Beautiful, indestructible, rare and conferred the unique status of universal currency

Gold is stable in times of global geopolitical instability and when there is economic uncertainty, recessions and depressions

How to Invest in Foreign Currencies. Investing in foreign currency is an extremely lucrative way to make money on a very fast cycle

Once you know what factors to look for, it can become quite easy to keep up with trends and make quite profitable currency exchanges

How to Invest in Bonds. Bonds are the prototypical traditional investments, as opposed to stocks, which are more speculative in nature

Bonds are a type of investment that results in an investor lending money to the bond issuer in exchange for interest payments

How to invest the safe way with CFDs. Contracts for difference are powerful instruments that can be a force for good or ill. Because, although for a given amount of money

Investors and traders from all backgrounds and levels of experience are now using CFDs to increase their returns and better manage their risk

How to Invest in ETFs, Exchange-traded funds are gaining popularity because they're cheap to trade, tax-efficient and transparent

Learn which ETF investing strategies will work best for your portfolio. Use ETFs to hedge risk, gain market and industry exposure or balance

Monday, February 17, 2014

Inflation , money and wealth

Inflation is the great enemy of savers , and also for many savers is a silent enemy , as they hardly have it.



In many cases , savers who do not want to take risk , liquidity stored , without realizing that that is a risk in itself by the corrosive effect of loss of purchasing power .

Wealth is not measured by the money you have, but by the goods and services you can buy with that money. Probably 1 € today , like $ 1 in the next 25 years lost more than 35 % of its purchasing power.

That's why we invest money becomes a necessity if we want to preserve our wealth and purchasing power to the future. In other words , if you invest for risk and leave your money in a bank or under the mattress for the long term , what you're really doing is an investment that you are generating losses.

The objective of savers is to preserve their wealth , while the goal of investors is to preserve their wealth and look the same growth . They may seem like two different goals , but the first is the necessary condition for the second , and the second is the necessary condition to take effect the first .

Maybe in periods of moderate inflation can ignore this factor , but in the long run, inflation remains the most persistent goal of preserving wealth and growing threat.

How to fight inflation?

For short stay not always calculated annual inflation of 2.5 %. That is the minimum annual return you should get for your money saved. Some people want to take more risk , while others are not prepared for it, so a 2.5% we can still get in fixed income (bonds, deposits , etc ...)

However, always remember that in exchange, if we invest for the long term in stocks that pay good dividends , the dividend would be our fighter to beat inflation

Whether we invest in fixed or variable income , compound interest is the most important part of our strategy to grow our wealth, and therefore , our purchasing power

To get an idea , if when we speak of compounding we are saying that a small amount of money, with a modest profit over time can turn into a fortune , because inflation is exactly the same but in reverse , where a large fortune , with a modest loss of purchasing power over time, can make you lose much of your funds , given that money is just paper , and what counts is the amount of things you can buy with that role

Again, never ignore the erosion of inflation , however insignificant it may seem to you

In 5 years , Google will be the most valuable company on the planet

The 3 largest companies by market capitalization at the moment are: Apple ( 484.000 billion) , Google ( 401,000 million) and Exxon Mobil oil ( 399,000 million) . Between 3 add a review more than one billion of euros.



Although it May seem That Google shares are expensive to $ 1.195 per share , the fact is That Could double this value in 5 years . In fact , if a company can Overcome the historical threshold trillion market capitalization today , this company called Google , a company That is in a key position to dominate the world . Over time , if the Mountain View boys Their owners continue innovation and diversification , revenue from Internet advertising Could be only a fraction of total company revenue

No other company in the World that currently has a monopoly on services and income through internet Which in turn Provides liquidity to the company to be able to acquire key companies

What we see today as an internet search engine + Hundreds of free and premium services That make this company one of The most profitable in history ( not just ICT) , Eventually will be a company Whose main eating Revenues from physical products and services today have nothing to Do With the main income of the company

That Google has something no other companies When thinking acerca diversification , and is able to detect trends in tastes of users even Before They Occur , thanks to the Implemented algorithms in its search engine , que lends him a competitive when it comes to having a reliable market research , or at Least interest in a specific market advantage

In 10 years , shares of Google Could Exceed $ 3.500 per share

Not anything crazy this scenario , taking into account acquisitions and investments That Google is doing in all kinds of fields , from renewable to its own ADSL , not to mention the future of internet payments pass through his hands Could . The notion That someday Google Provides financial services to financial institution and Become is not farfetched .

