All about investment

By: Marcel Ford

REO (also known as real estate owned, bank owned real estate, lender owned properties as a result of foreclosures) investments is where many investors and groups hedge their potential to purchase properties at a discounted price and capitalize on "higher than industry standard" returns. Individuals, pooled groups of investors and hedge funds are beginning to realize that without direct connections with established inner-banking relations, their abilities to truly maximize on REO product usually is lost in a juxtaposition of half-truths and meandering promises.

If you're involved in the REO industry for some time, you will hear hear, on a daily basis, the frustration in the voices of brokers as well as clients who have been sitting, continually stirring a pot which has nothing inside of it. Recently, it has become our job to be more of an educator to these clients, investors and brokers. The truth of the matter is that while we provide many of our clients with REO packages, for the most part, those looking for $100M dollar packages to a billion dollars, are usually disillusioned. It is important to understand how the REO marketplace really works.

Here is some reality:

The total expected sub-prime related losses through 2009 are about $500B. The majority of that is by way of write downs, discounted sales of whole loan pools and securities, legal and servicing, foreclosure and workout costs, holding costs, auction fees, and Wall Street brokerage fees and on and on. A small fraction of those losses are actual REO's while even a smaller fraction is related to bulk REO sales at major fire sale prices.

This was the bulk of the sub-prime related losses through January of 2008:

MAIN SUB-PRIME LOSSES SO FAR:

Merrill Lynch: $22.1BCitigroup: $18BUBS: $13.5BMorgan Stanley $9.4BHSBC: $3.4BBear Stearns: $3.2BDeutsche Bank: $3.2BBank of America: $3BBarclays: $2.6BRoyal Bank of Scotland: $2.6BFreddie Mac: $2BJP Morgan Chase: $3.2BCredit Suisse: $1BWachovia: $1.1BIKB: $2.6BParibas: $197MSource: Company reports

So, this equates to a total of about $280B sub-prime "related losses" of which heavily discounted bulk REO's would account for 6% (at best case scenario) through January, 2008. Deutsche is JUST NOW putting $40B out to "bid" and NOT to bozo broker chains, but to Blackrock and similar firms. Citi is JUST NOW putting $12B out to "bid." The MAJORITY of those are loan pools and mortgage related securities, NOT bulk REOs.

So, when you hear of all these "phantom" REO pools that are out there that investors are directed to at 33% of market value, we caution you to be more pessimistic than optimistic. It would be inaccurate to state that there aren't any smaller pools that are being sold, just not in the large volume or price points that so many believe are available...

Now, for the good news out of this:

While there appears to be a strong "attraction" to REO's as well as the builder closeout that are being offered out there, many buyers who were purchasing bulk closeouts as well as REO's are now more interested in what is referred to as High-Yield Private Investment Programs. Here are some of the reasons certain individuals have converted over to the lucrative world of HYPIP's:

1. The returns generated are astronomical when comparing REO's and builder closeouts to private investment. Imagine buying a bulk builder closeout purchase for 50 cents on the dollar. First of all, these are few and far between currently in the marketplace, though they do exist. After the cost of money, the rehab work needed on any of the properties, the price structure for liquidating those homes in a timely fashion and all the other added holding costs of purchasing that portfolio, a Buyer is hard pressed to earn a 30% return total.

2. The ability to link up correctly with someone who really, truly has the sources to supply those bulk closeouts from Seller's and banks is next to impossible for most "brokers". Builders typically go direct to their sources already in the Matrix or those lucky few who have the relations already established with those builders. There are no more than roughly a couple dozen verified and legitimate groups out there (that we know of) who know how to close these transactions, understand the dynamics behind them and know how the system works from fruition to completion.

3. Builder closeouts as well as REO's do not stand a leg against Private Investments. Become an REO investor for a minute. Would you rather realize a return of 20% annually with an immense amount of due diligence, implementation, eradication and hassle of a bulk closeout/REO buy; or, would you prefer a return that guarantees a monthly 5 to 13% return that's on auto pilot once engaged?

