The Latest Market Commentary as on 11th May, 2011

I am pleased to provide the latest Pure FX market commentary. Detailing the main factors that have been affecting currency exchange rates recently.

Sterling overview

Sterling took a bit of a battering last month following a string of lopsided economic releases. Important sectors including Services and Manufacturing showed growth but both came in below market expectations – contributing to sterling’s fall against currencies including the euro.
In spite of this George Osborne had reason to breathe a huge sigh of relief. Britain returned to economic growth with GDP figures for the first quarter 2011 arriving at +0.5%. This indicates that Osborne’s budget cuts are working - stimulating growth while slashing Britain’s mammoth public deficit.

The Bank of England meanwhile decided to hold interest rates at 0.5%. This was forecast on the markets but has also contributed to sterling’s decline. Each month that the BoE holds interest rates is another month in which investors receive smaller returns – hence making the pound less attractive.

Sterling weakness is of course brilliant for people bringing funds back from the continent and elsewhere. As always for a more in-depth assessment of your particular currency feel free to speak to a currency dealer at Pure FX.

Euro

The euro remains the biggest climber in recent weeks in spite of a flood of negative headlines – gaining several percent against sterling. The single biggest reason for this climb has been the European Central Bank’s decision to raise interest rates to 1.25%. This prompted the markets to plough cash into the euro since higher interest rates mean better returns.

In fact this climb has only halted last week after the ECB’s decision to not increase rates, proving a great disappointment to investors that had factored in another rise.

In other EU news Portugal became the third euro member to seek a bailout – receiving €78bn from the ECB-IMF. This weekend meanwhile rumours have been rife that Greece could exit the euro. It hence seems the EU peripheral crisis could continue for months to come.

In GDP meanwhile the EMU expanded 2.0% in the first quarter 2011 – providing further fuel to the euro’s fire.

US dollar

In economic terms the US continued to resemble someone walking a tightrope in a strong breeze last month – just about keeping his balance.

The US expanded +0.45% in the first quarter 2011 according to recent data – positive but slow compared to 3.1% growth in Q4 2010. Important non-farm payroll figures meanwhile arrived strong – pointing to 244k new jobs last month – but at the same time unemployment rate increased +0.2% to 9.0%.

CA dollar

The election of a Conservative government in Canada last month should boost the loonie in coming months. New prime minister Stephen Harper is committed to cutting Canada’s national debt and safeguarding the nation’s credit rating – actions that should please the markets.

AU dollar

It’s been a strong month for the Australian dollar on several counts – and the forecast for coming months looks good too.

For one the Reserve Bank of Australia (RBA) raised its inflation forecast last month. This prompted investors to pick up Australian dollars in expectations of an interest rate rise. In addition RBA noted that strong demand from China and India for Australia’s natural resources is set to continue for years to come.

NZ dollar

The NZ dollar suffered last month on reports that migrant intake to New Zealand fell into negative figures for the first time in almost 3 years. This is owing to the earthquake that struck Christchurch two months ago – devastating the nation’s economic outlook and prompting potential migrants to look elsewhere.

The Latest Market Commentary as on 8th March 2011

Good morning, I hope you are well.

I am pleased to provide you with our latest market commentary.

Sterling
It hasn’t been the strongest month for sterling. Compared to the January GBPEUR exchange rate of 1.19-1.20 this month it’s been closer to 1.17-1.18. There are numerous reasons for this:

For one UK GDP figures for the fourth quarter of 2010 were not positive. The first estimate in January showed that GDP declined -0.5% in the final 3 months of 2010, but this estimate was later revised in February to -0.6%.

Furthermore it emerged that inflation rose to 4.0% in February compared to 3.6% the month before. This indicates that prices for goods and services continued to climb. This risks damaging the credibility of the Bank of England, because the Government’s target for inflation is 2.0%.

However there was some encouraging news for sterling in the future. The results of the Monetary Policy Committee vote on interest rates changed for the first time in months. Most recent minutes show 3 (out of 9) MPC members voting to increase interest rates. This indicates the Bank of England is not far away from increasing rates, which in turn should benefit sterling.