Google May Also play an important role in future cars , device (smartphones , PCs , Glasses ....) of the future and all kinds of products you can not even suppose right now . We recently met the last Google alliance with Foxconn to Develop robots to replace humans in factories 

4 main differences between how they think the rich and poor and middle class

It is clear that millionaires have achieved wealth because they thought differently from poor and middle class way . Much has been written about it , from the mystical and spiritual aspects to the most logical reasoning. We will analyze the top 4 we consider (and probably psychological) logical differences separating building wealth building something that is not wealth .


1. Habits regarding money : the middle class is focused on spending or saving . Rich people focus on generating and winning.

Said Steve Siebold , author of " How rich people think " that the middle class is taught to keep ( save ), but with the problem that saved a very small amount of money, because our income is too small .

If you charge € 1,000 per month and save 20 % of that money , you are saving every month 200 € . If you will enter € 10,000 per month and will save only 10% , you'd be saving € 1,000. And this scenario would be among the lucky ones, because really most poor class can not afford to save virtually nothing .

That's why the rich do not focus so much on saving , but to increase the income received , and thus to increase the money into savings .

Regardless of how much you save depending on your income , hard, specific exceptions , attain wealth. Financial education , the word "bank" is synonymous with " devaluation" . That is, if only save money , it loses value over time due to inflation.

That's why I always insist that at present there is not a single fortune in the world of more than 1,000 million that has not gone through equities. The money we earn , you have to invest , and to invest , we must understand investments. The problem is that the poor and middle class do not want to spend much time finance.

2 . There are only 3 ways to achieve wealth , and the poor and middle class tend to have apathy towards them.

The only ways to achieve wealth are:

With a business.
Investments .
Both options ( chosen by millionaires )

The poor and middle class seeks to work for large companies, while the rich know that the only way to wealth is to build a great company.

That's why many of the millionaires, spend much of their time to the knowledge of the business and investment , continually looking for ideas to solve a problem to others or allow more income to its particular economy. In any case, knowing about the existence of risks in business, but they also know that a strong reward for their efforts is hiding. However, typically work under a controlled and well-studied risks.

Remember that there is nothing wrong with taking risks. Downside is no control risks.

3 . The rich and know that money can not buy happiness , but you do not know that your happiness depends on money.

Perhaps the consolation of the poor is to think that money can not buy happiness , but basically , anyone who utters that phrase, I think you know that is saying a tremendous nonsense, because the lack of money you fucks health in some countries will prevent access to the health system and prevents you enjoy warm moments with family .

Money is very important for the poor, but not for those who are already rich , because you have to have 1,000 million 60,000 million , happiness does not change. In your case, having € 2,000 per month to have 600 € per month varies world.

That's why the money becomes emotional for the poor, emotions are still moving into the daily habits , wherein when the middle class gets extra income, think about how to spend on whims that make them happy , while the class of millionaires lived in a constant feeling of happiness to be aware that they were building something and enjoy the process along .

4 . Planning .

While the middle class apparently lives in a planning day ( 8:00 to go to work and at 22:00 I go to bed ) , the rich class has other type of planning, with short goals and objectives term .

The largest builder of poverty is dependence on one income , because that income received while we adapt , and when that income does not come, we miss and increase the problems.

The rich class focuses primarily on diversifying its revenue sources . It is that which has always been called construction of assets that we generate passive income , but certainly there is no better passive income to create a profitable company or hundreds of companies , such as Richard Branson.

But I really think the biggest difference between the rich and the poor is that the poor start to defeat a road whose outcome is already destined to fail to consider that will not be able , while the rich know they are capable of anything .