Your investment is secure since it is never taken out of your control or current bank account.

This is what is referred to as the High-yield Private Investment Program. Many investors are looking for these types of programs. There is a Fraternity of Opportunity and it would behoove you to start looking for sources that are aware of these programs and offerings.

To your investing success.

InvestorEarth provides educational information to investors wanting to buy REOs, Medium Term Notes (MTNs), Bank Guarantees (BGs) and Collateralized Mortgage Obligations (CMOs) and High Yield Alternative Investments. Visit http://www.InvestorEarth.com for more information.

by B.M. Davis

As new traders begin to trade the markets they quite often find there is an expensive learning curve to the financial markets. The trader who has decided on technical analysis as the method of choice will soon find it's not as easy as all of the books and websites make it sound. The single biggest reason is that trading in itself is a psychological game and when putting real money on the line, many new traders panic and become the losers in the game. Those who are experienced traders realize that's what makes technical analysis in itself work. Spotting patterns caused by collective fear or greed make up the basis of technical analysis itself. New traders need to overcome the emotions of fear and greed if they are to become successful traders before going broke.

Obviously, the new trader has to learn to overcome their emotions. It's easier said than done and most honest experienced traders will probably admit that it's something they struggle with even now. Here are some ways you can learn to keep your emotions in check:

1. Perfect a trading strategy and stick with it â€" Plan your trade and trade your plan. Don't start listening to stock trading gurus and their stock picks. Stay away from most stock message boards (at least until you gain confidence in yourself). The most successful traders learn to think for themselves and take personal responsibility for their trading. When you stop following your plan and start breaking your own rules you're probably trading on emotion.

2. Don't become emotionally attached to your trades â€" If you're watching the price of your stock like a hawk and become elated when the price goes up and depressed when the price goes down, you're trading on emotion. Remember, your trading strategy should be so ingrained that you trade like a robot. 3. Take adequate position sizes â€" Don't take a position size larger than ten percent of your account value. Large position sizes are great if the price goes up but never forget that a losing trade of too large a size can decimate you're trading account. This also will help keep fear in check. 4. Remember, it's ok to take a loss â€" If you have a plan to cut losses, taking a loss is just part of trading. Even pro's experience losses. The difference is they have a plan for managing them.

Trading is a great way for anyone to generate income online and I highly recommend everyone invest in one way or another. But remember, keep you're emotions in check and learn all you can about the craft of trading. The more knowledge you gain, the more confident you will become. Keep it simple at first. Expand your trading strategy as your knowledge grows, take small steps and soon you will be able to consider yourself a successful trader.

About the Author

B.M. Davis is an active trader and the publisher of Market Master Trading Course. For more information on stock trading, technical analysis or candlestick charting, please visit http://www.market-masters.com

How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing. As you might imagine, being an investment advisor this happens to me a lot. However, I recently had an experience with it that startled me.

Bob, one of the guys I was chatting with at a party, asked what kind of returns I had made for my clients with my methodical no load mutual fund strategy during the past year. I replied that they had unrealized gains of slightly over 29%, after management fees, for the 8 months that we were invested.

Bob countered with a smirk that he had made a 40% return. I raised my eyebrows and told him that was darn good—and suggested that maybe he ought to be managing my money. At that point we were interrupted and, as the evening went on, I began to wonder exactly how Bob had gotten his great return.

I cornered him a little later on and, upon digging a little deeper, the story looked somewhat different. Yes, he had made a 40% return on a mutual fund he had some money invested in, however, we were comparing apples and bananas.

He had a total portfolio of $100k. Being cautious, he had invested only $10k into a mutual fund, from which he profited $4k after he sold it. The balance of his portfolio ($90k) was sitting in a money market fund earning some 0.35% per year.

So, while he had made 40% on 10% of his investment, he had only made 4.35% on his whole portfolio. My methodology was also focused on protecting my clients' investments and it had increased their entire portfolio 29% (unrealized). That would be an apple to apple comparison when measuring my returns against his. Bob's one fund realized 40% return. However, had I approached it the same way Bob had, I could have described one of the funds I used that had realized over 49% for the same period.

