Market news

Going For The Gold In Investing

admin — Fri, 17 Jul 2009 17:55:57 +0000

While you may not be as rich as Scrooge McDuck, one of the richest cartoon characters around, you can still take advantage of multiple ways to invest in gold. Gold is a commodity that generally increases in price in tough times, although it too has its dips and valleys. Many of today’s investors are seeking to diversify their portfolios by adding gold to it. There are a number of different ways you can invest in gold. Take a look at a few below.

Gold Bars And Bullions

Typically, this is a form of raw gold that investors like to keep in-house. The security of knowing you can get to some form of wealth in compact form, should every other investment fails, is the driving force behind these types of investments. However, if bullion is not your thing, there are still other ways to invest in gold.

Rare Gold Coins

Unlike the bullion and bars, which have a set price per gold weight, the rare gold coins have a collector value too. That means you rarely see this investment decrease, even if the price of gold decreases. You do have to buy it through an antiquities or gold coin dealer, but if it’s not a rare gold coin it won’t hold its value the same. Newer gold coins are minted for those who want a smaller way to get into gold investment and may have some collector’s value, but not enough to offset a dip in gold prices.

Gold Stocks

You can get stocks that invest in gold mining companies. It’s probably the most risky way to invest in gold, but it doesn’t require storage and is easy to unload. If you want to just diversify the stock portfolio, they can be a good way to add gold to it.

Lengths of Market Cycles

admin — Fri, 26 Jun 2009 19:56:55 +0000

Again, numerous market cycles exist, each simultaneously exerting its influence at any given time. Some cycles are more significant than others, with their amplitudes (the amount of movement that takes place as a result of that cycle) greater than those of other cycles. The reliability of some cycles appears to be greater than the reliability of others. The major concept to be recalled is that cyclical influences on the stock market are patest when a number of significant cycles coalesce in their direction, nesting, falling, or rising together. Cyclical influences are likely to be weakest when a number of signihcant cycles lie in opposition or are in neutral territory Here are some of the cycles that I have found to be most significant throughout the years. These are presented with the caveat that shifts in strength and length do take place from time to time, as with shifts in seasonal patterns.
The four-year market cycle
The one-year market cycle
The 22- to 24-week market cycle
The 11- to 12-week market cyde
The five- to six-week market cycle
The 15- to 17-day market cycle
The 7- to 10-day market cycle
The four- to five-day market cycle
The 17- to 20-hour market cycle
Each cycle tends to be roughly half the length of the cycle just above it and roug twice the length of the cycle below it. This pattern coincides with the A-B sequel that we have been observing.
We return now to examining cyclical patterns that have taken place through, the years.

The Best and Worst Months of the Year

admin — Thu, 25 Jun 2009 19:55:51 +0000

There does not seem to be much of a contest in this regard. The three-month peri of November through January has definitely been the strongest three-month peri of the year for the stock market-not necessarily every year, but certainly over;
For example, this period produced nicely rising prices during 1995-1996,1996-19 1997-1998,1998-1999, and 1999-2000. Its performance dropped off, along with such prices in general, during the nasty bear market period thereafter before returning winning ways between November 2003 and February 2004.
July, September, and October have tended to be the weakest months for stoc October has had a history of being the month most likely to see market turnarounc which makes it a good month in which to plan or to execute the accumulation shares in preparation for the more favorable year-end period that includes I months of November, December, and January.
October has marked turnarounds in major bear markets or significant intermediate market declines during years such as 1946, 1957, 1962, 1966, 1974, 1978,1979, 1987,1989,1990,1998, and 2002, the last of which finally reversed the most severe bear market in decades. It goes without saying, of course, that October was &o the month of the fabled stock market crash of 1929.

A Significant Buy Signal

admin — Wed, 24 Jun 2009 19:55:37 +0000

The following sequence produces very significant buy signals:
1. The stock market enters into a trading range
2. A breakdown takes place through the lower boundary of the trading range.
This, perhaps, trips a few stop-loss orders in the process, extending the decline a touch, but there is basically little in the way of follow-through to the decline.
3. Prices quickly reverse upward back into and then through and above the trading range. The penetration of the upper boundary of the trading range is frequently followed by an extensive and dynamic market advance.
Sequences of this nature developed between February and March 2003 and again during July and September of that year. You might notice that the bullish implications of the early Mardl pattern were reinforced by an angle change measuremer just before the false shakeout that suggested the completion of the market’s currer downside objective.

A Significant Sell Signal

admin — Wed, 24 Jun 2009 19:54:45 +0000

The most significant sell signals often take place following market advances that appear significant and favorable at first, but that rapidly fail. In this regard, you may want to recall that every major market decline originates from a market peak and that every bull market originates from a significant market low point. Here is a sequence of events that frequently takes place as the stock market reverses from a bullish to a bearish trend:
1. The stock market enters into a trading range.
2. A breakout takes place from within the boundaries of the trading range to a level above the trading range. It appears that a market advance is getting underway
3. The advance ends almost immediately, indicating that the upside breakout was falsely deceptive. Prices fall to back within and tlien to below the lower boundary of the trading range in question.
4. The penetration of the lower boundary of the trading range when such a sequence takes place is generally followed by a sharp and extended market decline.
This type of pattern exists on intraday charts as well; day traders are advised to look for it.

