would carve up the carcasses and leave the remains to the vultures and other scavengers. People don't herd buffalo over cliffs anymore. Smashing in the heads of large herbivores - by luring them into a deathtrap - has gone out of fashion. But still, there is something similar in our modern time. It's called investing on Wall Street. Or so it seems. [when markets become irrationally optimistic, pricing shares as if the future will be perfect and growing quickly for ever, but inevitably crash.]" - Byron W. King
attorney, co-editor of 'Outstanding Investments', and editor of 'Energy and Scarcity Investor'. Published in 'The Daily Reckoning Australia', 17th September, 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.29558] Need Area: Money > Invest
"[The job of the U.S. Federal Reserve is...] to take away the punch bowl [of intoxicating liquidity, namely cheap money] just as the [economic] party gets going." - William McChesney Martin Jr.
former Chairman of the U.S. Federal Reserve
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.29559] Need Area: Money > Invest
"When the market 'crashes and burns', and prices are falling, becoming better value every day, it's not wise to enter the burning [stockmarket] 'building' until things have become as bad as they can get, lest you get burnt in what is called a 'value trap' - which looks like good value but ends up becoming significantly cheaper and even better value or worst of all, goes bust." - 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.29560] Need Area: Money > Invest
"The force of a [stock market] correction is equal and opposite to the deception [and excesses] that preceded it!" - Bill Bonner
Author and financial journalist.
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.29561] Need Area: Money > Invest
"[When share market boom turns to bust...] Asset values disappear. And with them, the money supply itself contracts. People spend less freely. They lend less recklessly. More money stays tucked away for longer periods in pockets and bank accounts. Prices fall [asset deflation while debts remain and equity diminishes]. Many assets turn out to be worthless and many people go broke [not just short-term liquidity problems -asset rich and cash poor- but unable to meet their liabilities, insolvent, bankrupt.] Investors buy gold to protect themselves. Gold never overstates its earnings, understates its liabilities or declares bankruptcy. When everything else goes to Hell, gold is still there...still doing its job. Of course, the feds [U.S. Federal Reserve or other central bank] try to prevent nature from taking her course. They counter a natural correction with further unnatural deception. They lend at lower rates than those set by willing buyers and sellers. They spend even more recklessly than usual - often going to war in order to stir up financial activity. Today, for example, the Federal Reserve honchos will meet. The bank already lends to Wall Street at less than half the rate of consumer price inflation [to counter the current credit crunch crisis]. The betting on Wall Street is that it will lower its key interest rates again - so that it can lend to Wall Street at even better rates. That's one reason why Merrill wants to sell itself to the Bank of America - so that it can take advantage of more of this free money. Of course, when there is a serious correction, the financial authorities also make a great show of repairing the damage, supposedly caused by greed and the lack of regulation. Typically, there are a few show trials...a few rich people are ruined and run out of town...and new programs and regulations are put in place which tend to delay recovery and make the next bust-up even worse. But among one of the feds' tricks, one is particularly dangerous: they can 'print' money [which can devalue the currency in relation to other currencies and commodities and effect inflation] Yes, dear reader, when the going gets rough [especially if financial stability is at stake and fear is rampant], the feds turn on the printing press. That's when owning gold really pays off." - Bill Bonner
'Daily Reckoning Australia'. Published 17 September 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.29562] Need Area: Money > Invest
"Understanding currency movements is very complex. During the credit crunch in late 2008 when you would expect the U.S currency to fall, it actually rose, due to an increased demand for it. Some of the explanations for this include that while the U.S economy was faltering the rest of the world‘s major countries' currencies were facing even worse economic futures. Another explanation was that so called ‘hot money’ invested in the emerging market in Russia was repatriated to the US when the likelihood of war between Russia and Georgia broke out on the eve of the Chinese Olympics on 08-08-08. Yet another explanation was that money left the commodity markets to go back to help the liquidity problems of the US investment banks when the credit crisis increased and the prospect of a global slowdown with reduced commodity demand and therefore prices became more likely." - 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.29565] Need Area: Money > Invest
"[Here's a 'joke' that gives an example of the difference between long-term business fundamentals value investing and short-term price movement trading:] Two friends, a Trader and an Investor, walk up to the roulette wheel in a casino. They watch a guy hogging the table hit on his first spin. Then his second. Third, boom. Four in a row! The guy has an enormous stack of chips which he lets ride again on a fifth spin. 00. He's wiped out and skulks off to the bar. The two friends are excited because now it's their turn. The Trader says he's going to follow exactly the same pattern as the guy they just watched, BUT he's going to pocket his money after four spins. The Investor tells him to hold off for a minute. He wants to first buy stock in the casino.... Like most good jokes, there's a kernel of truth. When everything is in turmoil, you can't focus on the [one-off] instances; you have to focus on the underlying [long-term] foundations. Roulette [and investing] isn't about guessing red or black; it's about understanding statistics [odds and reversion to long-term means]." - John F. Mauldin
President of Millennium Wave Advisors, LLC, a registered investment advisor.