Actually, Bob's not-so-good-news story didn't stop there. Bob admitted to having followed the losing Buy and Hope strategy through the bear market of 2000 and had finally sold out at a 50% loss a year ago, before committing $10k to a mutual fund investment.

I was pleased to be able to tell him that my methodology had gotten my clients out of the market before the bear took his big bite, and they suffered only minimal losses before finding safety in money markets accounts. And when my trend tracking figures directed us to move back into the market, they still had most of their money poised to start earning for them again—which it did and very nicely, thank you.

The moral of the story is to look past the surface and don’t take any numbers thrown at you at face value. Remember, most people returning from a weekend in Las Vegas will shout about their winnings and mumble about their losses.

Source: http://www.articlesbase.com

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About the Author:
For more Information on Venture capital investment visit www.ibfconferences.com .

During your training as a new Realtor, you undoubtedly received coaching from managers and brokers on many subjects designed to help you build your business. Despite this, many Realtors don't do all of the exercises that they promised themselves they'd do. As a result, many agents find themselves doing the same marketing plans month after month without analyzing how hard their advertising dollars are working for them.

Ask a Simple Question With Big Results

Nearly everything that a Realtor spends money on is designed to promote him or herself as an agent. Direct mail, ads, websites, promotional items, even your yard signs, are all speaking to clients on your behalf. But not all of these things are equally effective, and it's important to determine which of your marketing materials are working hardest for you.
All it takes is a little research to determine what's working, and what can be cut back or eliminated altogether. Create a spreadsheet on your computer, or even use a notebook divided into columns, and list every form of self-promotion that you use - even those that you don't pay for. Be disciplined and ask each and every potential buyer or seller that you speak to, "How did you hear about me?"

Use Your Money Wisely

Once you've collected data for an entire month, review your results. Let's say that your data breaks down to five leads from referrals, one lead from your weekly newspaper ad, five leads from your website, and four leads from the promotional calendars that you sent out to your farming area. If you’re spending a significant portion of your budget on your newspaper ad, you might want to put that money into other areas of advertising. You’re not getting the return on investment that you should from a newspaper ad.

In addition, a good real estate website should be generating many more leads than just five. Invest in a professional, fully-customized website and you will generate the bulk of your leads online. Once you’ve made the initial investment, your website will work for you 24 hours a day, 365 days a year. A truly professional website requires very little upkeep and maintenance on your part. This is fortunate, since you will be busy with all of the new clients who find you online.

About the Author:

Brett Miller is the founder of http://HoopJumper.com and has created the best lead generating real estate websites in the industry and helped hundreds of real estate professionals make the most of their Internet presence. Call 888-Hoop-Jumper for a complimentary web analysis today or visit http://www.HoopJumper.com to see how HoopJumper can help you grow your business.

By: Halston

The money to be made over the next several years in basic commodities is incalculable. You don't want to miss out on this upcoming market opportunity. We are in the midst of entering the next leg of the first major move in commodities in the past 30 years. Pretty much every market has made gains, consolidated, and is now ready to continue upwards. If past bull market history can shed any light on the current situation, prices of almost every commodity will probably take off to new all-time highs over the next two to three years. Here are my picks for the best trades for 2007:

1 - Gold
Keep buying it. In my opinion, the effective "floor" in the gold market, at least for the foreseeable future, is close to $550. After an initial run-up over the $600 an ounce level, the gold market went through a correction/consolidation phase, retracing about half the distance between $625 and $525. It is, as of this article, back up around the $630 level. Expect gold to take out its former all-time record, and move well above $1,000 an ounce. Between gold and silver, to date gold has been the market leader, which is why I would recommend it over silver. I would be floored myself to see gold fall back under $500 anytime soon--but I would not be surprised in the least to see the price of gold over $2,000 an ounce within the next 18 months.

