Where Do I Invest in a Recession?
By [http://ezinearticles.com/?expert=Mike_Singh]Mike Singh
It might seem counterintuitive to invest in a down economy but you are actually making a smart decision when you invest during the recession for many reasons. First, you are providing fresh capital to the economy, which will eventually rebound to your benefit. Second, most stocks of good companies are down so you can buy them cheap, which means that you get great deals can sell them for a profit when the market turns higher.
The trick is in knowing which investments to place your money in. Fortunately, there are five good investments that are either guaranteed to return your investment plus earnings or proven to be stable even in a down economy.
Certificates of Deposit
With certificates of deposit, your principal investment is safe in the bank no matter the state of the economy. You will earn interest on your investment at a fixed rate for a fixed period of time. Take note, however, that you must invest in certificates of deposit only with banks and credits unions with Federal Deposit Insurance Corporation and National Credit Union Administration insurance, respectively.
Tobacco and Alcohol Stocks
No matter the state of the economy, tobacco and alcohol consumption in many markets is stable. In some markets, it can even increase especially in developing countries since manufacturers will turn their aggressive marketing tactics to countries where regulations are lax and where markets are still in their growth stages. As such, tobacco and alcohol stocks - sin stocks, as most insiders call them - are excellent investments even in a recession.
Pharmaceutical Stocks
There are many reasons why pharmaceutical stocks are relatively stable in a recession. For one thing, everybody will avail healthcare at some point and, hence will purchase medicines. For another thing, the discovery of newer, better medicines are a constant factor in an uncertain world, which you might even say is an imperative need in man's quest to attain immortality. Thus, you can be sure that pharmaceutical stocks will stay on top of things even in an economic downturn.
Electric Utility Stocks
Electricity is a staple of modern life, of which its absence will cripple industries and countries. As such, your investment in electricity-related companies will almost always yield good return on investments. However, you must stick to two investments in electricity. First, invest in established power companies with guarantees of return of investments as they expand their market bases. Second, invest in companies engaged in power generation with extensive infrastructure investments since they have competitive advantage few others have at present.
Real Estate
With the nationwide trend in home foreclosures, now is the time to invest in real estate especially as it is a buyer's market. You can indeed buy desirable properties for seriously low prices, you can then sell at higher prices when it becomes a seller's market.
Historically stocks still have the best return over the long term. But, [http://www.stock-trading-made-ez.com/Penny_Stocks.html]some short-term stocks have great returns. Learn more at [http://www.stock-trading-made-ez.com/]http://www.stock-trading-made-ez.com/.
Article Source: http://EzineArticles.com/?expert=Mike_Singh http://EzineArticles.com/?Where-Do-I-Invest-in-a-Recession?&id=3079150
Sunday, October 18, 2009
How to Find a Great Return on Investment
How to Find a Great Return on Investment
By [http://ezinearticles.com/?expert=Ryan_Mclean]Ryan Mclean
Ever since companies stopped paying for our retirements people have been looking for the best ways to invest their money and the best ways to get a great return on investment. Most people don't know how to get a good return on investment so they play the lotto in the hope that their numbers will come up. I want to show you what you need to do to find a great return on investment.
Most people are ignorant when it comes to finding a great return on investment. They are so scared of losing their money that they invest not to lose, but because they invest in order not to fail then they never win and they never become rich. People subscribe to the idea that in order to be secure you need to work hard, live frugally and save money and invest in diversified mutual funds. Financial planners recommend diversification as a great way to invest, but Warren Buffet, the richest investor in the world, says not to diversify but to focus. He say "diversification is protection against ignorance".
It is easy to find an investment that loses money. A friend of mine has recently bought a property as investment. He is currently losing $100 per week that he has to pay out of his pay packet. He is losing about 25% per year on his money and he calls it an investment. I can find properties that will earn me 10-30% return on investment. In order to be able to get a great return on investment you need education.
The best return on investment you will ever receive is the return on investment from your education. The best investment I ever made was when I got a membership card for my local library. It was absolutely free and I got training from some of the best financial teachers in the world. It changed my life and it changed my finances. I am becoming richer and richer because of that simple investment into a library card and into my education.
If you want to know how to find a great return on investment then you need to understand finances and you need to understand how to invest. There is no get rich quick formula that I can give you for finding a great return on investment. Because it depends on the investor. I have seen great investments lose money because of an inexperienced investor and I have seen bad investments make a lot of money when bought by a smart investor. So I can just recommend property, or stocks or a certain business because it depends on the investor.
The best way to find a great return on investment is to increase your financial intelligence. The most important word in finance is the word cashflow. This simple word has caused businesses to fail and caused great investment opportunities go bust. If you want to be rich then you need to focus on your cashflow. Anyone can find an investment that will lose money but it is a lot harder to find an investment that will make you money and generate you cashflow.
I am actually blessed because I work only part time, and so does my wife, so we have to think cashflow when we are investing. We don't have the excessive cashflow to purchase these 'investments' that lose money. I recommend that you focus your energy first in increasing your intelligence through financial education. Read books, search the net and do everything you can to learn all you can about finances. I went from having no clue to having a clear investment strategy to be financially free in 5 year in just 6 weeks. So anyone can do it.
