US economic growth predictions for April -July 2011 : The second estimate of second-quarter 2011 GDP growth was revised down to an annualized 1.0% from an initially estimated 1.3%. Earlier released data suggested a likely downward revision although to a slightly higher 1.1%. The increase follows a negligible 0.4% gain in the first quarter and a 2.3% gain in the fourth quarter of last year.
The second-quarter GDP report is indicative of very modest growth in the quarter with the downward revision slightly greater than expected. Most of the downward surprise, however, was from a lower level of inventories with growth in a number of key expenditure areas being revised upward.
Inventories had previously been estimated as contributing 0.2 percentage points (pp) to overall GDP growth, but it is now estimated as subtracting 0.2pp. Our expectation is that inventories would be lowered but only to the point of providing no contribution to growth. The other source of downward surprise was net exports, which are now only adding 0.1pp to growth rather than the 0.6pp previously estimated. Our expectation had been for the contribution to be lowered to only 0.2pp. This revision mainly reflected growth in exports being cut to 3.1% from the previously estimated 6.0%.
The main offsets to these downward surprises were greater strength in consumer spending and business investment. Growth in the former was raised to a still anemic 0.4%, yet this is up from the previously estimated 0.1%. Growth in business investment has been bumped up to 9.9% from the earlier estimate of 6.3%. These upward revisions contributed to growth in final sales to domestic buyers being raised to 1.1% from 0.5%.
The strength in business investment was helped by indications that corporate after-tax profits rose a solid 4.1% in the second quarter of the year, which is up from the negligible 0.1% gain recorded in the first quarter.
Annualized quarterly growth in the core PCE deflator, the key inflation measure in the GDP report, was revised up slightly to 2.2% from 2.1%.
Today's GDP report confirms that in the first half of this year, the economy experienced very slow growth averaging less than 1%. This weakness in part reflects the effect of temporary factors such as supply-chain problems in the auto sector, which originated with the natural disasters in Japan in March. As well, the earlier spike in gasoline prices took a bite out of disposable income and cut into spending outside of energy purchases; however, these restraints are starting to ease. The recent industrial production numbers for July suggest that the auto sector is starting to recover with the motor vehicle component rising a robust 5.2% following declines of 6.6%, 0.4%, and 0.9% for April to June, respectively.
In terms of gasoline prices, they have come down from April's recent peak, and this is expected to provide a boost to consumer spending during the second half of 2011. To provide additional support to a bounce back in activity, policy has been, and will continue to be, highly accommodative. The statement issued following the August 9 FOMC meeting indicated that exceptionally low level of fed funds would be maintained “at least through mid-2013.” Fed Chairman Bernanke's speech later this morning will be watched very closely with financial markets pressing for some indication of additional near-term stimulus in the offing. source www.actionforex.com
Saturday, August 27, 2011
Bell Canada Enterprises BCE Stock price Outlook
Bell Canada Enterprises BCE Stock price Outlook, Bell Canada Enterprises BCE Stock price predictions ; It's a good thing the multi-billion plan to privatize BCE failed on a legal technicality back in December 2008. If it had gone through, investors would have been deprived of one of the few safe havens during stock market storms.
That's not to say that BCE shares will never decline in value. But they have proven to be amazingly resilient, even during the roughest periods. For example, the stock opened this month at $36.46. After the first big market plunge, on Aug. 4, it ended the day at $36.13. After the second tumble, on Aug. 8, it closed at $35.75, down only 1.9% from its Aug. 1 level. The shares closed on Friday at $38.42 (US$39.06), up 5.4% so far this month. That compares to a loss of 7.3% for the S&P/TSX Composite Index. That performance clearly establishes BCE's Super Stock ranking. Here are the details:
The business: BCE is the largest telecommunications company in Canada providing a full range of telephone, wireless, and satellite services. It also owns the CTV television network, several speciality channels, and is venturing into the cable TV business in competition with well-established providers like Rogers.
The company traces its history all the way back to Alexander Graham Bell, the Canadian inventor of the telephone. In 1877, he assigned 75% of the telephone patent rights to his father, Melville Bell, who with his friend Rev. Thomas Henderson used the money to launch a phone business that began with wooden handsets. A few years later, Melville Bell sold the rights to William H. Forbes who operated the National Bell Telephone Company of Boston. In 1880, National Bell sent an employee to Montreal to organize a Canadian operation which was incorporated in April of that year as the Bell Telephone Company of Canada.
In 1882, the fledgling company expanded into the manufacture of telephones by setting up a division that eventually became known as Northern Electric (1895) and many years later as Nortel.
Over the subsequent century, Bell grew to be the dominant telephone provider in Ontario and Quebec. In 1983, Bell Canada Enterprises (BCE) became the parent company.
The CTV network is owned by subsidiary company Bell Media which also controls such popular speciality channels as TSN, MuchMusic, Discovery, The Comedy Network, and Space.
The security: We are recommending the common shares of BCE Inc. which trade on both the Toronto and New York Stock Exchanges and are widely held.
Why we like it: A decade ago, BCE appeared to be floundering. Management was on a growth binge, investing money in a range of activities that were outside the company's comfort zone. Some of these turned out to be spectacular failures, costing the company and investors millions of dollars.
Since the collapse of the privatization, a new management team has reestablished BCE's focus on its core business and the company has thrived. Financial results have been consistently excellent and the dividend has been raised six times since it was reinstated in December 2008 (payments had been suspended while the privatization negotiations were under way).
Financial highlights: On Aug. 4, BCE released some impressive second-quarter results, which I reported on in the Aug. 8 IWB. To reiterate, operating revenue came in at just under $5 billion, up 11.6% from $4.4 billion in the same period last year. Net earnings attributable to common shareholders were $590 million ($0.76 per share) compared to $605 million ($0.80 per share) in the same quarter last year. However, the year-over-year decrease was due mainly to the recognition of the $164 million CRTC tangible benefit obligation related to the acquisition of CTV. Taking out this and other non-recurring items, BCE's adjusted earnings per share (EPS) increased by 10.3% to $0.86 from $0.78 last year.
The company reconfirmed previously announced increased financial guidance for the rest of the current year. BCE expects adjusted EPS growth of between 6% and 9% this year, to the range of $2.95 to $3.05. Free cash flow is forecast to be between $2.2 and $2.3 billion.
Risks: BCE would not escape the effects of an economic downturn, with television advertising revenues being the soft spot. But overall, the company's business is generally recession-resistant and the high dividend, which is safe, will protect the stock from a steep decline.
Distribution policy: The current quarterly dividend is $0.5175 per share $2.07 annually) which translates into a yield of 5.4% based on Friday's closing price. The latest increase was earlier this year and was the third hike in 12 months. BCE has set a target dividend payout ratio of 65% to 75% of adjusted EPS. The current level is 68% to 70% of 2011 forecast earnings per share.
BCE offers a dividend reinvestment plan which allows you to buy either common shares or preferred shares with no brokerage commission.
Tax implications: Payments made to Canadian non-registered accounts qualify for the dividend tax credit. The credit does not apply to dividends paid to registered plans. For U.S. investors, dividends are subject to a Canadian 15% withholding tax, which can be recovered through the foreign tax credit.
Who it's for: BCE is a suitable choice for conservative investors looking for current income and long-term growth. It is a core portfolio holding.
Action now: The shares are rated as Hold because of the market uncertainty. However, if the stock pulls back to below $36 consider taking a position. - G.P.
That's not to say that BCE shares will never decline in value. But they have proven to be amazingly resilient, even during the roughest periods. For example, the stock opened this month at $36.46. After the first big market plunge, on Aug. 4, it ended the day at $36.13. After the second tumble, on Aug. 8, it closed at $35.75, down only 1.9% from its Aug. 1 level. The shares closed on Friday at $38.42 (US$39.06), up 5.4% so far this month. That compares to a loss of 7.3% for the S&P/TSX Composite Index. That performance clearly establishes BCE's Super Stock ranking. Here are the details:
The business: BCE is the largest telecommunications company in Canada providing a full range of telephone, wireless, and satellite services. It also owns the CTV television network, several speciality channels, and is venturing into the cable TV business in competition with well-established providers like Rogers.
The company traces its history all the way back to Alexander Graham Bell, the Canadian inventor of the telephone. In 1877, he assigned 75% of the telephone patent rights to his father, Melville Bell, who with his friend Rev. Thomas Henderson used the money to launch a phone business that began with wooden handsets. A few years later, Melville Bell sold the rights to William H. Forbes who operated the National Bell Telephone Company of Boston. In 1880, National Bell sent an employee to Montreal to organize a Canadian operation which was incorporated in April of that year as the Bell Telephone Company of Canada.
In 1882, the fledgling company expanded into the manufacture of telephones by setting up a division that eventually became known as Northern Electric (1895) and many years later as Nortel.
Over the subsequent century, Bell grew to be the dominant telephone provider in Ontario and Quebec. In 1983, Bell Canada Enterprises (BCE) became the parent company.
The CTV network is owned by subsidiary company Bell Media which also controls such popular speciality channels as TSN, MuchMusic, Discovery, The Comedy Network, and Space.
The security: We are recommending the common shares of BCE Inc. which trade on both the Toronto and New York Stock Exchanges and are widely held.
Why we like it: A decade ago, BCE appeared to be floundering. Management was on a growth binge, investing money in a range of activities that were outside the company's comfort zone. Some of these turned out to be spectacular failures, costing the company and investors millions of dollars.
Since the collapse of the privatization, a new management team has reestablished BCE's focus on its core business and the company has thrived. Financial results have been consistently excellent and the dividend has been raised six times since it was reinstated in December 2008 (payments had been suspended while the privatization negotiations were under way).
Financial highlights: On Aug. 4, BCE released some impressive second-quarter results, which I reported on in the Aug. 8 IWB. To reiterate, operating revenue came in at just under $5 billion, up 11.6% from $4.4 billion in the same period last year. Net earnings attributable to common shareholders were $590 million ($0.76 per share) compared to $605 million ($0.80 per share) in the same quarter last year. However, the year-over-year decrease was due mainly to the recognition of the $164 million CRTC tangible benefit obligation related to the acquisition of CTV. Taking out this and other non-recurring items, BCE's adjusted earnings per share (EPS) increased by 10.3% to $0.86 from $0.78 last year.
The company reconfirmed previously announced increased financial guidance for the rest of the current year. BCE expects adjusted EPS growth of between 6% and 9% this year, to the range of $2.95 to $3.05. Free cash flow is forecast to be between $2.2 and $2.3 billion.
Risks: BCE would not escape the effects of an economic downturn, with television advertising revenues being the soft spot. But overall, the company's business is generally recession-resistant and the high dividend, which is safe, will protect the stock from a steep decline.
Distribution policy: The current quarterly dividend is $0.5175 per share $2.07 annually) which translates into a yield of 5.4% based on Friday's closing price. The latest increase was earlier this year and was the third hike in 12 months. BCE has set a target dividend payout ratio of 65% to 75% of adjusted EPS. The current level is 68% to 70% of 2011 forecast earnings per share.
BCE offers a dividend reinvestment plan which allows you to buy either common shares or preferred shares with no brokerage commission.
Tax implications: Payments made to Canadian non-registered accounts qualify for the dividend tax credit. The credit does not apply to dividends paid to registered plans. For U.S. investors, dividends are subject to a Canadian 15% withholding tax, which can be recovered through the foreign tax credit.
Who it's for: BCE is a suitable choice for conservative investors looking for current income and long-term growth. It is a core portfolio holding.
Action now: The shares are rated as Hold because of the market uncertainty. However, if the stock pulls back to below $36 consider taking a position. - G.P.
how will silver price in 2012
how will silver price in 2012 ; Understandably with Silver exploding these last few weeks, there’s been much public interest in what’s really going to happen in 2011 – 2012 to Silver, and otherwise.
Even before the Crash JP Morgan campaign got properly going we’ve had $60 Silver predictions and various scenarios of Silver between $90-$714 Oz so this fantastic piece by Rob Kirby gives a little more insight into the skullduggery in the Derivates markets, and why JP Morgan might not be the only players getting crashed as Silver heads off up into the clouds..
HSBC forecasts Gold, silver Price for 2011, 2012, introduces 2013 guide
Investor demand now is the main driver for gold pricing, while traditionally important physical supply and demand components, such as jewelry demand and mine supply, have recently exerted little influence on day-to-day moves in the gold price. Read More...
future gold, silver prices predictions 2011
future gold, silver prices predictions 2011 , Gold was making a comeback while silver prices continued to sag Friday as the U.S. jobs number came in higher than expected. Read More...
Whats Really Going to Happen to Silver 2011-2012
Relative comparison along with analysis within the data sets sheds new light on the scope of the precious metals price management scheme. Read More...
Gold and silver prices hit record highs in the Middle East, debt shall
If the political unrest in the Middle East and North Africa continues and debt – namely the U.S. – to find a bear increases between the gold and silver bulls is becoming increasingly difficult. Read More...
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Even before the Crash JP Morgan campaign got properly going we’ve had $60 Silver predictions and various scenarios of Silver between $90-$714 Oz so this fantastic piece by Rob Kirby gives a little more insight into the skullduggery in the Derivates markets, and why JP Morgan might not be the only players getting crashed as Silver heads off up into the clouds..
HSBC forecasts Gold, silver Price for 2011, 2012, introduces 2013 guide
Investor demand now is the main driver for gold pricing, while traditionally important physical supply and demand components, such as jewelry demand and mine supply, have recently exerted little influence on day-to-day moves in the gold price. Read More...
future gold, silver prices predictions 2011
future gold, silver prices predictions 2011 , Gold was making a comeback while silver prices continued to sag Friday as the U.S. jobs number came in higher than expected. Read More...
Whats Really Going to Happen to Silver 2011-2012
Relative comparison along with analysis within the data sets sheds new light on the scope of the precious metals price management scheme. Read More...