2 - Cotton
Cotton has been, up to this point, a kind of "weak sister" in the overall bull market in basic commodity prices. Whenever it decides to join the flow of the overall market, I expect it to play catch-up very quickly. Currently, cotton is languishing around the 50-cent level, despite steadily growing export demands from China and India, and despite the fact that the cotton belt across the South still has not fully bounced back from the destruction of Hurricane Katrina. My prediction: cotton will double in price during the next 24 months.

3 - Wheat
Among the grains, wheat has revealed singular determination almost since the starting point of the current bull market. Even on days when USDA reports sent soybeans and corn tumbling down, wheat managed to push through. My long-term price target for wheat is $8-$10.

4 - Cocoa
Cocoa's performance has recently been in line with the gold market: for a few years it was stuck at the same price, but then in the most recent bull market, cocoa prices advanced up to the mid-$20s. They have since pulled back to $14-$15, but recent signals of prices hitting the floor mean a turnaround could be waiting just around the bend. As with nearly all other markets, I predict that cocoa will hit new highs during the second part of this bull market. If you hesitated to buy during cocoa's first run-up, don't miss out the second time around. Buy!

5 - The CRB Index
The CRB Index is the smartest way to benefit from gains across the entire commodities market, which now happens to be the most significant bull market we have seen. In the 1980s and 1990s, many people spent too much time searching for winning stocks. In those days, it was practically a free ride to Easy Street to buy into in the Dow Jones or S&P indexes. The CRB Index is the equivalent for commodities. Especially for wet-behind-the-ears investors, the CRB Index lets you benefit from all market momentum without having to specify a certain hot market and investment time. As in all markets, every commodity market can see-saw, but in general the market always moves up. We are in a bull market, after all.

The chance to win big in the commodity markets over the next 5 years is the single greatest investment opportunity that I have ever seen. I do not expect to see another one like it for at least five decades. Do not miss out on this chance to create a fortune that could take all your financial worries away, in the space of just a few years.

Article Source: http://www.kokkada.com

Halston Adams is an ex-broker who had the chance to emulate top traders, giving him the ability to explode his own $8,000 futures account into over $56,000 in 3 years. Find out more about his trading approach at: Futures Trading Secrets today.

By Steve Selengut

The reason people assume the risks of investing in the first place is the prospect of achieving a higher rate of return than is attainable in a risk free environment'i.e., an FDIC insured bank account. Risk comes in various forms, but the average investor's primary concerns are 'credit' and 'market' risk' particularly when it comes to investing for income. Credit risk involves the ability of corporations, government entities, and even individuals, to make good on their financial commitments; market risk refers to the certainty that there will be changes in the Market Value of the selected securities. We can minimize the former by selecting only high quality (investment grade) securities and the latter by diversifying properly, understanding that Market Value changes are normal, and by having a plan of action for dealing with such fluctuations. (What does the bank do to get the amount of interest it guarantees to depositors? What does it do in response to higher or lower market interest rate expectations?)

You don't have to be a professional Investment Manager to professionally manage your investment portfolio, but you do need to have a long term plan and know something about Asset Allocation' a portfolio organization tool that is often misunderstood and almost always improperly used within the financial community. It's important to recognize, as well, that you do not need a fancy computer program or a glossy presentation with economic scenarios, inflation estimators, and stock market projections to get yourself lined up properly with your target. You need common sense, reasonable expectations, patience, discipline, soft hands, and an oversized driver. The K. I. S. S. Principle needs to be at the foundation of your Investment Plan; an emphasis on Working Capital will help you Organize, and Control your investment portfolio.

Planning for Retirement should focus on the additional income needed from the investment portfolio, and the Asset Allocation formula [relax, 8th grade math is plenty] needed for goal achievement will depend on just three variables: (1) the amount of liquid investment assets you are starting with, (2) the amount of time until retirement, and (3) the range of interest rates currently available from Investment Grade Securities. If you don't allow the 'engineer' gene to take control, this can be a fairly simple process. Even if you are young, you need to stop smoking heavily and to develop a growing stream of income' if you keep the income growing, the Market Value growth (that you are expected to worship) will take care of itself. Remember, higher Market Value may increase hat size, but it doesn't pay the bills.