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.29566] Need Area: Money > Invest
"[The fact that the share market is a predictor of the general economy is described in the following article, 'Wall St sneezes, we catch a cold', which helps explain the 'loss of perceived and real wealth effect' on the consumer and business, that share market crashes engender:] The corporate failures and eleventh-hour rescues rocking the financial world will dent the global and local economy, analysts say, but the exact timing and extent of damage remain as hard to predict as the next bank collapse. The US, where the economy expanded 2.2% in the year to June [2008], will take the biggest hit, with a ripple effect extending outward to its trading partners such as Australia. The broader US economy still hasn't felt the repercussions of the financial sector crisis, said Ray Attrill of 4Cast Ltd economic forecasting group. 'On that basis most of the real economy weakness is still ahead of us.' Before the ructions on Wall Street [from the 2008 credit crunch and bank failures], Mr Attrill expected one negative quarter of GDP growth in the world's largest economy before gradually returning to 2% in the second half of 2009. 'Now there are some risks we'll see several quarters of negative growth' till the end of 2009, he said. In Australia, where the GDP grew 2.7% year-to-June [2008], the grip of fear is already taking its toll on consumer confidence, said economist Stephen Walters of JPMorgan. 'It comes down to mum and dad shareholders in Australia,' he said. 'They're seeing their savings and retirement funds contracting.' The red in their bank account statements makes durable good purchases and holidays less likely. Household sector spending is already weak, as the Reserve Bank noted in its September meeting minutes, weighed on by 12-year high interest rates [due to trying to reduce inflation running at around 5% rather than the Reserve Bank's target of between 2-3% over the business cycle] and more stringent credit requirements. Among Australian businesses, confidence is already at the lowest level since the March 2003 quarter, according the the Australian Chamber of Commerce and Industry. The survey on industrial trends for the September quarter showed that companies are now more worried about access to capital than the availability of workers [which has been at the very low rates of 3.9%], which had been a central concern when the resource boom [ascribed to the rapid demand growth in China and India] was in full swing, and the outlook for commodities unclouded. 'The survey neatly summarises the rebalancing of factors influencing monetary policy,' Westpac's head of economics Bill Evans said in a release with the survey's results. He predicts the turbulence of the global financial markets will force the Reserve Bank' to cut interest rates to 6.75% from 7% when it meets on October 7. Another way the collapse of Lehman Brothers and the hasty bailout of mega-insurer American International Group by the US Federal Reserve will impact global growth is through what JPMorgan's Mr Walters calls the 'feedback loop' from equity markets turmoil back to the real economy. When growth slows in the US because of stalling demand, the appetite for goods produced in Japan, Germany and China will ease, too. In turn, Australia's resource sector will export less, and the weakness sapping financial sector activity, such as home and business loans, will start to be felt on the mining and minerals side too. 'The loss of Lehman and Merrill's from the US financial market has raised expectations of increased fund redemptions out of commodities,' ANZ commodity strategist Mark Pervan wrote in a note to clients. Lower valued commodities sap the strength of the industry, paving the way for slower growth in Australia's economy." - Chris Zappone
Finacial journalist from an article in the 'Sydney Morning Herald', September 18, 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.29567] Need Area: Money > Invest
"Some companies allow people to accept their dividend payments in the form of shares. In Australia this is called DRiP, which stands for dividend reinvestment plan. These shares are usually underwritten so that if the shares are not taken and cash is taken, then the shares are issued to the underwriters sell them on the market soon after. DRiPs allow companies to keep operating cash within the company in a similar way to a rights issue, while allowing share-owners a way to acquire more shares often without any brokerage and sometimes at a discount to the current price. The drawback is of course that the number of shares increase and all else being equal this dilutes the earnings per share." - Unknown

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.29568] Need Area: Money > Invest
