Virtual banks

Virtual banks are increasingly popular among investors. Since they have combined more advantages than the regular banks, people are attracted towards it. Now a day we are hearing more positive news about them. As the name suggests, almost all their entire activities happens online. Having all their activities focused on the web platform their operating cost minimized. No need for branches and no need for high paying multiple advisory. Consequence of all these the money savings are passed on to the customers virtual banks. In banking industry, the bank charges are very high and they are charging for each withdrawal but this kind of charges can be avoided in the online banks.

In virtual banks the administration fees and other regular bank charges are absent. You not only pay less but also the offer higher interest rates for your money deposited with then unlike the other street banks. With online banking, you can access your money at any time, 24h/24 and 7 days / 7. Sites are secure and the customer service is often of good quality. You can also automatically save practicing payroll deductions and pay yourself first. This behavior is preferred to achieve affluence smile icon Virtual banks. Finally, there is no bank fees charged; no minimums and most importantly, no limit transactions.

U.S. Probe of Gold Price Manipulation

The noose is tightening on manipulation of the price of gold and silver. According to some sources of the financial sector, U.S. regulators are investigating at the moment on possible price manipulation in the world biggest gold market. The Commodity Futures Trading Commission (CFTC - Commission control and regulation of U.S. futures markets) examines closely the method of pricing in London. The Gold price is decided by few banks who meet twice a day to fix the 'spot' price of troy ounce of physical gold, according to some sources. The CFTC focuses on transparency factors including pricing for both the gold market.

 No official investigation was opened according to sources. This study took place at a time when regulators are reconsidering larger scale criteria for financial references following a scandal involving the manipulation of interest rates. Three major banks have agreed to pay penalties totaling U.S. $ 2.5 billion following the alleged manipulation of the London interbank rate, or Libor practiced and where more than a dozen financial firms are still subject to investigation. Is the price of gold the most important market in the world was controlled by five banks? The gold price is fixed daily by a group of banks and plays an important role on the price of the jewelery industry. It determines the gains that will be going to the mining companies that are selling their raw materials to the refineries. This helps determine the value of derivatives whose prices are linked to metals. U.S. commercial banks had some $ 198 billion in contracts related to precious metals during the month of September 2012, according to sources from the Office of Currency Control (Office of the Comptroller of the Currency). CFTC's decision is alarming. The agency headed since 2009 by Gary Gensler, a former executive at Goldman Sachs Group Inc., has played a key role in the global survey of interest rates. Mr. Gensler has called for the analysis of the benchmarks that are subject to further reforms that would require them to be based on actual transactions rather than estimates submitted by industrial companies. Mr. Gensler is the co-chair of a working group of international regulators mechanism and in charge of examining these criteria and plans to publish a new set of guidelines in the spring.

 "The thought that widespread manipulation or tampering (interest rates) can spread leads us to ask questions about the veracity of other key points," said Bart Chilton, CFTC Commissioner at a roundtable on February 26 in Washington on financial benchmarks. "What energy swaps, the fixing of the gold and silver in London and the whole litany of 'bors' referring to Libor, Euribor and many others. In the case Libor, are traders who have provided false data to the industry organization in charge of publishing the reference rate with the aim of creating more profitability. Barclays PLC, Royal Bank of Scotland Group PLC and UBS AG have made regulations result in fines up to $ 1.2 billion, paid to the CFTC. CFTC leaders have said that if Libor drew their attention. The agency had previously reported a series of cases between 2003 and 2005 imposing sanctions on companies and contractors for trying to manipulate the price of natural gas by providing false information to companies responsible for energy rankings.


 The CFTC began investigating following complaints received from a number of investors in the summer of 2008. These worried indeed the sudden decline in the price of silver. And this could be the result from a manipulation or market malpractice. The CFTC has never confirmed or denied the facts relating to the investigation. A spokesman for the CFTC did not want to speak on this subject. Controlling binding factors of the market prices of gold and silver has long been a source of debate. According to Kurt Pfäfflin, precious metals broker at Daniels Trading in Chicago said that this has always been in the minds of those who lingered on theories conspiracy. He says he does not believe in price manipulation 'spots'. Price-fixing, dating back to 1897 in the case of silver and 1919 in the case of gold, takes place through telephone conferences between banks.

