Category: Investment

What is a good investment? Maximum return with minimum risk involved. There are a number of ways where one would opt for investing his/her money with a surety of good return. The ten investment plans I’m discussing down under are not in any particular order but they certainly are the best investment plans one could possibly opt for.

MTC Global Group – Buy stocks
Perhaps the best investment if implemented right is in the stock market. It can prove very profitable; though sometimes it can also fail to bring the required results as it requires much more experience and skill set.

MTC Global Group – Real Estate investment
With less risk involved, this type of investment proves to be profitable more in long term but still the profit that it fetches is far more fruitful than in any other investment.

MTC Global Group – Buy bonds
These are the sure profit certificates, said with your fingers crossed. These bare an interest rate on them which is paid monthly or yearly. The purchase price is also paid back to the purchaser after the maturity period. No risk involved; what else one wants. Or Start trading in bonds if you want a little more for your return.

MTC Global Group – Invest in a multinational corporation
Buying shares of a multinational corporation which is doing really well in the open market and also giving frequent dividends is another reliable option for investment. But one needs to be really careful because the companies do not show their real picture in the financial statements.

MTC Global Group – Start a business
Another good option to invest after retirement is to start a small business like a restaurant at a tourist spot. It also provides an opportunity to enjoy your life while earning money.

MTC Global Group – Invest in gold
Have enough money to be the lender by your own? Not a bad idea if you have the resources. Not forgetting that one could charge its own interest rate on it, and of course keeping in view the bank rate.

MTC Global Group – Invest in loans
Have enough money to be the lender by your own? Not a bad idea if you have the resources. Not forgetting that one could charge its own interest rate on it, and of course keeping in view the bank rate.

MTC Global Group – Investment schemes
Banks provide different schemes for attracting more and more customers such as senior citizens savings scheme, post office monthly income scheme. These schemes have premature withdrawal options which mean that the customer could pull out the money before the maturity period with or without earning interest over it.

MTC Global Group – Exchange market
A very slight increase or decrease of currency exchange rate could cause to win or lose hefty amounts of money quite easily. Therefore, having a good understanding in the markets and predicting future exchange rates, can prove to be very profitable for people who are dealing within the market

MTC Global Group – Gambling
Well, don’t be surprised. People have earned millions of pounds through gambling but not everybody is that lucky, just 1% are in that lucky bracket. If you trust your destiny, go for it.

Vacuum food sealers are an investment decision for the future. Some may say that they are not worth the money and they’re expensive, but this conjecture is put to rest as soon as you own one of your very own best food sealers. The cash spent on a quality vacuum food sealer is absolutely an investment. You can vacuum seal all of your dry foods for a longer and healthier shelf life, you can store your food in the refrigerator or freezer, so as you can see; they have several functions for use. If you invest in one there will be a stop to throwing away food due to old age dates, mold, frost bite and mildew. By using a vacuum sealer you will most absolutely quadruple the shelf life of any particular food. Vacuum sealers are very simple and fool-proof to use.

Vacuum food sealers completely eliminate all the air from the special vacuum sealer freezer bags (in which you put your food in) and seals the special freezer bags with an airtight heat seal. This simplistic system will certainly impress you once you understand that you will be saving money and time from spoiled foods and various visits to the grocery store. Vacuum food sealers work internally by performing three key tasks without hard work from you. They remove oxygen (by sealing air out of the bag) which dramatically slows down the making of mold and bacterial growth. Vacuum food sealers are a must have for the reason that they also keep and create a moisture barrier.

Countless people are worried that as a result of totally getting rid of all the air from the vacuum sealed freezer bags, that their meat will lose all of its moisture and in turn make it dry, on the contrary this is not the case. Vacuum sealers keep the moisture in your foods while at the same time keeping excess moisture out. This will prevent you from opening a bag and having slimy meat! And lastly a vacuum food sealer is a must have because it makes a flavor barrier that makes it possible for the food being stored to retain its entire original flavor, and keeping the unwelcome flavors out. Vacuum food sealers are a must have in every kitchen because once you open a sealed package, the taste is just as fresh and vivacious as when you first sealed it up over a month ago!

There are countless uses that come from purchasing a vacuum food sealer. You can vacuum seal practically every single dry food for extended shelf storage such as whole bean or ground coffee for long-term storage without the worry of it going bad, you can store nuts and seed for longer periods of time at room temperature, and you can even vacuum seal soups or stews. Vacuum sealers are great for saving left overs in the refrigerator or the freezer without them getting frost bite or obtaining mildew. There are endless uses for a vacuum food sealer in which they save you time and money!!