Of course for a more in-depth assessment of your particular currency feel free to speak to your currency dealer at Pure FX.

Euro
Despite the ongoing concerns about the euro’s long-term viability (see Portugal, Ireland and Greece!) the single currency has strengthened.

In particular the German manufacturing PMI (measuring output in the German manufacturing sector) hit record highs during February. This is important because Germany is the planet’s second biggest exporter next to China, meaning that strong manufacturing bodes well for Germany as a whole. In addition Germany’s trade surplus rose €2.1bn to €14bn.

Furthermore the euro has benefited as an alternate haven to the US dollar as tensions in Libya continue. In the past the US dollar has benefited as a safe haven during times of political strife, but during February this changed. Perhaps because of the ballooning US deficit, which might be causing the markets to look elsewhere?

However euro bulls need to remain cautious. The EFSF rescue fund for ailing nations has still not been finalised in spite of a conference in Brussels to settle the matter two weeks ago. In addition the Portuguese economy is teetering as bond yields approach dangerous levels above 7%.

US Dollar
It’s been a mixed month for the US dollar in terms of economic data. US consumer confidence increased during February. In addition non-farm payroll figures increased 192k last month – the largest rise since May 2010.

However Fed Chairman Ben Bernanke told the Senate that economic conditions are still too mixed to pare back the $600bn quantitative easing package.

As we have seen in the in the past when there is positive US data, the dollar tends to weaken as risk aversion abates. February was no different with both sterling and euro reaching 2011 highs versus the dollar.

Australian Dollar
It was a tough month for the dollar owing to a series of natural disasters in Australia. First off calamitous floods meant the markets sought investments elsewhere, then a hurricane in Queensland compounded the issue. However the Australian economy is in robust shape, therefore we anticipate the AU dollar to remain strong.

New Zealand Dollar
The New Zealand dollar collapsed in February on reports of a major earthquake in Christchurch, the nation’s second largest city. In addition to the humanitarian crisis some economists are suggesting New Zealand might dip into recession as a result.

Canadian Dollar
It’s been a quiet month for the Canadian dollar. GDP for Canada for the last quarter of 2010 met expectations, and this helped the CA dollar against the US dollar. In addition the CA dollar has risen as confidence in the US dollar has declined. With ever rising oil prices we expect the Canadian dollar to remain strong for some time to come.

Is it a Wise Idea to Invest in Goldman Sachs?

Goldman Sachs has become the worst place in United States because of its recent milestones. The reasons are :

1.) All the residents of America are very angry with Goldman

2.) Investors are too worried about their stocks which went down about 13% as soon as Security Exchange Commission's news broke.

3.) The SEC still believes that the company has broken all their laws.

4.) GS is taking the fall for the entire mortgage crisis and economic downfall.

5.) They are referred as "Bad Guy" these days.




How does it matter that Goldman Sachs has done anything wrong or not? What they are doing right now is that they are are taking huge public relations right now. I don't know how many of you watched the senatorial hearings last weekend, the Government is only blaming GS for the entire Global Warming.

So why would person invest their money in Goldman Sachs's stocks?

Because our own Warren Buffet asked us to. I would like to quote what he mentioned in the last media hearing last weekend. He still thinks Goldman is the only attractive stock right now :

He said, "Be greedy when others are fearing and be fearful when others are greedy"

I guess this only suits Goldman and no one else. And you know what? Warren Buffet himself owns $5 billion worth of stocks of Goldman with a 10% sweet dividend and that is why he is backing the reputation of the company in public.

Goldman Sachs has been always famous for having smartest people working in its company. In fact it still holds this position. No matter the company is found guilty of any wrong deeds or not, the reputation of GS will not at all hamper in the long run.

I am not at all advising you to buy the stocks of Goldman Sachs but if you are a fan of its stock from before, this would be the best time to renew it. Remember, that a 13% discount doesn't come that often. All the best.

They say Economic downturn is over. Now what?

I was going through an article by CNN which had different slide shows about the state of economy in the past years and the present condition. This post is basically to make you understand that this recession is the longest recession in the US, in fact the most grating one that US has faced since world war 2. Some kind of positive news is that the economy is actually showing some sign of improvement.