Calls on gold held from 10.30 to 15 pm UK time. Calls related to money held at noon every day. Fixing the price of gold in London involves five banks: Barclays, Deutsche Bank AG, HSBC Holdings PLC, Bank of Nova Scotia and Society General SA. Pricing involves money Bank of Nova Scotia, Deutsche Bank and HSBC. Methods of price fixing are "based rather on the basis of supply and demand until a price is determined. This method is fully transparent. Nothing to do with the Libor "said a spokesman for the London Bullion Market Association (LBMA), in charge of guidelines on the quality of gold and silver traded on the London market. It does not handle the money.

Financial Analysis

These thoughts are centered on financial analysis and the creation of value for a commercial or industrial enterprise. Financial analysis is a method of analyzing the financial health of a company based on accounting documents, schedules, forecasts and intangibles such as a factory visit or experience managers. The objective of financial analysis is to answer two questions that may vary depending on where we place ourselves.

Shareholders: Does the company within the scope of my investment strategy?

Creditors: If I lend money, will I get it?

Attention, everyone can be an investor or creditor! Buy shares makes you a shareholder, subscribe to bonds makes you creditor. However, you have to analyze the company whoever you may be! I strongly emphasize this point, since the financial environment changes over time, the safe products become risky and that deserve analysis. Even in times of euphoria, a financial analysis is essential because even the best company’s of euphoria can fail. From my point of view, what I could see between schools, banks, investors and entrepreneurs, financial analysis is often incomplete. It is not enough to look at whether a company has been profitable for the last 3 years by adding liquidity ratios, management, structure, or even credit for a complete analysis.

 When a company makes a profit, we must always ask ourselves whether these profits can be converted into cash. It is only with cash that a company can repay its debt or pay its shareholders. Analysis of cash flow or cash flow-often forgotten-is an essential step in any financial analysis. A company may have an increase in its constant activity, an important benefit but have a severe shortage of cash. Most of the Americans investors know this and have invented one worship saying: Cash is king. While many start ups rely on equity funds that imply they lack the cash to finance their activity despite growth rates maddening.

Good and Bad credit!

Normally, if you are in debt, you are not rich. This is the fact. The intention here is precisely to have no debt and enough money aside to buy what you want. In looking more closely, there are basically two types of debt, good debt and bad, as there are good and bad cholesterol, good and bad stress etc. A bad debt is a loan you take out for something that does not earn you money: a loan for your car, your home, your plasma screen etc. Because these assets do not generate money and you need to repay your credit from your pocket.

Most of the Rich people who are well aware of credit traps pay cash for these things instead of getting a bad debt. A good debt, you'll understand a credit contracted for a asset that generate income for your investment. For example, if you pay the monthly installments on your house rented and you are receiving the rent paid by your tenant, or the loan you take out to start a company will be repaid from profits. You do not take money out of your pocket to pay for a good debt. However, there are exceptions in the case of bad debt.

 When the rate of your credit is less than the rate of inflation, for example in the case of a zero-interest loan, it is better to credit. This is also the case when you put the money you were going to spend on your purchase that brings you more than the cost of credit that you will incur to complete this purchase. Now a day mortgage rates are low, you can benefited through that also.

ANZ Share Trading

ANZ, company has been in operation for over 175 years with their headquarters in Melbourne, catering to 32 markets all over the globe with representatives in America, Australia, Asia, Europe, Middle East, New Zealand and Pacific. It first started its operation as Bank of Australasia in the year 1835 in Sydney and in 1838 in Melbourne and has been steadily growing in business. They are committed in building a lasting relationship with their customers, communities and shareholders, providing them with a range of banking and financial products and services. Users can start an ANZ Share Trading account using the online application which is easy and free to join. Once registered, the user can access E trade’s superior tool as well as in depth independent research with one of the best online trading services which offers a lot of opportunities to earn Qantas Frequent Flyer points while trading. Useful information and step by step instructions are provided at the site for the benefit of the user to enable them to set up an account and start an online trading activity.


 Online trade services, an interactive internet based solution, enables the user to create, track and report any trade finance transaction. The electronic trade banking system helps individual to manage all online trade solutions from beginning to the end, thereby saving on paper and time besides the need to venture to the office or organization for the same. Moreover it is convenient since this activity can be performed from any location and at anytime by the individual having internet connection.. Besides this, real time updates on trade transactions with email notification is also available to the user. It also incorporates a security system which helps in protecting all trade information and utilizes the RSA tokens for two authentication factor. To protect the integrity of connection to ANZ sites, a firewall mechanism is used. 128 bit Secure Sockets Layer SSL encryption is used, to protect the log in session of the individual, with identity and access management controls to safeguard user’s account information. The user also has access to trade instruments which include trade finance loans, collections, letter of credit and international guarantees.