"[Here's an article that helps show the complexity of the currency on economic activity, inflation and interest rates. From early 2008 the share market has fallen from above 6,500 to 4,800 as interest rates to fight inflation and additional rising funding costs for banks due to the sub-prime credit crisis has slowed lending and reduced bank margins and dampened comsumer demand and sentiment.] The near 20¢ drop in the Aussie [dollar - currency] over the past month [from 97c US in July to 79c US in September, 2008] is one of the sharpest moves since the float in 1983. The tendency is to see the Aussie’s downshift as just another part of the overall market turmoil [from the 2008 credit crisis]. But the cycles in the currency also play a major stabilising role. A lower AUD will help the real economy fend off some of the damage from the credit crisis [by allowing exporters to be more price competitive overseas]. It certainly helped protect the economy during the Asian financial crisis in the late 1990s and the tech wreck around the turn of the century. Commodity prices are a good example. Global growth fears and the drop in USD commodity prices have put a dent in the positive commodity story that has helped the Australian economy over the past five years. But the lower Aussie has more than compensated. Local currency commodity prices are still rising. The level of the Aussie is also an input into the overall tightness or otherwise of financial conditions. The drop in the Aussie has brought our Monetary Conditions Index (MCI) back from very restrictive levels to something closer to average. The easing in financial conditions will help support economic activity. The RBA justified the September rate cut [from 7.5% to 7.25%] as a response to financial conditions that were a little too restrictive given the slowdown in activity. The Aussie dollar story may be a factor reducing the urgency for any follow up move. The potential inflation implications of a lower Aussie [as imported goods will now cost more including petrol] are another factor that may stay the RBA’s hand. The drop in the AUD has prevented the full benefit of falling oil prices flowing through to retail petrol prices, for example. Most econometric studies suggest that the flow through from exchange rate moves to retail prices is now quite small. The indications are that profit margins absorb much of the swings in the currency on the way up and the way down. Nevertheless, there is a reasonable correlation between currency moves and the fluctuations in the tradables component of the Australian CPI [Consumer Price Index]. The potential upside inflation risks add to the case for a cautious [rather than a quick monetary - interest rate] easing cycle." - Michael Blythe
Chief Economist for Commsec. From the Commsec Market Bulletin, 19th September, 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.29569] Need Area: Money > Invest
"Mutual funds traditionally get high marks for being a 'low-risk' investment. But if you think about them that way, you could be putting your money at risk. A Forbes article on mutual funds broke down the winners and losers during a recent market downturn. One fund - the Putnam Investments Growth and Income Fund - has underperformed its peers for the last nine years [2001-2008]. Plus, over the last year, it has dropped 23 percent. The cause? Most likely its large holdings in Bear Stearns, Countrywide Financial, Bank of America, and Citigroup while the financial sector collapsed [in the 2008 credit crisis]. To make up for that, the fund then loaded up on ExxonMobil just before the recent decline in the energy sector [A barrel of oil went from US$150 in June to US$90 in September]. The lesson any mutual fund investor can learn from this is to closely examine the largest holdings in a fund prior to investing in it. If the fund is too heavily weighted in a certain sector, you are left exposed should that sector run into problems. And once you buy into a fund, you should be constantly monitoring its allocation. The holdings can change at the fund manager's discretion, and the balance can become drastically different over time. The composition of most funds can be found online, so doing your initial homework and then checking up on the ones you buy is relatively easy. In the long run, you will be happy you took an active role in managing your risk exposure." - Christian Hill
Quoted 19th September, 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.29570] Need Area: Money > Invest
"[In share and other markets] For a bubble to form, you need three things: greed in the market, freely available credit and a good story." - Jeremy Grantham
GMO founder and chairman. GMO in 2008 manages more than $120bn (£68bn, €85bn) in client assets. He gained fame when he identified the tech boom as a bubble some time before it burst in 2000.
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.29571] Need Area: Money > Invest
"To be confident in buying a financial [stock for example a bank], you need to be sure you understand their balance sheet. [In times when there is a credit crunch and confidence in financials is low it is better to look elsewhere, for example, defensive companies, like Walmart and Coca Cola, which have a stable, steady income stream regardless of the economy.] The thing about these companies is you need to understand the income statement, but they don’t have very interesting balance sheets. Although it’s possible for things to go wrong with the income statement, they’re not as catastrophic as a problem with the balance sheet. [for example where asset values can fall dramatically and equity can be eliminated in the process especially if there are large loans.]" - Ben Inker
GMO’s head of asset allocation [managing US $38bn in 2008, during the credit crisis.]