First deduct any guaranteed pension income from your retirement income goal to estimate the amount needed just from the investment portfolio. Don't worry about inflation at this stage. Next, determine the total Market Value of your investment portfolios, including company plans, IRAs, H-Bonds' everything, except the house, boat, jewelry, etc. Liquid personal and retirement plan assets only. This total is then multiplied by a range of reasonable interest rates (6%, to 8% right now) and, hopefully, one of the resulting numbers will be close to the target amount you came up with a moment ago. If you are within a few years of retirement age, they better be! For certain, this process will give you a clear idea of where you stand, and that, in and of itself, is worth the effort.

Organizing the Portfolio involves deciding upon an appropriate Asset Allocation' and that requires some discussion. Asset Allocation is the most important and most frequently misunderstood concept in the investment lexicon. The most basic of the confusions is the idea that diversification and Asset Allocation are one and the same. Asset Allocation divides the investment portfolio into the two basic classes of investment securities: Stocks/Equities and Bonds/Income Securities. Most Investment Grade securities fit comfortably into one of these two classes. Diversification is a risk reduction technique that strictly controls the size of individual holdings as a percent of total assets. A second misconception describes Asset Allocation as a sophisticated technique used to soften the bottom line impact of movements in stock and bond prices, and/or a process that automatically (and foolishly) moves investment dollars from a weakening asset classification to a stronger one' a subtle "market timing" device.

Finally, the Asset Allocation Formula is often misused in an effort to superimpose a valid investment planning tool on speculative strategies that have no real merits of their own, for example: annual portfolio repositioning, market timing adjustments, and Mutual Fund shifting. The Asset Allocation formula itself is sacred, and if constructed properly, should never be altered due to conditions in either Equity or Fixed Income markets. Changes in the personal situation, goals, and objectives of the investor are the only issues that can be allowed into the Asset Allocation decision-making process.

Here are a few basic Asset Allocation Guidelines:

(1) All Asset Allocation decisions are based on the Cost Basis of the securities involved. The current Market Value may be more or less and it just doesn't matter.
(2) Any investment portfolio with a Cost Basis of $100,000 or more should have a minimum of 30% invested in Income Securities, either taxable or tax free, depending on the nature of the portfolio. Tax deferred entities (all varieties of retirement programs) should house the bulk of the Equity Investments. This rule applies from age 0 to Retirement Age - 5 years. Under age 30, it is a mistake to have too much of your portfolio in Income Securities.
(3) There are only two Asset Allocation Categories, and neither is ever described with a decimal point. All cash in the portfolio is destined for one category or the other.
(4) From Retirement Age - 5 on, the Income Allocation needs to be adjusted upward until the 'reasonable interest rate test' says that you are on target or at least in range.
(5) At retirement, between 60% and 100% of your portfolio may have to be in Income Generating Securities.

Controlling, or Implementing, the Investment Plan will be accomplished best by those who are least emotional, most decisive, naturally calm, patient, generally conservative (not politically), and self actualized. Investing is a long-term, personal, goal orientated, non- competitive, hands on, decision-making process that does not require advanced degrees or a rocket scientist IQ. In fact, being too smart can be a problem if you have a tendency to over analyze things. It is helpful to establish guidelines for selecting securities, and for disposing of them. For example, limit Equity involvement to Investment Grade, NYSE, dividend paying, profitable, and widely held companies. Don't buy any stock unless it is down at least 20% from its 52 week high, and limit individual equity holdings to less than 5% of the total portfolio. Take a reasonable profit (using 10% as a target) as frequently as possible. With a 40% Income Allocation, 40% of profits and dividends would be allocated to Income Securities.