Gold and silver prices hit record highs in the Middle East, debt shall
If the political unrest in the Middle East and North Africa continues and debt – namely the U.S. – to find a bear increases between the gold and silver bulls is becoming increasingly difficult. Read More...
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how high will gold go in 2012
how high will gold go in 2012 ; Gold surpassed US$1,900 an ounce for the first time this week as investors continued to snap up the safe-haven investment on growth concerns, while oil gained thanks to an unclear outlook for Libyan crude output. After strong gains for commodities at the start of the week, profit-taking set in ahead of a keenly awaited speech on the economy by US Federal Reserve Chairman Ben Bernanke.
PRECIOUS METALS: Gold rocketed to US$1,913.50 an ounce on Tuesday before sliding US$200 over the following days. Investors banked profits ahead of Bernanke’s speech and also as exchanges increased their fees on gold transactions, analysts said.
Barclays Capital forecast that gold prices, which have surged in recent months on economic uncertainty, would average US$1,875 in the fourth quarter, and US$2,000 an ounce next year.
Gold Prices Forecast 2012, hit $2000 a troy ounce
Gold Prices Forecast 2012, hit $2000 a troy ounce, gold prices prediction 2012, : The price of gold could hit $2000 a troy ounce over the next year, Aberdeen Asset Management has predicted, as investors look for a safe haven for their money. Read More...
Economist/Banker: How High Will Gold / Silver Go In 2011?
We are talking about REAL ASSETS over here. We cant devalue or multiply these real assets out of thin air. After stellar years for both gold and silver, what prices will precious metals hit in 2011? Here's an in-depth analysis based strictly on their price behavior in the current bull market. Read More...
Just How High is Gold Going to Go in 2011 – 2012?
2010′s most popular post was musing about how high silver is going to in 2011, with James Turk for backup. When that was written Gold was at $1280 and Silver was at under $21, Read More...
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PRECIOUS METALS: Gold rocketed to US$1,913.50 an ounce on Tuesday before sliding US$200 over the following days. Investors banked profits ahead of Bernanke’s speech and also as exchanges increased their fees on gold transactions, analysts said.
Barclays Capital forecast that gold prices, which have surged in recent months on economic uncertainty, would average US$1,875 in the fourth quarter, and US$2,000 an ounce next year.
Gold Prices Forecast 2012, hit $2000 a troy ounce
Gold Prices Forecast 2012, hit $2000 a troy ounce, gold prices prediction 2012, : The price of gold could hit $2000 a troy ounce over the next year, Aberdeen Asset Management has predicted, as investors look for a safe haven for their money. Read More...
Economist/Banker: How High Will Gold / Silver Go In 2011?
We are talking about REAL ASSETS over here. We cant devalue or multiply these real assets out of thin air. After stellar years for both gold and silver, what prices will precious metals hit in 2011? Here's an in-depth analysis based strictly on their price behavior in the current bull market. Read More...
Just How High is Gold Going to Go in 2011 – 2012?
2010′s most popular post was musing about how high silver is going to in 2011, with James Turk for backup. When that was written Gold was at $1280 and Silver was at under $21, Read More...
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Friday, August 26, 2011
Metlife, Inc (MET) stock prices forecast 2011-2012
Metlife, Inc (MET) stock prices forecast 2011-2012 ; Metlife, Inc. (MET) provides a wide range of insurance products including: annuities, group life insurance, supplemental life products, individual life insurance products, etc. Only about two weeks ago this stock was regularly trading for $40 per share and looks oversold at only $33 per share. Stock Price Forecast
The 17 analysts offering 12-month price forecasts for Metlife Inc have a median target of 53.00, with a high estimate of 60.00 and a low estimate of 39.00. The median estimate represents a +66.93% increase from the last price of 31.75.
key points for MET:
Current share price: $31.53
The 52-week range is $30.12 to $48.72
Earnings estimates for 2011: $5.22 per share
Earnings estimates for 2012: $5.84 per share
Annual dividend: 74 cents per share, which yields 2.2%
Book value: $50.42 per share
Analyst Recommendations
The current consensus among 20 polled investment analysts is to Buy stock in Metlife Inc. This rating has held steady since August, when it was unchanged from a Buy rating.
gold prices forecast in india september 2011
gold prices forecast in india september 2011 ; As the prices of gold continue the volatility after last two weeks of rally when it increased anywhere between 1% to 2% per day, analysts say the yellow metal is in a very critical stage now. Analysts are still upbeat that gold could touch Rs 30,000 per 10 grams within two months,
when the festive season in India would trigger gold purchase. However, they also point out that a lot would depend on how the international events, involving the European Central Bank (ECB) and its help extended to PIGS (Portugal, Italy, Greece and Spain), unfold.
The investors are also monitoring the US monetary policy. The policy too could trigger investors to exit or enter gold futures depending on what comes out of it.
The price of gold futures on Friday touched Rs 26,655 per 10 grams for October futures at MCX. The price of the October futures had fallen to a two week low of Rs 26,451 on Thursday triggering a point of view that the rally in gold was over.
Analysts are, however; unanimous is predicting that there could be slight corrections in next week up to Rs 500.
"There is no bubble in gold as the fundamentals remain strong for the metal. India, which is the biggest buyer of jewellery in the world, would see a huge demand and prices could touch Rs 30,000 per 10 grams within next two months," said Hitesh Jain, Commodity Analyst at IIFL.
But analysts are also keeping a tab on international events and say that if the situation in Europe and US improve then investors would move away from gold to riskier investments.
"If the PIGS are bailed out and US recovery looks plausible post the monitory policy then you would see that investors would move towards riskier investments like equities or sovereign bonds after exiting gold. And presuming this happens, then prices of gold could touch Rs 24,000 per 10 grams," said Atul Shah, Head Commodities, Emkay Global Financial Services.
Industry experts say that the rally gold witnessed in the past two weeks was unsustainable and that a minor correction was always expected. Also after CME Group (a global derivative platform) raised the margin requirements on gold trading at its Comex unit for the second time in October increasing selling pressure on investors. The minimum cash deposit for borrowing from brokers to trade gold future was raised by 27%.
"There is also speculation that margins in India could go up too, which would affect the investors. But in India, physical demand is strong," added Shah. For those who have missed out on gold rally next week could be interesting as there would be an opportunity to enter the market, say analysts.
when the festive season in India would trigger gold purchase. However, they also point out that a lot would depend on how the international events, involving the European Central Bank (ECB) and its help extended to PIGS (Portugal, Italy, Greece and Spain), unfold.
The investors are also monitoring the US monetary policy. The policy too could trigger investors to exit or enter gold futures depending on what comes out of it.
The price of gold futures on Friday touched Rs 26,655 per 10 grams for October futures at MCX. The price of the October futures had fallen to a two week low of Rs 26,451 on Thursday triggering a point of view that the rally in gold was over.
Analysts are, however; unanimous is predicting that there could be slight corrections in next week up to Rs 500.
"There is no bubble in gold as the fundamentals remain strong for the metal. India, which is the biggest buyer of jewellery in the world, would see a huge demand and prices could touch Rs 30,000 per 10 grams within next two months," said Hitesh Jain, Commodity Analyst at IIFL.
But analysts are also keeping a tab on international events and say that if the situation in Europe and US improve then investors would move away from gold to riskier investments.
"If the PIGS are bailed out and US recovery looks plausible post the monitory policy then you would see that investors would move towards riskier investments like equities or sovereign bonds after exiting gold. And presuming this happens, then prices of gold could touch Rs 24,000 per 10 grams," said Atul Shah, Head Commodities, Emkay Global Financial Services.
Industry experts say that the rally gold witnessed in the past two weeks was unsustainable and that a minor correction was always expected. Also after CME Group (a global derivative platform) raised the margin requirements on gold trading at its Comex unit for the second time in October increasing selling pressure on investors. The minimum cash deposit for borrowing from brokers to trade gold future was raised by 27%.
"There is also speculation that margins in India could go up too, which would affect the investors. But in India, physical demand is strong," added Shah. For those who have missed out on gold rally next week could be interesting as there would be an opportunity to enter the market, say analysts.
Gold prices forecast week august 29 2011
Gold prices forecast next week august 29 2011 ; Fears that prospects for growth in the U.S. and Europe were slipping pushed gold futures to their third record in as many days, as investors fled sinking equities markets and turned to perceived refuge assets. The contract for August delivery rose $27.70, or 1.6%, to settle at $1,818.90 on the Comex division of the New York Mercantile Exchange.After gold’s $200-an-ounce price drop from nominal all-time highs of over $1,900, participants in the Kitco News Gold Survey are almost evenly split in their opinions, with a slight majority favoring higher prices. Read Gold prices prediction september 2011
In the Kitco News Gold Survey, out of 34 participants, 23 responded this week. Of those 23 participants, 10 see prices up, while six see prices down, and seven see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.
Adrian Day, of Adrian Day Asset Management, was among participants expecting some modest strength in gold prices next week. “Up, though perhaps just a bounce from this week’s decline. We should expect further weakness for the next few weeks before a major advance towards the end of the year,” he said.
Those who saw higher prices said they expected the fundamental issues that are supporting gold, such as the Eurozone debt problems or turmoil in the Middle East, to support prices.
There are many participants who expect gold prices to eventually turn higher by the year’s end, but for the very short term, several participants expect the gold market to consolidate this week’s break. Several said gold prices could try and build a base at this level.
“While the December (futures) contract posted a bearish key reversal on its weekly chart, fundamentals (domestic and global economics) should continue to provide support. The contract should test resistance between $1,775 and $1,848,” said Darin Newsom, senior analyst, TelventDTN.
The few bears out there believe that the shake-out seen earlier this week is not done and that further weakness is coming. (source www.forbes.com )
Gold prices week august 29 2011, gold prices next week, gold futures prices prediction august 29 2011, will gold prices go up september 2011, will the price of gold will rise or decline in september 2011, will price of gold fall.
China's gold production predictions 2011
China's gold production predictions 2011 : China's gold production is expected to rise by more than 10% in 2011 from a year ago period. During the first half of the year, China's gold output grew by 5.18 tonnes, or 3.25% year on year to 164.42 tonnes, said the Ministry of Industry and Information Technology.
In June alone, the country produced 32.39 tonnes of gold, according to a statement on the ministry's website. The combined output value of Chinese gold producers amounted to $18.55 billion during the first half, up 23.37% from a year ago period.
Moreover, the gold producers' first half profits jumped 34.19% year on year. China is the world's biggest gold producer, having raised production every year since 2004. In 2010, output was pegged at 340.880 tonnes, up 8.6% from 2009.
In a recent report on the Chinese gold market, J P Morgan has noted that the China Gold Association expects Chinese gold investment demand to double within the next two years.
"Going forward, we believe the widening structural deficit in the supply and demand picture, long term demand for gold jewellery in China, India and other developing countries, persistent concerns regarding inflation, as well as the less transparent factor of sovereign purchases (that is likely to skew demand to the upside), will continue to give long term support to gold prices,'' the investment banker has said in a note to its clients.
In 2007, China made the most of its cost advantage to become the world's largest gold producing country, replacing South Africa. Analysts said China had long anticipated taking the No 2 position from the United States in 2009, but the rapid decline in output in the traditional major gold producing countries gave China the title about two years ahead of its own expectations.
Gold production is concentrated in the eastern provinces of Shandong, Henan, Fujian and Liaoning in China. Remote western provinces such as Guizhou and Yunnan, which have vast quantities of the yellow metal, has also attracted keen investment interest from firms in Australia and Canada.
Sajesh Patel, investment consultant at a foreign bank here said, ``China's gold output has been increasing for three consecutive years along with the rising prices. According to the China Gold Association, China's output of gold in 2009 totaled 314 tonnes, an increase of 11.34%. Despite this, the country imports about 100 tonnes of gold each year.''
Analysts have added that China is finding new gold reserves faster than it is producing the precious metal.
gold jewellery prices in China 2011, gold prices forecast in china 2011-2012,
In June alone, the country produced 32.39 tonnes of gold, according to a statement on the ministry's website. The combined output value of Chinese gold producers amounted to $18.55 billion during the first half, up 23.37% from a year ago period.
Moreover, the gold producers' first half profits jumped 34.19% year on year. China is the world's biggest gold producer, having raised production every year since 2004. In 2010, output was pegged at 340.880 tonnes, up 8.6% from 2009.
In a recent report on the Chinese gold market, J P Morgan has noted that the China Gold Association expects Chinese gold investment demand to double within the next two years.
"Going forward, we believe the widening structural deficit in the supply and demand picture, long term demand for gold jewellery in China, India and other developing countries, persistent concerns regarding inflation, as well as the less transparent factor of sovereign purchases (that is likely to skew demand to the upside), will continue to give long term support to gold prices,'' the investment banker has said in a note to its clients.
In 2007, China made the most of its cost advantage to become the world's largest gold producing country, replacing South Africa. Analysts said China had long anticipated taking the No 2 position from the United States in 2009, but the rapid decline in output in the traditional major gold producing countries gave China the title about two years ahead of its own expectations.
Gold production is concentrated in the eastern provinces of Shandong, Henan, Fujian and Liaoning in China. Remote western provinces such as Guizhou and Yunnan, which have vast quantities of the yellow metal, has also attracted keen investment interest from firms in Australia and Canada.
Sajesh Patel, investment consultant at a foreign bank here said, ``China's gold output has been increasing for three consecutive years along with the rising prices. According to the China Gold Association, China's output of gold in 2009 totaled 314 tonnes, an increase of 11.34%. Despite this, the country imports about 100 tonnes of gold each year.''
Analysts have added that China is finding new gold reserves faster than it is producing the precious metal.
gold jewellery prices in China 2011, gold prices forecast in china 2011-2012,
how will gold price in september 2011
how will gold price in september 2011 : Gold prices were staging a rally, shrugging off an almost three-day selloff, after Ben Bernanke left the door open for more monetary easing.