Becoming financially free in just 5 years is possible for anyone. It doesn't matter what your current financial situation is, you can become rich and never have to work again in just 5 short years. You don't need a high paying job or a get rich quick scheme, you just need real training on creating real strategies for getting rich.
Go to http://www.richacademy.com and sign up now to start you free training on "How To Get Rich Without Making More Money". Don't waste any time, start training yourself to be rich today by signing up for your free teaching.
Article Source: http://EzineArticles.com/?expert=Ryan_Mclean http://EzineArticles.com/?How-to-Find-a-Great-Return-on-Investment&id=3064855
By [http://ezinearticles.com/?expert=Ryan_Mclean]Ryan Mclean
Ever since companies stopped paying for our retirements people have been looking for the best ways to invest their money and the best ways to get a great return on investment. Most people don't know how to get a good return on investment so they play the lotto in the hope that their numbers will come up. I want to show you what you need to do to find a great return on investment.
Most people are ignorant when it comes to finding a great return on investment. They are so scared of losing their money that they invest not to lose, but because they invest in order not to fail then they never win and they never become rich. People subscribe to the idea that in order to be secure you need to work hard, live frugally and save money and invest in diversified mutual funds. Financial planners recommend diversification as a great way to invest, but Warren Buffet, the richest investor in the world, says not to diversify but to focus. He say "diversification is protection against ignorance".
It is easy to find an investment that loses money. A friend of mine has recently bought a property as investment. He is currently losing $100 per week that he has to pay out of his pay packet. He is losing about 25% per year on his money and he calls it an investment. I can find properties that will earn me 10-30% return on investment. In order to be able to get a great return on investment you need education.
The best return on investment you will ever receive is the return on investment from your education. The best investment I ever made was when I got a membership card for my local library. It was absolutely free and I got training from some of the best financial teachers in the world. It changed my life and it changed my finances. I am becoming richer and richer because of that simple investment into a library card and into my education.
If you want to know how to find a great return on investment then you need to understand finances and you need to understand how to invest. There is no get rich quick formula that I can give you for finding a great return on investment. Because it depends on the investor. I have seen great investments lose money because of an inexperienced investor and I have seen bad investments make a lot of money when bought by a smart investor. So I can just recommend property, or stocks or a certain business because it depends on the investor.
The best way to find a great return on investment is to increase your financial intelligence. The most important word in finance is the word cashflow. This simple word has caused businesses to fail and caused great investment opportunities go bust. If you want to be rich then you need to focus on your cashflow. Anyone can find an investment that will lose money but it is a lot harder to find an investment that will make you money and generate you cashflow.
I am actually blessed because I work only part time, and so does my wife, so we have to think cashflow when we are investing. We don't have the excessive cashflow to purchase these 'investments' that lose money. I recommend that you focus your energy first in increasing your intelligence through financial education. Read books, search the net and do everything you can to learn all you can about finances. I went from having no clue to having a clear investment strategy to be financially free in 5 year in just 6 weeks. So anyone can do it.
Becoming financially free in just 5 years is possible for anyone. It doesn't matter what your current financial situation is, you can become rich and never have to work again in just 5 short years. You don't need a high paying job or a get rich quick scheme, you just need real training on creating real strategies for getting rich.
Go to http://www.richacademy.com and sign up now to start you free training on "How To Get Rich Without Making More Money". Don't waste any time, start training yourself to be rich today by signing up for your free teaching.
Article Source: http://EzineArticles.com/?expert=Ryan_Mclean http://EzineArticles.com/?How-to-Find-a-Great-Return-on-Investment&id=3064855
Charles Ponzi - The Godfather Of The Ponzi Scheme
Charles Ponzi - The Godfather Of The Ponzi Scheme
By [http://ezinearticles.com/?expert=Frederik_Deglande]Frederik Deglande
Ponzi schemes are hot and even it’s illegal they always will be hot.
if you go to some online forums on how to make money online you will see members posting threads promoting ponzi schemes and even the so called hyips are most of the time a ponzi scheme.
No matter what they have told you the creator of a ponzi scheme doesn’t care about your profits. Most people are running ponzi schemes to make some quick bucks from theirself.
I’m sure you have already seen high yield investment programmes where they promise you that they are a team of expert traders making five percent daily or even more. And the fact is that some people actually do believe, even the programme has no proven track record, that their money is traded as it should be. If you see some posting on a forum “earn money fast without doing any work” than you could say almost sure he/she must be promoting a ponzi scheme.
What exactly is a ponzi scheme
Ponzi schemes or pyramid schemes has nothing to do with investments, business or sales. Simply because they don’t trade your money or they don’t sell you anything. The fact is that a ponzi scheme uses the money of new investors to pay out old investors. Some ponzi schemes are surviving a few weeks and some of them even a few months. But this is for sure they all go die after some time. Why? Because mathematically it’s impossible to find new investors.
Or sometimes the legal authorities find out the ponzi scheme and close it.