For Fixed Income, focus on Investment Grade securities, with above average but not 'highest in class' yields. With Variable Income securities, avoid purchase near 52-week highs, and keep individual holdings well below 5%. Keep individual Preferred Stocks and Bonds well below 5% as well. Closed End Fund positions may be slightly higher than 5%, depending on type. Take a reasonable profit (more than one years' income for starters) as soon as possible. With a 60% Equity Allocation, 60% of profits and interest would be allocated to stocks.

Monitoring Investment Performance the Wall Street way is inappropriate and problematic for goal-orientated investors. It purposely focuses on short-term dislocations and uncontrollable cyclical changes, producing constant disappointment and encouraging inappropriate transactional responses to natural and harmless events. Coupled with a Media that thrives on sensationalizing anything outrageously positive or negative (Google and Enron, Peter Lynch and Martha Stewart, for example), it becomes difficult to stay the course with any plan, as environmental conditions change. First greed, then fear, new products replacing old, and always the promise of something better when, in fact, the boring and old fashioned basic investment principles still get the job done. Remember, your unhappiness is Wall Street's most coveted asset. Don't humor them, and protect yourself. Base your performance evaluation efforts on goal achievement' yours, not theirs. Here's how, based on the three basic objectives we've been talking about: Growth of Base Income, Profit Production from Trading, and Overall Growth in Working Capital.

Base Income includes the dividends and interest produced by your portfolio, without the realized capital gains that should actually be the larger number much of the time. No matter how you slice it, your long-range comfort demands regularly increasing income, and by using your total portfolio cost basis as the benchmark, it's easy to determine where to invest your accumulating cash. Since a portion of every dollar added to the portfolio is reallocated to income production, you are assured of increasing the total annually. If Market Value is used for this analysis, you could be pouring too much money into a falling stock market to the detriment of your long-range income objectives.

Profit Production is the happy face of the market value volatility that is a natural attribute of all securities. To realize a profit, you must be able to sell the securities that most investment strategists (and accountants) want you to marry up with! Successful investors learn to sell the ones they love, and the more frequently (yes, short term), the better. This is called trading, and it is not a four-letter word. When you can get yourself to the point where you think of the securities you own as high quality inventory on the shelves of your personal portfolio boutique, you have arrived. You won't see WalMart holding out for higher prices than their standard markup, and neither should you. Reduce the markup on slower movers, and sell damaged goods you've held too long at a loss if you have to, and, in the thick of it all, try to anticipate what your standard, Wall Street Account Statement is going to show you' a portfolio of equity securities that have not yet achieved their profit goals and are probably in negative Market Value territory because you've sold the winners and replaced them with new inventory' compounding the earning power! Similarly, you'll see a diversified group of income earners, chastised for following their natural tendencies (this year), at lower prices, which will help you increase your portfolio yield and overall cash flow. If you see big plus signs, you are not managing the portfolio properly.

Working Capital Growth (total portfolio cost basis) just happens, and at a rate that will be somewhere between the average return on the Income Securities in the portfolio and the total realized gain on the Equity portion of the portfolio. It will actually be higher with larger Equity allocations because frequent trading produces a higher rate of return than the more secure positions in the Income allocation. But, and this is too big a but to ignore as you approach retirement, trading profits are not guaranteed and the risk of loss (although minimized with a sensible selection process) is greater than it is with Income Securities. This is why the Asset Allocation moves from a greater to a lesser Equity percentage as you approach retirement.

So is there really such a thing as an Income Portfolio that needs to be managed? Or are we really just dealing with an investment portfolio that needs its Asset Allocation tweaked occasionally as we approach the time in life when it has to provide the yacht' and the gas money to run it? By using Cost Basis (Working Capital) as the number that needs growing, by accepting trading as an acceptable, even conservative, approach to portfolio management, and by focusing on growing income instead of ego, this whole retirement investing thing becomes significantly less scary. So now you can focus on changing the tax code, reducing health care costs, saving Social Security, and spoiling the grandchildren.

About the author:
Steve Selengut
http://www.sancoservices.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

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