Baby Boomers Find Gold in Mexican Beachfront Property

Posted on February 27, 2007
Filed Under Retirement, Real Estate | Leave a Comment

One in four baby boomers are discovering the long-term benefits of property investment and they are seeing a significant return for their diligent investment efforts. Puerto Vallarta real estate is being positioned as the next property hotspot for baby boomer investments.

Puerto Vallarta, Mexico February 22, 2007 — One in four baby boomers are discovering the long-term benefits of property investment and they are seeing a significant return for their diligent investment efforts. Puerto Vallarta real estate is being positioned as the next property hotspot for baby boomer investments.

If you’re a baby boomer interested in property investments the beachfront property of Puerto Vallarta, Mexico is more popular than ever prompting real estate experts to pull the trigger on advising investment due to Puerto Vallarta’s pristine coastline, mild climate and desirable property locations. The investment for Puerto Vallarta real estate is attractive with a projected property value escalation in coming years.

fundVallarta.com (www.fundVallarta.com) is a site owned by investment strategists who are passionate about making sure your investment is worthwhile and beneficial to your financial portfolio.

We understand the unique circumstances of baby boomers and their desire to increase their retirement funds without increasing taxability. Thirty-somethings and forty-somethings are also alert to the fact that their 401k and IRA accounts may not be growing as fast as they need to for a comfortable retirement.

For the rest of this article go here.

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6 Trading Strategies To Help You Beat The Stock Market

Posted on February 27, 2007
Filed Under Stock Market | Leave a Comment

Everyone is looking for a good trading strategy. How about if you had 6 to choose from? With a little bit of experience and discipline, you’ll find these to be quite useful.

1. Post-opening buying. If stocks rise 5% or more during early trading on any given day and it doesn’t make the news it will generally fall off after about 30 minutes or so of trading and the price will level. There are occasions when market makers are attempting to artificially inflate stock prices in order to sell off excess inventory. If the stock doesn’t fall off after about 30 minutes it is quite likely that they will continue to rise throughout the day. The tactic for this type of trading is to buy at 1/16 above the high of the day and sell at 1/16 below the low of the day.

2. Post-opening selling. This strategy is the direct opposite of the strategy mentioned above. When a stock opens low with no news it could be that there are nervous investors placing sell orders from the day before. It could also be the result of artificially lowered prices in order to draw in panic sellers so that market makers can purchase shares as the price declines and sell as they rise. The value of these stocks are generally recovered after about thirty minutes of trading and profit makers can make money by selling the stocks they’ve just purchased on the decline at the average price. If the stock continues to fall after 30 minutes or show no sign of recovery chances are that it will continue to decline throughout the day. The tactic for this investment type is to sell short at 1/16 of the days low and set a stop at 1/16 above the high for the day.

3. Playing the spread. This method is a little easier to understand than some of the others. Buy at 1/16 up and sell at 1/16 down. This method works best with stocks that don’t typically see more of a spread than 3/8 of a point. When you manage these trades successfully you will see the growth of a quarter point per trade. The problem with this type of trading is that you cannot always sell as soon as you place the sell order so it may not work, as market makers are more than aware of this tactic. It often takes several tries within a day in order for this to succeed.

4. Grinding. This is another tactic that is considered relatively easy. This is the act of buying an in demand stock as it is on the rise and selling quickly at 1/8 or ¼ of a point for a quick profit.

5. Fading the market. This is a contrarian strategy in which buyers capitalize by buying weaknesses and selling strengths meaning you buy stocks with small declines hoping they will see gains when the market reverses. With this type of investing you should hold on selling until the stock trades above its opening. The logic behind this tactic is that current owners will sell in order to prevent further loss, which will drive the prices down for the short term.

6. Shop the final hour. The last hour of trading on any given day will typically see stocks easing back from their highest prices of the day. The reason for this is that day traders and market makers are exiting their positions in order to ‘guarantee’ their profits. This results in lower prices on many stocks during the very last hour of trading and opportunities for short trading possibilities abound as the result of this common practice.

Keep your stops close. Its important to save your capital and live to trade another day.

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Be A Rebel: Contrarian Investing

Posted on February 19, 2007
Filed Under Stock Market | Leave a Comment

Buying stock on a hunch that it may go up when all indicators are that the particular stock of interest is destined for a down turn is known as contrarian trading. While this particular type of trading is incredibly risky it can also provide astonishing payoffs to savvy investors. The truth of the matter is that most people in a position to provide trading advise are the very ones listening to the same advice they are providing to you. They do not, for the most part, formulate their own opinions, theories, or hypothesis but rather follow the very same market trends and prediction models that most of the other advisors and brokers are using as well.