Reality Check on my Economic Fundamentals

Based on the slide shows of CNN, I would like to express my own views here. I guess the hangover is still on.

1.) Economic Growth and GDP: Not very Good, but Fair

The last growth which I saw was decent enough, but we should not be over confident in this case. I am sure lot of this is attributed to cut backs in the sectors like business, layoffs, even the stimulus plan, bailouts etc. I am still not sure about the true economic growth here. We can frame it like this way also i.e. is this growth actually justifies the correspondence recovery that we are seeing in the stock market? I know hard to answer.



2.) Situation of the Jobs: Very slow

In some locals of the US, the job loss numbers are touching the record high. But tell me this, how many laid off workers are ready to take their jobs? What I see in the US market is that people are enjoying the unemployment benefits more than anything else. They are happy sitting idle until and unless they find a job of their choice. I am not opposing this but the thing is the jobs are available in the market, but no one is ready to take these jobs. As it is they are collecting their unemployment checks.

3.) Stock Market Results: Really Ahead?

My online brokerage account is saying something else here. I have made some money with my investment recently. Anyone will think that I am so happy. But the possibilities of double dip recession in haunting me. It is a typical sign of premature exuberance. I hope at the end of the day we are not paying more than what it actually appears.


4.) Inflation: Somewhat okay

Inflation still looks tame to me. Just wait and watch, the inflation will definitely become the new Waterloo once the economy takes a big growth. At this point of time the saving accounts are creeping backups. As soon as spending takes a pace, the element of economy which appears to be good right now will become dull.


5.) Housing: Slow Recovery

Government has tried its best by offering relief to homeowners by the means of tax breaks and many other incentives. But this was folded long back when there was economic stimulus package. In some places foreclosures have been increased whereas in some areas it is still steady. Recovery of the real state market will take some time.

6.) Individual Spending: Somewhat improved

The best way to track this is that attribute few consumers who are spending on day to day basis. Keep a watch on their spending activities. It is advisable to watch a home budget right now.

My take on the whole scenario

I believe that the whole picture that has been pictured to us in a form of recovery is localized completely. There are still lot of people who are worried about their debts, credit cards, etc. I wish I could know the exact turning point of the economy.

My Net Worth Checkpoint

I am so happy to declare this that from the past 2 months my net worth is going on increasing. And this sudden change has started coming only because of my money saving power and also because of right investment of shares in the stock market. Though the economy has not yet recovered, and I don't even have any hopes that it will be improved, yet I am happy that I am maintaining my balance well in terms of finances.

I wish I keep increasing my net worth every month

Moreover, I am expecting more volatility in the market in the near future which is definitely a good signal for me. But at this very moment its better to stay diversified, saving and investing regularly, taking correct decisions and avoiding risks.

My assets increased 1.6%

Only my home value had been decreased and all other asset's value has increased. My stocks as well as mutual funds increased upto 14% last month. Moreover, my retirement accounts are up almost 5%

My liabilities decreased by 0.4%

I am not at all accelerating my mortgage prepayments. The thing is in terms of mortgage I am in the bad state right now. The reason is very simple. I owe more on the house than its actual worth. And trust me I am very nervous due to this. I might need bunch of money to refinance in the future and so that is the reason I am saving money in bulk these days.

My Net Worth increased almost 5%

The final conclusion about which I am so happy today is that my net worth has increased upto 5% which is not at all a bad signal. Though the last month's increase was 12%, yet I am happy with it. In this economy anything in the positive direction is Ok with me.

I love my hard earned money

Money Plans in Mind

The only plan in mind is to keep saving the way I am doing right now. I will continue to buy company stocks and will try to put more and more money in my 401ks. Also, I came to know about Vanguard Index funds and I have decided to put some money in it as well. Lets see where my destiny takes me.

Bill Gates back as a World's Richest Man

With utmost regret we have to say that Warren Buffet is no longer the world's richest person. Different economic structures is affecting each and everyone, even to those who we considered to be a millionaire. A very interesting example is in front of us that is of Warren Buffet. As soon as Forbes released its list of world's richest billionaire, it was in fact shocking to see that Buffet's crown has been succeeded to the Microsoft Owner.

