| 50 of 1510 results found for - "Seymour@imagi-natives.com" |
[Quote No.29036] Need Area: Money > Invest
"The best time to get into fixed-income securities, bonds, etc, is when the latest set of inflation figures confirm that interest rates have peaked. This allows you to buy in at this time and get a high yield and then as inflation falls and interest rates are reduced to stimulate the economy the price of the bond will appreciate, as its yield falls with interest rates, giving you both good yield on your initial investment and capital gain." - 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.29037] Need Area: Money > Invest
"Towards the end of a business, economic and share market cycle, resources and especially energy including oil and petrol prices and inflation will rise and therefore as the purchasing power of the dollar falls, gold can be a good investment as it will rise as others buy it as a hedge against inflation." - 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.29038] Need Area: Money > Invest
"Towards the end of the business cycle, resources and energy - in particular oil will rise and this rise will effect share market sentiment through food and petrol price rises and the resulting effect on margins to most businesses and to consumers' disposable incomes. Value investors need to keep this in mind when thinking about the point of maximum pessimism which is a good time to buy. A number of things can effect the price of oil and petrol and therefore periods of extra pessimism in the market - including geo-political/war scares, supply problems and interruptions, inventory levels, increased northern hemisphere -US and European- use with summer [June/July] holiday transport and winter [Dec/Jan] heating needs, US hurricane season around the Gulf of Mexico, which is home to a quarter of U.S. crude production [the Atlantic hurricane season runs from June 1 to Nov. 30], etc." - 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.29096] Need Area: Money > Invest
"Value investors who look to buy when prices are low need 'cool heads and hard hats' to enable them to think clearly when others panic and enough cash and other income to survive extremely rough and often longer than expected financial shocks." - 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.29136] Need Area: Money > Invest
"The way to take advantage of a fire sale [in a share market or company bust] is to wait until after the building [price] has burned down. You don't run into it while it's still on fire. Unless you want be a hero, or get burned." - 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.29172] Need Area: Money > Invest
"In a busting market, besides the obviously too high p/e's and falling earnings, be particularly wary of write offs, write downs, provisions [for bad debt] and equity raisings [that dilute your share of the assets and earnings] which can easily drop the value of your shares from 10-50% in a day, as happened in 2008!" - 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.29205] Need Area: Money > Invest
"Value investors take advantage of good buying opportunities created in economic uncertainty, where basically sound but temporarily distressed assets investors have lost faith in, are selling for less than their long-term value. They sell when the conditions are exactly the opposite. This methodology helps value investors buy low and sell high." - 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.29267] Need Area: Money > Invest
"When considering the likely length and depth of the recessions that affect every economy regularly knowing the level of personal debt can be very useful.
The consumer's balance sheet in 2008 looms as a problem. In Australia, personal debt is about 1.8 times income. This is close to the levels seen in Britain and New Zealand - two economies that have fallen under water in the past couple of months - and our indebtedness is well above the 1.4 ratio seen in America.
During the retail recession in the early 1990s, households only spent 6.4 per cent of their income on interest payments. By 2008, interest payments make up 10.6 per cent of income. This is bound to have significant effects on the level of spending and therefore the depth and length of the coming recession." - 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.29294] Need Area: Money > Invest
"Charlie Ellis, introduced to the world of institutional investment to the concept of the Loser’s Game, which holds that the secret of long-term success in investment consists, as in many sports [i.e. golf], mainly of avoiding serious errors. One of the most serious errors that an investor can make is to invest at the end of a boom - just before the share market crashes. One of the best ways to avoid this is to be aware of the long-term [at least 20 years] average return of your country's share market and to overlay that on a chart of your stock market's performance. Then you can see roughly how much over or under this it is performing. Be very reluctant to invest in the share market if it is over 10-15% above this, especially if it has been rising for more than two years, as there is a lot of evidence to suggest that markets nearly always eventually return to their long-term mean performance, which is called 'reversion to mean' in the industry." - 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.29399] Need Area: Money > Invest
"For value investors assessing and managing risk are critical to long-term success. Therefore even in the best of times they look for the gray lining in the silver clouds." - 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.29403] Need Area: Money > Invest
"When inflation is running high and the economy needs to be slowed the central bank will raise interest rates. This is intended to slow consumer spending and business investment (capex - capital expenditure). If, because of unacceptable long-term capacity constraints, business continues with its capital investments interest rates will stay higher for longer." - 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.29446] Need Area: Money > Invest