Gold (-GC) for December delivery was adding $21 to $1,784 an ounce at the Comex division of the New York Mercantile Exchange at mid-day Friday. The gold price has traded as high as $1,800 and as low as $1,759.50 while the spot gold price was adding $8.20, according to Kitco's gold index.
Federal Reserve Chairman, Ben Bernanke, offered no surprises in his speech at Jackson Hole Friday, but he did leave the possibility for further intervention open. Bernanke said the Fed is willing to step in if needed to trigger a stronger recovery, but barely discussed any monetary policy. The Fed's policy meeting in September is now two days instead of one, which indicates stimulus is on the table but whether or not there will be an agreement or policy shift is a different story.
Gold prices could see $2,000 an ounce in the coming months, but in the short-term, gold prices could see further weakness, because the Gold market is more liquid than silver, with favorable fundamentals, the correction shouldn’t be “overly brutal.” In the long-term, he says gold prices should go higher as gold will act as both a safe haven asset and a store of value to offset the inflationary aspects of further easing. Read gold price predictions september 2011
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Gold (-GC) for December delivery was adding $21 to $1,784 an ounce at the Comex division of the New York Mercantile Exchange at mid-day Friday. The gold price has traded as high as $1,800 and as low as $1,759.50 while the spot gold price was adding $8.20, according to Kitco's gold index.
Federal Reserve Chairman, Ben Bernanke, offered no surprises in his speech at Jackson Hole Friday, but he did leave the possibility for further intervention open. Bernanke said the Fed is willing to step in if needed to trigger a stronger recovery, but barely discussed any monetary policy. The Fed's policy meeting in September is now two days instead of one, which indicates stimulus is on the table but whether or not there will be an agreement or policy shift is a different story.
Gold prices could see $2,000 an ounce in the coming months, but in the short-term, gold prices could see further weakness, because the Gold market is more liquid than silver, with favorable fundamentals, the correction shouldn’t be “overly brutal.” In the long-term, he says gold prices should go higher as gold will act as both a safe haven asset and a store of value to offset the inflationary aspects of further easing. Read gold price predictions september 2011
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Hartford Financial Services (HIG) stock prices forecast 2011-2012
Hartford Financial Services (HIG) stock prices forecast 2011- 2012 : Hartford Financial Services (HIG) is a leading insurance company and also offers other financial products both in the USA and globally. Recently, Hartford announced that 2nd quarter profits would be well below expectations due to asbestos litigation and losses from major storms.This lower-than-expected profit and a major market correction caused the shares to drop and created a great buying opportunity for longer term investors.
Stock Price Forecast
The 12 analysts offering 12-month price forecasts for Hartford Financial Services Group Inc have a median target of 30.00, with a high estimate of 42.00 and a low estimate of 23.00. The median estimate represents a +75.54% increase from the last price of 17.09.
Analyst Recommendations
The current consensus among 16 polled investment analysts is to Hold stock in Hartford Financial Services Group Inc. This rating has held steady since August, when it was unchanged from a Hold rating.
key points for HIG:
Current share price: $16.95
The 52-week range is $16.26 to $31.08
Earnings estimates for 2011: $3.04 per share
Earnings estimates for 2012: $4.01 per share
Annual dividend: 40 cents per share, which yields 1.6%
Book value: $45.93 per share
Hartford Financial Services (HIG) stock prices predictions 2011-2012, Hartford Financial Services (HIG) shares prices predictions 2012, HIG stock prices 2011-2012
American International Group (AIG) shares prices predictions 2011-2012
American International Group (AIG) shares prices predictions 2011-2012 ; American International Group (AIG) offers insurance products in the United States and globally. This company is facing some challenges but the stock has dropped from about $30 in just a few weeks so a lot of negativity is priced in.
The 13 analysts offering 12-month price forecasts for American International Group Inc have a median target of 32.00, with a high estimate of 38.00 and a low estimate of 24.00. The median estimate represents a +38.17% increase from the last price of 23.16.
The current consensus among 15 polled investment analysts is to Hold stock in American International Group Inc. This rating has held steady since August, when it was unchanged from a Hold rating.
Here are some key points for AIG:
Current share price: $23
The 52-week range is $21.46 to $62.87
Earnings estimates for 2011: $3.37 per share
Earnings estimates for 2012: $3.09 per share
Book value: $47.32 per share
Financial AIG
American International Group (AIG) shares prices forecast 2011-2012, AIG stock prices predictions 2012,
The 13 analysts offering 12-month price forecasts for American International Group Inc have a median target of 32.00, with a high estimate of 38.00 and a low estimate of 24.00. The median estimate represents a +38.17% increase from the last price of 23.16.
The current consensus among 15 polled investment analysts is to Hold stock in American International Group Inc. This rating has held steady since August, when it was unchanged from a Hold rating.
Here are some key points for AIG:
Current share price: $23
The 52-week range is $21.46 to $62.87
Earnings estimates for 2011: $3.37 per share
Earnings estimates for 2012: $3.09 per share
Book value: $47.32 per share
Financial AIG
American International Group (AIG) shares prices forecast 2011-2012, AIG stock prices predictions 2012,
Prudential Financial (PRU) stock prices predictions 2011 - 2012
Prudential Financial (PRU) stock prices predictions 2011 - 2012 : Prudential Financial (PRU) offers a variety of insurance products including annuities, life insurance, dental insurance and more. Prudential shares were trading around $60 to $64 per share and have come down close to 52-week lows recently. Now the stock trades for about 7 times earnings and well below book value.The 15 analysts offering 12-month price forecasts for Prudential Financial Inc have a median target of 74.00, with a high estimate of 81.00 and a low estimate of 55.00. The median estimate represents a +56.55% increase from the last price of 47.27.
The current consensus among 18 polled investment analysts is to Buy stock in Prudential Financial Inc. This rating has held steady since August, when it was unchanged from a Buy rating.
Here are some key points for PRU:
Current share price: $47.17
The 52-week range is $45.34 to $67.52
Earnings estimates for 2011: $6.84 per share
Earnings estimates for 2012: $7.82 per share
Annual dividend: $1.15 per share, which yields 2.3%
Book value: $71.79 per share.
Prudential Financial (PRU) shares prices forecast 2012, Prudential Financial (PRU) shares prices predictions 2011, PRU stock prices outlook 2011-2012.
stock market outlook week august 29 2011
stock market outlook week august 29 2011 : The Federal Reserve chairman, Ben S. Bernanke, said Friday that the economy was recovering and the nation’s long-term prospects remained strong, an upbeat assessment that offered little indication of any plans for additional measures to bolster short-term growth.
Mr. Bernanke’s much-anticipated remarks follow the Fed’s announcement earlier this month that it intended to hold short-term interest rates near zero until at least the middle of 2013, a reflection of its view that growth will not be fast enough during that period to drive up wages and prices.
Mr. Bernanke was careful to note that the nation faces significant challenges, including high unemployment and an unsustainable federal debt. But the speech, delivered at a policy conference held each August in Grand Teton National Park, marked a return to the Fed’s position earlier this year that the Fed has done most of what it can, and that the rest of the government must do more.
Mr. Bernanke’s much-anticipated remarks follow the Fed’s announcement earlier this month that it intended to hold short-term interest rates near zero until at least the middle of 2013, a reflection of its view that growth will not be fast enough during that period to drive up wages and prices.
Mr. Bernanke was careful to note that the nation faces significant challenges, including high unemployment and an unsustainable federal debt. But the speech, delivered at a policy conference held each August in Grand Teton National Park, marked a return to the Fed’s position earlier this year that the Fed has done most of what it can, and that the rest of the government must do more.
Oil Prices august 26 2011, Drop After Bernanke's Speech
Oil Prices august 26 2011 Drop After Bernanke's Speech : NEW YORK (TheStreet) -- Oil prices were falling Friday on signs that U.S. economic growth has essentially stalled and on Federal Reserve Chairman Ben Bernanke's failure to satisfy the markets with an announcement of further monetary easing.
Brent crude oil for December delivery was tumbling $1.25 to $108.58 a barrel and the October West Texas Intermediate (WTI) light sweet crude contract was descending $1.75 to $83.55.
Bernanke -- during his speech at the Federal Reserve symposium at Jackson Hole, Wyo. -- said the "the recovery from the crisis has been much less robust than we had hoped ... notwithstanding the severe difficulties we currently face, I do not expect the long-run growth potential of the U.S. economy to be materially affected by the crisis and the recession if -- and I stress if -- our country takes the necessary steps to secure that outcome."
But he didn't provide any specific policy measures in his speech, disappointing oil traders.
The Commerce Department said on Friday that the U.S. economy grew less than previously thought in the second quarter amid soft inventory and export numbers.
The GDP reading was downwardly revised to growth at an annual rate of 1% from the previous estimate of 1.3%. Economists, on average, thought that GDP growth would be revised to 1.1%.
The U.S., the world's biggest oil importer, grew at a mere 0.4% in the first quarter.
Matt Smith, analyst at Summit Energy, said that minor support may come back into the energy markets on the potential for Hurricane Irene to hurt refinery production on the East Coast, where roughly 8% of domestic production takes place, but much of this has already been priced in.
October natural gas futures were flat at $3.895 per million British thermal units following Thursday's in-line storage injection of 73 billion cubic feet.
Platts had said a natural gas build within analysts' expectations would be above both the year ago and five-year average injections.
"Irene has now been downgraded to a category 2 hurricane ('only' 110mph now), and is providing an immediate cooling effect on the Southeast, reducing natural gas demand," Smith added in a morning note.
On Friday, there were increased expectations that Libyan oil production would be able to resume once security issues were resolved on reports that Libyan oil and gas infrastructure have not been damaged.
Oil and gas stocks were generally falling Friday morning. EOG Resources (EOG_) was sliding 0.7% to $87.67; Apache (APA_) was tumbling 1.6% to $97.44; Chesapeake Energy (CHK_) was falling 1.4% to $29.13; Swift Energy (SFY_) was up 0.9% to $27.96; Crimson Exploration (CXPO_) was gaining 4% to $2.35; Kinder Morgan Energy Partners LP (KMP_) was down 0.2% to $67.25; and Cheniere Energy (LNG_) was adding 2.3% to $7.29.
Oil and gas stocks prices august 26 2011, gas prices august 26 2011, crude oil prices august 26 2011.
Brent crude oil for December delivery was tumbling $1.25 to $108.58 a barrel and the October West Texas Intermediate (WTI) light sweet crude contract was descending $1.75 to $83.55.
Bernanke -- during his speech at the Federal Reserve symposium at Jackson Hole, Wyo. -- said the "the recovery from the crisis has been much less robust than we had hoped ... notwithstanding the severe difficulties we currently face, I do not expect the long-run growth potential of the U.S. economy to be materially affected by the crisis and the recession if -- and I stress if -- our country takes the necessary steps to secure that outcome."
But he didn't provide any specific policy measures in his speech, disappointing oil traders.
The Commerce Department said on Friday that the U.S. economy grew less than previously thought in the second quarter amid soft inventory and export numbers.
The GDP reading was downwardly revised to growth at an annual rate of 1% from the previous estimate of 1.3%. Economists, on average, thought that GDP growth would be revised to 1.1%.
The U.S., the world's biggest oil importer, grew at a mere 0.4% in the first quarter.
Matt Smith, analyst at Summit Energy, said that minor support may come back into the energy markets on the potential for Hurricane Irene to hurt refinery production on the East Coast, where roughly 8% of domestic production takes place, but much of this has already been priced in.
October natural gas futures were flat at $3.895 per million British thermal units following Thursday's in-line storage injection of 73 billion cubic feet.
Platts had said a natural gas build within analysts' expectations would be above both the year ago and five-year average injections.
"Irene has now been downgraded to a category 2 hurricane ('only' 110mph now), and is providing an immediate cooling effect on the Southeast, reducing natural gas demand," Smith added in a morning note.
On Friday, there were increased expectations that Libyan oil production would be able to resume once security issues were resolved on reports that Libyan oil and gas infrastructure have not been damaged.
Oil and gas stocks were generally falling Friday morning. EOG Resources (EOG_) was sliding 0.7% to $87.67; Apache (APA_) was tumbling 1.6% to $97.44; Chesapeake Energy (CHK_) was falling 1.4% to $29.13; Swift Energy (SFY_) was up 0.9% to $27.96; Crimson Exploration (CXPO_) was gaining 4% to $2.35; Kinder Morgan Energy Partners LP (KMP_) was down 0.2% to $67.25; and Cheniere Energy (LNG_) was adding 2.3% to $7.29.
Oil and gas stocks prices august 26 2011, gas prices august 26 2011, crude oil prices august 26 2011.
Thursday, August 25, 2011
Ben bernanke press conference 26 august 2011, market outlook
Ben bernanke press conference 26 august 2011, market outlook, economic conference in Jackson Hole ; wall Street hope Federal Reserve Chairman Ben Bernanke will unveil a new effort Friday to boost the economy in a highly anticipated speech in Jackson Hole, Wyo. Economists say a major new program is unlikely. But Bernanke will likely lay out the Fed’s options for lowering long-term interest rates even further.
His speech comes at a pivotal moment for the U.S. economy. Growth has slowed. Stock prices have been gyrating. Europe is struggling to contain a spreading debt crisis. And analysts have been reducing their forecasts for growth this year and next.
The situation resembles the one Bernanke faced last year. He responded at the annual economic conference in Jackson Hole by suggesting that the Fed could buy more government bonds. The goal was to reduce long-term rates, stimulate spending and lift stock prices.
Asian stocks unsteady ahead of Ben Bernanke's speech
Asian stock markets were unsteady Friday as investors waited to see whether Federal Reserve Chairman Ben Bernanke would promise new steps to help the US economy ward off another recession.