Bill Gates, World's Richest Business Tycoon

If we check the records of last year data from US Magazine Forbes, it showed that Bill Gates was at number 3 whereas Warren Buffet standing at number one position followed by Mexican Carlos Slim Helu. There is no doubt that all of them have lost huge lump sum of money, but Bill Gates was quite lucky to leave his rivals behind and take the number one position.

The legendary investor in one of his interview commented that,"this market structure is unpredictable, today Bill is at number one, maybe tomorrow I will again regain his position." Hats off to his confidence in this economic turmoil. Owner of US $40, Bill Gates, has got no hard feelings against his best friend Warren Buffet, and why would he have. In 2009 there are around 790 billionaires which was 1120 in the year 2008, that is, almost a downfall of 30%. All the billionaires had a total amount of US $ 4.4 trillion in their pockets, which is now fallen to US $ 2.4 trillion.

Warren Buffet, No Longer World's Richest Business Tycoon

It is for the first time in 8 years that the list of billionaires in the world has gone down. The total amount lost by the top 3 billionaires in this economic wasteland was US $ 64 billion.

My Concern, What I feel

In this frozen economy where it is difficult to find good jobs, it is hard to predict future but if these billionaires are losing such a huge amount of money which means they will invest less in business and that will result in lesser jobs in the market. Bottom line is that due to this turmoil they all would like to regain their position back in the market, which is only possible if they start looking for some good and new ventures.
If they will start looking for new ventures, definitely they would require good people to work with them which indeed will increase the employment opportunities once again.

Do not miss to watch this exciting video on

how Bill Gates wants to change the world?

My Ugliest Word in the Finance Industry

According to the latest survey by the Government of US, it has been found the most ugliest word in the financial world. We all are totally aware of the word and it is a very common term. The word is "financial crisis". Though it is not officially declared but as per my survey I have come to the conclusion that it is one of the most ugliest word for me in the finance industry.


You must be wondering why have I chosen this word as the ugliest word. The reason is very simple. Everywhere I go, I hear this word whether it is a news channel, or any public debate, and even when I am talking with my friends and relatives. Everybody is talking about Financial Crisis. We all know that we are passing through a bad phrase right now, but what is there to discuss about, I still haven't understood. Discussing these things will not help in overcoming the situation.



In every news channel, we see that the news reader is calling one financial expert to give his views on the "financial crisis", I mean common it is very obvious that those financial experts are the best people to give lectures on the financial crisis. Because they know in some way or the other we are facing this financial crisis only because of these financial experts. I just hate when the news reader call them on the stage, invite them, greet them and what more.


But the common people are not aware of the fact that this financial crisis is because of these financial experts who have only one common purpose, that is, to take out more and more of their saved money which they have saved since years. They never give any guarantee for the loss of the money. And people very easily believe them because they have no other option as they are in "financial crisis".


Because of this financial crisis so many people have lost their job even when they were not at all responsible for any faults. Even my cousin brother, working in California, got sacked from his office because of the "financial crisis". The company couldnt pay him two months salary, as a result of which he was blamed for some fraud and sacked from the company. Check out what "Ron Paul" has to say about Global Financial Crisis in the video below:




Even I could go on and on repeating the same thing whole day, but do you really think this ranting will improve the financial condition of our country?? Not at all. Bring your views on this in the form of comments that is what do you think? Am I right or wrong? What do you think can be done to stop the recession? Come up with your views.

Finally I started Online Forex Trading

I am not allowed to step out of the house because I am suffering from a viral. So, a plan came into my mind that is why not start Online Forex Trading sitting at home itself. I remember when I was in a high school, one of the teachers there used to work on online forex trading business. He used to deal in trading market for the traded currencies as a part time job and as far as I remember he used to make a profit of $ 75,000 a year. Forex Trading generally takes place between government, or even banks and Corporate bodies and entities.


All thanks to him that he taught us everything about currency trading as a part of Accounts Curriculum. I still remember how he taught us to leverage the currency fluctuations and convert them into money for different financial companies. With that money a part of percentage is sent to the trader. Like trading on stocks is risky, in the same way trading on forex is even more riskier.