This feeling of anticipated defeat is what makes the poor class does not miss a minute of trying to learn what that once learned the rich class , and slowly losing ambition leading to struggle to survive .

Basically the 4 pillars would of thought that must be changed , and then we continue to prepare for the hard way that many will begin , and only a few reach

What Warren Buffett never did and it was always

Investing in Great Companies with sustainable competitive advantage at good prices



In this simple sentence we can summarize the secret of success in investing Warren Buffett. In this way, even a fool could get rich. But to get into why people find it so complicated as investing genius , we perfectly understand other messages and attach them to this simple phrase


An academic study that was published in Forbes, emphasized that when you know exactly how the mind acts Buffett disappears completely luck . There is no magic , no tricks or Kharma . Warren Buffett is one of the few people today who amasses a fortune of 60,000 million because it has only done so for over 50 years has told you what everyone has done during those 50 years. Not everyone really does what it says it does. To understand this fully , we will dissect his secret investment in only 2 parts :

1. What ever did
2 . What has always been


What ever did

To know how a person has reached a certain place, we should be clear what you did to get it . That part and know, but maybe he did not charge more sense in this case

James Berman , president of JBGlobal , recalls the first time he learned of the existence of such a Warren Buffett through traditional media. It was between 1973 and 1974 , Berman and his attention the fact that in one of the bear markets that had seen the Dow Jones leaving 45% , this article only mentioned Warren Buffett investment opportunities massacred values clinging to them and recommending its purchase. Something collided with the other items of analysts era, which only spoke of the oil crisis , the Middle East war and President Nixon

Not once came to naming profitable investments fashionable , the government did not speak , but went into detail in the micro affecting the businesses of the companies that was naming aspects

Soon, Berman was found that it was impossible to be more successful in the recommendations made ​​in the publication. At that time , Buffett and became famous for proclaiming that he did not spend his time in the macro - economy and energy spent trying to guess what the markets will do

However, the attempt to predict market movements is a mistake to continue to fall in even the most faithful followers of Warren Buffett (and recognizes server also make that mistake )

One thing is clear in this regard , is that if Buffett had been influenced by macro least , never had the success it has had on the world of investing . It would be another investor more

Why most people do not make money in the stock market is mainly due to follow false leads that Buffett ignored. James Berman puts a very clear about what Buffett example :

" Buffett is the gifted child during a magician 's trick , not following the diversion of attention and is set to do the trick ." Ie always focuses on what really matters , while others focus on the deviations of market attention

What ever was

It appears that Buffett 's skill as an investor does not have much to do with his skills in finance, but his skill as Director General. If we expand Buffett 's advice that tells us not to invest in businesses that do not understand, we would conclude that Buffett would not invest one euro at a company that was not able to handle.

In fact, when Buffett invests these large sums of money in a few companies makes advising companies in which it invests , and thus the return on investment is assured.

If we decompose the returns of Berkshire investments traded companies and private companies acquiring and operating the company under the command of Berkshire , are exactly the same , so it is clear that their investment skill is in his vision as Manager and knowledge of business management .

That's why most investors fail to match the performance of Buffett , as they tend to study everything about the bag, but they bore issues like Human Resources and Corporate Leadership .

If you want to be a good investor, you must be a great entrepreneur , and if you want to be a great entrepreneur , you must understand investment . Management and understanding of a business would be " to wax, polishing wax ," which at first would be bored , but they are the foundation of what would later become your skills in these seemingly different fields , but completely united.

In short, Buffett has succeeded in investment because "equity finance" passed into the background leading to the management, administration , management and finance applied to business . What has really always been Buffett is an expert on business management , so only invests in companies that even a fool can run , because as Buffett himself said : "features some idiot someday direct".

Sunday, January 19, 2014

Where to invest in 2014.

In which markets to invest?

Time for a great review in terms of markets and actions around the world in search of investment opportunities for this 2014. Not to make this report too long to digest and properly , we will be divided into different parts . First we will try to find undervalued markets and / or possible potential, and then seek investment opportunities in such action.



American or European ? Bag bag?