Increase Your Income By Investing A Little Time

The increase in income may go through several things: financial investments, overtime, promotion, etc. But you can also easily increase your income by investing a few hours a week and a bit of money upfront. The theory is simple: in addition to your work, you can invest a little of your time (approximately equivalent to 10% of the hours spent at work) to generate alternative income. Working for yourself is much nicer than having to work for others, and much more satisfying when you reap the benefits. Large cash flow is a little hard to get at first, but it may end up paying. The trick is to know, what to do to get more money. The most important choice is to take an activity that does not require too much time (not to exceed 5-10 hours per week).

If the chosen activity is done, it can increase your additional income to several thousand Euros per year very quickly. Personally, I strongly advise against trying to make money with online surveys or websites that offer reward systems, etc. You rarely touch the money in cash, sometimes rewards, and often the site in question may prove to be a scam which does not pay. We must not go after this type of site as Source (s) of alternative income. It is better to turn to other types of activities: gardening (many economies) blogging (paying little at first, but generates hundreds each month after 1 or 2 years of operation, and constantly rising), freelancing (choose something you can do and offer it as a service), etc.. Finally, it pays a lot more money doing something you like. It is not because you work better, but because you are more motivated to work.

 I suggest you diversify your income with an activity related to your interests. Still, the lesson to be learned from this post is that it is not always enough to put money aside for retirement, sometimes we also know that money to work to your advantage. I also advise you to continue to set aside money for your retirement, but also increase your income by investing a little time and (very) little money. Your goals for retirement accumulated capital will be achieved much faster. Do you already have diversified sources of income of your own?

The New York Stock Exchange Current Trend

While some experts feared the downward effect of New York Stock Exchange might have lead to short-term maturity of U.S. budgetary and fiscal measures, the New York Stock Exchange seems - for now - to ignore such considerations. Better yet, the Dow Jones, its flagship index posted its fifth consecutive day in a record close, rising 0.35%, or 50.22 points, to 14 447.29 points, the Nasdaq gaining for its part 0.26%, or 8.50 points to 3252.87 points, which is something that had not seen since November 7, 2000. The broader index of Standard & Poor's 500 meanwhile rose 0.32%, or 5.04 points to 1556.22 points, grazing near its highest closing level (1565.15 points) taken October 9 2007. Reasons for this surge: the Friday announcement of a lower U.S. jobless rate to 7.7% in February. A new boom is even possible if you believe some analysts saying the recent passing of a new record for the S & P 500 would be a very positive psychological effect on brokers and investors, this index is considered by many them as the benchmark. Currently, the markets do not seem to expect a decline in the short term, although some experts are already predicting that such high levels cannot be maintained for very long. In the end, the good performance of the stock market will give some surprise, especially such a flight can be maintain until any changes in the global atmosphere. In contrast, industrial production in China had its slowest pace since 2009 in the period January-February. In Europe, the political crisis in Italy is rather seen negatively by investors, who fear that a coalition government is formed not long before. Context compounded by the demotion of a notch on the rating of the country made Friday by Fitch. The U.S. budget deadline of March 27 is fast approaching, which could be synonymous with closure of non-essential services administration and fiscal cliff. Elected officials do in fact have a few days to complete a law funding covering the last six months of the current fiscal year. Recall that on March 1, came into force automatic cuts in spending from the federal government 85 billion over the next seven months.

European Financial Stability Fund

The European Financial Stability Fund (EFSF) commonly known as European Relief Fund is a mutual fund claims approved by the 27 Member States EU May 9, 2010, to preserve financial stability in Europe by providing financial assistance to states in the Euro area economic difficulty. The EFSF has its headquarters in Luxembourg. The European Investment Bank provides cash management services and administrative management in the framework of a service contract. Created May 9, 2010, the EFSF could not be intervening after having been ratified by 90% of Member States; this threshold has been reached on 4 August 2010.

The agreement was ratified by the three Member States (Belgium, Slovenia and Slovakia) in early December 2010. Following the summit of the Euro group of 11 March 2011 bringing together the leaders of the Euro area, an agreement was reached to increase the effective capacity of the EFSF intervention to 440 billion Euros, with an increase guarantees the states of the Euro area. Moreover, since the summit, the EFSF has the right to buy the primary debt, that is to say, newly issued, states. Thursday 21 July 2011, the European decided to expand the EFSF's role: it can now buy government bonds on the secondary market, participate in the rescue of troubled banks lend to States in a difficult situation. Its action is subject to the unanimous opinion of the participating countries and the European Central Bank.