Japan's Nikkei 225 swung between gains and losses before hitting a plateau at 8,769.77. Hong Kong's Hang Seng gave up early gains and dipped 0.2 per cent to 19,710.07 while Australia's S&P/ASX 200 was 0.2 per cent lower at 4,204.80. South Korea's Kospi rose 0.3 per cent after a volatile morning to 1,770.03. Read Asian stock markets Down august 26 2011
Oil hovers near $85 as Bernanke speech awaited
Oil prices hovered above $85 a barrel Friday in Asia as investors awaited a key policy speech later in the day from U.S. Federal Reserve Chairman Ben Bernanke.
Benchmark oil for October delivery was down 23 cents to $85.07 at midday Singapore time in electronic trading on the New York Mercantile Exchange. Crude rose 14 cents to finish at $85.30 on Thursday.
Gold advances ahead of Bernanke speech
Gold futures edged higher Friday in early afternoon trading in East Asia, helped by a falling dollar as traders looked ahead to a much anticipated speech later in the day by U.S. Federal Reserve Chairman Ben Bernanke. Benchmark gold for December +0.37% was up $14.90, or 0.9%, to $1,778.10 per troy ounce.
Dollar drops to lower 77 yen, market subdued before Bernanke speech
The dollar fell slightly to the lower 77 yen range Friday morning in Tokyo, but its decline was limited with mixed views on the outlook for U.S. monetary policy ahead of Federal Reserve Board chairman Ben Bernanke's speech coming later in the day.
At noon, the dollar traded at 77.31-35 yen versus 77.41-51 yen in New York and 77.01-03 yen in Tokyo at 5 p.m. Thursday. The euro was quoted at $1.4402-4403 and 111.33-37 yen against $1.4374-4384 and 111.35-45 yen in New York and $1.4454-4456 and 111.31-35 yen in Tokyo late Thursday afternoon.
His speech comes at a pivotal moment for the U.S. economy. Growth has slowed. Stock prices have been gyrating. Europe is struggling to contain a spreading debt crisis. And analysts have been reducing their forecasts for growth this year and next.
The situation resembles the one Bernanke faced last year. He responded at the annual economic conference in Jackson Hole by suggesting that the Fed could buy more government bonds. The goal was to reduce long-term rates, stimulate spending and lift stock prices.
Asian stocks unsteady ahead of Ben Bernanke's speech
Asian stock markets were unsteady Friday as investors waited to see whether Federal Reserve Chairman Ben Bernanke would promise new steps to help the US economy ward off another recession.
Japan's Nikkei 225 swung between gains and losses before hitting a plateau at 8,769.77. Hong Kong's Hang Seng gave up early gains and dipped 0.2 per cent to 19,710.07 while Australia's S&P/ASX 200 was 0.2 per cent lower at 4,204.80. South Korea's Kospi rose 0.3 per cent after a volatile morning to 1,770.03. Read Asian stock markets Down august 26 2011
Oil hovers near $85 as Bernanke speech awaited
Oil prices hovered above $85 a barrel Friday in Asia as investors awaited a key policy speech later in the day from U.S. Federal Reserve Chairman Ben Bernanke.
Benchmark oil for October delivery was down 23 cents to $85.07 at midday Singapore time in electronic trading on the New York Mercantile Exchange. Crude rose 14 cents to finish at $85.30 on Thursday.
Gold advances ahead of Bernanke speech
Gold futures edged higher Friday in early afternoon trading in East Asia, helped by a falling dollar as traders looked ahead to a much anticipated speech later in the day by U.S. Federal Reserve Chairman Ben Bernanke. Benchmark gold for December +0.37% was up $14.90, or 0.9%, to $1,778.10 per troy ounce.
Dollar drops to lower 77 yen, market subdued before Bernanke speech
The dollar fell slightly to the lower 77 yen range Friday morning in Tokyo, but its decline was limited with mixed views on the outlook for U.S. monetary policy ahead of Federal Reserve Board chairman Ben Bernanke's speech coming later in the day.
At noon, the dollar traded at 77.31-35 yen versus 77.41-51 yen in New York and 77.01-03 yen in Tokyo at 5 p.m. Thursday. The euro was quoted at $1.4402-4403 and 111.33-37 yen against $1.4374-4384 and 111.35-45 yen in New York and $1.4454-4456 and 111.31-35 yen in Tokyo late Thursday afternoon.
Asian stock markets Down august 26 2011, ahead of Bernanke speech
Asian stock markets Down august 26 2011, ahead of Bernanke speech ; Asian stock markets were unsteady on Friday as investors waited to see whether United States Federal Reserve chairperson Ben Bernanke would promise new steps to help the US economy ward off another recession. Oil prices lingered above $85 a barrel while the dollar was down against the yen and the euro.
Japan's Nikkei 225 swung between gains and losses before hitting a plateau at 8 769.77. Hong Kong's Hang Seng gave up early gains and dipped 0.2% to 19 710.07 while Australia's S&P/ASX 200 was 0.2% lower at 4 204.80. South Korea's Kospi rose 0.3% after a volatile morning to 1 770.03.
Trading was jittery as investors waited to see if Bernanke offered more support for the US economy when he delivers a highly anticipated speech at a conference later on Friday in Jackson Hole, Wyoming.
The Fed has already pledged low interest rates through to 2013. Some central bank watchers say the Fed has already reached the limits of what a central bank should do to aid an economy that is beleaguered by problems that monetary policy can't fix -- high unemployment and massive government debt.
"The market is very volatile on low trading volume. Any news can be a big thing," said Jackson Wong, vice-president at Tanrich Securities in Hong Kong.
Double-dip worries
Worries that the US could be headed for another recession have in recent weeks caused huge volatility in equities, bonds and foreign exchange.
Some shares weakened on the heels of disappointing earnings reports. Air China slid 3.1% after the company on Friday announced its first-half profit fell 12% as soaring fuel costs offset strong revenue growth.
PetroChina, China's biggest oil and gas company, dropped 1.8%, a day after the company said its first-half profit was nearly flat as losses in its refining business eroded gains from higher oil and gas output.
But bank stocks got a boost after billionaire investor Warren Buffett said he would invest $5-billion in the troubled Bank of America, the largest US bank.
Industrial & Commercial Bank of China, the world's biggest bank by market value, jumped 3.5%. Japan's Mitsubishi UFJ Financial Group gained 0.3%.
In Europe on Thursday, debate continued about the best way to resolve severe debt problems in several countries. Germany's main stock index, the DAX, plummeted 4% within 20 minutes before paring its losses and closing down 1.7%.
Rising unemployment
The sudden move in one of Europe's major markets -- apparently due to unfounded rumours that Germany was about to ban short-selling -- rattled investors and prompted some to buy gold, causing prices of the metal to rebound.
As a result, gold-related shares saw their prices rise. Australia's biggest gold miner, Newcrest Mining, rose 0.4%.
On Thursday, the US government reported an increase in the number of people applying for unemployment benefits last week. The Labour Department said applications rose to 417 000, the highest in five weeks.
The Dow Jones industrial average closed down or 1.5% at 11,149.82. The S&P 500 fell 1.6% to 1,159.27. The Nasdaq fell 1.9% to 2,419.63.
In currency trade, the euro rose to $1.4416 from $1.4368 late in New York on Thursday. The dollar slipped to 77.27 yen from 77.55 yen.
Benchmark oil for October delivery was down 21 cents to $85.09 in electronic trading on the New York Mercantile Exchange. Crude rose 14 cents to finish at $85.30 on Thursday. In London, Brent crude for October delivery was up 7 cents to $110.69 on the ICE Futures exchange.
Japan's Nikkei 225 swung between gains and losses before hitting a plateau at 8 769.77. Hong Kong's Hang Seng gave up early gains and dipped 0.2% to 19 710.07 while Australia's S&P/ASX 200 was 0.2% lower at 4 204.80. South Korea's Kospi rose 0.3% after a volatile morning to 1 770.03.
Trading was jittery as investors waited to see if Bernanke offered more support for the US economy when he delivers a highly anticipated speech at a conference later on Friday in Jackson Hole, Wyoming.
The Fed has already pledged low interest rates through to 2013. Some central bank watchers say the Fed has already reached the limits of what a central bank should do to aid an economy that is beleaguered by problems that monetary policy can't fix -- high unemployment and massive government debt.
"The market is very volatile on low trading volume. Any news can be a big thing," said Jackson Wong, vice-president at Tanrich Securities in Hong Kong.
Double-dip worries
Worries that the US could be headed for another recession have in recent weeks caused huge volatility in equities, bonds and foreign exchange.
Some shares weakened on the heels of disappointing earnings reports. Air China slid 3.1% after the company on Friday announced its first-half profit fell 12% as soaring fuel costs offset strong revenue growth.
PetroChina, China's biggest oil and gas company, dropped 1.8%, a day after the company said its first-half profit was nearly flat as losses in its refining business eroded gains from higher oil and gas output.
But bank stocks got a boost after billionaire investor Warren Buffett said he would invest $5-billion in the troubled Bank of America, the largest US bank.
Industrial & Commercial Bank of China, the world's biggest bank by market value, jumped 3.5%. Japan's Mitsubishi UFJ Financial Group gained 0.3%.
In Europe on Thursday, debate continued about the best way to resolve severe debt problems in several countries. Germany's main stock index, the DAX, plummeted 4% within 20 minutes before paring its losses and closing down 1.7%.
Rising unemployment
The sudden move in one of Europe's major markets -- apparently due to unfounded rumours that Germany was about to ban short-selling -- rattled investors and prompted some to buy gold, causing prices of the metal to rebound.
As a result, gold-related shares saw their prices rise. Australia's biggest gold miner, Newcrest Mining, rose 0.4%.
On Thursday, the US government reported an increase in the number of people applying for unemployment benefits last week. The Labour Department said applications rose to 417 000, the highest in five weeks.
The Dow Jones industrial average closed down or 1.5% at 11,149.82. The S&P 500 fell 1.6% to 1,159.27. The Nasdaq fell 1.9% to 2,419.63.
In currency trade, the euro rose to $1.4416 from $1.4368 late in New York on Thursday. The dollar slipped to 77.27 yen from 77.55 yen.
Benchmark oil for October delivery was down 21 cents to $85.09 in electronic trading on the New York Mercantile Exchange. Crude rose 14 cents to finish at $85.30 on Thursday. In London, Brent crude for October delivery was up 7 cents to $110.69 on the ICE Futures exchange.
Tips for investing in volatile markets
Tips for investing in volatile markets : Experts have long recommended investors put their money into the stock market for the long term, but the recent performance of some assets has led investors to question this wisdom.
But despite the fall in confidence from stock market volatility, experts believe the ability of stocks and other assets to deliver attractive returns over the long term remains intact.
Tom Stevenson, investment director at Fidelity International, tells the FT his top tips for investing in volatile times:
1. Think about your tolerance for risk
Investing offers a way to develop long-term wealth. But investors need to choose from a range of investment alternatives by considering their risk and return prospects including cash, bonds, alternatives such as commercial property and commodities, and stocks.
Most people will understand the importance of making financial provisions for the future and will also have a savings goal in mind - perhaps for retirement, a holiday or just for future emergencies. Then, they may also know how long they have to save - a year, ten years, perhaps longer. There is also the investors temperament to consider - how well they could cope with the possibility of their investment falling in value. With these factors in mind, therefore, an individual should be able to judge how much risk they are willing to take.
Investment risk is like the volume dial on an amplifier – you can turn it up and down as you wish. In theory, the more risk you are able or willing to take, the greater your potential reward. Of course, more risk also means greater potential for loss.
2. Remember the value of dividends
When things are going well and the stock market is rising strongly, the extra return from dividends may be con
sidered as little more than a token gesture. However, in weaker markets the extra return from dividends becomes a valuable part of the total return, especially over time as reinvested dividends are compounded.
For example, £100 invested in the FTSE All Share in January 1988 would have grown to £304 by now. But if the dividends had been reinvested it would now be worth £726, more than double. Dividends can also be more reliable than both corporate earnings and stock prices during a bear market because many companies usually strive to maintain their dividend even if their profits are temporarily falling.
Source: Fidelity analysis, using Datastream to 23 August 2011
3. Recognise the benefits of diversification
Diversification has always been considered the first line of defence in reducing investment risk. This is because spreading your funds across different investments reduces the impact of an unexpected fall in one of them. In effect, it reduces the importance of each single investment decision.
Fidelity’s research shows the main asset classes perform differently at different times in the economic cycle.
Trevor Greetham, Fidelity’s asset allocation director, says:: “Recently there have been no safe havens in the equity world. However, stocks and bonds often move in opposite directions. Commodities dance to their own tune, sometimes moving with stocks, sometimes against. Each time a bull-run in one asset class comes to a halt, leadership passes to another.
“When equities peaked in 2007, commodities surged. When the commodities ran out of steam in mid 2008, government bonds started their charge. When the world economy recovers from its current difficulties, stocks will take up the running once more. A well-diversified portfolio of stocks, bonds, commodities and cash would have performed well over the past 30 years with a low level of volatility.”
4. Be aware of the dangers of trying to time the market
Perfectly timing your investments to coincide with the top and bottom of market cycles is generally not possible. Experts advise long-term investors to remain calm through periods of volatility. For new investors, the challenge is also a question of timing. Many investors experience a nervous wait for what they consider to be the ‘right moment’. Unfortunately, that moment is only clear once it has passed.
The real danger of missing that crucial bottom is that the early part of the recovery is often the strongest. After the dot.com crash, it took 56 months for the US market to fully recover, but half of the total gains were made in the first 16 months, according to Fidelity analysis.
5. If you are nervous, drip feed your investments
Investors who are nervous about timing their investment can make regular contributions to their asset growth in smaller tranches over a period of time. Regular savers, including those investing into managed funds with regular contributions are set to reap long-term rewards. This can be especially effective when markets are at a turning point.
