February 29th, 2012 by InvestorPoint

WASHINGTON, Feb. 29 (UPI) — U.S. finance regulators said they were ready to sell nearly 2,500 rental properties in foreclosure-ravaged neighborhoods. The Federal Housing Finance Agency, which regulates the nation’s largest mortgage brokers, the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association said the properties available are in Chicago, Atlanta, Phoenix, Las Vegas, Los Angeles and in three neighborhoods in Florida, CNNMoney reported Wednesday. The foreclosed propertie…continued

February 29th, 2012 by InvestorPoint

NEW YORK, Feb. 29 (UPI) — Huge waves of U.S. treasury futures trades Wednesday morning had traders speculating a typo or a computer glitch was the cause of it all. “It’s very possible it was a fat finger, but it seems more like a very big asset allocation,” said an interest-rate trader in Chicago. A “fat finger” refers, basically, to an electronic typo that can change 8,000 to 80,000 in a careless moment. That said, sales of about 80,000 treasury futures dated for June swept through the system in…continued

February 29th, 2012 by InvestorPoint

SAO PAULO, Feb. 29 (UPI) — Brazilian aircraft manufacturer Embraer is getting drawn into a row over the U.S. Air Force light air support program in which it worked with the U.S. company Sierra Nevada Corp. The Air Force this week canceled a $355 million contract awarded last year in which Embraer’s Super Tucano light attack aircraft won over U.S. rivals. The Air Force said it decided to set aside the contract because of problems with documents used in the contract award. Rival U.S. manufacturer Haw…continued

February 29th, 2012 by InvestorPoint

CHICAGO, Feb. 29 (UPI) — The Chicago Business Barometer rose to its highest level in 10 months in February, the Institute for Supply Management said Wednesday. With numbers above 50 indicating expansion, the Chicago association’s headline business barometer for February, compiled by Kingsbury International Ltd., rose from 60.2 in January to 64 in February. February marked the 29th month of expansion for manufacturing activity in the area. The indexes for production and new orders both rose sharpl…continued

February 29th, 2012 by InvestorPoint

WASHINGTON, Feb. 29 (UPI) — U.S. Federal Reserve Chairman Ben Bernanke applauded recent financial policies in Europe Wednesday and said the gasoline price spike would be temporary. Earlier projections made by the Fed called for subdued inflation to continue. However, “since these projections were made, gasoline prices have moved up, primarily reflecting higher global oil prices — a development that is likely to push up inflation temporarily while reducing consumers’ purchasing power.” In a prepare…continued

February 29th, 2012 by InvestorPoint

FRANKFURT, Germany, Feb. 29 (UPI) — The European Central Bank said its emergency liquidity program loaned $713 billion to 800 banks, numbers that exceeded the banks December loan bonanza. In December, 523 banks participated in a low-interest loan program that put $655 billion into circulation, The New York Times reported Wednesday. The latest round of borrowing involved collateral-backed loans at 1 percent interest with no limit set for the amount borrowed. The terms also included extending the n…continued

February 29th, 2012 by InvestorPoint

NEW YORK, Feb. 29 (UPI) — Stocks in New York moved higher Wednesday morning after the official estimate of fourth-quarter economic output was raised by 0.2 percentage points. The Commerce Department, in the second of three estimates, said the U.S. gross domestic product rose 3 percent October through December, better than the 2.8 percent figure from the first estimate. The Dow Jones industrial average, which closed Tuesday above 13,000 for the first time since May 2008, added 19.72 points or 0.15 …continued

February 29th, 2012 by InvestorPoint

WASHINGTON, Feb. 29 (UPI) — The U.S. Commerce Department revised the fourth quarter gross domestic output estimate from 2.8 percent to 3 percent in a report issued Wednesday. The figure shows a further jump from the 1.8 percent growth of the third quarter. Economists had not expected an upward revision from the previous report in Wednesday’s release, which is the second of three estimates on the country’s economic output. In contrast, the GDP declined 0.25 percent in Germany in the fourth quarte…continued

February 29th, 2012 by InvestorPoint

KABUL, Afghanistan, Feb. 29 (UPI) — A war economy in Afghanistan has improved the lives of countless people though most people still question if intervention paid off, the ICRC said. Anti-American demonstrations broke out in Afghanistan following the alleged mishandling of copies of the Koran at a military base. U.S. military and diplomatic officials have said that despite an uptick in violence, there are no plans to change course in Afghanistan. International forces are expected to leave by 2014, ro…continued