 These provisions do not come into effect after ratification by national parliaments. The first bonds of the European Financial Stability Facility were issued on 25 January 2011. The EFSF placed its first five-year bonds for an amount of 5 billion Euros in financial support joint EU / IMF to Ireland. Investor interest was exceptionally strong, with an order book of 44.5 billion Euros sales offers. If the EFSF has not been activated, it would end after three years, that is to say on 30 June 201 3. The Fund will exist until the last obligation has been fully repaid. Both funds will be replaced in 2013 by the European Stability Mechanism.

Oil Trading!

Oil is a raw material which is now become increasingly rare and therefore sought, and usually one of the most requested asset from traders and especially those who have chosen trading options: in fact, the oil and news often pair; one does not go without the other. Because oil is owned by a small handful of states producing together under the name OPEC, any event that happens in one of these states has a direct impact on the price of oil which then sees his current fluctuations through the world. The investment in oil drilling reached a record high in 2012, and the number of offshore projects got momentum. Meanwhile, the oil services industry regains its record levels of activity in 2009 in all segments: geophysics, drilling, offshore construction. United States, fracturing (used to exploit shale gas) focused $ 50 billion investment, or 20% of total drilling investments in the world.


This dynamism intensified competition strong among Chinese and Korean companies on these activities. In refining, the contrast is widening between Europe and the United States, where production capacity stagnated and Asia / Middle East which concentrate 80% of refinery projects. IFP expects a price of about $ 100 per barrel in 2013, after an average of $ 110 in 2012, but rising oil prices could resume in case of war with Iran or Syria. Oil Trading carries many benefits. More reports are available to traders to understand the market trends. These include among others, regular publications and the reports and forecasts of oil producing countries. In addition, this type of trading provides benefits up to 100%. Thus, this sector presents a great risk control.

It allows a diversification of investment returns. Finally, you can access many online brokers very easily. Investing in oil can be a good start in binary options. It does not necessarily have previous experience significant knowledge. However, to successfully accumulate profits, place heavy investment and long term. Oil trading is the fastest way to get gains. So it is up to you to make the appropriate choice for binary option bonus from the asset.

Why you should invest in Gold?

The Periodic Table of Commodity Returns in a user friendly format shows a decade of results across 14 different products. Last year, 11 products have increased in value with the wheat harvest in top of the list after experiencing quite a decline in 2011. Then later the following metals lead, zinc, natural gas and platinum entered the race for the rich. Their values have seriously increased in 2012, 2011 being the year of the falls. Only 3 products declined throughout year 2012: crude oil fell nearly 7% after an increase of 8% the year before. Nickel declined for the second consecutive year. In 2012, the metal has lost 9%, while in 2011 it had dropped to 24%.

 Coal is the least performed product than all other products in 2012, falling by nearly 17%. It had a bad dead lately. In fact, this product has no known heyday for the last 5 years (although in 2010 the metal is Designed an increase of 31%). As we can see in the table, the products often suffer from significant price fluctuations from one year to another due to many factors affecting supply and demand as government policies, trade unions and strikes currency volatility. This is why when it comes to commodities and commodity producers, many investors decide to hand to portfolio managers who understand the industry products and global trends that may crack on each product.

 For example, gold and mining companies: After investing in the gold industry for decades, we noticed several facts about gold continue to surprise investors. Here are few of the most recent developments: Gold has grown steadily for more than a decade. While the yellow metal has had its ups and downs in 2012, gold continues its course. It finished the year up 7%. It's been 12 years that gold is rising. The table shows the position of the other gold products every year. What is fascinating is especially the recurrence of this cyclical increase over three years compared to other products. This scheme would allow predicting that the year 2013 would be the springboard for a sharp rise. Gold should be a strong product in 2013.

It seems that the printing will continue to operate against the wishes of some central banks balance sheets. Gold will know good days of coming months. Let's take a look at the projected increase in the balance sheets: as% of GDP (GDP) of the ECB, the Bank of Japan, the Federal Reserve of the United States and the Bank of England in 2013. It is estimated that the ECB's balance sheet reaches almost 50% of GDP by the end of the year. The Bank of Japan is located just behind the ECB with a balance that is close to 35% of GDP. Can we rely on these assessments? If we take into account the reckless actions of central banks, it would be better to hold gold as paper. Interest rates do not go red, gold still keep its brilliant shine for another good year. Gold is the product which is less volatile in the table. This may be surprising but gold is the least volatile of the 14 products. The last 4 years have been better than we thought. Gold knows a good rise since 2009. 2013 should confirm this upward curve.

