The five most competitive economies

According to Swiss business school IMD

1. United States

2. Switzerland

3. Hong Kong

4. Sweeden

5.Singapore

These are countries where you should in my opinion invest in their currencies or ETF’s that focus on consumer/household purchasing goods. These countries have  a  good size middle class which adds to their charm.

 

 

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Empire State of Mind

It has recently been announced that a major hurdle to having an Empire State IPO has been cleared. According to CNNmoney.com ” the Malkin Group, the controlling shareholders in the iconic building, announced Wednesday that they have the votes to move ahead with plans to take the building public.The group has been pushing for an IPO for months and said in a filing Wednesday that they now have the support of 80% of shareholders, which is required by law.But the proposal, to roll the skyscraper and 17 other Manhattan buildings into a common ownership group known as a real estate investment trust, or REIT, has sparked a bitter fight led by some of the building’s minority shareholders. They argue that the Malkin Group and the heirs of late former owner Harry Helmsley stand to unfairly benefit more than the other shareholders”. Should it go cleared I will be the first one to invest. It’s an iconic building in one of the biggest cities in the world. There is still demand for room in the building and so long as demand is their money will come. I would initially get one and depending how it acts after the first day I would consider more.  Investing in the Empire State building IPO has a lot of risk but I feel like the reward is a lot greater. No matter who you decide to assign as a broker look for how much the fee is for every stock purchase because it will add to the cost of final purchase.

Analyst

Recently there has been an upsurge in the stock market. Below are some of the ways analyst use math to figure out where the market could go in the future:

Elliot Wave Theory: Uses crowd beitaly.jpghavior and financial markets follow distinct cycles and patterns

Fibonacci Ratio: The math of 1.618 prevalent in natural systems

Breakout: Following stocks as they rise beyond a well-defined trading range

Technical Analysis: Basically using patterns found in the market in the past to predict the future.

 

I actually feel more comfortable with the Fibionacci Ratio because there is a  lot less room to play with situations beyond your control. I got description and names of the four methods from the Wall Street Journal. Remember to never invest in where there is no long term demand and easy to replicate. If you go through a private broker look at how much you are paying per trade cause that will drive up the final price of each transaction.

Yahoo

me bagFor a long time I avoided Yahoo and actually thought it would be gone by now. After the Tumbler acquisition by  Yahoo I have changed my mind. Perhaps, Yahoo still has some fight in it and think its good time to buy into the company. If you have Yahoo and Google in your portfolio you are thinking very good. I like that Yahoo has a lot of room to grow while Google seems to be slowing down a bit. In fact I think that continuous rise of Google price has actually set it up for a downturn; I am not sure how much the downturn will be but Google’s continuous climb is not sustainable. According to CNNMoney.com the estimated increase of yahoo is $31.00 but it could settle at $27.00 or go as low as $22.00.  Even if Yahoo looses value it’s not going to be much which in my opinion makes it a safe bet to make. According to Cnnmoney.com “The current consensus among 33 polled investment analysts is to hold stock in Yahoo! Inc. This rating has held steady since May, when it was unchanged from a hold rating.” Just remember to do your own research and be cautious. As Much as I like Yahoo I would not buy more than one stock.

Consumer Financial Protection Bureau

I got the following advice from a CNNMoney article:

  • If you refinance or consolidate a federal student loan, you run the risk of losing many of the advantages that federal loans have over other types of student loans. In particular, deferment or loan forgiveness provisions are often available only for certain federal loans, and privately refinanced debt won’t give you those same options.
  • One big draw of consolidation or refinancing is the chance to lower monthly payments. But many lenders do so not by cutting rates but rather by extending repayment periods. In other words, lower payments come at the price of having outstanding debt for years longer than you’d originally planned.

According to an article titled “Want to Refinance Your Student Loans? The CFPB Wants to Help ” the inability of students to pay student loans is hurting the American economy. I wish I could say that is a shocker. I am glad that at least special attention is being paid to this issue. One way to reduce the amount of student loans default is by lowering the operating cost of colleges and educating students from a very young age about finance. What do you think?Image

 

New Horizon

It seems that there are ETF’s for just about everything this days. With so much opportunity to make gains using ETF’s its extremely important to do your homework before investing. Below are some interesting ETF’s worth doing some exploration for.

TUR       MSCI Turkey Investable Market Index Fund     Emerging Markets Equities    0.60%    99.18%
GSGO       ALPS/GS Momentum Builder Growth Markets Equities and U.S. Treasuries Index ETF     Emerging Markets Equities    1.29%    31.03%

Tech IPO

Some need to know companies which you will notice more in time are the following:

Lending Club Corp ( a peer to peer lending group)

Atlassian ( software tool startup)

Marketo Inc ( marketing software comp)

Criteo and Yume ( advertising tech firm)

GoPro Inc ( sports camera maker)

Talks of twitter interest in going public are starting to grow. If it ever goes public I think I will get a share but no more than one and I would be watching it very very closely. It may break my investment philosophy but twitter is one of those things that we have made into an everyday thing. So Long as there is demand there is money to make.

Natural Gas

The price of natural gas was high today. I think it’s worth looking at how to profit from this rally of natural gas. However, I would still be cautious and one way to do it is by looking at etfs’s. With time more and more people will be looking for alternatives gasoline and natural gas in my opinion is one of the best options available.

Internet Sales Tax

retouch ladyAccording to CNNMoney.com ” The Senate voted 69 to 27 to approve the bill, which enjoyed bipartisan support. But before it can become law, it must be approved by the House, where Republicans are split on the issue. Some House Republicans have already expressed support for the bill, arguing that it would level the playing field for small brick-and-mortar retailers. They say it would not create a new tax, but rather enforce the collection of taxes already charged at traditional retailers. But other House Republicans still view that as a tax increase on consumers or say it would overburden Internet businesses in their states.The Obama administration has endorsed the bill, so if it can gain approval in the House, it is likely to become law.”

Do I want to pay more ? no but I believe that its good for leveling the playing field between internet companies and brick & Morter businesses. Online stores have infinite advantages over brick and mortar stores. According to the same report, if the bill is enacted, academic studies estimate more than $12 billion in additional sales taxes will be collected from online purchases each year  Sometimes its good to do things for the greater good of the society you live in.  What do you think?