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.29572] Need Area: Money > Invest
"It is important to remember that a credit crunch is better called a debt crisis. Too much borrowed, with too little real collateral to individuals and groups without sufficient knowledge of their financial capacity and too little prudent caution regarding risk for too long till it is too late and it becomes obvious it threatens the capital adequacy ratios, credit ratings and creditworthiness of the lending organisation/s and the amounts they can continue lending through the fractional banking system and the liquidity required for normal business dries up." - 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.29573] Need Area: Money > Invest
"[Ever wondered what unscrupulous hedge funds do to drive prices down to profit from shorting a stock? Here's an example:] However, there are clearly much darker forces at work attempting something far more sinister in Macquarie [the highly successful Australian investment bank]. They are attempting to harness 'the power of panic' to accelerate the fall in the share price. There is a genuine attempt on in the view of many market participants to destabilise Macquarie and create the self-fulfilling downward spiral that has taken out many other leading global financials. The playbook is well known to everyone except regulators, it seems. You create share price weakness by bidding up the highly illiquid credit default swap (CDS). The press and brokers focus on this highly manipulable CDS swap price and report the risk of Macquarie defaulting is rising. It's chicken and egg. Then the rumours start about 'a run on Macquarie’s cash management trust' and the stock takes another leg down. Financial planners and retail investors hear about 'the run on Macquarie’s cash management trust' and actually do take money out, which people hear about and the share price takes another leg down. The satellite stocks come under pressure from people who want 'nothing to do with Macquarie' and the stock takes another leg down. The press then gets sucked into printing some of the clearly false rumours and the stock takes another leg down, and before you know it the perfect shorting and selling storm is attacking Macquarie. That is how you harness 'the power of panic' and it seems there are a group of investors who have perfected this sinister short-selling technique. The key is to do it when there are global comparable headwinds for the given stock under attack and clearly that is the case with Macquarie this week. [when it dropped from $42 to $26 in two days]" - Charlie Aitken
a director of Southern Cross Equities. Quoted in 'The Eureka Report', 19th September, 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.29580] Need Area: Money > Invest
"Ask five economists and you'll get five different explanations six if one went to Harvard." - Edgar R. Fiedler

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.29587] Need Area: Money > Invest
"In the depressive phase [of economic, business, credit and share market cycles] credit contracts, asset values fall and business slows down. Among financial institutions [including banks], failures proliferate. Failure begins at the margin but eats its way into the middle, like a mouse ... In a severe contraction, even the strongest lenders are tested, as the process of shrinkage and deflation nullify the financial assumptions that, in the boom, had seemed conservative." - James Grant
from an article in September 1990.
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.29588] Need Area: Money > Invest
"[This article looks at the uncertain effects of banning short selling] Exactly how the [Australian] sharemarket operates today [22nd September, 2008] with a total ban on all short selling is anybody’s guess. In theory it should return to the 'good old days' of 20 years ago, before long-short hedge funds and securities lending came to dominate affairs. Those days, you may recall, included a certain October 20, 1987, when the all ordinaries index fell 25 per cent because of real, as opposed to short, selling. But that was from an extreme bull market peak, not well into a bear market [as we are in now]. At the intra-day low point last Thursday, the all ordinaries had fallen 25 per cent from the peak on May 19, and 33 per cent from the peak of November 1 last year. So in theory our market is more likely to rise today than fall – and possibly a lot – as a major source of selling is removed and trading is rendered 'clean', with nothing but real owners of company securities doing business [it in fact rose 4%]. But events have suddenly become even less predictable than they were already. If the market does spike because of short covering by hedge funds and the disappearance of their strategic selling pressure, then such a rise could not be described as soundly based on fundamentals and therefore may be short-lived. Then again, the likely ruin of the hedge fund industry could actually produce a wave of selling, not buying, since these funds are long as well as short. Hedge funds will now be hit by redemptions because their raison d’etre [reason for existing and how they make profits] has been removed. They will be forced to sell assets to meet the redemptions and repay debts. If they can’t do that quickly enough, some bankers may hit the red button marked 'Receivers', to take the selling into their own hands. In that case the selling might be done at lower prices. [which could easily drive the markets still lower] Last night ASIC [the