Why Gold and Silver is always a good investment?

In recent years Gold, considered as a safe haven, gradually changing status to states and savvy investors to regain its historic role as the reserve currency. This should lead many investors to make an investment vital for years to come. End of 2011, a significant change in status of gold has very little was echoed in the mass media: Venezuelan President Hugo Chavez demanded the return of the gold reserves of the South American country in the trunk strong national bank, its reserves are kept in the far western banks. At the time this request spent more provocation for Chavez to the west for a rise in the role of gold. But in January 2013, Germany the first power of Euro zone country much more symbolic, has called for the gradual repatriation, by 2020, all its gold reserves stored in Paris (374 tones) and some of those stored in New York (300 tones).

 End of 2012 the gold reserves of Germany amounted to 3391 tons, and accounted for almost 80% of foreign exchange reserves of the country. It is the second largest gold reserves in the world after the United States but to those of the International Monetary Fund (IMF - about 8,000 tones) and Italy (2,451 tons). France is in fifth position, with 2435 tons. The Euro zone crisis has led the German public, inspired by some conservative politicians to worry about the national stock of gold. The German equivalent of the Court of Auditors asked last October to establish an inventory of the gold stock of the country.

Euro skeptic politicians have publicly questioned the extent of German reserves abroad, asking for their repatriation. Germany justified the repatriation of reserves by the lack of possibility of change, but it clearly demonstrates that the national gold reserves are again a strategic issue. This decision may be treated as a major event (compare Gaulle's decision in the late 60s that had ended the Bretton Woods system) which foreshadows the return of the gold standard. Countries have clearly lost confidence in the central banks (New York Fed and Bank of England), supposed to hold physical gold on behalf of many states. The gold is perhaps more simply as GATA says, lent to banks and sold on the market to keep prices under pressure. Thus, they save more time confidence in the monetary system of silver "paper" not convertible.

 In addition, the market for paper gold, would be a hundred times larger than the physical market. The day that investors will obtain delivery of their gold-backed paper that there will not be enough physical gold to satisfy demands. Gold is a material present in limited quantities in the world and its scarcity intensifies over time. Repatriating its gold, Germany eliminates counterparty risk and ensures really hold physical gold and not pieces of worthless paper.

With these repatriations that give us a strong signal of progress towards the degradation of confidence in currencies, families should reconsider the amount of gold and silver to possess. Gold is money. Its role is to safeguard the wealth. Especially the yellow metal still beautiful day ahead when we know that less than 1% of financial assets in the world, destroying every argument bubble in gold. At the same time, monetary impressions launched by the Fed and the ECB devalue paper currencies and does not restart the economy. Gold (and silver) continue to reflect the destruction of paper money. It is not gold rising; the dollar, the euro and the pound sterling fall and this may continue. These safe havens are not diluted by central banks.

Silver is also a precious metal and historical ratio gold / silver is 16. That is to say that every gold coin you possess worth 16 pieces of silver. Today this ratio is greater than 50. Thus, investing in silver metal should be more profitable in the long term, provided they are patient and mentally strong to withstand fluctuations in its price. To eliminate the risk of counterparties must hold his gold outside the banking system, directly in physical gold. I advise to hold a small portion of its assets in precious metals, in order to keep this future security. Money that we do not need a long-term horizon may be invested in it. Invest around 10% of your assets in gold and stumbling sounding reassured, but for the rest

 I prefer you to invest in developing your income. Precious metals have this defect, they produce nothing. Besides this, you can buy stock of assets, real estate, which in turn will generate regular income.

Social Capital and It's Importance

Recently I came across a article which described about Social Capital and its importance and how we can save a lot of money for little or nil effort. And here I wish to give you a brief outline of it and show you the value of the social capital. What is social capital? The Social capital is the capital which is obtained through service to others. With every service rendered, you get a chance to get some favor in return. For life in the big cities, it is certain that it is more difficult to accumulate social capital because people know little and therefore do not see the value of helping someone. However, in small towns, social capital is a much more powerful tool.

