Monday, March 11, 2013

The New York Stock Exchange Current Trend

While some experts feared the downward effect of New York Stock Exchange might have lead to short-term maturity of U.S. budgetary and fiscal measures, the New York Stock Exchange seems - for now - to ignore such considerations. Better yet, the Dow Jones, its flagship index posted its fifth consecutive day in a record close, rising 0.35%, or 50.22 points, to 14 447.29 points, the Nasdaq gaining for its part 0.26%, or 8.50 points to 3252.87 points, which is something that had not seen since November 7, 2000. The broader index of Standard & Poor's 500 meanwhile rose 0.32%, or 5.04 points to 1556.22 points, grazing near its highest closing level (1565.15 points) taken October 9 2007. Reasons for this surge: the Friday announcement of a lower U.S. jobless rate to 7.7% in February. A new boom is even possible if you believe some analysts saying the recent passing of a new record for the S & P 500 would be a very positive psychological effect on brokers and investors, this index is considered by many them as the benchmark. Currently, the markets do not seem to expect a decline in the short term, although some experts are already predicting that such high levels cannot be maintained for very long. In the end, the good performance of the stock market will give some surprise, especially such a flight can be maintain until any changes in the global atmosphere. In contrast, industrial production in China had its slowest pace since 2009 in the period January-February. In Europe, the political crisis in Italy is rather seen negatively by investors, who fear that a coalition government is formed not long before. Context compounded by the demotion of a notch on the rating of the country made Friday by Fitch. The U.S. budget deadline of March 27 is fast approaching, which could be synonymous with closure of non-essential services administration and fiscal cliff. Elected officials do in fact have a few days to complete a law funding covering the last six months of the current fiscal year. Recall that on March 1, came into force automatic cuts in spending from the federal government 85 billion over the next seven months.

Thursday, March 7, 2013

European Financial Stability Fund



The European Financial Stability Fund (EFSF) commonly known as European Relief Fund is a mutual fund claims approved by the 27 Member States EU May 9, 2010, to preserve financial stability in Europe by providing financial assistance to states in the Euro area economic difficulty. The EFSF has its headquarters in Luxembourg. The European Investment Bank provides cash management services and administrative management in the framework of a service contract. Created May 9, 2010, the EFSF could not be intervening after having been ratified by 90% of Member States; this threshold has been reached on 4 August 2010.

The agreement was ratified by the three Member States (Belgium, Slovenia and Slovakia) in early December 2010. Following the summit of the Euro group of 11 March 2011 bringing together the leaders of the Euro area, an agreement was reached to increase the effective capacity of the EFSF intervention to 440 billion Euros, with an increase guarantees the states of the Euro area. Moreover, since the summit, the EFSF has the right to buy the primary debt, that is to say, newly issued, states. Thursday 21 July 2011, the European decided to expand the EFSF's role: it can now buy government bonds on the secondary market, participate in the rescue of troubled banks lend to States in a difficult situation. Its action is subject to the unanimous opinion of the participating countries and the European Central Bank.

 These provisions do not come into effect after ratification by national parliaments. The first bonds of the European Financial Stability Facility were issued on 25 January 2011. The EFSF placed its first five-year bonds for an amount of 5 billion Euros in financial support joint EU / IMF to Ireland. Investor interest was exceptionally strong, with an order book of 44.5 billion Euros sales offers. If the EFSF has not been activated, it would end after three years, that is to say on 30 June 201 3. The Fund will exist until the last obligation has been fully repaid. Both funds will be replaced in 2013 by the European Stability Mechanism.

Oil Trading!


Oil is a raw material which is now become increasingly rare and therefore sought, and usually one of the most requested asset from traders and especially those who have chosen trading options: in fact, the oil and news often pair; one does not go without the other. Because oil is owned by a small handful of states producing together under the name OPEC, any event that happens in one of these states has a direct impact on the price of oil which then sees his current fluctuations through the world. The investment in oil drilling reached a record high in 2012, and the number of offshore projects got momentum. Meanwhile, the oil services industry regains its record levels of activity in 2009 in all segments: geophysics, drilling, offshore construction. United States, fracturing (used to exploit shale gas) focused $ 50 billion investment, or 20% of total drilling investments in the world.


This dynamism intensified competition strong among Chinese and Korean companies on these activities. In refining, the contrast is widening between Europe and the United States, where production capacity stagnated and Asia / Middle East which concentrate 80% of refinery projects. IFP expects a price of about $ 100 per barrel in 2013, after an average of $ 110 in 2012, but rising oil prices could resume in case of war with Iran or Syria. Oil Trading carries many benefits. More reports are available to traders to understand the market trends. These include among others, regular publications and the reports and forecasts of oil producing countries. In addition, this type of trading provides benefits up to 100%. Thus, this sector presents a great risk control.


It allows a diversification of investment returns. Finally, you can access many online brokers very easily. Investing in oil can be a good start in binary options. It does not necessarily have previous experience significant knowledge. However, to successfully accumulate profits, place heavy investment and long term. Oil trading is the fastest way to get gains. So it is up to you to make the appropriate choice for binary option bonus from the asset.

Tuesday, March 5, 2013

Why you should invest in Gold?



The Periodic Table of Commodity Returns in a user friendly format shows a decade of results across 14 different products. Last year, 11 products have increased in value with the wheat harvest in top of the list after experiencing quite a decline in 2011. Then later the following metals lead, zinc, natural gas and platinum entered the race for the rich. Their values have seriously increased in 2012, 2011 being the year of the falls. Only 3 products declined throughout year 2012: crude oil fell nearly 7% after an increase of 8% the year before. Nickel declined for the second consecutive year. In 2012, the metal has lost 9%, while in 2011 it had dropped to 24%.