The business of Online Trading Forex is at the peak these days. It has become an amazing source of income in the market place today. The daily volume of online trading is upto $ 3.5 trillion dollars. According to my friend Martha, who is a forex trader at ItradeForex, it has become one of the largest investment machine today. But an important thing to remember here is that the market these days is in recession, so there is no point in investing huge capitals as it might lead to severe losses.


As per survey in the forex market, it is advisable to join the lucrative forex market now rather investing huge capitals in forex trading. The best part is the forex market is easily accessible to everyone on the finger tips now.

Come Lets Meet Wade Slome - Owner of $ 20 Billion Dollar Fund

"Wade Slome", I am sure many of us are already aware of this name. But still i will introduce him to those who do not know anything about him. After the market crashed in 1987, Mr. Slome started trading in the share market with small stocks when he was only in the high school. He completed his MBA program from Cornell University in 1998. He is the man who has got US's one of the largest Mutual Fund in his pocket. At the age of 32 he is owning $ 20 billion dollar fund at American Century Investment. Hats off to him.


Yesterday I visited Wall Mart, and from there I purchased a book called "How I Managed $20,000,000,000.00", written by Wade Slome. I must say each and every investor should read this book. In this book he has shared his views on how to become an Investment Guru. Moreover, he has shared his talks with Eric Schmidt (CEO of Google) in his book.


According to him it has been confirmed that this period is a period of Recession and so each and every investor should apply the innovative and time-tested strategies before investing. I really liked one of his quotes from the book which I would like to share with all my readers. He said in his book,"Don't respond emotionally to the situational noise you hear daily. Don't react to fear. Open up your eyes and pay attention to the facts. The truth will set you free."


My main aim of publishing this post is that I wanted to share with all of you the key points which "Wade Slome" has written in his book to survive the Economic Recession.

1.) Don't make your judgment after hearing the reporter's. Money is made by anticipating what is next, not by thinking what has happened in the past. Always remember you are the best Judge.

2.) Leave your emotions aside while investing. Invest independently with a focus and clear object in mind. Buy your fear and sell your greed. It will definitely help you in taking the right decision.

3.) Keep in mind that the market is very efficient in the long run. Don't be aggressive, be patient while investing in Mutual Fund. Remember today's pain will be tomorrow's gain.

4.) It is very important for the Investors to improve their investment performances for survival of the fittest in the long run. This can be achieved only by Integrating indexed funds as well as exchange traded funds commonly known as ETF's.

5.) Always keep in mind this word " Fees". Brokers might be your friend and partner, but they will always expect a good income from you. More you pay, more will be your financial goals will be achieved.

6.) Whenever investing, keep in mind the GDP of Unites States. To increase the growth rates, it is important to push down the GDP. If you want to really succeed in this field try to get hold more of International Opportunities.

7.) Experience is an important factor not only in investing but any work profile. Always hire an experienced financial adviser for your investment plans.

8.) Remember Einstein's 8th wonder of the world, "the compound interest formula". Always utilize this method to manage your investment portfolios.

9.) Always pay your taxes on time. This will ensure the government that you are not playing any false games in the investment market. Though it is a bit difficult, but something is better than nothing.

10.) You know who is the best investor in the eyes of Slome? the one who makes more mistakes, learn from them and avoid repeating the same mistake in the future.

Slome said that he can only advice to the people, following his words or not entirely depends on you. Any person can be a successful investor only if he is able to achieve a successful investment planning and his/her financial goals.

What are you waiting for? Hurry up and book your copies of "How I Managed $20,000,000,000.00" as soon as possible available at Amazon.com

Build a Super Investing Habit for Future Wealth

Investing to the best companies for long term is the most common but valuable mantra that investors frequently reading when going through the biography of legend investors or reading any article written by them. Lots of investors attracting to this mantra and selecting some companies they think that is the best to invest, and investing to it. Unfortunately, most of them fail to fetch required results. What was the fault happened to such failure after selecting good company carefully as per the advise from successful investors?

