Don’t Buy Gold!!!

    Why should we not buy gold? There are so many reasons not to buy gold. One of the first reasons is that gold does nothing, and it remains in the bank or in our locker. The only reason we are buying gold is that we are very sure that we can sell it to the higher price in future. In very recent article Warren Buffet said that the growing fear of loss and confidence in the market has motivated the practice of buying gold. Since the financial crisis of 2008, the gold prices have continued to climb. The lack of confidence in the global financial markets has let people to want something more concrete that cannot fail has placed gold into that place. As on June 2012 one kg of gold was about 41,525 Euros.

     Since the people hoped that future economic policies and the continued push for the progress will make gold as a profit buy. We don’t know when it will plunge. This is a risky game investing in gold. Globally the central banks of each of the county don’t want their people to invest in gold which openly displays how their people reject their paper money and hence they will act swiftly on day or the other. If the trend continues to be volatile then the governments will announce a very debilitating tax on this yellow metal to break the upward movement. If the gold market tend to monotonically increase then it will be good to the investments in stock markets. If the stock markets continue to fall then it will ensure a good appreciation in near future. Since the stock market is unpredictable when compared with the gold trend which followed a significant increase that lead to a bubble.

 Most of our readers aware that market is drive by the two namely fear and greed. Now we are in the middle of fear cycle. When it ends the cycle of greed starts immediately. If the gold bubble happens the gold price will fall and people will sell in bulk and they will forced to buy securities and therefore the stock’s price will increase. Hence it is ideal to buy gold as a small portion of our assets.

What strategy to be followed in Stock trading?

           Generally most of the large traders and share market investors had gained some shots of huge money. It is not a mere coincidence that those rich people are skilled somewhat, the fact is those rich people used the leverage provided by the financial markets. The great people such as Warren Buffet have been followed successful investment strategies which allowed them a great success in the market. Many books have been published about them and their trading secrets and technique and countless of peoples analyzed the secrets of their technique in stock trading.

      Apart from them hundreds of thousands of people around the world claim to have the best trading strategy to generate steady gains, if it is so then what is the correct key to wealth? And what is the best investment strategy to follow? Most of the successful personalities give the following tips: Diversity is remarkable investment strategy to follow. This illustrates the fact that it is not a holy grail. Hence we can conclude not a single investment strategy is better than the others, hence we have to shape our personal investment strategy accordingly to move towards the success.
    
Your own strategy will not be best suited to your fellow trader, hence everyone have to be very comfortable with the technical analysis of the market to tailor his own strategy. The technical analysis helps you to find out the clear picture of the company, their organization, their financial activities and others, their strategies etc. The technical analysis further helps you to predict the future trend in stock price. This kind of approach leads you towards success and success alone. A good investor should have a long term vision but he must be aware of both short term and long term views since both of them have their own merits and de merits. Once you are accustomed with your own technique for successful trading then stick on it and make necessary adjustments now and then if needed and over the time you refine your strategy of trading and knowledge then Success will be at your door steps.
                                                Happy trading!!!

Financial deregulation and Housing Bubble

From 2007, the outstanding performance of the financial institutions gave way to the bursting of the housing bubble. Real estate whose fees have a permanent character and recurring such as rental management and property administration resisted but the pace of transactions and starts declined sharply. This has caused an awareness on the part of banks reacted in: Stopping the acquisitions or investments in the real estate sector; Closing some real estate agencies; Restructuring their activities to promote consistency and readability of various trades; In addition, buyers found that they could not (for regulatory or governance) or failed to make the synergies that were announced and anticipated between the Bank's businesses and real estate. The real estate crisis has significantly slowed the enthusiasm of Banks. However, they must adapt their distribution model to the development of brokers. Indeed, the market share of the brokerage has grown steadily in recent years at the expense of traditional banking channels to locate currently around 22% of loans in Europe. This reflects an underlying trend as evidenced by other European markets where brokers capture 30% market share in Germany, 55% in Spain, 60% in the Benelux and even 66% in Britain. This figure reaches 70% loan in the United States. Brokers will therefore still snatch market share to banks pocketing pass finder's fees and thereby reducing margins to bankers. The temptation to control the upstream chain is always present. For this purpose, banks may acquire brokers. However, this strategy undermines the necessary independence of brokers and therefore generates a significant commercial risk (which could partly explain the current difficulties in the online broker). The alternative lies in the implementation of partnerships as do several networks developing funding in areas such as real estate agencies. Some banks even completely integrate the entire chain, from start to finish, offering new "space property" bringing together in one place all relevant interlocutors customers for their real estate projects. These "megastores estate" virtual or physical, may well be the response of banks to prevent erosion.

Financial Deregulation and Mortgage

Since the 1990s, as a result of financial deregulation (elimination of many forms of credit given) and increased competitive pressure, banks have a policy of proactive moderation tariff to maintain their market share and attract customers. The mortgage has become one of the main instruments of conquest and customer loyalty. To compensate for the low profitability of this product appeal, banks have created packages for project acquisition or rental investment. The formulas include, in addition to financing, more profitable products such as insurance homeowners, a guarantee of unpaid rent, a consumer credit to finance the cost of installation or, more recently, and technical diagnostics. However, the innovation supply is not differentiating between institutions as products and services are easily transferable. Banks have sought to decide the level of integration of certain banking and non-banking in the real estate value chain. Encouraged by economic growth, the most major banking networks have invested or increased their presence in the real estate industry since 1999 in search of new growth. The competition has essentially moved upstream of the value chain: developers and real estate services companies have become prime targets for banks. Most banks have adopted a strategy of external growth by making acquisitions in the field of promotion and taking position in real estate transactions as well as property management. In fact: The development sector is supported by a structurally strong demand in contrast to the saturation of the market for retail banking. In a context of rising property prices, the transaction sector has opportunities high income related to the amount of transactions and the sector can also monetize the distribution system through cross-selling. The field of property management has the advantage of generating recurring revenues relatively insensitive to potential downturns because of the captive nature of the clientele. Mapping below shows the result of this current wave of purchase. One can see those mutual banks and especially the largely integrated upstream activities of the value chain.

California Bank & Trust

California Bank & Trust is between the chief banks in California among more than $10 billion in possessions as well as local offices situated all the way through the state. Establishing as an assemblage of independently possessed banks all through the state, CB&T specially meant for small business owners of California shows a profit meant for above five decades. In addition to they have full fledged through California; by means of unite the receptiveness of a neighborhood bank through the wide ranging services obtainable in most important monetary establishment.