Australian Securities and Investment Commission] said the measure was for just 30 days, at the end of which it would reassess the situation. But a month is an eternity for hedge funds. Like fruit flies, they go through entire life cycles in that time. A month is not temporary, it’s effectively permanent. Also, heavy-handed regulatory intervention of this sort could panic everybody else, on the grounds that if the regulators are panicking and not sleeping at night then perhaps investors should join in. As my colleague Robert Gottliebsen writes this morning, hedge funds have to some extent brought this on themselves by going too far, but without wishing to suggest this is an exact analogy, it’s a bit like the Afghanistan Government banning opium farming. Yes it has gone too far, but can you really just ban it now? What would happen to the Afghan economy? Along those lines, one stock that is likely to fall today is that of the ASX [Australian Stock Exchange] itself; the difference between last week’s trading volumes and this week’s will give us an idea of the extent of activity based on short selling. It won’t be insignificant. [Its share price in fact fell nearly 10% today] This is one regulatory action about which there is unlikely to be consensus between ASIC and the ASX; the response of the ASX’s supposedly independent supervisory division today will be very interesting. And what about the contracts for difference (CFD) market? [In the common vernacular because they are leveraged the initials have come to stand for Completely Freaking Dangerous] This is where retail investors do their short selling. Some CFDs, but not all, are market-backed, which means the over-the-counter providers actually buy or sell (short) on the ASX whatever their clients trade on their CFD platforms. The other type of CFD and equity swap (the wholesale variety of CFDs) is simply a bet between two parties about whether a stock or an index will rise or fall. The size of each portion of the CFD market is unknown, as is the size of the CFD market overall. And then there are the ASX exchange-traded CFDs, launched just after the market peaked in November 2007. Is short selling of these banned as well? Will hedge funds simply move across to CFDs and equity swaps to do their shorting? In other words, can ASIC really ban short selling at all? It can issue a solemn proclamation as it did last night, but is ASIC chairman Tony d’Aloisio like Canute the Great, who set his throne by the seaside and commanded the water not to wet his robes – to demonstrate the limits of the power of kings (it worked – he got wet). Will the actions of regulators around the world to curb short selling demonstrate something similar? Or should they be careful of what they wish for?" - Alan Kohler
Highly regarded Australian financial journalist. Article from 'The Business Spectator', 22nd September 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.29589] Need Area: Money > Invest
"When a company tries to acquire [merger, takeover] another company using their scrip in some kind of formula, say one of their shares for two of the other's, it is common practice for hedge funds to short the acquirer and go long the target. The plan is to drive down the acquirer’s share price and drive up the target’s in an effort to elicit an improved offer ratio. It often succeeds, because the market is aware that an acquiring company often will offer too much in an effort to get control, overestimating synergies and cost-savings and therefore the acquirer's share price will fall in the long run. Warren Buffett is one of the investors who continually warns of this." - 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.29593] Need Area: Money > Invest
"In reality, the ban on short-selling [that the Australian stock Exchange imposed on the Australian share market today -22nd September 2008- for the next month] is likely to have almost zero impact [in the long run]. There may be short term price action to the upside [called a short covering rally] as those who currently have short positions buy back the stock to close out. Secondly, those investors that use short selling to hedge a long position may choose to close out their long positions, which could put pressure to the downside. But for those professional investors wanting to trade 'short' they need look no further than the Options market. Options traders will be able to implement reasonably simple strategies that will give them almost exactly the same exposure as if they had used the share market to short sell. In financial terms they call it a 'synthetic short.' By simply buying an 'at the money' Put Option and writing an 'at the money' Call Option the trader can replicate a short trade. It is not exactly the same, but if an investor really wants to short particular stocks it is an easy way to do it." - Kris Sayce
Journalist with financial newsletter, 'Morning Money'. Published 22nd September 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.29606] Need Area: Money > Invest
"The stock market is a mechanism for transferring money from the impatient [trader] to the patient [investor]." - Warren Buffett
Highly successful value share investor, Chairman of Berkshire Hathaway 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.29607] Need Area: Money > Invest
"If a loose monetary policy and rapid asset price inflation were the route to economic prosperity, Argentina would be the richest country in the world by now." - Albert Edwards
Co-Head, Global Cross Asset Strategy, Societe Generale.