While it is true that the European stock market could be " cheaper" than the U.S. and that at first glance might have more upside potential , the fact is that if we go into detail , American companies could continue to have much more potential than companies European .

The U.S. stock market has been one of the most profitable markets since the crisis erupted . We expected a major correction in the indices of Wall Street, correction has not yet arrived, and if you arrive , also affect the European markets .

If we forget Europe , listed on Wall Street have more growth potential than European listed , at least from the fundamental side. Of course technically , has much more potential European market , with Spain and Italy leading the way. However, since not underestimate technically highs indexes Wall Street.

True emerging markets.

In November, Jim O'Neill, who coined the term BRIC , thus referring to emerging economies - Brazil, Russia , India and China - changed the name of this term: The BRIC now would be MINT , covering Mexico , Indonesia , Nigeria and Turkey.

But we go further , and we should not underestimate other much smaller economies and could have Vertigo tours .


UAE : composed of seven emirates : Abu Dhabi, Ajman , Dubai, Fujairah , Ras al- Khaimah , Sharjah and Umm al- Quwain, Qatar, Kuwait

UAE investment probably has one of the best Risk - Return equations because that economy is expected to grow uncontrollably in the coming years . You only need to take a look at the hundreds of macro - projects that have pending . In fact, the index has yielded returns of vertigo.

Whether it's the UAE and if we talk about Qatar and Kuwait, are areas of extreme wealth in which they can live their own housing and financial bubble. Although he has had strong ratings, would still betting on the financial sector in that part , upon on these financial corporations whose board are the " petro - directors ."

Not to forget the local and national exporting companies Oil and Natural Gas.

Singapore

Singapore is replacing Switzerland as a tax haven , and so they also bet on the Singapore financial sector could be a very profitable investment.

Southern Africa :

Although many of these economies have the problem of political instability , could be excellent opportunities for companies that want to invest there with a view to long-term investors who want to be putting together a portfolio of investment in 2014.

Ghana

Ghana is Africa 's favorite since the " black gold " was found in 2007. In fact, various reports predict a growth of over 7% this coming year.

The International Monetary Fund ( IMF) said the growth of the economy, which starts to solidify its democratic institutions and is attracting foreign capital to boost the export of oil and gas.

Kenya

When talking about Kenya, many imagine men hunting lions with a bow (and yes , you may still do that ) , but the Kenyan stock index had a yield of 30% , ranking as the best in Africa.

Kenya is a major commitment of institutional investors. Significant growth in its economy for 2016 is expected .

Nigeria

Similarly, it is one of the economies that have gone unnoticed for years and now begins to emerge.

Argentina 

The problems of Argentina are high inflation and financial repression . Perhaps one thing that investors do not like is the limitation of dividend payment . However, the weakening currency will make this country more competitive whose valuations of listed , are really very cheap . No longer a market risk, but offset our risk-return equation .

Pakistan 

Wherever we see wars and religious and political with neighboring conflicts, economic weakness that causes a review downward its economy emerges , although you can take advantage of these low valuations to enter business in evil, are the strongest .

According to Reuters , the market has earned and continue to earn attractive because you are now allowed to buy shares without giving any explanation of the origin of money , something that will surely draw the continuity of investment.

Romania

One of the most neglected in terms of markets to foreign investors , but at the same time is one of the economies whose growth is noted as solid. In addition , its public debt is very low. It is expected that by 2014, its economy will grow by only 2 %, but Romania is a country that is beginning to emerge and will need completely constructed .

Moreover, in a few years , Romania will become a country that require foreign labor to build infrastructure. As an investment, must be taken into account in the long run, among other things, for its listed companies are doing very well.

Bulgaria 

The Bulgarian Stock Exchange index has growth by 55%, clear that only has 2 companies are Sopharma and Chimimport , but is expected to include other companies. Question of analysis. Bulgaria is one of the economies that may surprise in the coming years in Europe.

Vietnam

Vietnam could be more profitable than China and Japan , according to many experts who believe that this economy is taking giant steps in the modernization and development.

In the second part we will continue with specific companies , as these markets may be undervalued , given growth potential.

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