If you wish to be successful when it comes to contrarian investing you must first learn to think well outside the box. By learning where the vast majority of traders (by this I mean 80-90% of investors not a mere 60 or so percent) keep their money and by then keeping an eye on the market for indicators to buy elsewhere you can seriously increase your personal wealth by going against the flow.

One important thing to keep in mind with this particular sort of investment strategy is that it is a high-risk type of investment. Chances are that you will be wrong on occasion when taking the road less traveled. In fact, the chances are that you will be wrong more often than not. With this particular style of trading one must trade quickly and work to keep losses minimal rather than sitting and waiting in order to avoid losses along the way.

With this in mind it is very important that you always have an exit strategy when utilizing contrarian trading. For this particular type of trading you must have a strategy in place to get out quickly if things turn south and protect as much of your investment as possible during the process. It is also a good time to consider buying when most people are bailing, wailing, and gnashing teeth at their brokers.

Another thing to keep in mind is that sometimes the best commodity to hold is cash. There have been times in the past when pulling out of the market for a year or two would have served the average buyer much better than trying to weather the storms that have risen and receded along the way. If you find nothing that is appealing to you for investment consider a money market account until something comes along to strike your fancy. Some of the best deals at any point in history have been made on hunches or simple interest.

The important thing to remember when investing is that if you do what everyone else is doing, you will get the same results that everyone else is getting. If you step outside the box and do something fantastic or different, chances are that you will experience fantastic results for your efforts.

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What You Should Know Before You Invest In Mutual Funds

Posted on February 13, 2007
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Most people have heard the term ‘mutual funds’ but few have actually used this as an investment medium. Most small investors however have a very limited understanding of mutual funds that goes something like this a mutual fund is a “pool of money invested in stocks or interest bearing instruments” by those who are experts in the field. I don’t know about you but I would need a little more than this definition in order to invest my hard earned money or stake my retirement on the word of one other person. The truth is that many of those who invest in mutual funds experience very real gains as the result of their venture.

What Exactly is a Mutual Fund?

On a broad scope, mutual funds are an avenue in which you can invest a small amount of money with the potential of owning higher priced stocks and bonds that would under other circumstances only be available in large lots that you couldn’t afford on your own. The way in which this happens is through many people pooling the money to buy larger chunks of stock at lower prices. An example would be that the XYZ Widget Company has stocks trading at $10 per share and you would like to invest $100 in this company. The problem is that XYZ Company has a lot size of 1000 shares, which would cost $10,000. Mutual funds can pool together the $100 of 100 people in order to meet the minimum requirement.

Types of Mutual Funds

We have seen many evolutions in the stock market since its inception. Mutual funds have lasted through many of the changes we have seen over time and show no real sign of faltering. Below you will find a brief description of the various types of mutual funds currently on the market.

Equity Funds. These funds deal with equity shares of corporations. They carry not only high risks but also the opportunity for high rewards. Depending on the industry involved, these funds may be sector oriented (technology funds will invest in emerging technologies for example) or diversified meaning they consist of many funds from different sectors.

Debt Funds. As their name applies these funds deal primarily with debt-oriented mediums (those that carry interest). These funds invest in Treasury Bills, bonds, and other government papers. These investments are relatively low risk since there is a guaranteed return in the form of interest however the rewards are somewhat limited as they are not based on market movement. They are not ‘fool proof’ or risk free but they are a very safe investment for the tortoise type of investor beginning early or those with a sizable nest egg not worth putting in too much risk.

Balance Funds. These funds are perhaps the most interesting as they offer security along with a balanced diet of risk. With this type of investing you would set a predetermined ratio of investing (60% debt funds and 40% equity funds is a good safe ratio but it is up to the investor) and invest according to your comfort zone of risk and security. This type of investing offsets the risk of equity investing while living a little on the edge in hopes of great payoffs down the road while enjoying the security of debt funds-literally offering the best of both worlds to investors.

Each of the types of investing mentioned above has pros and cons and the answer of which is the best is a question that only you can answer. This is your retirement, future, nest egg, or kid’s college fund so only you can decide what an acceptable risk is. If you are willing to gamble equity funds might be best, if you’d prefer a surer bet, then debt funds might be best. If you have a little bit of adventure but don’t want to ‘risk it all’ then perhaps the balance fund is your best destination.