February 29th, 2012 by InvestorPoint

In Europe this week financial leaders must be asking themselves, ‘What have done now?’ Considering the possibility that a few collaborative members of the economic brain trust on the continent have created, unwittingly, a monster, the European Central Bank went into bailout mode Wednesday, loaning $713 billion to rescue their own rescue effort, so to speak. The central bank, essentially, had to bailout its own bailout. A major credit rating agency declared Greek bonds to be in “selective default” …continued

February 29th, 2012 by InvestorPoint

BRASILIA, Brazil, Feb. 29 (UPI) — Latin America’s Mercosur trade bloc is keen to profit from Arab cash investments and expanding consumer markets while talks with the European Union on a free trade agreement remain stalled, officials said. Brazilian government ministers have been wooing Arab investors after a visit to the United Arab Emirates and plans for similar initiatives in other oil-rich Arab states in the Persian Gulf region. A Mercosur-Arab trade deal is far from sealed but Brazil made a pr…continued

February 28th, 2012 by InvestorPoint

HARTFORD, Conn., Feb. 28 (UPI) — About 600 people rallied outside the Connecticut Capitol Tuesday to support a bill that would end the state’s ban on Sunday alcohol sales. Gov. Dannel Malloy proposed the multi-faceted bill, which also supports an increase in the maximum number of liquor stores a person or company can own and allow supermarkets to obtain a liquor license, The Hartford Courant reported. Liquor store owners and lobbyists said they’d drop their longtime opposition to Sunday alcohol sal…continued

February 28th, 2012 by InvestorPoint

WASHINGTON, Feb. 28 (UPI) — Sales receipts at U.S. chain stores dropped 1 percent in the week ending Saturday, the International Council of Shopping Centers said Tuesday. Discount stores found business weaker, the trade group said, as sales, “continued a relatively choppy pattern that has existed since January.” Retail sales rose 2.7 percent compared to the same week a year earlier. Two divergent forces are shaping the retail landscape, the group said. Weather continued to be unseasonably warmer …continued

February 28th, 2012 by InvestorPoint

WASHINGTON, Feb. 28 (UPI) — U.S. defense manufacturers and exporters maintained their global lead in the latest tally of international arms market deals recorded by the Stockholm International Peace Research Institute. The SIPRI report, however, doesn’t include Chinese arms supplies worldwide and has only partial data on Russian arms manufacturers who are seeking to replace U.S. firms in Latin American and other regional arms markets. SIPRI arms market data also indicated that Brazilian defense man…continued

February 28th, 2012 by InvestorPoint

NEW YORK, Feb. 28 (UPI) — Consumer confidence in the United States regained some lost ground in February, the Conference Board said Tuesday. The index, which hit a two-year low in August, then posted gains in September, November and December, sliding a touch in October and January. But the index that assigns 1985 a base value of 100 rose to 70.8 in February, up from January’s 61.5, the Conference Board said. The monthly Consumer Confidence Index is based on a survey of 5,000 households. “Consum…continued

February 28th, 2012 by InvestorPoint

FRANKFURT, Germany, Feb. 28 (UPI) — The European Central Bank said banks could continue to borrow under an emergency program as Greek bonds became ineligible for use as collateral temporarily. The ECB said central banks would continue to lend to banks through an emergency liquidity program and that Greek bonds could be used as collateral again in mid-March, The New York Times reported Wednesday. By then, the European Union will be guaranteeing Greek bonds. The body that regulates credit-default s…continued

February 28th, 2012 by InvestorPoint

Investing in Mutual Funds – Advantages of Mutual Fund Investing

Every investment has its share of advantages and disadvantages and Mutual Funds are no exception.  A Mutual Fund provides many advantages to investors that either are not available to them given their investment knowledge or portfolio size. Investors must understand that there are many benefits to investing in Mutual Funds rather than trying to create their own stock and bond portfolio.  This article will help detail the advantages.  T and the disadvantages will be covered in a The disadvantages of Mutual Fund Investing are outlined here.

To the average investors, the following are the benefits of Investing in Mutual Funds:

For a Complete Listing of Mutual Funds and Mutual Fund Families click here

1)      Diversification. You won’t need to worry about intentional diversification with mutual funds for the most part because they are already diversified for you. In most cases you have to purchase very specific mutual funds in order to get a group of stocks or bonds that are too similar in nature, as this would defeat the purpose for many mutual fund investors. It is possible to purchase an industry specific mutual fund though that does increase your risks to some degree. Having your investments spread out across industries and investment type helps minimize the impact should a catastrophic loss occur in one area the blow is softened because the fund encompasses more than one specific stock or bond.