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.29610] Need Area: Money > Invest
"True courage is a result of reasoning." - Jeremy Collier

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.29621] Need Area: Money > Invest
"Prudent, cautious self-control, is wisdom's root. [especially when investing]" - Robert Burns

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.29622] Need Area: Money > Invest
"In a credit crunch [capital constrained] environment, companies are worth less. Why? Because companies may face greater operating difficulties because they can't easily borrow against or sell assets to get operating cash so their liquidity is reduced - as noted in their Income Statements. Also as it's difficult to sell anything [as other companies can't easily borrow the required cash for the sale either], a company's assets, that are marked to market, have to be carried on the books for less reducing the equity a company has - as noted in their Balance Sheet Statements. This further reduces the share price." - 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.29623] Need Area: Money > Invest
"With a presidential election coming up in November, President Hoover and the Republicans badly needed a scapegoat to blame for the general disaster. The one they found most readily at hand was Wall Street, and the particular aspect of Wall Street that they chose was that old bugaboo, short selling on the stock exchange. [While short sellers do not cause companies to go under, too much leverage does, they can heighten the loss of confidence in banks and thereby bring about a bank run]" - John Brooks
The quote is taken from the book, 'Once in Golconda, A True Drama of Wall Street, 1920-1938.' The author was referring to the decision to ban short selling in October 1932. A short selling ban was installed in September, 2008, again just before the presidential elections, by George W. Bush's Republican administration, when faced with a severe credit crunch and bank collapses.
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.29625] Need Area: Money > Invest
"In a credit crunch, private equity firms will not do well as limited credit will effect their ability to do deals. Overleveraged companies and debt-ladened mergers will also suffer. Avoid all of these types of companies before the credit crisis arrives." - 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.29630] Need Area: Money > Invest
"Cheap loans with small down payments are the life blood of the auto selling business. [This is why this sector of the share market is one of the first to improve when interest rates fall and the economy starts to recover from a slump]." - John Mauldin
President of Millennium Wave Advisors, LLC, a registered investment advisor.
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.29636] Need Area: Money > Invest
"When everybody thinks the same thing, no one is thinking." - Bill Bonner
Financial journalist and owner of Agora Publishing and 'The Daily Reckoning' financial newsletter.
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.29637] Need Area: Money > Invest
"The financial markets give people neither what they expect nor what they want, but what they deserve." - Bill Bonner
founder and editor of 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.29638] Need Area: Money > Invest
"Free market principles are fine - until prices start going down! [...then markets are out and state-sponsored meddling is in! Capitalism is harsh in that it drives money into the hands of those most wise about its productive use. It therefore separates fools from their money. But in democracies, the fools vote. After a big market price bubble, where people were paying much more than shares were worth, there are more fools than sages so government rushes in to add still more regulations and bureaucratic oversight on so-called 'free markets' to preserve and win more votes, regardless of whether this is in the long-term interests of the people, country or its economy.]" - Bill Bonner
founder and editor of 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.29639] Need Area: Money > Invest
"[Take what government officials say with a dose of salt. They are usually trying to talk up the market. Wise investors have learned this. This was clear in the 1929 stock market crash and here's a recent example of more of the same, regarding the 2008 sub-prime credit crunch that destroyed so much shareholder equity in so many US and European banks:] [Economist and former head of the Federal Reserve] 'Greenspan relaxed about house prices...' reported the Financial Times in 2005. 'Most negatives in housing are probably behind us...' said the same sage in October 2006. 'We believe the effect of the troubles in the subprime sector...will be likely limited...' said Bernanke [current head of the Federal Reserve] in March 2007. It's 'not a serious problem...I think it's going to be largely contained,' added [former head of Wall Street investment bank Goldman Sachs and current Secretary of the US Treasury,] Paulson in April 2007." - Bill Bonner
Founder and editor of 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.29642] Need Area: Money > Invest
"JP Morgan’s European equity quantitative analysts have boiled the book down to six basic things look for when choosing stocks in which to invest: 1. Market capitalisation is in the top 30%. 2. Return on equity has been greater than 15% for the past three years. 3. Free cash flow per share is in the top 30%. 4. Net profit margin is greater than the industry average. 5. The five-year forward cash flow per share is greater than the current share price. 6. The change in price is greater than the change in book value. Actually, come to think of it, they’re just statements of the bleeding obvious. Of course a big company with a good past record and a share price that is less than the present value of the next five years’ cash flow, is worth buying. The problem is knowing what the cash flow is going to be for five years." - Alan Kohler
Highly respected Australian financial journalist. Quoted in 'The Business Spectator', 29th September, 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.29643] Need Area: Money > Invest
"Monetary policy, usually covers the prevailing interest rate but it can also focus on bank reserve ratio requirements. The later can be used to change the amount of money that banks can lend. For example with an 8% capital reserve ratio they can lend up to 12 times their reserve amount but with a 10% capital reserve ratio they can only lend up to 10 times . Therefore capital reserve ratios can be used to increase or decrease the available credit [supply] without necessarily changing the cost of money which is the interest rate [demand]. Raising it has been discussed as a possible way to get banks to act counter-cyclically and to raise lending standards if it looks like a credit-driven bubble in speculative assets is developing and a change in interest rates is not considered appropriate at that time." - 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.29644] Need Area: Money > Invest
"...although bear markets do not end until [monetary] policy is eased [that is interest rates and/or capital reserve ratios], bull markets do not necessarily start with the first rate cut. Easing signals the beginning of the end of most bear markets, but it typically requires a few rate cuts before risk assets revive." - Gerard Minack
Chief Market Strategist of Morgan Stanley Australia.