“Buying the U” describes the process of feeding money slowly into the market while it is still falling, through the bottom and up the other side as the market recovers. Monthly investments offer a way to benefit no matter how the markets are performing: If stock prices go up, the stocks you already own will increase in value. If stock prices go down, your next payment will buy more stocks.
Such an approach can go a little way to eliminate the anxiety of timing large investments, can smooth the highs and lows of the market and even improve an investor’s eventual outcome. The regular investor finishes the period with an investment that is worth more than if the entire amount was invested at the outset, even though the units are the same price at the end of the period as they were at the beginning.
6. Start sooner rather than later
Conventional wisdom suggests it is ‘time in the market’ rather than ‘timing the market’ that is the key to developing long-term wealth. Therefore, starting to invest early is important.
The impact of compounding, which describes the exponential growth that can be achieved by earning interest on previously earned interest - is profound. The earlier you start investing, the longer your assets have to work in the market for you. Starting that strategy today or tomorrow is not too late but failing to act may result in falling short on assets when they’re needed most.(source www.ft.com )
But despite the fall in confidence from stock market volatility, experts believe the ability of stocks and other assets to deliver attractive returns over the long term remains intact.
Tom Stevenson, investment director at Fidelity International, tells the FT his top tips for investing in volatile times:
1. Think about your tolerance for risk
Investing offers a way to develop long-term wealth. But investors need to choose from a range of investment alternatives by considering their risk and return prospects including cash, bonds, alternatives such as commercial property and commodities, and stocks.
Most people will understand the importance of making financial provisions for the future and will also have a savings goal in mind - perhaps for retirement, a holiday or just for future emergencies. Then, they may also know how long they have to save - a year, ten years, perhaps longer. There is also the investors temperament to consider - how well they could cope with the possibility of their investment falling in value. With these factors in mind, therefore, an individual should be able to judge how much risk they are willing to take.
Investment risk is like the volume dial on an amplifier – you can turn it up and down as you wish. In theory, the more risk you are able or willing to take, the greater your potential reward. Of course, more risk also means greater potential for loss.
2. Remember the value of dividends
When things are going well and the stock market is rising strongly, the extra return from dividends may be con
sidered as little more than a token gesture. However, in weaker markets the extra return from dividends becomes a valuable part of the total return, especially over time as reinvested dividends are compounded.For example, £100 invested in the FTSE All Share in January 1988 would have grown to £304 by now. But if the dividends had been reinvested it would now be worth £726, more than double. Dividends can also be more reliable than both corporate earnings and stock prices during a bear market because many companies usually strive to maintain their dividend even if their profits are temporarily falling.
Source: Fidelity analysis, using Datastream to 23 August 2011
3. Recognise the benefits of diversification
Diversification has always been considered the first line of defence in reducing investment risk. This is because spreading your funds across different investments reduces the impact of an unexpected fall in one of them. In effect, it reduces the importance of each single investment decision.
Fidelity’s research shows the main asset classes perform differently at different times in the economic cycle.
Trevor Greetham, Fidelity’s asset allocation director, says:: “Recently there have been no safe havens in the equity world. However, stocks and bonds often move in opposite directions. Commodities dance to their own tune, sometimes moving with stocks, sometimes against. Each time a bull-run in one asset class comes to a halt, leadership passes to another.
“When equities peaked in 2007, commodities surged. When the commodities ran out of steam in mid 2008, government bonds started their charge. When the world economy recovers from its current difficulties, stocks will take up the running once more. A well-diversified portfolio of stocks, bonds, commodities and cash would have performed well over the past 30 years with a low level of volatility.”
4. Be aware of the dangers of trying to time the market
Perfectly timing your investments to coincide with the top and bottom of market cycles is generally not possible. Experts advise long-term investors to remain calm through periods of volatility. For new investors, the challenge is also a question of timing. Many investors experience a nervous wait for what they consider to be the ‘right moment’. Unfortunately, that moment is only clear once it has passed.
The real danger of missing that crucial bottom is that the early part of the recovery is often the strongest. After the dot.com crash, it took 56 months for the US market to fully recover, but half of the total gains were made in the first 16 months, according to Fidelity analysis.
5. If you are nervous, drip feed your investments
Investors who are nervous about timing their investment can make regular contributions to their asset growth in smaller tranches over a period of time. Regular savers, including those investing into managed funds with regular contributions are set to reap long-term rewards. This can be especially effective when markets are at a turning point.
“Buying the U” describes the process of feeding money slowly into the market while it is still falling, through the bottom and up the other side as the market recovers. Monthly investments offer a way to benefit no matter how the markets are performing: If stock prices go up, the stocks you already own will increase in value. If stock prices go down, your next payment will buy more stocks.
Such an approach can go a little way to eliminate the anxiety of timing large investments, can smooth the highs and lows of the market and even improve an investor’s eventual outcome. The regular investor finishes the period with an investment that is worth more than if the entire amount was invested at the outset, even though the units are the same price at the end of the period as they were at the beginning.
6. Start sooner rather than later
Conventional wisdom suggests it is ‘time in the market’ rather than ‘timing the market’ that is the key to developing long-term wealth. Therefore, starting to invest early is important.
The impact of compounding, which describes the exponential growth that can be achieved by earning interest on previously earned interest - is profound. The earlier you start investing, the longer your assets have to work in the market for you. Starting that strategy today or tomorrow is not too late but failing to act may result in falling short on assets when they’re needed most.(source www.ft.com )
stock market strategy millionaire
stock market strategy millionaire : Looking for a quality investment to make? People invest mainly so that they can actually get a good return from it soon. With the present economic condition suffering more and more with each passing day, people are wondering which would be the best place to invest in. according to some investors the stock market still the most coveted place.
You must be wondering what are we saying since the markets are hugely suffering. Well we agree that the markets are suffering but if you are looking for an opportunity to become a millionaire overnight then perhaps the stock market is the safest bet. Read stock market investment tips lessons from stock market turmoil
It is not that we can assure you a million dollars from the stock overnight but then there are certain things which might help you or lead you to success in the stock market. Just follow the strategies given below and on implementing them properly being a millionaire would never seem to be a tough task.
- Have A Proper Strategy In Place Before You Start Trading:
Many people suffer huge losses because they simply do not have a good enough strategy in place. Find out what type of stocks would be good for you and would reap good early results. Make proper note of the risks that you can take and then chalk out the plan, remember a risk may yield thousands of dollars if it is well calculated or else you might make you lose thousands of dollars.
- Try And Follow A Long Term Plan:
Many people believe stock market is the best place for short term investment but do you know that most of the biggest profits that are made from the stock market come from long term investment. Try it out and make millions!
- Follow All The Fundamental Rules:
Success in any field is got by following the fundamental rules. So is the case with stock market, follow the basic rules and get high returns!
Kishore M.stock market strategy millionaire
How much you need to start your journey towards your first million dollars? Not more than a couple of thousand of dollars. What you need more is the right trading strategies and the right investing strategies. This is what Kishore M. is going to teach you in his leaked code. This is what you will learn:
1. Discover one of the best futures trading strategies that can double your account within two month. This is precisely what this futures trading strategy did for one of the students of Kishore.
2. Discover one forex trading strategy that within just 4 months turned $1K into $250K.
3. Learn one options trading strategy that turned $22.5K into $183K in just 2 months.
4. Master CFD trading with this strategy that made a whopping profit of 135% in just one week from APPLE.
5. One of the best property strategy to build a multi million property portfolio with no money down.
6. Discover how to build your online business within one week.
7. Discover one stock trading underground secret that will make the stocks FREE for you.
This is not all! You will also trade live with Kishore M. where he will show you how he researches the market and he will teach you how to trade step by step. You also get a Leaked Millionaire Code Manual that will give you all the detailed technical information.
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You must be wondering what are we saying since the markets are hugely suffering. Well we agree that the markets are suffering but if you are looking for an opportunity to become a millionaire overnight then perhaps the stock market is the safest bet. Read stock market investment tips lessons from stock market turmoil
It is not that we can assure you a million dollars from the stock overnight but then there are certain things which might help you or lead you to success in the stock market. Just follow the strategies given below and on implementing them properly being a millionaire would never seem to be a tough task.
- Have A Proper Strategy In Place Before You Start Trading:
Many people suffer huge losses because they simply do not have a good enough strategy in place. Find out what type of stocks would be good for you and would reap good early results. Make proper note of the risks that you can take and then chalk out the plan, remember a risk may yield thousands of dollars if it is well calculated or else you might make you lose thousands of dollars.
- Try And Follow A Long Term Plan:
Many people believe stock market is the best place for short term investment but do you know that most of the biggest profits that are made from the stock market come from long term investment. Try it out and make millions!
- Follow All The Fundamental Rules:
Success in any field is got by following the fundamental rules. So is the case with stock market, follow the basic rules and get high returns!
Kishore M.stock market strategy millionaire
How much you need to start your journey towards your first million dollars? Not more than a couple of thousand of dollars. What you need more is the right trading strategies and the right investing strategies. This is what Kishore M. is going to teach you in his leaked code. This is what you will learn:
1. Discover one of the best futures trading strategies that can double your account within two month. This is precisely what this futures trading strategy did for one of the students of Kishore.
2. Discover one forex trading strategy that within just 4 months turned $1K into $250K.
3. Learn one options trading strategy that turned $22.5K into $183K in just 2 months.
4. Master CFD trading with this strategy that made a whopping profit of 135% in just one week from APPLE.
5. One of the best property strategy to build a multi million property portfolio with no money down.
6. Discover how to build your online business within one week.
7. Discover one stock trading underground secret that will make the stocks FREE for you.
This is not all! You will also trade live with Kishore M. where he will show you how he researches the market and he will teach you how to trade step by step. You also get a Leaked Millionaire Code Manual that will give you all the detailed technical information.
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stock market investment tips lessons from stock market turmoil
stock market investment tips lessons from stock market turmoil ; The stock market has had people gasping lately, seemingly losing or gaining roughly 5 percent every day. It would be folly to assume the worst is over, because most market observers agree that the one thing they can expect from this market - even as they argue over its future direction - is volatility.
But as most investors are catching their breath, it makes sense to look at five lessons they might have learned about the market - had they been able to focus amid the chaos.
1. There is still a case for owning stocks.
Investing legend Jack Bogle, in an interview with Morningstar Inc., said the odds are that stocks will have a better return than bonds over the next decade. Here's how Bogle, the founder of the Vanguard Group, figures it:
The 10-year Treasury is yielding roughly 2.3 percent, so its return will be between 2 percent and 3 percent over the next decade. Stocks also have an average yield of 2.3 percent, "but they have earnings that should grow even if the economy grows a little more slowly than say at 4 percent instead of 5 percent. In nominal terms, that would be a 6 percent return on stocks. Maybe they can grow a little faster."
2. Cash begets calm.
Somewhere between being fully invested or completely on the sidelines, a big slug of cash is a powerful asset in turbulent times.
For someone nervous about the money they have in the market, having sufficient cash to ride out the bumps and not believing they must sell something to protect themselves is smart. And for someone worried about being out of the market if and when there's a rebound, having cash allows them to pursue the "buying opportunities" that come up when the market is down.
"When you have a big-enough cash cushion, you can feel like you have more control, which is good at a time when the market seems so out-of-control," said Richard Geist, president of the Institute on the Psychology of Investing.
3. We bemoan loss more than we celebrate gains.
A 500-point decline in the market has investors ready to pull their hair out and fearing for their financial future, but a 500- point gain doesn't have the same person contemplating an early retirement. It's the same percentage move, but investors feel perceived losses more acutely than gains.
Knowing that, individuals need to guard against knee-jerk reactions to downward markets, because there surely are more bad trading days ahead.
4. Leveraged and inverse ETFs are not to blame for the market's volatility.
The supposition here is that with exchange-traded funds representing such a big part of the total trading these days, the leveraged funds are kicking volatility into high gear for everyone. It makes for nice chatter, but it doesn't appear to be true.
According to Morningstar, leveraged and inverse ETFs represent just 5 percent of total assets held in ETFs. Moreover, during the 10 trading days ended Aug. 12, those ETFs represented just 13 percent of the dollar volume being traded in ETFs.
5. The market is full of surprises - and opportunities to be wrong about "what's next."
When Standard & Poor's downgraded the U.S. credit rating, the general consensus was that demand for Treasury bonds would fall. Instead, it rose. When consumer confidence reached its lowest levels since 1980, the assumption was that the stock market would tank. It rose.
In fact, every time the market appeared headed for a deeper hole lately, it rallied, and every time it appeared the rally was strengthening, it faltered.
So although it is tempting to make moves while trying to anticipate where the market will go in the next day, week or month, it's typically going to be more profitable to stay focused on how to generate returns over the next decade and beyond.
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But as most investors are catching their breath, it makes sense to look at five lessons they might have learned about the market - had they been able to focus amid the chaos.
1. There is still a case for owning stocks.
Investing legend Jack Bogle, in an interview with Morningstar Inc., said the odds are that stocks will have a better return than bonds over the next decade. Here's how Bogle, the founder of the Vanguard Group, figures it:
The 10-year Treasury is yielding roughly 2.3 percent, so its return will be between 2 percent and 3 percent over the next decade. Stocks also have an average yield of 2.3 percent, "but they have earnings that should grow even if the economy grows a little more slowly than say at 4 percent instead of 5 percent. In nominal terms, that would be a 6 percent return on stocks. Maybe they can grow a little faster."
2. Cash begets calm.
Somewhere between being fully invested or completely on the sidelines, a big slug of cash is a powerful asset in turbulent times.
For someone nervous about the money they have in the market, having sufficient cash to ride out the bumps and not believing they must sell something to protect themselves is smart. And for someone worried about being out of the market if and when there's a rebound, having cash allows them to pursue the "buying opportunities" that come up when the market is down.