Identifying the error will help you to avoid such mistakes in the future. Below are some points to keep in mind when hunting for a good company to invest. Before coming to these points, I would like to remember you that successful investing is not a rocket science. But this is the game of common sense and little above from average numerical skills.

At the very first, We are moving to the investment strategy of Warren Buffet. As per his winning strategy, someone should prefer a company who has excellent ‘durable competitive advantages’ for their products. In simple words, such company should have monopolistic business advantages and that probably leave no or little room for any competitors to enter. Also, the product from such company should have huge customer base across the nation with a strong feeling among people that they cannot survive without such products. For example, Coca Cola is a product from such category.

Second, investor should invest on a company that have huge marketing base but not spending investors money for extravagance like sponsoring territorial shows or programs. A real cost effective but very effective advertising method can be identified immediately if you give little attention. For example, we can see a mainstream advertisement but the same translated to all the possible languages to build perfect base among customers with cost effective approach.

Third, always get away from a company that has internal managerial competitions for higher designations or any such problems. The well meaning of this will be a company that should have capable management to apply innovative thoughts to maintain the monopolistic positions in the market always and add more value to investors money.

You should consider the financial side of a company as well, prior to invest. From the wordings of Warren Buffet, the company should be having consistent ROE of 20% or more. It should be the one who have less production cost compare with its immediate competitors. Operating cost of the company is an important fact to identify how the company going to survive in the bad time where the price of their product or service forcing to decrease or how they building good cash balance to divert their business to new areas or improve present business. At last, a company should be free from debts or have very less, manageable debt.

It is a truth if you consider all the above mentioned points carefully before select a company to invest, I am sure you required to work hard to identify a worthy company.

As a bonus, once you find a good company that is suitable to invest in the context of all the above mentioned advantages in its maximum, never forget to invest a considerable amount to get maximum possible future benefit.

This is a guest article from Sherin Devassy, a finance and investment blogger with personal blog “The Money maniac”

US Stock Fails to Lift after Inauguration of Obama

Americans were expecting a ray of hope, some new plans, some new ways, at the inauguration of Obama, facing the great pressure created by recession. Large amount of people were hoping that Obama’s taking office could bring forward great changes to the nation’s economic condition. But did it really happened? The investors worried about the economic outlook, sending financial stocks down to their lowest level in 13 years. After Obama's incoming address to the nation at midday in Washington, shareholders and investors pushed the S&P 500 Financials Index down by 17 per cent to below its lowest closing level since March 1995.


The poor investors as soon as the inauguration function got over, they went back to unloading stocks. Financial companies led the market lower as investors worried about the state of the world's banks. Reality is not same as the people expected it to be. The broader S&P 500 Financial Index dropped almost by 5.3%, the US market which began with billions of losses by Bank Of America that forecasted its losses for 2008 could top US$41.3bn (€32bn). Citigroup’s stock fell by 20 per cent to close at $2.80, below its lowest level since receiving money from the government bailout in November.


On the other hand State Street received $2 billion of funding from the US Government last year as part of the Treasury’s bailout of America’s financial sector. The Dow Jones industrial average is down 332 points at 7,949 level. That's a decline of 4%. Broader indexes fell more than 5%. The Dow Jones industrial average plunged by around 4% with a slump of over 300 points to below 8000. Broader stock indicators also fell sharply. The Standard & Poor's 500 index fell 44.90, or 5.28%, to 805.22, and the Nasdaq composite index fell 88.47, or 5.78%, to 1,440.86.

First Asian Economy in Recession

After revising the full growth estimates and eased monetary policies for the first time, government of Singapore and analysts declared that Singapore is the first economy of Asia to fall into recession. The city-state’s full-year growth forecast to was reduced to around three per cent citing a slowdown in the global economy and key domestic sectors by the The Ministry of Trade and Industry. The sudden move came when the ministry released the preliminary data showing that GDP declined by 6.4 % in the third quarter after contracting 5 % in the previous quarter.