2)      Professional management. The average citizen would be hard pressed to afford the services of a financial advisor or stock broker and still have a significant amount of money left in which to invest. You are graced with the skills of a professional investor to guide your fund through the shark infested waters of the trading Bermuda triangle while you are allowed to put your mind to rest and focus on other things such as the places you will go when retirement strikes or the college educations your children will have courtesy of your investments today.

3)      Lower transaction fees. This is a huge benefit to many investors who know without a doubt that those transaction fees can literally kill the profits you’d make on occasion. The reason the fees are often lower is that mutual funds are purchased in large lots because they use the collective monies of a large group of people to make a larger purchase rather than using a small amount of money from one person to do the job. Same fee, but more bang for the buck and it’s divided among others in the group rather than one person absorbing the entire transaction fee.

4)      The ability to cash out at any time. This isn’t really different than stocks but for those who are considering all with no preconceived understanding you should understand that you can get your money out whenever you need to if emergencies arise. There are fees involved of course but you can recover your investment most of the time and bring home a bit of a profit on occasion.

5)      Easy as pie. This is something that most people overlook when making investment decisions but should pay a little more attention to. It is easy to purchase a mutual fund and it can often be done for very little money, especially when compared to stock purchases.

6)      Safety in numbers. In a mutual fund you pool your money with a group of people in order to buy a certain set of stocks or bonds or some combination of the two. In this you share the risks among you. Some will argue that you also share the rewards but that is the price you must pay in order to have the security that comes with shared risk.

There are a few downsides to dealing with mutual funds as well though for many the benefits far outweigh the potential for lower returns, which is the most commonly complained about detraction from mutual fund investing. It is still worth checking out the cons as well as the pros when it comes to investing in mutual funds compared to stocks, bonds, and other forms of investing.

February 28th, 2012 by InvestorPoint

NEW YORK, Feb. 28 (UPI) — U.S. home prices declined in a 10-city index and in an encompassing 20-city composite index in December, the monthly S&P/Case-Shiller report said. The 20-city index fell from 137.31 to 136.63. The 10-city home price index dropped from 150.54 to 149.76. For both the 10-city and 20-city indexes, it was the eighth consecutive monthly decline. Prices in December rose in Phoenix, San Francisco, Denver, Miami, Tampa, Fla., Charlotte, N.C., Portland, Ore., and Dallas. Pri…continued

February 28th, 2012 by InvestorPoint

NEW YORK, Feb. 28 (UPI) — Investors ignored durable goods data and sent U.S. markets higher Tuesday morning, sending the Dow Jones industrial tottering on both side of 13,000. The DJIA rose 17.82 points or 0.14 percent to 12,999.33 after briefing rising above 13,000. The Commerce Department earlier said durable goods orders for U.S. manufacturers fell 4 percent in January, the steepest decline in three years. The DJIA has flirted with 13,000 points for more than week, but has not closed above that…continued

February 28th, 2012 by InvestorPoint

WASHINGTON, Feb. 28 (UPI) — U.S. durable goods orders dropped 4 percent in January, the sharpest decline in three years, the Commerce Department said Tuesday. After rising 3 percent in December, new orders for U.S. factories fell to $206.1 billion from $214.5 billion. As of January, new orders are down two of the past seven months, but the decline in January was an unexpected jolt. Economists had expected orders to fall just 1 percent. More telling, new orders fell 3.2 percent with the volatile c…continued

February 28th, 2012 by InvestorPoint

Durable goods orders dropped sharply in January, falling well beyond expectations, the Commerce Department said. January’s drop was the steepest decline in durable goods orders in three years. The total of $206.1 billion is below pre-recession figures, giving rise to the question that hit about this time last year: Is the recovery a myth? The recovery this year looks more impressive. The unemployment rate — arguably the deepest wound inflicted on the economy by the burst housing bubble — has drop…continued

February 28th, 2012 by InvestorPoint

BEIJING, Feb. 28 (UPI) — The Chinese government has set new targets for domestic growth in the solar power sector under its latest five-year plan. During China’s last five-year plan (2005-10), the country’s production of solar panels grew more than 100 percent annually, with more than 90 percent of its panels exported to the United States and Europe. China’s new plan comes as the U.S. Department of Commerce is to make a preliminary determination Friday regarding anti-dumping and anti-subsidy trade…continued

February 27th, 2012 by InvestorPoint

When it comes to investing many people quote the old proverb “Never put all your eggs in one basket”.  The logic is that it is wiser to diversify your investments across different products and sectors so that no one stock can wipe your savings.  Whether you are an experienced investor or are new to the Stock Market you have probably heard the term “Mutual Fund”.   Many people have investments in Mutual Funds through their employer’s 401k plans or their own personal Individual Retirement Accounts (IRAs) yet are unsure of exactly what a Mutual Fund is, what the financial benefits are and what the risks are associated with investing in Mutual Funds.