"When you have a big-enough cash cushion, you can feel like you have more control, which is good at a time when the market seems so out-of-control," said Richard Geist, president of the Institute on the Psychology of Investing.
3. We bemoan loss more than we celebrate gains.
A 500-point decline in the market has investors ready to pull their hair out and fearing for their financial future, but a 500- point gain doesn't have the same person contemplating an early retirement. It's the same percentage move, but investors feel perceived losses more acutely than gains.
Knowing that, individuals need to guard against knee-jerk reactions to downward markets, because there surely are more bad trading days ahead.
4. Leveraged and inverse ETFs are not to blame for the market's volatility.
The supposition here is that with exchange-traded funds representing such a big part of the total trading these days, the leveraged funds are kicking volatility into high gear for everyone. It makes for nice chatter, but it doesn't appear to be true.
According to Morningstar, leveraged and inverse ETFs represent just 5 percent of total assets held in ETFs. Moreover, during the 10 trading days ended Aug. 12, those ETFs represented just 13 percent of the dollar volume being traded in ETFs.
5. The market is full of surprises - and opportunities to be wrong about "what's next."
When Standard & Poor's downgraded the U.S. credit rating, the general consensus was that demand for Treasury bonds would fall. Instead, it rose. When consumer confidence reached its lowest levels since 1980, the assumption was that the stock market would tank. It rose.
In fact, every time the market appeared headed for a deeper hole lately, it rallied, and every time it appeared the rally was strengthening, it faltered.
So although it is tempting to make moves while trying to anticipate where the market will go in the next day, week or month, it's typically going to be more profitable to stay focused on how to generate returns over the next decade and beyond.
stock market investment advice, stock market crash, stock market resources, stock market investment tips, tips for investing in the stock market, tips on investing in the stock market, tips for investing in stock market, tips to invest in stock market, stock market investment techniques.
Pandora stock prices and earning report estimated 25 august 2011
Pandora stock prices and earning report estimated 25 august 2011 ; Pandora(P) is scheduled to report earnings today. This will be the first earnings report from the Internet radio company after going public earlier this year.
Investors will eagerly look for information on Pandora's growth outlook and cost trends as it faces increasing competition from SiriusXM(SIRI) in the automobile market and Spotify, which recently launched its music service in the U.S. via Facebook.
Below we take a quick look at some of the key factors to watch.
Our price estimate for Pandora is near $10, which is around 20% below the market price.
Pandora's User Base Growth
This is the single biggest driver to Pandora's stock. The company currently only operates in the U.S. and registered around 80 million users in 2010. In July, the company crossed 100 million users and the looming challenge is whether or not Pandora can maintain this strong growth as its penetration levels in the U.S. rise. Content licensing deals are expensive though they help bring in new users while expanding internationally is no piece of cake. Both factors will weigh on the company's growth rate.
We currently forecast strong user growth and will wait for earnings to get a better view on Pandora's expansion plans to adjust our forecast.
Investors will eagerly look for information on Pandora's growth outlook and cost trends as it faces increasing competition from SiriusXM(SIRI) in the automobile market and Spotify, which recently launched its music service in the U.S. via Facebook.
Below we take a quick look at some of the key factors to watch.
Our price estimate for Pandora is near $10, which is around 20% below the market price.
Pandora's User Base Growth
This is the single biggest driver to Pandora's stock. The company currently only operates in the U.S. and registered around 80 million users in 2010. In July, the company crossed 100 million users and the looming challenge is whether or not Pandora can maintain this strong growth as its penetration levels in the U.S. rise. Content licensing deals are expensive though they help bring in new users while expanding internationally is no piece of cake. Both factors will weigh on the company's growth rate.
We currently forecast strong user growth and will wait for earnings to get a better view on Pandora's expansion plans to adjust our forecast.
Apple Stock prices Drops 25 august 2011, Jobs resigning
Apple Stock prices Drops 25 august 2011, Jobs resigning : Apple shareholders on Thursday appeared to be getting over the sudden resignation of Steve Jobs. Apple Inc. shares fell $4.03, or about 1 percent, to $372.16 in midday trading, but the entire market was down by an equal amount as well. In extended trading Thursday evening, the fell more than 5 percent after Apple said Jobs would step down as CEO and hand the job to chief operating officer Tim Cook.
Even if the timing was a surprise, most industry analysts said Jobs' departure from the CEO post was always on the horizon because of ongoing health problems.
Peter Misek at Jefferies & Co. said it was a very positive sign that Jobs will assume the role of chairman. Misek had expected Jobs to depart completely from the company. As chairman, "Jobs will be able to continue to offer his insights and visions for the future of Apple."
The immediate sell-off of Apple for fear of an end to one of the industry's longest winning streaks was overdone, said Ovum analyst Jan Dawson.
Even if the timing was a surprise, most industry analysts said Jobs' departure from the CEO post was always on the horizon because of ongoing health problems.
Peter Misek at Jefferies & Co. said it was a very positive sign that Jobs will assume the role of chairman. Misek had expected Jobs to depart completely from the company. As chairman, "Jobs will be able to continue to offer his insights and visions for the future of Apple."
The immediate sell-off of Apple for fear of an end to one of the industry's longest winning streaks was overdone, said Ovum analyst Jan Dawson.
Stock market down august 25 2011
Stock market down august 25 2011, why Stock market down august 25 2011, Stocks retreated as panic selling pushed Germany’s DAX Index down 4 percent in 15 minutes amid concern regulators may impose restrictions on short selling. The dollar and Treasuries advanced, while oil fell and Bank of America Corp. shares surged.
The Standard & Poor’s 500 Index dropped 1 percent at 11:53 a.m. in New York. The Stoxx Europe 600 Index lost 1.2 percent after rising as much as 1.1 percent. The DAX retreated 1.7 percent as of the close of trading in Frankfurt. The Dollar Index jumped 0.3 percent. Treasuries rose, driving yields on 10- year notes down six seven points to 2.23 percent. Crude futures slumped 0.8 percent.
Investors speculated that Germany would impose a short- selling ban, said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management Inc. in Chicago. Germany’s Finance Ministry said the speculation was incorrect. Traders may also be using Germany equities as a hedge before France, Italy and Spain decide whether to expand a ban on the practice, said Miller Tabak & Co.’s Peter Boockvar.
“All eyes are of course on the German stock market selloff,” New York-based Boockvar wrote in an e-mail. “It seemed to come out of nowhere.”
When U.S. exchanges opened, the S&P 500 advanced as much as 1.1 percent after Warren Buffett’s Berkshire Hathaway Inc. agreed to invest $5 billion in Bank of America, which had plunged 53 percent in 2011. The stock rallied 12 percent. At the same time, Nasdaq-100 Index futures erased losses that had been driven by Steve Jobs resigning as Apple Inc.’s chief executive officer. Apple shares lost 1.1 percent.
***Economic Data***
- (BR) Brazil Aug FGV Consumer Confidence: 118.7 v 124.4 prior
- (TU) Turkey Aug Industrial Confidence: 109.8 v 114.1 prior; Capacity Utilization: 76.1% v 74.7%e
- (BR) Brazil July Unemployment Rate: 6.0% v 6.2%e
- (US) Initial Jobless Claims: 417K v 405Ke; Continuing Claims: 3.641M v 3.70Me
- (MX) Mexico Q2 GDP (current $) Y/Y: 8.9% v 7.7%e
- (MX) Mexico July Unemployment Rate: 5.6% v 6.0%e
- (MX) Mexico Q2 Current Account: -$ v -$305Me
- (US) Weekly EIA Natural Gas Inventories: +73 bcf v +70 bcf to +75 bcf expected range
The Standard & Poor’s 500 Index dropped 1 percent at 11:53 a.m. in New York. The Stoxx Europe 600 Index lost 1.2 percent after rising as much as 1.1 percent. The DAX retreated 1.7 percent as of the close of trading in Frankfurt. The Dollar Index jumped 0.3 percent. Treasuries rose, driving yields on 10- year notes down six seven points to 2.23 percent. Crude futures slumped 0.8 percent.
Investors speculated that Germany would impose a short- selling ban, said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management Inc. in Chicago. Germany’s Finance Ministry said the speculation was incorrect. Traders may also be using Germany equities as a hedge before France, Italy and Spain decide whether to expand a ban on the practice, said Miller Tabak & Co.’s Peter Boockvar.
“All eyes are of course on the German stock market selloff,” New York-based Boockvar wrote in an e-mail. “It seemed to come out of nowhere.”
When U.S. exchanges opened, the S&P 500 advanced as much as 1.1 percent after Warren Buffett’s Berkshire Hathaway Inc. agreed to invest $5 billion in Bank of America, which had plunged 53 percent in 2011. The stock rallied 12 percent. At the same time, Nasdaq-100 Index futures erased losses that had been driven by Steve Jobs resigning as Apple Inc.’s chief executive officer. Apple shares lost 1.1 percent.
***Economic Data***
- (BR) Brazil Aug FGV Consumer Confidence: 118.7 v 124.4 prior
- (TU) Turkey Aug Industrial Confidence: 109.8 v 114.1 prior; Capacity Utilization: 76.1% v 74.7%e
- (BR) Brazil July Unemployment Rate: 6.0% v 6.2%e
- (US) Initial Jobless Claims: 417K v 405Ke; Continuing Claims: 3.641M v 3.70Me
- (MX) Mexico Q2 GDP (current $) Y/Y: 8.9% v 7.7%e
- (MX) Mexico July Unemployment Rate: 5.6% v 6.0%e
- (MX) Mexico Q2 Current Account: -$ v -$305Me
- (US) Weekly EIA Natural Gas Inventories: +73 bcf v +70 bcf to +75 bcf expected range
China Stock outlook august 25 2011
China Stock outlook august 25 2011 ; Shares of the following companies may have unusual moves in China trading. Stock symbols are in parentheses and prices are as of the previous close, unless stated otherwise.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, gained 74.17 points, or 2.9 percent, to 2,615.26. The CSI 300 Index (SHSZ300) rose 3.3 percent to 2,903.84.
Agricultural Bank of China Ltd. (601288) (601288 CH)
The nation’s largest lender by customers posted first-half net income of 66.7 billion yuan ($10.4 billion), according to a statement to the Hong Kong stock exchange. That compares with the median 65.8 billion yuan estimate of nine analysts in a Bloomberg News survey. The stock gained 2.3 percent to 2.64 yuan.
Air China Ltd. (601111) (601111 CH)
The world’s biggest carrier by market value said its first-half net income was 4.06 billion yuan, according to a statement to the Shanghai stock exchange. That compares with the median 4.3 billion yuan estimate of three analysts surveyed by Bloomberg. The stock climbed 6.7 percent to 9.62 yuan.
BYD Co. (002594 CH)
The Chinese automaker part-owned by Warren Buffett’s Berkshire Hathaway Inc. said its board of directors approved a plan to sell up to 6 billion yuan of bonds in China with a maturity of no longer than 10 years, according to a statement to the Shenzhen Stock Exchange. The shares advanced 0.9 percent to 25.96 yuan.
Changsha Zoomlion Heavy Industry Science and Technology Development Co. (000157 CH)
The nation’s second-biggest maker of concrete-handling machinery proposed selling as much as $1.5 billion of bonds overseas, with a term of no more than 10 years, according to a company statement to the Hong Kong Stock Exchange. The shares climbed 3.1 percent to 10.92 yuan.
China CNR Corp. (601299 CH)
The country’s second-biggest trainmaker said its first-half net income rose 145 percent from a year earlier to 1.6 billion yuan, according to a statement to the Shanghai Stock Exchange. The stock advanced 3 percent to 4.74 yuan.
China Cosco Holdings Co. (601919 CH)
The nation’s largest operator of dry-bulk ships by market value posted a first-half net loss of 2.76 billion yuan, according to a statement to the Shanghai Stock Exchange. That compares with the median estimate of a 1.5 billion yuan net loss in a Bloomberg News survey of nine analysts. The stock added 4.3 percent to 7.23 yuan.
China Southern Airlines Co. (600029 CH)
The nation’s second-largest airline said its first-half net income was 2.76 billion yuan, according to a statement to the Shanghai Stock Exchange. That compares with the median 2.8 billion yuan estimate of four analysts surveyed by Bloomberg. China Southern advanced 4.9 percent to 8.16 yuan.
FAW Car Co. (000800 CH)
The carmaker will invest 1 billion yuan to expand production capacity of D009-model vehicles to 80,000 units annually, according to a filing to the Shenzhen Stock Exchange. The shares gained 2.6 percent to 12.74 yuan.
Industrial & Commercial Bank of China (601398) Ltd. (601398 CH)
The nation’s biggest listed lender said first-half profit jumped 29 percent from a year earlier to a record 109.5 billion yuan on higher loans and fees. The stock added 2.5 percent to 4.18 yuan.
Jiangxi Copper Co. (600362 CH)
China’s biggest producer of the metal said first-half profit almost doubled to a record 4.31 billion yuan on higher prices and output, according to a statement to the Shanghai stock exchange, citing international accounting standards. It expects profit for the first nine months to rise by more than 50 percent, and plans to distribute an interim dividend of 2 yuan for every 10 shares held, it said.
The stock rose 4.3 percent to 32.95 yuan.
PetroChina Co. (601857 CH)
The nation’s biggest oil company said first-half net income climbed 1 percent from a year ago to 66 billion yuan. That compares with the 67.3 billion-yuan median estimate of six analysts surveyed by Bloomberg. The stock gained 2.6 percent to 10.10 yuan.
Shanxi Taigang Stainless Steel Co. (000825 CH)
China’s biggest producer of the rust-proof metal said first-half net income rose 3.5 percent from a year earlier to 838.4 million yuan, according to a statement to the Shenzhen Stock Exchange. The stock rose 3.7 percent to 4.75 yuan.