The survey did not describe the economy completely in recession but a technical recession the two consecutive quarters were confirmed by the same. It was first time in more than four years as confirmed by the Monetary Authority of Singapore. As we all know Singapore is south east Asia's wealthiest economy in terms of GDP per capita and other economic features but still it is entirely dependent on trade. This is not at all acceptable by the developed economies, particularly key export markets of US and Europe. Economists polled by Dow Jones Newswires had forecast a 0.2 % rise in GDP which is a good sign.

Check out this cool video and you will get all answers to your questions:

It can Make as well as Break You

There is a wrong belief in the minds of people that stock market is a machine by which loads and loads of money can be earned in fraction of seconds. People are actually eking out livings from the stock market. Investors today who have already gained lots of advantages from blue chips look smug and complacent. First time investors often wait for the day when they will also become rich like their counterparts and the new entrants are in a hurry to make it a big someday in the world of share market.

Every tom dick and Harry is aware of the market conditions today. Everyone seems to be making money. People often think if he can do it why not me. If Sam can make out thousands by just investing fifty thousand then there is nothing difficult for me. I will invest one lakh. This is the mind set of new entrants in this stock market business.

This is like beginners buy a book but he forgets to read the disclaimer. They listen to the tips but few tips tip the scale. Technical has nothing to do with engineering, polytechnic or even technology. This is movement in the market and everyone becomes an expert.

Then comes the real fun, all these technical aspects go for a toss. Market never had any tops and now they wont have any bottoms too. Each days of the week starts to be as troubled Monday or black Tuesday or woeful Wednesday. This is a den of Stock Market.

It’s nothing but like a pied piper luring the children by the magic flute. Whose fault is it? Share markets? Or yours? Ask yourself. The stock market is not a business proposition; it is a long term growth strategy. It is not a gambling den, but participation in economy of the country. This is not a place where you can double your money in a minute. Keep doubling your money in the next minute and multiplying it in subsequent hours, days and months. Does loads of research, strategies, have patience, perseverance, equanimity of mind and skill. The day you are able to achieve this that day you will the boss of share market.

Are we in a Recession?

To the average American, it might seem ludicrous to suggest that the United States is not in a recession right now. But economists' fuzzy definition of the term makes it hard to say when a recession actually starts until we're well into one. You might hear, for example, that recession occurs when gross domestic product (GDP) growth is negative for two or more consecutive quarters. But that's not an adequate measure, most economists agree. Right now there is a lot of talk about a recession. The financial buzzword that is out there this month is “Recession” and for good reason. t has become increasingly vital that as American citizens, we begin to understand how we can properly safeguard ourselves against the risk of a potential downturn in the economy. Obviously there are no real guarantees in life, but there are numerous healthy and advantageous steps that can be taken in order to mitigate your losses during any financial turbulence that should occur in the near future.

In the current context, the market right now is falling because of a perception, apparently a very accurate perception, that the banking and finance system is at great risk for losing money. One factor that is a better predictor of recession is the real estate market. Houses are being built, jobs are created and production in construction-related industries goes up; when real estate stagnates, those jobs and the related production are lost. Refinancing on homes also frees up money that homeowners can spend on other things, but when homes drop in value, there's no money to spend. Here are some steps that you can take to recession proof your life.

• Clean your finances Up
• Keep focusing on making a financial plan
• Make yourself invaluable in your profession
• Figure out a way to earn real money
• Think ahead and plan accordingly

The last recession the country faced was nearly a decade ago when the "dot-com" bubble burst, taking under countless companies and sending many to the unemployment line. But that downturn was mild compared to the recession the economy is likely heading into, which will probably be more comparable to the U.S. recession of the late 1980s.

The best advice is that think about the future and work on learning from the past. Think ahead and plan accordingly and you should have no difficulty overcoming the recession with the shirt still on your back. A recession does not automatically mean that your finances have to go south, but the more prepared you are, the better off you will find yourself when the waves die down and things go back to normal, so keep that in mind when recession proofing your life.

Check Out our President's view on recession:



There is no way for you to completely and fully protect yourself from a dip in the growth of the economy, but there are plenty of ways to ensure your survival during this period with as little turbulence as possible. There are of course some financial safeguards in place since the Great Depression, such as depositor insurance, and these have kept subsequent economic crises from reaching the same severe proportions, though that doesn't keep any recession from being downright dismal.