Quick Resale For Profit

admin — Sat, 28 Mar 2009 14:46:47 +0000

The installment contract approach may also be used to quickly buy and resell a bargain property, with little or no cash from the prospective intermediary.
At the same closing, the buyer can purchase the property from the owner and immediately sell it to another buyer. For example, Fiona finds a home on sale for $75,000.
1. She knows that she can resell the home for $110,000 with good marketing—for a delightful profit. Unfortunately, Fiona doesn’t have the down payment, credit or resources necessary to buy the property.
2. So Fiona approaches the sellers and negotiates an installment contract for $75,000.
3. As soon as the installment contract is signed, Fiona immediately signs an agreement to sell the property to another buyer—for $110,000.
4. It is a complicated closing because it is essentially two settlements happening at once: Original Sellers completing the purchase to Fiona; and Fiona selling to the New Buyers. However, her real estate attorney is able to help her through the whole procedure. This is a perfectly legal transaction, at the end of which the seller gets their $75,000, the buyer gets the property and Fiona walks away with a tidy
profit.
The new buyers will provide the $110,000 sales price. From these proceeds, Fiona pays off the $75,000 (or less) balance of the agreement with the original sellers. Upon that payment, the original sellers will immediately transfer the title to Fiona, who then gives the title to the new buyers. Once the transaction is fully concluded, Fiona walks away with a $35,000 ($110,000 – $75,000) profit, less closing costs:
$75,000 Sale price for home, per lease-purchase agreement
$110,000 Appraisal value for home, and price at which Fiona re-sells home
$35,000 Profit from resale of home, or even of just the purchase option.

Advantage of Fixed Price

admin — Fri, 20 Feb 2009 14:45:56 +0000

One important advantage of the installment contract approach to home purchase is that the buyer can often lock in a purchase price, even if the actual purchase transaction is still years away. The benefit of this is that such a fixed price can beat inflation by taking advantage of anticipated appreciation.
Consequently, even if the buyer and seller agree to a market price today, the buyer will be purchasing the property at a premium value (because of its equity appreciation) a few years later.
For example, consider the scenario of Lorna who wishes to buy a $90,000 property with an installment contract—and with no down payment. After three years, the property’s value appreciates to (hypothetically)
$100,000. During that same period, Lorna’s monthly payments lower the principal balance to $80,000.
Thus, when Lorna applies for a refinance, she will be applying for a mortgage loan of $80,000 on a property worth $100,000—therefore, she has established $20,000 in equity without really trying.
$90,000 Sales price on installlment contract
$100,000 Appraised value at time of purchase completion
$80,000 Balance on installment contract sales price after three years
$20,000 Property’s built-in equity at time of purchase completion

If she wanted to, Lorna could take out a second mortgage on her equity of $20,000. She could then use that second mortgage loan to consolidate other debts, arrange home improvements or make a down payment on another property. She could also decide to sell it.

Completion of the purchase

admin — Sun, 11 Jan 2009 14:45:15 +0000

As indicated above, the buyer must complete the purchase within the prescribed loan term. Completing the purchase entails a mortgage loan to refinance the installment contract, which is essentially a seller-financing arrangement.
The mortgage loan that the buyer will need is a refinance, with some adjustments. Because it is a refinance, no down payment is required. The property’s available equity can be used for the down payment and closing costs.
For refinances, however, most mortgage lenders require the installment contract to be “seasoned” at least 6-12 months. If that seasoning requirement is not met, most lenders will treat the financing as a purchase loan and require an actual down payment.
The buyer must pay the monthly installment payments with a personal check, and then retain the canceled checks. The lender will require copies of the canceled checks to support the buyer’s credit history and ensure that the buyer has been making the monthly payments on time. In a sense, the installment contract becomes a training regimen for first-time home buyers or investors. As such, it is crucial that the buyer make all contract payments on time—in addition to maintaining overall good credit.

Seller responsibility

admin — Sun, 16 Nov 2008 14:44:14 +0000

Not all of the installment contract’s burdens are solely on the buyer. The seller must also meet certain obligations or face a substantial lawsuit.
The seller is normally responsible for paying the real estate taxes on the subject property. If the seller currently has a mortgage on the property, the payments must be made on a timely, responsible manner.
The seller may refinance or add additional mortgage liens on the property, as long as they do not unfairly restrict the buyer’s rights as outlined in the installment contract. Regardless of how the seller manipulates the property’s title, the seller must provide a clear and marketable title once the buyer exercises the contractual right to complete the purchase.

Defined (short) term

admin — Wed, 24 Sep 2008 14:43:42 +0000

Installment contracts are normally short-term agreements, with most contracts in effect for only three, five or seven years. In effect, the installment contract is a balloon program. At the conclusion of the balloon term, the buyer must still satisfy a large principal balance.
The typical installment contract will require that the buyer obtain a refinance loan within the effective term of the contract. If the buyer fails to obtain a refinance mortgage within the prescribed period, the seller can immediately terminate the contract, evict the prospective buyer and keep any funds paid to date by the buyer.
Note that a foreclosure is not required because the property never left the seller’s possession. The installment contract just provided the buyer with an opportunity to purchase the title to the property, as long as the contract conditions are met. To remove a failed installment buyer, the seller would have to initiate legal eviction procedures.