"Gold usually rises between September through to December each year due to the Indian wedding season and the resulting increased demand from the Indian jewellery market." - 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.29450] Need Area: Money > Invest
"Foreign exchange/currency trading is really about relative interest rates and where the different countries are in their business and monetary policy cycles. If the currency is freely floated, so long as there is an orderly market, rather than a disorderly panicky market, the Reserve Bank of Australia, or other central banks, don't usually buy the currency to stabilise the market. They usually let the market decide the comparative 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.29452] Need Area: Money > Invest
"When markets shrink in difficult economic times, cashed up companies can acquire or merge with other companies, in order to take advantage of the ability to rationalise and reduce duplication, thereby minimising costs while at the same time reducing the likelihood of price competition as well as keeping or improving market share in preparation for future improved market conditions." - 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.29468] Need Area: Money > Invest
"The legendary investor, Warren Buffett, says that you shouldn't invest in any company that you don't understand. In order to understand any company it is vital to learn about the basics of its industry sector and business type in order to understanding why it and its share price behaves as it does at different stages of the business cycle. This knowledge can then be related back to each company's specific situation and share price and a better decision about its value as an investment can be determined." - 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.29477] Need Area: Money > Invest
" 'Naked short selling' involves selling short shares of stock that one has not borrowed or determined are borrowable. (SEC Release 34-50103 dated July 28, 2004 states that Rule 203(b) (3) 'requires any participant of a registered clearing agency...to take action on all failures to deliver that exist in such securities ten days after normal settlement date, i.e., 13 consecutive settlement days.)" - 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.29517] Need Area: Money > Invest
"When share markets crash be aware that after the financial 'earthquake', there will be 'aftershocks' and clearing up, so don't expect an immediate recovery or be enticed to go back into the market too early on false rallies. Determine the causes and only return to the market when they and any other subsequent problems have been sorted out." - 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.29520] Need Area: Money > Invest
"According to the website demographia.com, across the world, an affordable home is about three or four times the average gross yearly wage. Therefore when a housing market grows faster than wages grow [which is usually a little above the rate of inflation], eventually the market slows down till wages catch up or the prices fall as demand dries up because the houses have become unaffordable to the average buyer." - 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.29521] Need Area: Money > Invest
"At the top of the economic, business, credit and share market cycles as inflation becomes too high the central bank usually raises interest rates to slow demand which thereby causes bank profitability to slow as loan growth slows and impaired assets and funding costs rise. When inflation falls closer to the central bank's target range interest rates are lowered to stimulate the economy and employment so bank profits rise again as loan growth speeds up and funding costs fall." - 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.29528] Need Area: Money > Invest
"When valuing resource companies it is important to remember the volatility of resource prices. These are tied closely to market perceptions, demand and supply differentials, currency changes especially related to the USA currency which is used to denominate many resources and the global business cycle. They are therefore highly volatile and changes in these can dramatically effect the value of mining company reserves and whether they can be mined, processed and transported economically, which in turn can dramatically change the value of mining company shares, both down as well as up. This is why investing in mining shares is considered both more rewarding but also more risky than nearly any other type of share investing." - 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.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.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.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.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.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.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.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.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.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.29670] Need Area: Money > Invest
"When considering the asset allocation of your investment portfolio your equity/bond mix measures your trade-off between eating well and sleeping well." - 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.29675] Need Area: Money > Invest
"For long-term value investors, who like to buy low [in bear markets] and sell high [in boom markets] rather than short-term momentum investors who like to buy high and sell higher, the phrase 'grin and bear it' takes on a whole new meaning!" - 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.29697] Need Area: Money > Invest