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.29647] Need Area: Money > Invest
"We will see more stock on the market as we move into spring. Regardless of whether the market is good or bad, there are always more properties offered for sale at this time of the year and we shouldn't underestimate the potential that added competition offers buyers." - John Wakefield
Australian independent property commentator
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.29648] Need Area: Money > Invest
"There's something you should know about the Aussie dollar. It'll help you understand how investors are treating risk... The AUDJPY has been a risk appetite indicator since summer 2006. This popular carry trade is strongly correlated with the Australian stock indices. The Japanese currency is negatively correlated with world equity indices. Stocks go down, yen goes up. They move into opposite directions. When investors are risk-seeking, they go long carry trades (long AUDJPY for example) where they win on both interest rates differential and FX rates. Those gains in cash are invested on the stock markets. When investors become risk-averse they cut their carry trade positions. This means they have to sell their equity lines to have some cash to face their potential losses on the currency side. So a clear view of the FX [foreign exchange - currency] markets can be very useful for equity investments." - Gabriel Andre
Technical analyst with the 'Morning Money' financial newsletter.
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.29649] Need Area: Money > Invest
"We have always known that heedless self-interest was bad morals; we now know that it is bad economics." - Franklin D. Roosevelt
US President
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.29650] Need Area: Money > Invest
"When considering a country's trade balance [surplus or deficit] it is useful to factor in global demand for its exports as well as its domestic demand for oil and fuel as well as other imports. Considering the foreign exchange rates with its major trading partners is also important to understand the economic effects, including inflation and central bank monetary policy [interest rates] to stimulate or dampen growth." - 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.29651] Need Area: Money > Invest
"When considering new government legislation and budgets remember that they have to be approved in bicameral democracies in both the lower [House of Representatives] and upper [Senate] houses. This can be problematic if the opposition and other minority parties have different opinions, especially if elections are close as the members of parliament are aware of being carefully judged and held accountable by their constituents in the near future. This can make the incumbent party less effective at getting legislation passed, which is why they are often called a 'lame duck' at this time." - 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.29652] Need Area: Money > Invest
"Why won’t the government debt creation [in the USA after the sub-prime loan debacle and subsequent credit crisis in 2008] be inflationary? Because while money supply will increase, its velocity [- The average number of times a measure of money, as captured, for instance, by a monetary aggregate, turns over within a specified period of time as first described by economist Irving Fisher] will decrease. That’s what happened between 1989 and 1993, when the Fed re-inflated but money velocity contracted 13 per cent and inflation was cut in half." - Alan Kohler
Highly respected Australian financial journalist. Quote from 'The Business Spectator', 1st October, 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.29657] Need Area: Money > Invest
"[This article goes some way to explaining virtuous and vicious cycles that characterise the bull and bear markets respectively of share market, real estate and economic cycles.] The global financial tumult [in 2008] is so broad and deep that it's almost too big to grasp, so here's a way to think about it. Every financial crisis involves at least one vicious circle, a process in which things getting bad causes things to get worse. Today's [sub-prime housing loan initiated credit] crisis consists of at least three big vicious circles all of which are meant to be checked by the government's proposed megafix. As we try to sort out each day's blizzard of news, it may help to ask which one we're watching - and whether the latest events suggest that the circle is bottoming out or just spinning faster. The three downward spirals: --Confidence. All banks and insurance companies rely on the widespread perception that they're in good shape for the long term. Even the soundest firm couldn't repay all its obligations on short notice, but as long as everyone believes the firm is solid, it never has to. Yet just a tiny crack in the foundation of confidence can bring a whole institution down; that's the classic Depression bank run in which a mere rumor can start the vicious circle of withdrawals and falling confidence that results in bank failure. Federal deposit insurance ended runs on commercial banks but not on other financial institutions, and that's what was about to doom Bear Stearns and AIG (AIG, Fortune 500) before the feds stepped in; Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500), and Lehman Brothers were apparently in deeper trouble, though they could have been rescued much less painfully if a confidence-sapping vicious circle hadn't turned their