Have you ever thought of investing in silver? Silver is a very lucrative investment. Nowadays, more people appreciate the beauty of silver. Silver is not only an alternative on gold and platinum because of to its lesser value but it also has lots of uses on both personal and industrial purposes. Usually, many individuals are more at ease collecting coins and jewelries. Apart from these two, people can also choose to aquire silver in forms of bars. They are called bars because they are rectangular in shape. They are made from silver metal. It is unfortunate, not many are familiar with silver bars. Because of the fact that gold bars are the most known metal that is why people are on gold investment.

In case you want to invest in silver bars and you really are still clueless where to start, here are some investment tips that it is best to care about.

Reasons Why Invest In Silver Bars
It is unusual to many people invest in silver bars due to their collectible value. Then again, silver bars are very ideal as an investment commodity. The prices of silver bars are a bit expensive that the premiums. Moreover, they have distinctive values since there are some bars which are not any longer reproduced.

In case you are familiar with the connecdtion of supply and demand, you will notice that the smaller the supply is the more valuable the item will become. Same in the silver, when the supply is low, the price value of the metal may go high in time. Furthermore, many people discovered that silver can be utilized in various industries including fashion, arts and dentistry.

Another good reason why silver is incredibly well liked nowadays is because they’re very liquid and that they can easily be transformed to cash effortlessly. Also, the premium of bars is lesser as compared to the one ounce silver coins.

Silver Bars As Investment
There are several companies offering silver in the internet. However, take hedge and get to know the way to properly trade online. Not all you see online are legitimate. Chances are you will encounter people who will pose as genuine buyers or retailers. Don’t provide your personal information or your bank account details should you be not one hundred percent sure that you are dealing with genuine silver buyers or sellers.

You may also purchase silver bars at your local banks other than online silver stores. When investing in silver bars, you will certainly encounter terms like “investment grade” silver bars or rectangular silver. The value of this sort of metal can differ by weight, purity and its present condition in the international market.

It is much useful to check the value of silver bars in the international market apart from the information that you truly have gathered from the person or the company that you are dealing with. Information about the current spot price of silver will come in your daily news or tabloid or you are able to find the details online. Understanding the spot price will help you make the right buying decisions. Keep in mind that dealers generally add premiums to the actual costs of physical silver bars. So do not be too excited if the spot price is within your target budget. The dealer could charge you with insurance and transportation cost, so pay attention to the hidden charges included.

Many experts think that Invest in silver bars are physical assets with long-term perspective. Investing in silver bars is not as easy as you think. Just in case you are already interested in buying silver to a certain person or company, you need to have an intensive research on the type silver bar you want to buy and likewise, to the person or the company you choose to deal with. Again, tend not to be deceive and make time to research.

Sultanpur in Medak district is the hub of major investments that are taking place in Hyderabad. It is located at a distance of 16 to 18 Km from important hubs such as hi-tech city area, Microsoft campus, financial district etc. in Hyderabad City. As the city is experiencing a tremendous growth and consequent economic activity, the government felt the need to provide better infrastructure facilitates. Hyderabad would be an integrated financial hub with infrastructure facilities for financial services operations for banking, insurance and asset management companies. As a result of this, there have been a few investments around Sultanpur which include:

RAKIA investment

RAKIA is the investment arm of the UAE government which had asked for a total of 2000 acres for the project. It is the government body responsible for the socioeconomic growth of the Emirates. The MoU was signed by Wahid Attalla, Member of the Board, Rakeen, the real estate development arm of Ras Al Khaimah Investment Authority (RAKIA), and APIIC Chairman and Managing Director B P Acharya, in the presence of Andhra Pradesh Chief Minister Y S Rajasekhara Reddy. RAKIA is also developing several other townships across the country through RAKINDO, RAKIA’s joint venture company in India. Over 3,000 acres of land has been earmarked for various projects in Coimbatore, Chennai, Kumarakom, Hosur and Cochin, each with a projected cost of $2bn.

Ras Al Khaima Authority (RAKIA), and APIIC signed a memorandum of understanding in September last for the development of HEC with a proposed investment of Rs 20,000 crore. With this proposed project in Sultanpur, Medak district will witness a significant change in terms of infrastructure and employment facilities. Sultanpur is located abutting the outer ring road and is presently accessible from the Mumbai highway via the Beeramguda crossing which is two Km after BHEL. A three and half Km drive would bring you to Kistareddypet village. The limits of Sultanpur commence barely half a Km to the right of Kistareddy pet which has already been witnessing real estate development in the form of gated communities, residential layouts and apartment complexes.