Large firms are much less present, and competition is less severe for small traders. Prices in chains stores like bakery, supermarket, mechanics, etc are extremely high relative to manufacturing costs. But shopkeepers in smaller cities may sell goods and provide services at a much lower price. A price that is even lower if you helped this person to move last week. Let us see how to create and use the capital with some examples. Helping your landlord to perform certain tasks in the building could help you reduce your few dollars rent and reduce in your share of maintenance expenses of the building you are rented. Organize your neighbor’s lawn and help him to mend repair his truck or be a baby sitter for someone. Using the social capital depends on what you need.

The idea of social capital is to serve without knowing what service you will receive in return, not even knowing if you need anything from this person in the future. This is why it is important to build social capital with people from varied occupations and knowledge: a kind of diversification of capital. To summarize, social capital is a very powerful tool that many can use to save money. Moreover, it is highly likely that social capital have preceded the money as a way to exchange services. The important is to build a kind of community of people around you who are able to perform various tasks and help you in many areas.

Oil Stocks Declining Globally Except US

According to the U.S. Agency for Energy Information (EIA), global oil inventories fell by 1.3 million barrels per day in last 60 days. A situation largely due to consumption exceeds production. On average over the last two months, stocks have been valued at 2.652 billion barrels; while the figure of 2.649 billion was recorded in the same period of 2012.World production meanwhile was 83.3 million barrels per day in January and February, against 83.4 million in the comparable months of 2012. At the same time, consumption has reached 86 million bpd, against an average of 85.3 million in January-February 2012.

 Information on global stocks comes as the abundant supply overseas increasingly worried investors. Fears, which increased Wednesday following the release of statistics showing an increase in the trend. According to the weekly report from the U.S. Department of Energy on oil reserves, U.S. crude oil inventories rose 1.1 million barrels in the week ended Feb. 22. Experts noting they are now at their highest since July to 377.5 million barrels. Situation was due to both less energy consumption than a sluggish increase in crude oil production of 14.6% in 2012 compared to the previous year in 2012, something that had not been observed since 1995. A context that could worsen in the absence of agreement on the U.S. budget obtained - in extremis - Congress on Friday. Such an outcome automatically opening the way for drastic cuts could lead the United States into recession. Means lower demand for crude.

How to become rich?

You learned good principles in your life that help you manage a large number of situations that you are facing. Forget them when it comes to managing your money as applied not make you richer. But probably makes you poorer. Here are six principles you have to strictly follow to become rich: Do not settle for average. Search for the best. Funds "means" as index funds perform better than 80% of actively managed funds. Trust in your instincts and what your heart tells you. It is better to listen to your brain and if you sell coldly losses, rather than thinking that prices will rise and you will chase your losses.
 If you do not know how, ask an expert. Seek help from an expert may be useful in the case of complex financial or very specific topics such as taxation. To manage your money, especially if you want to get rich, no one will do better than you. You'll get the price you pay. In terms of investments, the less you pay fees and the yield obtained is important. Crisis, we must act quickly to resolve the problem. Do not panic. Invest every month and you can enjoy automatically the benefit, the market declines or increases without you pack whatever the trend.

 Is to invest regularly over time is important. History repeats itself. As it is written on every financial prospectus, "Past performance is not a guarantee of future performance." Do not choose funds based on rankings of the year; look at the behavior of the bottom 3, 5 and 10 years. Behave wisely in case of market volatility and market down trends. Because what you have learned does not apply with respect to managing your money, you must spend at least a minimum time to acquire a financial literacy. It is this; investment in time that makes the difference between a successful investor and one who realizes low performance.

The European debt crisis going to end soon!!!

Europe emerging from a period to improve its financial situation that began in August last year, when the President of the European Central Bank (ECB), Mario Draghi announced that it would needed to support countries that are deficient in the Euro zone. This intention is then translated by a specific program for Italy and Spain, to limit the level of interest rates on their debt.

 However the optimism is reversed because of the accumulation of issues such as political scandal in Spain, financial conditions of Ireland. Hence the international markets react accordingly. Indebtedness of most European countries in relation to Gross Domestic Product is rising despite the efforts of Member States. With an average debt of the Euro zone (8000 billion Euros) over 90%, the smallest increase in interest rates impact the refinancing. The Euro zone should refinance more than 1,000 billion Euros in 2013.

 Reforms of the costs and revenues of government continue to impose. Economic lethargy does not seem to decrease. The European GDP growth is almost nil. Hence it is still in recession phase. Without growth, tax revenues are also lethargic and financial costs of states continue to be excessive. In this context, most European economies saw their unemployment rates are increasing. The question that remains is whether this or will improve? Basically, this is the strength of the U.S. economic recovery we can expect an early growth at the end of 2013. And the creation of 157,000 jobs in January 2013 is really good news. But the weakness of Europe is the situation of its banks. Without going into a pessimism that has no purpose, it should not diminish the vigilance that the Euro zone needs to restructure.