"Finance Definition - advance/decline [A/D] ratio:
A ratio that is commonly used to determine the strength of a stock market. The ratio is the number of stocks whose price rose compared with the number of stocks whose price fell. The more rising stocks, the more bullish the market; the more stocks declining, the less bullish the market. While there are no hard and fast rules being aware of this as well as relative sector strength and the economic/share market cycle can help determine whether the changes to the general market index should be believed or not depending on whether they are supported by this indicator, in a similar way that volume can be used to support or deny any change in the price of an individual stock. For example at the top of a market cycle the general market index may be rising but the advance/decline ratio is falling saying that while some stocks are rising strongly many others are falling, suggesting that the smart money is expecting the market to drop and is selling to the less knowledgeable investors." - 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.29707] Need Area: Money > Invest
"When you hear that banks are tightening credit standards, for example at the end of a credit cycle, this means that lenders will demand either lower loan-to-value ratios and/or permit lower leverage rates (that is, lower mortgage/income ratios)." - 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.29785] Need Area: Money > Invest
"The CBOE Volatility Index (VIX) [sometimes called the 'fear index'] is useful to corroborate your thoughts that a market is getting overpriced as it tends to show greater volatility when large institutional investors are either starting to reduce their levels of equity allocations, selling to the highly optimistic retail investors before a market tops, or starting to increase their levels of equity allocations, buying from the highly pessimistic retail investors before a market bottoms. While this isn't always useful - it didn't show much greater volatility before the one day 20% 1987 crash, it did climb significantly in 2006 until and through the 2007-09 stock market crash. So while it can't be used on its own, in conjunction with a knowledge of the long term trend, stock rotation theory and relative strength, and the Advance:Decline ratio or AD-Line, which charts the ratio of daily advancing to falling company shares, it can help you feel more or less certain that the market is nearing a top or a bottom and help you decide to sell off or buy, a bit at a time, often called dollar cost averaging." - 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.29786] Need Area: Money > Invest
"When markets are topping and then crashing, cash and patience are King and Queen of the investment scene. While some of the more adventurous knightly sort, may even consider gold to hold and shares to short!" - 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.29810] Need Area: Money > Invest
"Understanding the economic, business and share market cycle, sector rotation and relative strength is very important for successful share investing. The key to coming to grip with these is thinking about, as an economy speeds up, where is most of the spending, at that time, and how does this increased demand effect supply and therefore prices/costs/inflation. In this way it is easy to see the way the economy and things like the cost of credit - interest rates/monetary policy and inflation, effects company profits and share prices first in the financial sector of the economy then consumer discretionary then industrial and lastly materials, mining and energy." - 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.29812] Need Area: Money > Invest
"In recessionary times beware dividend traps. As asset values fall and debt to equity ratios become too high companies will consider either raising more equity which will dilute and devalue existing share holders or reducing the dividend they pay out in order to rebuild the equity in the company. As interest rates fall the opportunity to reduce dividend yields becomes less damaging to the stock prices. So beware of buying for a high dividend yield especially if the company has high debt levels as the high yields are unlikely to remain." - 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.29847] Need Area: Money > Invest
"While it is always important to be cautious of investing in companies that have too much debt, it is particularly important to consider this towards the top of a market [boom] cycle [before share prices fall perhaps dramatically - quickly and greater than 20% perhaps even up to 40% or more] as the credit cycle is ending and interest rates are getting higher to deal with inflation, because when demand does fall, as a consequence of this, companies who have not reduced their 'debt to equity' and 'interest cost to earnings' levels will get into real difficulty, especially if there is a credit crisis making getting more credit almost impossible, which happens about once every four downturns/recessions. The father of value investing, Ben Graham, who faced many recessions in his investing career, in his book 'The Intelligent Investor', gives some rough guidelines about what to look for in this regard. Safer companies have: [From the balance sheet] 1-total debt [including bonds and preferred shares] less than half total assets [although utilities because they have very stable earnings even during recessions can have debt up to two thirds of total assets but no more]; 2-total debt [including bonds and preferred shares] less than twice net current assets; 3- long-term debt less than net current assets (i.e - working capital); 4-current liabilities [those due within one year] less than one third current assets [i.e. working capital - which can be liquidated within a year]; [From the Income Statement] 5- earnings at least three times greater than the cost of interest [including bonds and