Investment Guide in a Crisis-Laden Business Environment

Possibly by now everyone is already aware that the business world has been hit by a global financial crisis which affected adversely many companies in terms of their operation. As a consequence big investment and lending companies have either reduced or totally cut-off their investment as the market is no longer receptive to any business venture whether new or expansion.
Thus, this phenomenon has created a ripple effect which gives fears among the general public and resulted to holding-on of purchases on personal needs and deferring of personal investment. People in general are now skeptical about business and investment especially in countries that are badly affected by this crisis for fear that they will just end up losing their money. Although this crisis is global in nature there are still countries that provides a good investment climate, hence this would be the task now of an investor to identify.
And one of the best ways is to know and understand the macro-economic performance of a country through their economic indicators. With the breakthrough in information technology this is not difficult to obtain these economic indicators and from this data one can set up criteria to be a guide for investment.
If in the stock market one should look at the performance of the particular company, so as with the investment in the country one should look at the macro-economic performance through its economic indicators as follows:
a) Gross domestic products (GDP) - refers to the economic growth or shrinkage and is normally presented in percentage. A negative GDP or barely above zero will show you that the country is in economic troubles.
b) Gross International Reserve (GIR) - refers to amount of the country's wealth and this is shown mainly in terms of its capacity to pay for its imports. Normally this is measured in terms of the number of months to cover for imports. A month's import cover is critical; hence, it is not a good move to invest.
c) Currency- refers to the value of the country's money with respect to the generally accepted monetary standard value (US Dollars & Euros). A lower value of money compared with its historical record is not good as it makes investment becoming expensive.
d) Inflation - refers to the rate of change of prices of basic goods and services. A high inflation is not good for the people as their expenses on basic needs tend to go up; thus, reducing their savings for purchases of other goods and may not be good for the business in general.
e) Interest rate - refers to the cost of using or borrowing money. A high interest rate is not ideal for the country's investment and business as it becomes more expensive to operate.
f) Industry sector growth - this refers to the different areas of operation such as: Agriculture, Automotive & Machinery, Power, Real Estate, Telecommunication & Information Technology, etc. This is quite important to look because your investment success is determined by the performance of your chosen industry.
These are but a few of the macro-economic indicators to evaluate aside from the specific project description and business details that a potential investor should evaluate in order to assure him that his investment will achieve a higher degree of success.

Your Investment Options

Understanding your investment options may be simpler than you think. All investment opportunities can be placed into one of four categories. Where you should invest money to make money depends on your financial objectives. Do you want to save money or do you want to invest it? Here are your four choices, starting with the safest.
SAVE MONEY: If you are not in a position to invest money and accept even a moderate level of risk stick with cash equivalents and savings plans. Examples include T-bills, money market accounts, money market funds, Savings Bonds, CDs, and the fixed or stable account in 401k and similar retirement plans. All of these investment options pay interest and your principal (the money you invested) is safe.
BONDS: The financial objective when you invest money here is to earn more interest than you normally do in savings plans or in cash equivalents. Risk is at least moderate since bond values are not fixed and the price of bonds fluctuates. Examples include T-bonds, corporate bonds, municipals, and bond funds.
STOCKS: Investment opportunities in stocks involve more risk than the two general investment options above. Stocks are the primary growth investment for most investors, and stock prices can be volatile at times. But if you want to make money over the long term and stay ahead of inflation and income taxes, you should invest money here. Examples include domestic (U.S.) equities (stocks), foreign equities, growth stocks and value stocks.
ALTERNATIVE INVESTMENTS: If you are looking for growth investment opportunities outside of the stock market and/or want to offset the risk of owning equities consider other (alternative) investments. Examples include real estate, precious metals, foreign investments, and natural resources like oil. When you invest money here risk can be significant and so can the profit potential.
That's it. Those are your four basic choices if you want to save money or make money investing. Don't expect to make big profits in savings plans or in bonds under normal circumstances. And don't expect to get safety if you pursue bigger profits in stocks or alternative investments.
Smart investors take advantage of investment opportunities and are willing to accept a moderate level of risk. They invest in all four of the above investment options.