Shenzhen Zhongjin Lingnan Nonfemet Co. (000060 CH)
China’s third-largest zinc producer expects profit for the first nine months to rise by as much as 99.7 percent from the same period a year ago to 800 million yuan, according to a statement to the Shenzhen Stock Exchange. The shares gained 4.3 percent to 11.76 yuan.
Sichuan New Hope Agribusiness Co. (000876 CH)
The producer of animal feed said its first-half net income rose 91 percent from a year ago to 496 million yuan, the company said in a statement posted on the Shenzhen Stock Exchange. The shares advanced 4 percent to 19.42 yuan.
Yunnan Copper Industry Co. (000878) (000878 CH)
China’s fourth- biggest producer of the metal said its net income rose 167 percent in the first half from a year earlier to 574 million yuan, the smelting company said in a statement to the Shenzhen Stock Exchange. The shares added 4 percent to 20.08 yuan.
Zhongjin Gold Co. (600489 CH)
The country’s second-largest bullion producer said first-half net income rose 63 percent from a year earlier to 796.2 million yuan, according to a statement to the Shanghai Stock Exchange. The stock fell 0.5 percent to 27.82 yuan. (source /www.bloomberg.com )
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, gained 74.17 points, or 2.9 percent, to 2,615.26. The CSI 300 Index (SHSZ300) rose 3.3 percent to 2,903.84.
Agricultural Bank of China Ltd. (601288) (601288 CH)
The nation’s largest lender by customers posted first-half net income of 66.7 billion yuan ($10.4 billion), according to a statement to the Hong Kong stock exchange. That compares with the median 65.8 billion yuan estimate of nine analysts in a Bloomberg News survey. The stock gained 2.3 percent to 2.64 yuan.
Air China Ltd. (601111) (601111 CH)
The world’s biggest carrier by market value said its first-half net income was 4.06 billion yuan, according to a statement to the Shanghai stock exchange. That compares with the median 4.3 billion yuan estimate of three analysts surveyed by Bloomberg. The stock climbed 6.7 percent to 9.62 yuan.
BYD Co. (002594 CH)
The Chinese automaker part-owned by Warren Buffett’s Berkshire Hathaway Inc. said its board of directors approved a plan to sell up to 6 billion yuan of bonds in China with a maturity of no longer than 10 years, according to a statement to the Shenzhen Stock Exchange. The shares advanced 0.9 percent to 25.96 yuan.
Changsha Zoomlion Heavy Industry Science and Technology Development Co. (000157 CH)
The nation’s second-biggest maker of concrete-handling machinery proposed selling as much as $1.5 billion of bonds overseas, with a term of no more than 10 years, according to a company statement to the Hong Kong Stock Exchange. The shares climbed 3.1 percent to 10.92 yuan.
China CNR Corp. (601299 CH)
The country’s second-biggest trainmaker said its first-half net income rose 145 percent from a year earlier to 1.6 billion yuan, according to a statement to the Shanghai Stock Exchange. The stock advanced 3 percent to 4.74 yuan.
China Cosco Holdings Co. (601919 CH)
The nation’s largest operator of dry-bulk ships by market value posted a first-half net loss of 2.76 billion yuan, according to a statement to the Shanghai Stock Exchange. That compares with the median estimate of a 1.5 billion yuan net loss in a Bloomberg News survey of nine analysts. The stock added 4.3 percent to 7.23 yuan.
China Southern Airlines Co. (600029 CH)
The nation’s second-largest airline said its first-half net income was 2.76 billion yuan, according to a statement to the Shanghai Stock Exchange. That compares with the median 2.8 billion yuan estimate of four analysts surveyed by Bloomberg. China Southern advanced 4.9 percent to 8.16 yuan.
FAW Car Co. (000800 CH)
The carmaker will invest 1 billion yuan to expand production capacity of D009-model vehicles to 80,000 units annually, according to a filing to the Shenzhen Stock Exchange. The shares gained 2.6 percent to 12.74 yuan.
Industrial & Commercial Bank of China (601398) Ltd. (601398 CH)
The nation’s biggest listed lender said first-half profit jumped 29 percent from a year earlier to a record 109.5 billion yuan on higher loans and fees. The stock added 2.5 percent to 4.18 yuan.
Jiangxi Copper Co. (600362 CH)
China’s biggest producer of the metal said first-half profit almost doubled to a record 4.31 billion yuan on higher prices and output, according to a statement to the Shanghai stock exchange, citing international accounting standards. It expects profit for the first nine months to rise by more than 50 percent, and plans to distribute an interim dividend of 2 yuan for every 10 shares held, it said.
The stock rose 4.3 percent to 32.95 yuan.
PetroChina Co. (601857 CH)
The nation’s biggest oil company said first-half net income climbed 1 percent from a year ago to 66 billion yuan. That compares with the 67.3 billion-yuan median estimate of six analysts surveyed by Bloomberg. The stock gained 2.6 percent to 10.10 yuan.
Shanxi Taigang Stainless Steel Co. (000825 CH)
China’s biggest producer of the rust-proof metal said first-half net income rose 3.5 percent from a year earlier to 838.4 million yuan, according to a statement to the Shenzhen Stock Exchange. The stock rose 3.7 percent to 4.75 yuan.
Shenzhen Zhongjin Lingnan Nonfemet Co. (000060 CH)
China’s third-largest zinc producer expects profit for the first nine months to rise by as much as 99.7 percent from the same period a year ago to 800 million yuan, according to a statement to the Shenzhen Stock Exchange. The shares gained 4.3 percent to 11.76 yuan.
Sichuan New Hope Agribusiness Co. (000876 CH)
The producer of animal feed said its first-half net income rose 91 percent from a year ago to 496 million yuan, the company said in a statement posted on the Shenzhen Stock Exchange. The shares advanced 4 percent to 19.42 yuan.
Yunnan Copper Industry Co. (000878) (000878 CH)
China’s fourth- biggest producer of the metal said its net income rose 167 percent in the first half from a year earlier to 574 million yuan, the smelting company said in a statement to the Shenzhen Stock Exchange. The shares added 4 percent to 20.08 yuan.
Zhongjin Gold Co. (600489 CH)
The country’s second-largest bullion producer said first-half net income rose 63 percent from a year earlier to 796.2 million yuan, according to a statement to the Shanghai Stock Exchange. The stock fell 0.5 percent to 27.82 yuan. (source /www.bloomberg.com )
why gold prices down today august 25 2011
why gold prices down today august 25 2011 : The price of gold dropped further, a day after the precious metal saw its biggest drop since before the recession. Gold was down US$14.60 to $1,742.70 per ounce on the New York Mercantile Exchange in midday trading Thursday. It had fallen as much as $31.20 earlier in the day.
The metal is continuing to fall after plunging more than $100 per ounce Wednesday, as investors who took in promising U.S. economic news felt confident enough in the economy to cash in their gold on the back of recent record high prices.
Gold lost five per cent of its value Wednesday_ the biggest single-session drop since the precious metal fell $146 in September 2008, just before the recession spread to Canada.
The stock market ups and downs of the last few weeks due to the European debt crisis and fears of another recession in the U.S. compelled investors to stockpile the metal, which is seen as a safe haven in shaky economic times.
But news from the U.S. government Wednesday that orders for manufactured goods rose in July eased investor jitters, giving them confidence in the stock market again and leading them to take their money out of gold.
The metal is continuing to fall after plunging more than $100 per ounce Wednesday, as investors who took in promising U.S. economic news felt confident enough in the economy to cash in their gold on the back of recent record high prices.
Gold lost five per cent of its value Wednesday_ the biggest single-session drop since the precious metal fell $146 in September 2008, just before the recession spread to Canada.
The stock market ups and downs of the last few weeks due to the European debt crisis and fears of another recession in the U.S. compelled investors to stockpile the metal, which is seen as a safe haven in shaky economic times.
But news from the U.S. government Wednesday that orders for manufactured goods rose in July eased investor jitters, giving them confidence in the stock market again and leading them to take their money out of gold.
Gold Prices news today august 25 2011
Gold Prices news today august 25 2011 : The price of gold has tumbled nearly three per cent to more than $200 below Tuesday's record highs after the Chicago Metals Exchange Group hiked trading margins in the metal for a second time this month.
Investment appetite for gold has cooled ahead of a widely awaited US central bankers' meeting at Jackson Hole, Wyoming, as speculation grows over whether or not the US Federal Reserve will signal a further round of monetary easing.
More quantitative easing - or money printing - from the Fed could significantly lift gold, but it could have further to correct if no additional action is signalled.
Spot gold was down 1.6 per cent at $1,722.50 an ounce at 1351 GMT in volatile trade, having earlier touched a low of $1,702.44.
Investors cashed in on gold's latest rally after the yellow metal surged nearly 20 per cent in the first half of this month to record highs at $1,911.46 an ounce.
Spot prices fell 4.3 per cent yesterday, their biggest one-day drop since December 2008, after US durable goods data beat expectations. US gold futures also posted their sharpest slide since 1980.
"Gold seemed to be running ahead of where equity markets were pointing to in terms of downside risks - those markets were stable and gold kept wanting to push higher and higher," said Macquarie analyst Hayden Atkins.
"Once we got an upside surprise in data, we saw some of those longs washed out."
Any recovery from these lows will be dependent on what happens in the next few days. "It's not really clear what the Fed's intentions are," said Atkins. "People are waiting and watching."
Holdings of the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust , declined by more than 27 tonnes on Wednesday, their biggest one-day outflow since Jan. 25.
They have dropped nearly 60 tonnes this week, worth around $3.25bn at today's prices.
Gold's losses were exacerbated late on Wednesday after the CME Group, the world's largest commodities exchange, raised margins on gold futures by about 27 percent, the biggest hike in more than 2-1/2 years and the second increase in a month.
But the metal's overall uptrend, which has seen it climb more than 20 percent this year, is still intact, analysts said.
"To be convinced you'd seen the top of the market you would have to see more signs of the issues that had lifted gold being resolved, such as the euro zone crisis, and U.S. growth coming back," said Mitsubishi analyst Matthew Turner
Investment appetite for gold has cooled ahead of a widely awaited US central bankers' meeting at Jackson Hole, Wyoming, as speculation grows over whether or not the US Federal Reserve will signal a further round of monetary easing.
More quantitative easing - or money printing - from the Fed could significantly lift gold, but it could have further to correct if no additional action is signalled.
Spot gold was down 1.6 per cent at $1,722.50 an ounce at 1351 GMT in volatile trade, having earlier touched a low of $1,702.44.
Investors cashed in on gold's latest rally after the yellow metal surged nearly 20 per cent in the first half of this month to record highs at $1,911.46 an ounce.
Spot prices fell 4.3 per cent yesterday, their biggest one-day drop since December 2008, after US durable goods data beat expectations. US gold futures also posted their sharpest slide since 1980.
"Gold seemed to be running ahead of where equity markets were pointing to in terms of downside risks - those markets were stable and gold kept wanting to push higher and higher," said Macquarie analyst Hayden Atkins.
"Once we got an upside surprise in data, we saw some of those longs washed out."
Any recovery from these lows will be dependent on what happens in the next few days. "It's not really clear what the Fed's intentions are," said Atkins. "People are waiting and watching."
Holdings of the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust , declined by more than 27 tonnes on Wednesday, their biggest one-day outflow since Jan. 25.
They have dropped nearly 60 tonnes this week, worth around $3.25bn at today's prices.
Gold's losses were exacerbated late on Wednesday after the CME Group, the world's largest commodities exchange, raised margins on gold futures by about 27 percent, the biggest hike in more than 2-1/2 years and the second increase in a month.
But the metal's overall uptrend, which has seen it climb more than 20 percent this year, is still intact, analysts said.
"To be convinced you'd seen the top of the market you would have to see more signs of the issues that had lifted gold being resolved, such as the euro zone crisis, and U.S. growth coming back," said Mitsubishi analyst Matthew Turner
Best pension plans tips 2011- 2012
Best pension plans tips 2011-2012 : Suffice to say, then, if you plan to enjoy retirement, there's work to be done; a long and fulfilling life awaits many of us, but we're going to need to plan properly if we're to pay for it, pension tips to help you get – and stay – on the right track.
1. Seriously review; carefully re-plan
Retirement might seem aeons away, but that's no excuse to turn a blind eye and lapse into spendthrift ways.
If you don't know how much you've saved (via pensions, Isas, stock market investments, property etc.) then run a comprehensive review. Done on a regular basis – perhaps once or twice a year - this will help keep you on straight and narrow.
There are three essential boxes to tick before pension tinkering can begin, says Nick Lincoln, an independent financial adviser at Values to Vision Financial Planning.
First, work out when you want to retire and the income you'll need to live the retirement life you want. Calculate all your potential income streams in retirement (state pension, rental incomes, Isa investments, final salary benefits, employer pensions). Compare the two numbers. The shortfall figure should guide your action plan.
If you're not meeting your target, you'll have four main options: retiring later, saving more now, accepting less retirement income, or taking more risk to improve returns.
Steve Laird, an independent financial adviser at Carrington Wealth Management, has these top tips: 'If you have one or more existing pension plans, get a projection of what the benefits are likely to be at your chosen retirement age. If you have a company pension scheme you should be able to get this information from the scheme trustees.
'If it's a personal pension plan then write to the plan provider. Ask for a projection 'in today's money' – this will give you a much better idea of what you'll be able to buy with your pension fund.
'If there's a big shortfall between what you'll get and what you'll need then the time to take action is now – the longer that you leave it, the more it will cost you to make up the difference.
As a guide for how much to save, Alan Maxwell, a chartered financial planner at Corporate Benefits, says around 10% to 15% of your salary should be dedicated towards long-term planning - at all times.