This is the largest real estate and infrastructure project coming up in Andhra Pradesh and is expected to provide quality employment to thousands of people. The Andhra Pradesh government recently allotted 471 acres of land at Sultanpur village of Medak district for the first phase of Hyderabad Economic city which is being jointly developed by APIIC and RAKIA. Residential areas adjacent to Sultanpur such as Ayilapur, Kistareddypet and patelgudem will be the most sought after destinations and are likely to appreciate in value considerably. RAKIA is a world renowned and much respected investment body that is cash rich. Executing a project of this magnitude is well within their capability.

Outer Ring Road (ORR)

With the ongoing project of ORR by Hyderabad Urban Development Authority with a total length of 162 Kms, the villages around Sultanpur such as Kistareddypet is likely to experience a large scale development along the ORR Corridor. The outer ring road is passing through the village limits and 100 acres of land has been acquired for this project. It is therefore no surprise that lands situated in the growth corridor are much in demand and have been multiplying in value.

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Let’s get started by concentrating on the S&P 500 – it is intrinsically an index of the 500 largest companies in America. Indeed, it is more. Contrary to popular misconception, the S&P 500 is not a simple list of the largest 500 companies by market capitalization or by revenues.

Rather, it is 500 of the most widely held U.S.-based common stocks, chosen by the S&P Index Committee for market size, liquidity, and sector representation. “Leading companies in leading industries” is the guiding principal for S&P 500 inclusion. We are starting here to achieve safety and diversity.

If you use the S&P 500 as your investment base you won’t have to worry if the CEO has resigned, the CFO has just been indicted, the stock has missed its forecast or any number of things that make stock prices flagellate unsuspecting investors and traders.

You ask: How can you make money investing on the S&P 500?

Consider its graph, the white, bottom most curve on the chart. As you can see, the S&P 500 goes up and down similar to stocks and hasn’t done so well over the past 3 years.

Wouldn’t we do better with a mutual fund? [Actually, you’re getting warmer.]

According to the Motley Fool, “During the 1990s, the S&P 500 has provided an annualized return of 17.3%, compared with just 13.9% for the average diversified mutual fund.” Over the past 3 years only 10 mutual funds had more than a 12% total return [data through 6/4/2010 from 12,392 funds, Morningstar]. You can see that the S&P 500 has not done well, but you would have actually done worse using mutual funds.

Instead of considering mutual funds I’m going to restrict our consideration to just two ETFs, i.e., SSO and SDS. I said simple; this is simple.

We’re going to invest in SSO when the market is rising and SDS when it’s falling. Both SSO and SDS are based on the S&P 500. They track its traded index, SPX. [You have to trade SPX because the S&P 500 is an index that isn’t traded.] The SPX is among the most traded equities and is also one of the most liquid. As an investment it brings diversification.

SSO and SDS are mirrors of each other. Whenever SSO rises the SDS falls, and vice versa. This allows us to trade in rising and falling markets. Simply, pick the correct ETF.

These ETFs have one other unusual property. They move twice the speed of the SPX; they are leveraged 2 to 1. [Proshares has a number of similarly behaving ETFs. They are called Ultra ETFs.]

You said: This would be a safe investment strategy! These are leveraged! Isn’t it safer to invest in sound American stocks?

Rather than give a large list of recently failed stocks, I decided to find if there were any stocks among the current S&P 500 that I would like to have held over the past 3 years. Only 2 emerged, Family Dollar and Autozone. More than 15% of the S&P 500 had more than a 75% draw-down and an additional 35% had losses over 50% at some time during the 3 years. These statistics do not include companies like Enron and Lehman that are no longer included. If they were included these statistics would be much higher.

I don’t know about you, but I’m not much of a stock picker. I want something truly safe. If you are comfortable with your results trading stocks, don’t bother reading further.

What about investing in utilities?

When I began investing, my Dad told me that utilities were always a safe investment. They paid a good dividend that never went down. Their customer base is locked in. Their rates are determined by the states and these always increase. What could be safer?