problems into crises. Washington's giant bailout is intended to squelch a crisis of confidence in the whole U.S. financial sector. That's what's happening when the stocks of Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) get pounded, or when the prices of gold and Treasury bonds rocket. The less capital that goes into the sector, the weaker it becomes, driving capital further away, and so on. --Deleveraging. Lots of financial firms are concluding that they have too much debt. They're right. The paradox is that if they all try to do the right thing and pay down some debt, it makes them all worse off. To get the money to reduce debt, all are trying to sell financial assets. That glut of supply drives prices down, reducing the value of the assets the institutions still hold, so even after they've reduced debt, their debt ratios are no better than before, and they have to sell more assets, driving prices down further, and so on. This vicious circle is different from the crisis of confidence in that it's based on real dollars, not psychology. Lehman's assets really did plunge in value, and everybody knew it. (That hard fact, of course, contributed to the confidence crisis.) --Housing. Since the housing market is the root of the whole mess, things won't get better until that market hits bottom. For now, it's still sinking, driven by the worst kind of vicious circle - a virtuous circle gone into reverse. From about 2000 until 2006, U.S. home prices went up because they were going up. Yale professor Robert Shiller, who predicted the current housing collapse, notes that after easy credit launched the housing boom, consumers faced strong incentives to buy the most expensive house possible with the biggest mortgage they could get. That behavior then drove prices higher, strengthening the incentives, and so on. Now it's the opposite. With prices falling, buyers figure they should wait to buy, while sellers rush to sell now; both behaviors push prices even lower, giving even greater incentive for the same behaviors. What breaks vicious circles? In the economic world, massive federal intervention seems to be the only action that has worked. The Depression can be seen as one big vicious circle, with the New Deal (or World War II) as its antidote. On a smaller scale the Resolution Trust Corp. stopped the savings and loan crisis of the 1980s. Now Washington is feverishly debating the biggest intervention ever, reasoning that's what is needed for the biggest crisis ever. Let's be careful. Did you know that you can buy credit default swaps [insurance against loan defaults] on the United States? You can, and the price - indicating perceived risk - has been rising. A crisis of global confidence in the U.S. government is one vicious circle we really don't want to start spinning." - Geoff Colvin
one of Fortune Magazine's senior editors at large. Quoted September 30, 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.29665] Need Area: Money > Invest
"Conventional wisdom says to get rich in the stock market you must buy low and sell high. Unfortunately, many investors follow the media [and sell-side broker target price] hype, and end up buying high and selling low, when the hype turns into pain. To buy low you must [keep in mind the long term mean performance of the market and where in the economic and share market cycle we are and] look at those areas of the market that are giving people pain, and look for bargains among those stocks. [with great care as...] Just because something is low does not mean it is valuable. Things can always go lower." - Peter Schiff
President and Chief Global Strategist of Euro Pacific capital.
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.29666] Need Area: Money > Invest
"[Besides the spot price for copper, which has a history of predicting the health of the global economy, here is another useful indicator.] Investors see the world slowing down - meaning, there will be less demand for oil. Last week, the Baltic Dry Index fell 25% - 10% on Friday alone. The index measures shipping costs...and roughly correlates with globalization, commodity prices and Chinese output. Typically, ships pick up iron ore or copper or wheat from, say, Brazil and deliver it to Asia. When orders fall, so does the index. Now, it's almost in free-fall...down a full 70% from its May peak." - Bill Bonner
Financial author, founder of Agora Publishing and 'The Daily Reckoning' financial newsletter. Quoted from the latter 1st October 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.29667] Need Area: Money > Invest
"It's easier to follow the real trend in stocks by looking at price-to-earnings [pe] ratios than actual prices. You will see that the stock market follows long, broad trends [of about 15-17 years, with smaller high and low cycles of about 5yr duration within] - roughly coinciding with movements in the credit cycle [from very low interest rates to very high, with smaller highs and lows within]. When people are feeling confident...they lend at lower rates...and they buy stocks at higher prices. More or less. At the top of the cycle, they'll pay 20...30...50 [interest rates at say 4%...3%...2%] times annual earnings for a stock. At the bottom, they want a more immediate and more sure pay off; stocks typically sell for only 5 times earnings [interest rates at say 12%]." - Bill Bonner
Financial author, founder of Agora Publishing and 'The Daily Reckoning' financial newsletter.
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