2. Take advantage of Isas
Each year you can save up to £10,200 into an Isa (£5,100 in cash). Each year the allowance rises slightly (it's linked to inflation).Isas are simply investment 'wrappers' that shelter your cash from the long arm of the taxman. For basic rate taxpayers, this is a better saving solution than a pension (see below). The key difference with Isas is that you have access to your cash before age 55. If you're unsure which is right for you, check our Isa vs. Pension pros and cons round up.
Danny Cox, an adviser at Hargreaves Lansdown, says: 'Make full use of your Isa allowance. Less tax means the potential for much better returns from your savings and investments.'
Ian Lowes, of Lowes Financial Management, says: 'Despite the fact that Isas have been around for more than a decade, there is still a lot of misunderstanding surrounding them.
'An Isa is simply an annual allowance that everyone over 18 has to shelter some of their investments or savings from income tax and/or capital gains tax. They should be used by most investors each year in one form or another.
3. Use a pension to claw back tax
Pensions are the archetypal retirement savings product. It is more than possible to get all the way to retirement without them. But higher rate taxpayers should take note: a pension can help claw back some of the 40% or 50% tax you cough up each year.
Quite simply, the Government refunds your income tax when you store money in a pension. This is reward for being unable to use it until you're 55. Income tax is paid on the way out of the pension in retirement. But, the benefit is that you'll probably qualify within a lower income threshold – usually as a basic rate taxpayer – and so reduce your percentage liability from 40% or 50% to 20%. Additionally, you can claim a quarter of the pension pot direct as a tax-free lump sum – you'll never, ever have paid tax on this cash.
Ian Lowes says: 'Tax relief means a £1,000 contribution will cost a higher rate taxpayer just £600. The downside is that you can only have 25% of the fund back - and only once you're at least 55. The rest of the fund has to provide a taxable income (via an annuity or drawdown policy – see below).
4. Check how your pension is invested
This is one of the serious areas of concern for those already with a pension. Poor performance can leave you seriously under-funded in retirement. In particular, watch out for so-called 'zombie funds'. We warn about these at This is Money.
An estimated 11 million savers are trapped in failing pension funds that deny them thousands of pounds of yearly income in retirement.
Peter McGahan, an independent financial adviser at Worldwide Financial Planning, says: 'Make sure your money is being invested by the best fund managers. A decent investment-based IFA will know how to pick these.'
Alan Maxwell, a chartered financial planner at Corporate Benefits, says many people - particularly those with funds in very old pensions - never bother to check how their money is managed. They just presume solid returns are a given. They're not. With fund managers changing regularly and performance varying, it's a serious concern.
Nick Lincoln, independent financial adviser at Values to Vision Financial Planning recommends that younger investors with more than ten years to retirement make sure they're reaping the rewards of the stock markets.
'It's too risky to invest in anything else (risk defined here as the likelihood of your fund not growing fast enough, which is the biggest risk of all),' he says. 'Divest back out of equities as you approach retirement.'
In your 50s, you must reconsider your 'risk profile'. This means opting out of riskier investments – shares – to lock in your gains. Instead, cash and bonds will provide a more consistent return.
Chris Wicks, a chartered financial planner at Bridgewater, explains: 'If you are retiring in the next couple of years you need to start to reduce the risk of your pension fund by moving to fixed interest and cash funds to avoid the impact of a last minute stock market drop on your retirement income.
5. Cut costs with a fund supermarket
To optimise your investments to the full, steer clear of dinosaur personal pension plans altogether. Instead, try a Self-Invested Personal Pensions (Sipp). These allow you to choose exactly how your cash is invested, whether in shares, funds, commercial property or something else. Created 21 years ago for high net wealth savers, they have become far more accessible in the 21st Century.
For the majority of mid-wealth investors, a fund supermarket-style Sipp – which is simply a low-cost platform for investing in different funds – could work perfectly.
Danny Cox says: 'Use a fund supermarket to reduce costs and simplify your investments. As the name suggests a fund supermarket is a one stop shop for Isas, Sipps, funds, shares, ETFs and investment trusts.
'They buy in bulk and pass those savings onto the investor, meaning you can invest in a unit trust saving as much as 5.5% on the cost when buying direct. Fund supermarkets enable you to consolidate your investments and pensions into one simple statement, view the value at anytime on line and deal on-line from the comfort of your own home.'
Some of the cheapest fund low-cost Sipps are run by Hargreaves Lansdown, James Hay, AJ Bell's Sippdeal, and Alliance Trust. Help on finding the cheapest low cost Sipp.
6. Get the right annuity
From April, some retirees will no longer need to purchase an annuity to convert their pots into an income. It will be possible, instead, to stay invested in the stock market and draw money slowly from your pot.
But the operative word here is 'some' people. Most will still find that the secure income stream from an annuity is necessary for a hassle-free old age. Others simply won't be allowed to opt out of annuity purchases because their funds won't be large enough. More on the new rules here.
When you hit retirement, it's absolutely essential to shop around for the best annuity rate. At the beginning of 2011, a £100,000 pot typically buys a pension of just £5,500 a year for a couple. But different insurance companies vary wildly - by as much as 20% - in the sort of income they'll pay in exchange for your pension pot.
This is particularly important if your health is poor as you may qualify for an enhanced rate - sometimes a huge 30% - 40% more. This applies to smokers, too, as their life expectancy is shorter.
Peter McGahan points out that some pension plans provide 'guaranteed' annuity rates that comprehensively beat the open market options. But he warns that even then, these they aren't always the best option.
He says: 'Check whether your pension offers a guaranteed annuity. As you retire you might see this is around 8% or 9% and that looks very attractive. But when you dig deeper, you'll find that these often have serious downsides. Firstly, most don't include spouses in the terms. That means that if you die, your partner won't benefit – the payments will stop. (source www.thisismoney.co.u )
Best pension plans tips 2011, best pension plans tips 2012, best pension plans help 2011, free pension plans tips 2011, best pension plans walkthrough 2011, best pension plans techniques 2011, How to sort out your pension in 2011, pension, pension plan, pension protection act, nj pension, pensions and investments, pension accounting, pension plan accounting, ifrs pension accounting, pension accounting basics, pension accounting 101, pension vs 401k, pension plan vs 401 k, pension plans vs 401k.
1. Seriously review; carefully re-plan
Retirement might seem aeons away, but that's no excuse to turn a blind eye and lapse into spendthrift ways.
If you don't know how much you've saved (via pensions, Isas, stock market investments, property etc.) then run a comprehensive review. Done on a regular basis – perhaps once or twice a year - this will help keep you on straight and narrow.
There are three essential boxes to tick before pension tinkering can begin, says Nick Lincoln, an independent financial adviser at Values to Vision Financial Planning.
First, work out when you want to retire and the income you'll need to live the retirement life you want. Calculate all your potential income streams in retirement (state pension, rental incomes, Isa investments, final salary benefits, employer pensions). Compare the two numbers. The shortfall figure should guide your action plan.
If you're not meeting your target, you'll have four main options: retiring later, saving more now, accepting less retirement income, or taking more risk to improve returns.
Steve Laird, an independent financial adviser at Carrington Wealth Management, has these top tips: 'If you have one or more existing pension plans, get a projection of what the benefits are likely to be at your chosen retirement age. If you have a company pension scheme you should be able to get this information from the scheme trustees.
'If it's a personal pension plan then write to the plan provider. Ask for a projection 'in today's money' – this will give you a much better idea of what you'll be able to buy with your pension fund.
'If there's a big shortfall between what you'll get and what you'll need then the time to take action is now – the longer that you leave it, the more it will cost you to make up the difference.
As a guide for how much to save, Alan Maxwell, a chartered financial planner at Corporate Benefits, says around 10% to 15% of your salary should be dedicated towards long-term planning - at all times.
2. Take advantage of Isas
Each year you can save up to £10,200 into an Isa (£5,100 in cash). Each year the allowance rises slightly (it's linked to inflation).Isas are simply investment 'wrappers' that shelter your cash from the long arm of the taxman. For basic rate taxpayers, this is a better saving solution than a pension (see below). The key difference with Isas is that you have access to your cash before age 55. If you're unsure which is right for you, check our Isa vs. Pension pros and cons round up.
Danny Cox, an adviser at Hargreaves Lansdown, says: 'Make full use of your Isa allowance. Less tax means the potential for much better returns from your savings and investments.'
Ian Lowes, of Lowes Financial Management, says: 'Despite the fact that Isas have been around for more than a decade, there is still a lot of misunderstanding surrounding them.
'An Isa is simply an annual allowance that everyone over 18 has to shelter some of their investments or savings from income tax and/or capital gains tax. They should be used by most investors each year in one form or another.
3. Use a pension to claw back tax
Pensions are the archetypal retirement savings product. It is more than possible to get all the way to retirement without them. But higher rate taxpayers should take note: a pension can help claw back some of the 40% or 50% tax you cough up each year.
Quite simply, the Government refunds your income tax when you store money in a pension. This is reward for being unable to use it until you're 55. Income tax is paid on the way out of the pension in retirement. But, the benefit is that you'll probably qualify within a lower income threshold – usually as a basic rate taxpayer – and so reduce your percentage liability from 40% or 50% to 20%. Additionally, you can claim a quarter of the pension pot direct as a tax-free lump sum – you'll never, ever have paid tax on this cash.
Ian Lowes says: 'Tax relief means a £1,000 contribution will cost a higher rate taxpayer just £600. The downside is that you can only have 25% of the fund back - and only once you're at least 55. The rest of the fund has to provide a taxable income (via an annuity or drawdown policy – see below).
4. Check how your pension is invested
This is one of the serious areas of concern for those already with a pension. Poor performance can leave you seriously under-funded in retirement. In particular, watch out for so-called 'zombie funds'. We warn about these at This is Money.
An estimated 11 million savers are trapped in failing pension funds that deny them thousands of pounds of yearly income in retirement.
Peter McGahan, an independent financial adviser at Worldwide Financial Planning, says: 'Make sure your money is being invested by the best fund managers. A decent investment-based IFA will know how to pick these.'
Alan Maxwell, a chartered financial planner at Corporate Benefits, says many people - particularly those with funds in very old pensions - never bother to check how their money is managed. They just presume solid returns are a given. They're not. With fund managers changing regularly and performance varying, it's a serious concern.
Nick Lincoln, independent financial adviser at Values to Vision Financial Planning recommends that younger investors with more than ten years to retirement make sure they're reaping the rewards of the stock markets.
'It's too risky to invest in anything else (risk defined here as the likelihood of your fund not growing fast enough, which is the biggest risk of all),' he says. 'Divest back out of equities as you approach retirement.'
In your 50s, you must reconsider your 'risk profile'. This means opting out of riskier investments – shares – to lock in your gains. Instead, cash and bonds will provide a more consistent return.
Chris Wicks, a chartered financial planner at Bridgewater, explains: 'If you are retiring in the next couple of years you need to start to reduce the risk of your pension fund by moving to fixed interest and cash funds to avoid the impact of a last minute stock market drop on your retirement income.
5. Cut costs with a fund supermarket
To optimise your investments to the full, steer clear of dinosaur personal pension plans altogether. Instead, try a Self-Invested Personal Pensions (Sipp). These allow you to choose exactly how your cash is invested, whether in shares, funds, commercial property or something else. Created 21 years ago for high net wealth savers, they have become far more accessible in the 21st Century.
For the majority of mid-wealth investors, a fund supermarket-style Sipp – which is simply a low-cost platform for investing in different funds – could work perfectly.
Danny Cox says: 'Use a fund supermarket to reduce costs and simplify your investments. As the name suggests a fund supermarket is a one stop shop for Isas, Sipps, funds, shares, ETFs and investment trusts.
'They buy in bulk and pass those savings onto the investor, meaning you can invest in a unit trust saving as much as 5.5% on the cost when buying direct. Fund supermarkets enable you to consolidate your investments and pensions into one simple statement, view the value at anytime on line and deal on-line from the comfort of your own home.'
Some of the cheapest fund low-cost Sipps are run by Hargreaves Lansdown, James Hay, AJ Bell's Sippdeal, and Alliance Trust. Help on finding the cheapest low cost Sipp.
6. Get the right annuity
From April, some retirees will no longer need to purchase an annuity to convert their pots into an income. It will be possible, instead, to stay invested in the stock market and draw money slowly from your pot.
But the operative word here is 'some' people. Most will still find that the secure income stream from an annuity is necessary for a hassle-free old age. Others simply won't be allowed to opt out of annuity purchases because their funds won't be large enough. More on the new rules here.
When you hit retirement, it's absolutely essential to shop around for the best annuity rate. At the beginning of 2011, a £100,000 pot typically buys a pension of just £5,500 a year for a couple. But different insurance companies vary wildly - by as much as 20% - in the sort of income they'll pay in exchange for your pension pot.
This is particularly important if your health is poor as you may qualify for an enhanced rate - sometimes a huge 30% - 40% more. This applies to smokers, too, as their life expectancy is shorter.
Peter McGahan points out that some pension plans provide 'guaranteed' annuity rates that comprehensively beat the open market options. But he warns that even then, these they aren't always the best option.
He says: 'Check whether your pension offers a guaranteed annuity. As you retire you might see this is around 8% or 9% and that looks very attractive. But when you dig deeper, you'll find that these often have serious downsides. Firstly, most don't include spouses in the terms. That means that if you die, your partner won't benefit – the payments will stop. (source www.thisismoney.co.u )
Best pension plans tips 2011, best pension plans tips 2012, best pension plans help 2011, free pension plans tips 2011, best pension plans walkthrough 2011, best pension plans techniques 2011, How to sort out your pension in 2011, pension, pension plan, pension protection act, nj pension, pensions and investments, pension accounting, pension plan accounting, ifrs pension accounting, pension accounting basics, pension accounting 101, pension vs 401k, pension plan vs 401 k, pension plans vs 401k.
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