preferred shares]; 6- earnings at least 50% more than dividends [or in other words the dividend payout percentage is no more than 67%]. Also be particularly careful about the 'value' of assets [and therefore the equity after dedts are subtracted] for real estate [including Real Estate Investment Trusts - REITs] and investment fund companies, as these can dramatically fall with changes to demand and valuation in recessionary difficulties [for example: real estate- capitalisation rates, vacancy rates, rents; and funds- share values, dividends, assets under management after redemptions]. In this way it is possible to sell those companies than are likely to become insolvent and go broke or lose the greatest percentage of their share price with a market fall and require either equity raising that dilutes the price and dividends of existing share holders still further and/or stopping or reducing dividends and yields/payout ratios for some time in order to rebuild the equity level of the company." - 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.29849] Need Area: Money > Invest
"When the market is falling for example in a bear market or recession, rather than sell your shares, it is possible to buy put options over the shares or the market as a whole. Put options appreciate in value as the share or index falls, thus providing an offsetting hedge." - 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.29850] Need Area: Money > Invest
"Citi Smith Barney analysts found the average dividend cut in Australian recessions since 1960 has been 30%. [A company with a strong business model will have only two years in ten when its dividend is less than the year before. It usually but not always corresponds to years of lower earnings per share.]" - 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.29856] Need Area: Money > Invest
"Economic strength and interest rates are two important fundamental share market considerations for judging the movement of currencies. A strong economy engenders confidence in domestic markets, increasing their attractiveness to foreigners who need to purchase the currency to buy stocks or other assets." - 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.29874] Need Area: Money > Invest
"While stock markets go up and down, by anywhere from 5% - 40% per year, called the business/economic/stock market cycle, they only have a general upward, increasing long-term trend of around 7% a year. The reason for this, in very simplified terms, is that the economy can only grow as fast as the people in it [=3% a year so doubles every 24 yrs], plus inflation [=2% a year], and what is exported (minus imports) [=2% a year]. Knowing this can help investors develop a long-term trend line for the share market that can tell them roughly when the share market is above trend or below and the investor can then try to find out why. It may be above trend because of unusually low interest rates and large amounts of credit in the economy being used for speculation on the rising real estate or share market. Investors should remember that share markets eventually return to the long-term trend and therefore avoid investing heavily when it is significantly above trend." - 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.29916] Need Area: Money > Invest
"[The owners of capital, businesses, possessions, etc, have always had difficulty in aligning their interests with the interests of their agents - staff, managers, employees, advisers, brokers, politicians, public servants, etc. For example:] When people are in charge of other people's money, they are inclined to invest it differently than if it were their own money. In the investment industry this is called 'the agency' problem. Their incentives are different from the owners of the money. They often take imprudent risks in order to get a better short-term gain. The reason is that there are few consequences if they get it wrong -i.e. they lose their job or you as a client. If they get it right they get a large bonus or pay rise. It has been summed up as 'Heads I win, tails you lose'. It is better to align their interests with the investors by having them have a significant amount of their own money -'skin' in the game, so that they lose painfully like the investor does if they get it wrong. Best of all, however, is to not delegate such an important responsibility and to take the time and effort required to learn to manage your own investments well. After all who cares more about your money than you do?" - 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.30098] Need Area: Money > Invest
"The share market's up and down price cycles and investors' attitudes can be neatly summarised in the often repeated phrase, 'Gloom [then] Boom [then] Doom [and repeat]'." - 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.30109] Need Area: Money > Invest
"The worst time for a company to try to raise capital [credit or equity - placement or underwritten rights issue] is when it is most needed, as banks, existing investors and the market see it as an admission of deep trouble, which makes banks think twice about lending, even at very high interest rates, and the market will mark down its price significantly - often to the rights issue price or lower, after the trading halt, immediately reducing the loan to value ratios. It's like the old joke that the time to ask to borrow an umbrella from a banker is when the sun is shining. The best thing for companies is to start stress testing their profits for possible recession conditions and reducing their debt - short and long term - to equity ratios, lengthening the average maturity date and increasing their unused overdraft facilities before the top of the business cycle just as the interest rates are being raised to slow inflation.]" - 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.30113] Need Area: Money > Invest