For a Complete Listing of Mutual Funds and Mutual Fund Families click here

Looking to shed some light on Investing in Mutual Funds we must first mention that any investment carries risk.  Whether you invest in Bonds, Stocks, ETFs or Mutual Funds, there is some risk associated with the investment and you need to conduct you own thorough due diligence as well as consult an Investment Professional to help you make informed decisions about how you invest your money.  Mutual Funds tend to have lower risk then investing in individual securities which make that an attractive alternative to those new to investing or who want to take a passive role in the allocation of their investment dollars.

In simple terms, Mutual Funds are a portfolio of stocks, bonds, precious metals or a combination of them whose ownership is spread among the Investors in that fund.  The types of securities they purchase are based on the type of fund.  For example, a Dividend Fund will purchase stocks that pay dividend, a Gold Fund will purchase Gold Mining Stocks as well as Gold Bullion and a Bond Fund will only purchase Bonds.  One usually only needs to read the name of the fund to learn what its investment objective us but the exact investment objective and the types of securities they invest in are detailed in the prospectus which should be reviewed prior to any investment.

Mutual Funds enable investors to buy into a more diversified portfolio with less money than if they were to purchase the individual securities on their own and it spreads the risk among a group of people. Additionally, because an investor is not purchasing on individual stock or bond, this diversification can help reduce the downside risks to some degree. Please remember that investing in Mutual Funds, like any investment, carries risk and you can lose money in Mutual Funds.

Diversification is one of the key ingredients of a healthy portfolio and mutual funds will help you work the diversity you need into your portfolio in short order. If you are young and just beginning your career and in no real hurry for retirement this is one of the safest ways to invest your money for the long haul. Unfortunately it may lead to a comfortable retirement but is unlikely to lead to a flashy retirement, as most mutual funds do not have the high payoffs that many investors seek.

There are essentially three types of mutual funds with a few variations on each. First there are money market funds. These funds are great for the long-term investor who has a slow and steady approach to investing and will generally be better than leaving your money in a savings account collecting interest but there are better earning funds to be found. Second are the equity funds. These funds provide slow growth over time as well as some income along the way. Finally there are the fixed income funds. The purpose of these funds is to provide a current income over time. These are not funds that are anticipated to increase in value only to maintain a certain standard of living. This is great for those who have retired or investors that are extremely conservative in nature. Hopefully this finds you knowing a little more about mutual funds in general and preparing to learn even more about how to take control of your investment options and make these key decisions for your future and that of your family.

There are plenty of advantages and disadvantages in regards to purchasing mutual funds. You won’t find the flashy swings, dips, dives, and other grand maneuvers in the typical mutual funds. Most mutual funds are selected because of their stability not for in hopes of massive profits though some mutual funds are, admittedly, more aggressive than others. It really depends on how much of a gambler you are by nature and how much of your investment and retirement you are willing to risk whether or not you will be satisfied with mutual funds as part or all of your investment portfolio.

February 27th, 2012 by InvestorPoint

WASHINGTON, Feb. 27 (UPI) — Advances in longer-lasting lithium-ion batteries will make electric cars more affordable and easier to introduce on a large scale, a new study said. Envia Systems, which says it achieved world record energy density for lithium-ion batteries at half the price, outlined reasons that make affordable mass-market electric vehicles “dramatically closer to commercialization.” The company says development of its proprietary lithium-ion batteries will slash the prices of 300-mile…continued

February 27th, 2012 by InvestorPoint

NEW YORK, Feb. 27 (UPI) — Billionaire investor Warren Buffett said some people who lost their homes when the financial crisis hit came out ahead while their banks did not. In an annual letter to shareholders, Buffett said it was a “largely unnoted fact: Large numbers of people who have ‘lost’ their house through foreclosure have actually realized a profit because they carried out refinancing earlier that gave them cash in excess of their cost.” “In these cases, the evicted homeowner was the winner …continued