During the last 3 years, Duke Energy fell over 40% from a high of 20.66 to a low of 12.39. Over the same period, the index of gas utilities had a high of 33.84 and a low of 20.11. Electric utilities fared worse falling from a high of 40.01 to a low of 20.85. Even utilities don’t look safe anymore.

From my point of view, it’s the story of the turtle and the hare. Stocks behave like the hare. You cannot predict in which direction they are going to run.

These two ETFs, SSO and SDS, in comparison are turtles; admittedly turtles with racing stripes. At this point we do not have anything more than a rough plan for investing in the S&P 500. This is not enough to qualify as an investment strategy.

We shall begin to upgrade this plan into a practical trading strategy. First, we need an unbiased indicator to determine on which ETF we should place our money, SSO or SDS. Any day, the majority of pundits on CNBC will tell you the market is going to rise. But on the same day, many of their pundits will provide reasons why it will fall. So, you cannot rely on them. Also, the Futures, prior to the Open, seem no more reliable for choosing either SSO or SDS.

After many years of trying, I developed a market timer that combines the market movement of the SPX with market sentiment. I call this the SPXTimer. There are many market timers available. I’ll let you be the judge which to choose.

They are invaluable for making a well guided decision about which ETF to select. Mine gives you three choices. When it’s bullish take SSO; bearish SDS and when it’s neutral stay in cash. What could be simpler?

The red curve, third from the top judging from the right hand side of the chart, shows the results of trading SSO and SDS from 9/12/2007 until 5/5/2010 only using the SPXTimer. $10,000 invested on 9/12/2007 grew to $13,737. Most investors and funds didn’t do that well over this difficult period.

I think you will agree, these results are not very good in terms of what you would hope to achieve. Look at the yellow oval in the middle the graph. During that interval of time, the investment fell from a high of $14,469 down to $11,158. That’s a big hit. We would like to sleep well at night; that fall would make sleep very difficult.

Sometimes these ETFs do not move in sync with the market timer. A little patience is required before charging into the market. I added a mild momentum constraint to the strategy to ensure the entry is in sync with the timer. The ETF’s momentum, not necessarily the price, is required to be rising over 2 days. [A service bureau provides me with this information.] Sometimes this constrains delays entry for several days.

The blue curve provides the results of adding this constraint. Here, based solely on the S&P 500, my market timer and an entry constraint, the $10,000 investment grew smoothly to 16,525. That’s over 20% per year! There were pull backs, but you could sleep soundly.

I was still concerned with giving back profits. After each big run-up in profit, it seemed there was a comparably big pull back. Many investment managers recommend adding to a position as it is rising in value.

I decided to try subtracting from the position size as the profit rises. If timed properly, this might reduce the amount of profit given back. Plus, it would reduce the risk while adding some of the profit to the bank. To do this, I decided to incorporate the following Money Management with the two strategies that were in place.

Say you started with $10,000. The idea is to keep the money at risk between $9,000 and $11,000 [+/- 10% of the initial investment].

Whenever your equity grows over $11,000 sell enough shares to withdraw $1,000. This should reduce your money at risk to under $11,000. The next time it appreciates over $11,000, do it again.

If, on the other hand, the investment falls below $9,000 add $1,000 worth to the ETF investment.

The results are remarkable. This investment, the yellow, top-most curve, grew to $17,780. That’s close to 30% annually; not bad for a turtle! The chart doesn’t show this statistic, but 75% of these trades were winners.

I repeated this test on three more broad based indexes: the Nasdaq 100, S&P Mid-Cap 400 and the Russell 2000 changing only the two ETFs. Each did better. The statistics of these investments, starting on 9/12/2007 with $10,000 and ending on 5/5/2010, are shown in the table below. All data is based on back-testing, not actual trades.

The basic plan: buy one of these ETFs when bullish and the inverse ETF when bearish, or stay out of the market in cash, is as simple as it can get. The SPXTimer brings order and safety to the investment because you know whether to buy the bullish ETF or the bearish ETF. The entry condition, combined with this money management strategy, will improve your investment results beyond what you might hope to achieve with stocks or mutual funds – with much less risk. Now isn’t that what you wanted all along?

Footnote
You may be wondering about the choice of dates; particularly since on 5/6/2010 the Dow fell over 1000 points in less than a half hour. Many of these ETFs were first introduced in 2006 and 2007. As a result, data was not collected for the SPXTimer prior to mid 2007. The start date corresponded to the first change to a bullish signal. On 5/5/2010 the timer signaled a close for all bullish positions. Prices in the table reflect the Open of 5/6/2010.