Gold will continue to shine in 2013!

2012 was the eleventh consecutive year in which the price of gold has increased. End of 2002, one troy ounce (a little over 31 grams) of gold was worth just under $ 400. Today, you will pay $ 1,700 for the same amount of gold. It has long been the gold price rises. Is it time to take profits? Apparently not. Some analysts predict that 2013 will be a year of gold and hence any one may expect the uptrend of gold. Demand for gold may have declined in the third quarter and the following weeks, but chances are that 2013 is a good year for the precious metal.

The analysts see two reasons. First, we note that many central banks continue to run the printing press. History shows that it is associated with an increase in the price of gold. The second reason is the debt crisis, especially in Europe but also in the United States, where budget discussions are intense. Anyway, it seems that 2013 will be a year of great uncertainty, and it is always a fertile ground for potential gold boom. But predicting the price of gold over the next few months or years would be like trying to read the future in coffee grounds. However, most experts believe that gold will exceed the $ 1,800 mark in 2013. The biggest optimists even see the yellow metal flirting at $ 4,000 and more. Do you think gold will reach new heights in 2013 yet?

Stock market and Cyber attacks!

You probably agree with me that the stock market is not exactly a model in terms of evolution controlled. The New York Stock Exchange (NYSE) is the latest to have lived a chaotic Monday. The volume was low that day because of its 216 trading 3825 shares was suspended. Indeed, the motor trading Exchange not working properly. Trading engine seems to be something complicated. One can imagine that it might fail. But the boundary between technical complexity and incompetence is subtle. Transaction volumes and high frequency put more pressure than ever on the hardware that manages exchanges in the world. This is an arms race. And exchanges cannot keep. There is also the problem of attacks on the Exchange since places like 'Partisan' and 'Siberia'.

These are not real places of course. But it is logical that we highlight here. Anyone with a keyboard, modem and computer skills can target the stock market or individual for malicious purposes. A man has been jailed in Hong Kong for conducting an attack distributed denial of service (DSD) on the news website of the Stock Exchange of Hong Kong. DSD in an attack, the server maintains a website is overwhelmed by so many requests at the same time it stops. There was not any site. This was when ads are published sensitive price changes. The stunt Tse Man-lai was forced to stop the Exchange trading of eight titles including HSBC. You cannot have a regulated market where some investors have access to information that could affect the prices and other cannot. The attack was totally a publicity stunt because Tse runs a company of cyber security software product anti-DSD. He took screenshots of the website after the attack, hoping to use for future marketing campaign. Its purpose was to show how much damage an attack could cause DSD your business and the importance of having the right software protection.

Few Financial Mistakes We Should Avoid!

Regardless of our income, financial situation or lifestyle, it is wise to manage personal finances and avoid unnecessary spending. Many people do not pay enough attention to where their hard-earned money goes. Here is a compilation of some financial mistakes and tips to avoid them.

Credit card Usage:

 According to famous economist, a credit card is an essential financial tool, but only when it works for you and not vice versa. The credit card allows you to make online payments, regulate your purchasing power, to accumulate rewards points and build a solid credit rating. By cons, it is easy to fall into the traps when you are in financial pressure. Avoid all cash advances, unpaid balances, minimum payments and late payments in a credit card. These are all ways leads you to get into debt and sullying your credit reputation. It is also necessary to handle the number of credit cards and their limits as they may hurt you when you apply for a car loan or mortgage.

Budget:

 Do not holding a personal budget is a mistake that could cost you without you even knowing it. Holding a budget is your advantage to take the time to analyze your income and expenses and then focus on what is important to you. A budget is not synonymous with austerity, but prosperity, because knowing where your money goes and you can avoid unnecessary leaks profit pleasures (restaurants, trips, outings and other). 3. Not realize that the "little expenses" add up quickly. You maybe realize or not, but daily losing $ 3 is more than $ 1,000 annually, enough to pay for a trip! Day to day, these expenses seem innocuous, but your budget will prove just the opposite. A simple change in your habits will save you considerable sums.

Financial commitments:

When you make financial commitments such as buying a house, a car or even furniture, make sure you do not live on the edge of your means. The game plan here is in case of a loss of income that would stretch or if an increase in interest rates and therefore monthly payments. Live to the nearest dollar that you do bring additional stress and not happiness.