10 Reasons Why the Gold Price Will Rise Rapidly

There have been some incredibly interesting and provocative statements on the subject of Gold in the last few weeks. But the message is simple. Gold will continue to rise. The question is how far and how fast.
The manager of the USAA Precious Metals and Minerals Fund - the number one precious metals mutual fund over the last 10 years - believes gold stocks will gain 2% to 3% for every 1% move in gold. As our target for gold is at least 100% from here - in excess of $2000 an ounce - this would mean gold stocks could rise 200-300%. And the more speculative stocks are likely to far exceed these targets.
To feel comfortable with investing in precious metals, investors need to be aware of the reasons for the expected rise in the gold price. In no particular order, these are the primary reasons why the stage is set for making your fortune.
1. Selling of Gold by the Gold Cartel - the Gold cartel is made up of the US Government and a collection of bullion and central banks. Central banks have long been sources of gold bullion used to manipulate the market and suppress the price of gold - but they are running out. Gold has been sold in such large quantities to control the price, there is not sufficient production to reverse, or even slow down the depletion of gold bullion stocks. The only way of slowing down demand is to let the price rise. However hard they try to manipulate the market, classic supply and demand will win.
2. Shortage of Supply - the current economic conditions combined with the increase in production costs have slowed down gold exploration and production. In addition, the infrastructural problems of South Africa have significantly effected their output.
3. Transfer of Gold Depositories - Hong Kong has recently completed a high tech security vault at the city Airport. The Hong Kong Authorities are, as we speak, transferring its gold holdings from London to its new secure depository. A move like this sends a message - we will be accumulating gold, and we want it safely stored where we can see and control it, where we can access it instantly, and where its out of harms way.
4. Increasing war and social unrest - war and social insurrection can escalate rapidly. The world is already engaged in more conflict than at any time since the second world war. The Chinese are long term thinkers and are undoubtedly taking this in to account as they accumulate gold and silver to store it close to home.
5. China is adding to its gold reserves - China is making no secret of the fact that it intends to increase its gold reserves, and now holds in excess of 1050 metric tons.
6. China is encouraging its citizens to buy gold - with the world's largest population, and one of the fastest growing economies China has made it legal for their citizens to buy gold and silver, and are actively encouraging them to invest in these precious metals.
7. India, which has been the largest buyer of gold until now, is expected to continue purchasing for jewelery, and increasingly for investment. India already eats up the bulk of the annual mine output, leaving limited quantity for ever competing and ever larger demand.
8. GLD, the SPDR Gold Trust buys gold to back its shares. - They are currently supposed to hold over 1000 tons of gold (almost the same quantity.as China). If this is indeed the case, Their demand on gold output is a major push on the gold price. There is more on this subject in our Gold Report
9. Inflation vs. deflation - the argument persists. After a deflationary period, the billions of dollars being pumped in to the markets will become inflationary. Inflation causes gold to rise. When gold last peaked at $887 in 1980, inflation was averaging 14% and peaked at over 20%. Mortgages had risen in excess of 17%. This could happen again.
10. Paper currency devaluation - the steep decline of the dollar has effected the rise in the gold price, but currencies will at some stage be competing against each other for devaluation. All currencies become unreliable, they no longer provide security, and gold becomes the new money. When this stage is reached we've gone full circle, the bulk of assets will be owned by Asian interests and the new world order will prevail.

Anna P. Best was based in Singapore for many years where she developed her interest in precious metals. Until recently Gold has not been an area the average investor would consider, but that has changed and suddenly there are so many opportunities out there to profit from gold and silver. She has prepared a complimentary report packed with facts which you can download at Gold Report
Anna enjoys sharing her knowledge with other enthusiasts. If you join our web site community you will have free access to a valuable regularly updated collection of articles, comments and conversations on gold and silver. Click the Gold Report link above.

Select the Investment Options and Reaching Your Investment Goals

Often times when a little bit of money has been put aside successfully, we end up trying to find a way that we can put this money to work for us. Selecting the right investment options is important when we have investment goals that we want to meet. Allowing the money to sit around within a savings account or hiding it in between two mattresses is not going to allow us to grow our investment or to fortify it.
At this moment, we should be looking into all of the best investment options that are available to us. Select the right investment options and you will be able to reach the investment goals that you have set for yourself. If you are new to the world of investing, and if this is your first time investing, or if you are used to investing and have been in the market for a while, there are still always going to be risks involved that you need to consider. Because there are always risks that are involved in investing, it can be relatively difficult for you to be able to forecast and to establish which the best investment options to make are with absolute certainty.
Traditionally, there used to be a number of institutions that were responsible for grading different available investment options. Based on a number of different criteria, they would factor in an incredible amount of different scientific and economical measures and they would come up with a recommendation to let you know which potential investment would be the best for you.
The problem here is that recently, at least throughout the latest economic crisis, many of these companies have been closing their doors. What they considered to be the best possible investment option actually wasn't that great an investment option after all. Once it was established that even the most highly qualified experts are not always capable of looking into the future and telling us which investment options are the most ideal, it has become necessary for us to return to the basics in order for us to establish a brand new investing action plan.
When it comes to selecting the right investment options for your own investing needs, there are a number of things that you should be factoring into the decision. For example, what are your financial goals, and how well do you know yourself? Are you interested in a short term investment strategy or a long term investment strategy? Are you looking for a low risk investment, knowing that it will come with low returns, or a high risk and high return investment that could go either way just as easily?
Solid options for investment opportunities include gold, state bonds, stocks, shorts and puts, futures, and a plethora of other opportunities and options as well. Make sure that you weigh your options to make sure that the investment options you choose are actually going to get you to your financial goals.

Whether you're dealing with Trinidad and Tobago money, Jamaica Finance, or Bahamas money, merchant banking operations offers a variety of finance services for both personal and business purposes.