Price Determination

Once you have a basic understanding of the available options, the next step lies in understanding the price and how it is determined. The income of mutual funds is generally acquired in the form of interest, dividends, and trading. In debt securities however interest income is all but assured. This is not the case when dealing with equity stocks and the dividend in these situations depends on the profits earned by the company among other factors.

When investing in debt funds it may be that your best interest would not be a mutual fund. If you can afford the investment without the mutual fund you should determine which would be best for your situation. You want to choose the route that will offer you the higher reward. Keep in mind that market trends do not carry quite the weight when dealing with debt funds, as they will with equity funds.

Equity funds offer trading that is based on the perception of the fund manager as to what the market is preparing to do and the current risks vs. the potential reward. There are many things that will affect a stocks future from legislation to competition and millions of things in between that aren’t limited to technological advances and scientific breakthroughs. Thus the higher risk nature of this particular type of investment.

Understanding NAV

The first thing I should do here is explain what NAV stands for: the Net Asset Value of mutual funds. This value is declared on a daily basis and is the simple difference between assets and liabilities of the fund at the end of each day. The value is explained per unit and this is how the purchase price of the units are determined.

The Investment Decision

With so many mutual funds on the market you really need to study the funds you are considering before you take the plunge so to speak (as this is definitely the opposite of your goal)? Seriously, what parameters should you base your decision on? While there are no hard and fast rules when it comes to investing, the following advice might point you in the right direction.

The investors approach. It really helps when investing if you are a very self-aware type of person. Knowing yourself helps you understand your intentions and establish proper goals for your investment strategy. Knowing yourself also helps you identify how much of a risk you are actually willing to take. If you are an aggressive investor and are comfortable with the risks involved but hoping for short run profits, you may wish to take things one step further and go with sector specific funds. Just remember these are highly speculative and can bring big profits quickly but when the numbers begin to fall, they tend to fall equally fast, which can result in heavy losses.

The Pedigree. As you study mutual funds you will learn that the past can often forecast the future. For example, the dot com crash wasn’t a one size fits all fiasco. There were some stocks that seemed slow and steady throughout who weathered the financial fallout of the overall industry. Your fund manager will have a lot to do with the profits and risks that you will accrue with your mutual fond. Conservative fund managers tend to invest slow and steady with minimal risks, they will not make aggressive trades even in sector specific funds.

The age and size of the fund are other mitigating factors when it comes to the decision making process. New funds may post heavy gains in the beginning but are often unable to stay the course once the test of time steps in. It is best, particularly for conservative investors to adopt a more cautious approach when dealing with new funds unless those managing the funds have a sterling reputation from previous work.

The Financials. The most important factor when making decisions regarding whether or not to invest in a Mutual Fund is the financial situation and forecast. Many things should go into your decision making process not the least of which are the past performance of a fund, the current trend of earning, operating expenses, and entry or exit loads. Each one of these factors is very important and none of them should be overlooked during the decision making process.

Diversification. We have all been warned of the dangers that go along with putting all of your eggs into one basket and many learned this lesson the hard way during the dot com crash of the nineties. Before investing in a fund you should take a moment to see exactly how diverse the fund really is. You could always elect to invest some of your money in one fund and other amounts of money elsewhere. I always recommend keeping some money invested in debt oriented funds rather than all monies invested in equity funds. This allows some degree of security so that all is not lost over a deal gone wrong. The benefit of a diverse portfolio that invests in multiple sectors is that if one industry takes a huge hit you may be able to cover your losses with the other items in your portfolio.

Monitoring. Contrary to popular belief, mutual fund investing isn’t about making an investment and leaving the rest to the experts. You must continuously and constantly keep an eye towards the bottom line in order to insure that your best interests are being served. No one is infallible, experts included. Follow the NAV reports on a daily basis in order to protect your interests. Remember that no one is going to care for your interests quite the way you will.

While the pointers mentioned above are on the mark they are by no means all inclusive. Investing in mutual funds is a gamble like any other kind of investing. Be certain that you aren’t risking more than you are willing to loose but diligently guard what you do invest in hopes of avoiding loss. Ultimately, experience is the greatest teacher when it comes to investing and some mistakes will simply need to be made in order to learn and grow. We all make them and some are painful. Hopefully the information above will help you minimize your losses while maximizing your gains.

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