"Should governments intervene in markets to dampen down asset booms with tighter monetary policy, etc? Would this stop market crashes, asset depreciation and credit crises? John Maynard Keynes, the famous economist and 'Father of Keynesian Economics' that promotes government intervention in 'free markets', in his book 'The General Theory of Employment, Interest and Money'(1936) in Chapter 22 states, 'The right remedy for the trade [business and share market] cycle is not be found in abolishing booms and thus keeping us permanently in a semi-slump; but in abolishing slumps and thus keeping us permanently in a quasi-boom.' This view-point is not surprisingly supported by most governments as they profit from increased government revenues and increased popular political support in the boom years and therefore have little incentive to do otherwise. Recent US Federal Reserve Chairman, Alan Greenspan after making a tentative attempt at bubble management with his famous 'irrational exuberance' speech in December 1996, decided that it was just 'too hard' [although successful value investors do it regularly] to differentiate a bubble from perfectly rational exuberance until after it had burst, so the Fed should stick to cleaning up messes. As he said in 2002, 'If the bursting of an asset bubble creates economic dislocation, then preventing bubbles might seem an attractive goal. But whether incipient bubbles can be detected in real time and whether, once detected, they can be defused without inadvertently precipitating still greater adverse consequences for the economy remain in doubt.' The argument against this is that when booms proceed for too long and go too high, the risk of catastrophic downturns which become difficult, if not near impossible, to fix increases. An example would be the 2008 sub-prime loan debacle, credit crisis, asset deflation, stock market crash and expensive government bailout of financial institutions around the world. An agency problem exists here where the people who are making the decisions to let a boom run - that is politicians and central bankers, will not be the ones who pay for the eventual mess - that is the general public and investors. In October 2008, Alan Greespan testifying before Congress admitted as much saying that he was in a state of 'shocked disbelief' over the credit crisis brought on by his championing of loose monetary policy [and therefore too low interest rates]. 'With ... home prices rising, delinquency and foreclosure rates were deceptively modest. Losses were minimal. To the most sophisticated investors in the world, (mortgage securities) were wrongly viewed as a ‘steal’ [and therefore adequate risk premiums were not required and the Federal Reserve did nothing to dampen the enthusiasm]. The old proverb, 'An ounce of prevention is worth a pound of cure' seems appropriate advice for future Chairs of the Federal Reserve. So perhaps the best course of action for citizens and investors is not to rely on market prices to accurately reflect long-term value or for governments and central banks to manage an economy for their long-term good. Rather for them to focus on self-reliance, take a highly sceptical view about markets and governments, interventionist or not, and consider following the value investing philosophy, which through its focus on safety paradoxically usually achieves greater long-term returns than the alternatives." - 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.30142] Need Area: Money > Invest
"In 2008, as credit and stock markets crashed, the currencies of the U.S. and Japan rose, while most other countries fell. Since both these countries were in recessions this was surprising. That is until you understand that the long-term outlook for the other countries was worse and that these countries could at least be expected to be safe havens for cash during the coming global recession. Another important reason was that for many years hedge funds had cheaply borrowed money from Japan and the U.S. - called 'the carry trade' - in order to invest in other countries with faster growing economies, rising currencies, rising stock markets and higher bond rates, which was all part of 'globalisation' and foreign investment - what is called 'hot money' as it won't necessarily stay in that country for ever. So when it became clear in 2007-8 that a global recession was on the way, due to the vast sums lost all around the world from write downs of now near worthless securitisations of low quality loans [America's sub-prime loan fiasco], these hedge funds started to lose large amounts amplified by their huge leverages [for example $1 equity to $10 debt and higher] and their investors wanting to redeem their investments, required these hedge funds to sell to have the money for them and to maintain their loan debt to equity ratios. Therefore there was tremendous demand for Yen and U.S. dollars as these were required to pay back the debt that had been borrowed in those currencies. This demand was the reason for the rise in their value. Another unusual occurance was that gold, normally a good investment in poor economic times, actually fell. To explain this it is necessary to understand that while many people were buying gold many more, including large hedge funds and institutional investors, were selling gold in order to have the cash to meet margin calls as well as massive investor redemptions." - 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.30590] Need Area: Money > Invest
"For those interested in technical trading one of the best intoductions is Stan Weinstein's 'Secrets For Profiting in Bull and Bear Markets'. It provides a very solid basic long-term strategy that can be integrated with value investing methodologies." - 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.30682] Need Area: Money > Invest
"Every share market boom eventually goes 'kaboom!'" - 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 |
|
Learn Quotes