 Coal is the least performed product than all other products in 2012, falling by nearly 17%. It had a bad dead lately. In fact, this product has no known heyday for the last 5 years (although in 2010 the metal is Designed an increase of 31%). As we can see in the table, the products often suffer from significant price fluctuations from one year to another due to many factors affecting supply and demand as government policies, trade unions and strikes currency volatility. This is why when it comes to commodities and commodity producers, many investors decide to hand to portfolio managers who understand the industry products and global trends that may crack on each product.

 For example, gold and mining companies: After investing in the gold industry for decades, we noticed several facts about gold continue to surprise investors. Here are few of the most recent developments: Gold has grown steadily for more than a decade. While the yellow metal has had its ups and downs in 2012, gold continues its course. It finished the year up 7%. It's been 12 years that gold is rising. The table shows the position of the other gold products every year. What is fascinating is especially the recurrence of this cyclical increase over three years compared to other products. This scheme would allow predicting that the year 2013 would be the springboard for a sharp rise. Gold should be a strong product in 2013.

It seems that the printing will continue to operate against the wishes of some central banks balance sheets. Gold will know good days of coming months. Let's take a look at the projected increase in the balance sheets: as% of GDP (GDP) of the ECB, the Bank of Japan, the Federal Reserve of the United States and the Bank of England in 2013. It is estimated that the ECB's balance sheet reaches almost 50% of GDP by the end of the year. The Bank of Japan is located just behind the ECB with a balance that is close to 35% of GDP. Can we rely on these assessments? If we take into account the reckless actions of central banks, it would be better to hold gold as paper. Interest rates do not go red, gold still keep its brilliant shine for another good year. Gold is the product which is less volatile in the table. This may be surprising but gold is the least volatile of the 14 products. The last 4 years have been better than we thought. Gold knows a good rise since 2009. 2013 should confirm this upward curve.

Friday, March 1, 2013

Why Gold and Silver is always a good investment?

In recent years Gold, considered as a safe haven, gradually changing status to states and savvy investors to regain its historic role as the reserve currency. This should lead many investors to make an investment vital for years to come. End of 2011, a significant change in status of gold has very little was echoed in the mass media: Venezuelan President Hugo Chavez demanded the return of the gold reserves of the South American country in the trunk strong national bank, its reserves are kept in the far western banks. At the time this request spent more provocation for Chavez to the west for a rise in the role of gold. But in January 2013, Germany the first power of Euro zone country much more symbolic, has called for the gradual repatriation, by 2020, all its gold reserves stored in Paris (374 tones) and some of those stored in New York (300 tones).

 End of 2012 the gold reserves of Germany amounted to 3391 tons, and accounted for almost 80% of foreign exchange reserves of the country. It is the second largest gold reserves in the world after the United States but to those of the International Monetary Fund (IMF - about 8,000 tones) and Italy (2,451 tons). France is in fifth position, with 2435 tons. The Euro zone crisis has led the German public, inspired by some conservative politicians to worry about the national stock of gold. The German equivalent of the Court of Auditors asked last October to establish an inventory of the gold stock of the country.

Euro skeptic politicians have publicly questioned the extent of German reserves abroad, asking for their repatriation. Germany justified the repatriation of reserves by the lack of possibility of change, but it clearly demonstrates that the national gold reserves are again a strategic issue. This decision may be treated as a major event (compare Gaulle's decision in the late 60s that had ended the Bretton Woods system) which foreshadows the return of the gold standard. Countries have clearly lost confidence in the central banks (New York Fed and Bank of England), supposed to hold physical gold on behalf of many states. The gold is perhaps more simply as GATA says, lent to banks and sold on the market to keep prices under pressure. Thus, they save more time confidence in the monetary system of silver "paper" not convertible.

 In addition, the market for paper gold, would be a hundred times larger than the physical market. The day that investors will obtain delivery of their gold-backed paper that there will not be enough physical gold to satisfy demands. Gold is a material present in limited quantities in the world and its scarcity intensifies over time. Repatriating its gold, Germany eliminates counterparty risk and ensures really hold physical gold and not pieces of worthless paper.

With these repatriations that give us a strong signal of progress towards the degradation of confidence in currencies, families should reconsider the amount of gold and silver to possess. Gold is money. Its role is to safeguard the wealth. Especially the yellow metal still beautiful day ahead when we know that less than 1% of financial assets in the world, destroying every argument bubble in gold. At the same time, monetary impressions launched by the Fed and the ECB devalue paper currencies and does not restart the economy. Gold (and silver) continue to reflect the destruction of paper money. It is not gold rising; the dollar, the euro and the pound sterling fall and this may continue. These safe havens are not diluted by central banks.

Silver is also a precious metal and historical ratio gold / silver is 16. That is to say that every gold coin you possess worth 16 pieces of silver. Today this ratio is greater than 50. Thus, investing in silver metal should be more profitable in the long term, provided they are patient and mentally strong to withstand fluctuations in its price. To eliminate the risk of counterparties must hold his gold outside the banking system, directly in physical gold. I advise to hold a small portion of its assets in precious metals, in order to keep this future security. Money that we do not need a long-term horizon may be invested in it. Invest around 10% of your assets in gold and stumbling sounding reassured, but for the rest

 I prefer you to invest in developing your income. Precious metals have this defect, they produce nothing. Besides this, you can buy stock of assets, real estate, which in turn will generate regular income.