Investing in Real Estate For Beginners

There are several primary ways to invest in Real Estate. Some are more popular than others and each has it's own risk/reward factor. In this article we'll discuss some of the more popular investment methods.
House Flipping
Flipping usually means purchasing a property, doing some repairs/upgrades on it and selling it for a profit. In a flipping situation, you're trying to get in and out as quickly as possible. A house flipper has typically taken a mortgage out on the property and has to make monthly payments until the property has been sold. This tends to be the a risky investment, especially for beginning flippers.
Rental Properties
Rental properties is exactly what it sounds like. You purchase a property with the intent of holding on to it and renting it out to make an income. In many cases this kind of investment won't provide you with much in the way of monthly cash flow, but you'll benefit by having your tenant pay your mortgage off. Of course the downside with this type of investment is either not finding a tenant or overestimating the monthly rental value.
Wholesaling
Finally, there is real estate wholesaling. This is my personal favorite investment strategy. With wholesaling, the investor is taking control of a property (often for as little as ten dollars) than markets the property to prospective buyers. When the property is sold, the investor pays the original owner and keeps the extra as profit. Wholesaling transactions tend to be a very quick, usually the entire process takes place within weeks (and sometimes even days).
Well that's the big three in real estate investing. Regardless of which option you choose, the key is always in the planning and understanding of the risks that will be involved. In real estate, the devil really is in the details.

Tax Delinquent Property Investing

Tax delinquent property is a great investment. If you've ever invested in mortgage pre-foreclosures, then you know what a walk in the park tax delinquent property investing is in comparison. Why? Well, a lot of reasons, but first and foremost: no mortgage to deal with.
Because it's so far superior to mortgage foreclosure investing, hordes of investors have flocked over to the field of tax delinquent property investing in recent years. You may have noticed that a new infomercial hawking a tax investing "system" seems to crop up every day. The field is getting crowded, and if you don't know a couple of loopholes, you'll have a tough time succeeding.
What you need to immediately learn to do is avoid the tax sale. That's the first place everyone goes to buy tax delinquent property. New investors abound there, as well as large tax sale investing companies. Staying a step ahead of the competition is key here, so let those two groups duke it out for properties while you take a backdoor approach.
Avoiding the tax sale is deceptively simple: contact the owners of this tax delinquent property, just before the redemption period to bail their property out of tax sale expires, and make a deal directly with them to buy their property. At this point in time, you're dealing with a highly motivated subset of sellers, and they are often willing to sell to you for pennies on the dollar.
There are a couple of reasons why it's imperative to make this your tax delinquent property investing strategy. First, you'll be able to inspect the property before you buy it. At tax sale, this is not the case-- you're taking a gamble on the interior of your property, and what will happen to it during the time you hold the lien or wait for the redemption period to expire. Along that same vein, secondly, you'll get the deed right now. No waiting. And most importantly, your competition simply doesn't invest this way.
They all wait for the tax sale.
Ready for the big cahuna insider tip? The overages created at the tax sale are collectible by the owner. For example, if a bidder at tax sale bids $50,000 for a property, and the taxes owed were only $5,000, there's now a $45,000 surplus due back to the owner. Frequently, owners don't know about these funds, and think they've simply lost everything.
Here's the part that's going to make you drool. In most cases, these funds fall outside the laws that cap money finder fees, if you get them in the right time period. Find these funds, connect them with their owners, and you can expect to be collecting five figure fees within months.

Property Investing Dreams

Being in the position of being able to seek out a property investing dream is something that many people are never going to get to experience. Even if you do have the money to drop down on an investment property, you may not be in the position of being able to give up all of the money at one time. This is where a financing company or credit lender are going to come into play. You can take the money that you are putting down onto the property and take it to the lender as collateral. What this is going to do is allow you to borrow a loan for the rest of the money on the price of the home or even allow you to purchase a much larger home to invest in. As I am sure you are aware, the amount of money that you invest is directly related to the amount of money that you get returned to you once you sell the house. Before all of that though, consider the projects that you are going to be needing to accomplish on the house in order to properly notify the bank or lender to the amount of money you are going to need to borrow.
If you are planning on investing in properties that need large amounts of work in order to be sold on the open market again, then you are going to want to take this into effect before you begin negotiations with a bank over your loan. This is a solid investment strategy because you can often find these houses in dilapidated condition, often requiring massive amounts of work in order to be able to list it for sale again. If this is your case, you are going to want to determine exactly what type of work needs to be completed on the house in order to get it ready to sell, and then contact a few contractors to get some estimates. You are going to want to take these estimates to the creditor and show them what you plan to do with the property, as well as the costs you have projected for it. They can add this amount into the total cost of your loan so that you don't have to pay for any of this construction work out of your own pocket, yet.
You will have to pay back the loan on the investment property you have chosen, either by means of you remaking the monthly payments, or by leasing out the property to tenants that can in turn pay the mortgage payment, and maybe even a bit more, to help you recoup the cost of the loan over time. If you have money that you can invest and leave sitting in one spot for a few years, investing in rental properties is a great way to make back your money. Seeking out financing for these types of investment properties is generally easier than finding loans for larger apartment units or commercial real estate property.

Despite the recent credit crisis, property investing is still an attractive proposition. At least for those in a position to qualify for investment property loans , which is only a small segment of the population at the moment.