Charles ponzi: The godfather of ponzi schemes
Charles Ponzi was not the first who created a ponzi schemes but actually he was one of the first people that created a fraud scheme on such a large base. In 1903 Charles Ponzi emigrated from Italy to the United states. He has worked on a post office and studied at the university of Rome, although studied is not a good word for Charles it was more a vacation.
Without almost any money he arrived at the United States and did some jobs there. Four years later he moved to Montreal where he worked in the Banco Zarossi. Zarossi the owner gave a six percent interest on bank accounts. But Ponzi discovered that Zarossi used the money from new client to pay out old client. The scheme failed and Zarossi escaped to Mexico. Ponzi stayed even in prison for fraud for some years but in 1911 he was released. After the war he started his scheme based on postal reply coupons and promised his clients a return of their money in a short time frame of 90 days. His own company called the Securities Exchange Company was a fact. He had a lot of agent that were working for him and in 1920 he had accumulated millions of dollars, a very large sum of money for this time. I think it is no surprise to you that Charles Ponzi lived very luxuriously.
But people were asking questions about his company after an unsuccessful lawsuit.
The Boston Post wrote some negative articles about his company. But however the newspaper offered Charles Ponzi five thousand dollars for his story and it became a headline. However a few days later federal agent closed down his company. On august 13 1920 he was arrested but however some people protested strongly, no wonder at all some of them had invested millions of dollars. He went to jail and stayed there to 1934 after he was released he was deported to Italy. Ponzi spend the last years of his live in poverty and in 1948 he died.
Frederik is an online marketer who blogs about affiliate marketing, adsense and adwords.
In his blog he gives out some good tips that you can pick up to improve your businesses.
Visit my [http://highyieldinvestor.blogspot.com] information blog today.
Article Source: http://EzineArticles.com/?expert=Frederik_Deglande http://EzineArticles.com/?Charles-Ponzi---The-Godfather-Of-The-Ponzi-Scheme&id=508859
By [http://ezinearticles.com/?expert=Frederik_Deglande]Frederik Deglande
Ponzi schemes are hot and even it’s illegal they always will be hot.
if you go to some online forums on how to make money online you will see members posting threads promoting ponzi schemes and even the so called hyips are most of the time a ponzi scheme.
No matter what they have told you the creator of a ponzi scheme doesn’t care about your profits. Most people are running ponzi schemes to make some quick bucks from theirself.
I’m sure you have already seen high yield investment programmes where they promise you that they are a team of expert traders making five percent daily or even more. And the fact is that some people actually do believe, even the programme has no proven track record, that their money is traded as it should be. If you see some posting on a forum “earn money fast without doing any work” than you could say almost sure he/she must be promoting a ponzi scheme.
What exactly is a ponzi scheme
Ponzi schemes or pyramid schemes has nothing to do with investments, business or sales. Simply because they don’t trade your money or they don’t sell you anything. The fact is that a ponzi scheme uses the money of new investors to pay out old investors. Some ponzi schemes are surviving a few weeks and some of them even a few months. But this is for sure they all go die after some time. Why? Because mathematically it’s impossible to find new investors.
Or sometimes the legal authorities find out the ponzi scheme and close it.
Charles ponzi: The godfather of ponzi schemes
Charles Ponzi was not the first who created a ponzi schemes but actually he was one of the first people that created a fraud scheme on such a large base. In 1903 Charles Ponzi emigrated from Italy to the United states. He has worked on a post office and studied at the university of Rome, although studied is not a good word for Charles it was more a vacation.
Without almost any money he arrived at the United States and did some jobs there. Four years later he moved to Montreal where he worked in the Banco Zarossi. Zarossi the owner gave a six percent interest on bank accounts. But Ponzi discovered that Zarossi used the money from new client to pay out old client. The scheme failed and Zarossi escaped to Mexico. Ponzi stayed even in prison for fraud for some years but in 1911 he was released. After the war he started his scheme based on postal reply coupons and promised his clients a return of their money in a short time frame of 90 days. His own company called the Securities Exchange Company was a fact. He had a lot of agent that were working for him and in 1920 he had accumulated millions of dollars, a very large sum of money for this time. I think it is no surprise to you that Charles Ponzi lived very luxuriously.
But people were asking questions about his company after an unsuccessful lawsuit.
The Boston Post wrote some negative articles about his company. But however the newspaper offered Charles Ponzi five thousand dollars for his story and it became a headline. However a few days later federal agent closed down his company. On august 13 1920 he was arrested but however some people protested strongly, no wonder at all some of them had invested millions of dollars. He went to jail and stayed there to 1934 after he was released he was deported to Italy. Ponzi spend the last years of his live in poverty and in 1948 he died.
Frederik is an online marketer who blogs about affiliate marketing, adsense and adwords.
In his blog he gives out some good tips that you can pick up to improve your businesses.
Visit my [http://highyieldinvestor.blogspot.com] information blog today.
Article Source: http://EzineArticles.com/?expert=Frederik_Deglande http://EzineArticles.com/?Charles-Ponzi---The-Godfather-Of-The-Ponzi-Scheme&id=508859
Thursday, October 15, 2009
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