 Having an emergency fund:

 Would you be able to find $ 2,000 to repair your car in case of mechanical failure? Can you able to pay $1,000 for unexpected medical expenses? In addition to a transaction account (also called checking account) and a savings account, you should have an account for emergencies to bet the contingencies of life. Do not rely on your credit card to fix these problems because you risking to pay the price. Do take advantage of discounts: Without falling into consumerism, trying to find good deals when shopping. Competitive traders such as banks, dealers, supermarkets, shops, tour operators and others cut their prices to have you as a customer, so enjoy. Just be careful: a discount is not necessarily a bargain!

Open a joint bank account:

 Love is blind, it is known. Opening a joint bank account may seem like a good idea when the relationship is doing well, but when things escalate, you may regret your decision. Make arrangements just between you and your spouse and think twice before opening a joint bank account. Avoid unnecessary bank charges: Paying a withdrawal fee is an aberration! Try to withdraw money from ATMs of your bank and take larger amounts to avoid annoying situations. In addition, you will be less likely to spend the cash on you compared to a credit card.

Take advantage of tax cuts:

 When you make investments or save money, you use all the financial vehicles available to save tax? The government offers a variety of products for tax saving which are tax-advantaged. Contribute the maximum to those who make the most sense for your situation.

Plan your future:

 We are good at planning things trivial: dinner with friends, a romantic evening or a weekend with the family, but how much time does we spend planning our future? Buying a house, organizing a major trip, planning a career or studies are all crucial decisions. Make sure you think about and plan for your future that is to your liking.

Growth of Asian Market and The Foreign Banks -2

To be effective, it must decide which customer segments used in priority, identifying those with critical size enabling it to recoup its costs and commercial structure including compliance. Segmentation can be based on criteria level of wealth (affluent, HNWI, UHNW individuals), the nationality of the customer (onshore vs. offshore) of origin of the fortune (inherited vs. built).... To gain a foothold in the Asian market, European banks may for example choose to serve priority customers offshore, composed of customers 'Western' wishing to invest in Asian markets. Once established brand and the breakeven point is reached, they can explore the opportunity to develop their offer to the onshore market to take advantage of its growth potential. Along with this customer segmentation, banks must be able to provide services to both heritage and professionals to cover all customer needs.

 This is the strategy chosen by most of the Wealth Management companies and has implemented procedures for cooperation between its teams Corporate Investment Bank and Wealth Management Asia able to better serve its customers easy. The customer has one contact for all of his professional and private issues. Beyond the added value to its customers, this cooperation allows commercial expansion through effective cross-selling. A client passes to sell his company will benefit from the expertise of the investment bank while new cash from this sale will be managed by the private bank. This type of organization seems particularly suited to the Asian market. Finally there is the question of the mode of entry of banks in the Asian region. They must assess their strengths locally before deciding how to layout and the level of investment involved.

Have one or more business lines deployed in the region? If so, then the bank will definitely enjoy cross-selling, sharing clients or synergies information system for pooling certain fixed costs and limit the cost of customer acquisition. Otherwise, it may proceed by external acquisition targets but are now rare or even the possibility of a partnership with a local bank. Development potential of private banks in Asia is considerable. European players must be put in working order now to operate profitably. Failing recipe, everyone must identify its forces in the region to implement the business model that will allow it to serve more efficiently and at the best price a demanding clientele. The future global ranking of private banks certainly depends on their success or failure in the conquest of Asia.

Growth of Asian Market and The Foreign Banks -1

Asian customers (High Net Worth - fortune exceeding $ 1.2 million) whose assets are managed by private banks are characterized by two seemingly contradictory characteristics: they are often multi-banked (placement of their assets in three different banks in average) and require that they know their banker properly understand and analyze their needs. But this is only possible if the private banker has a panoramic view of their heritage. These paradoxes highlights a caution or distrust in the relationship between these millionaires and their private bank and draw one of the issues of private banks in Asia to win the trust of their customers so that they reveal their greater part their assets. To this is the case of the most of the Asian millionaires, who are often entrepreneurs who made their fortunes recently and still active.

 Their personal and professional heritage issues are intimately linked. A 360 ° view of the customer means not only knowing all his private fortune, but also its heritage and professional goals. This is why banks manage to take their game will be those able to offer comprehensive solutions covering both the financing needs of active professional that needs investment and transfer of private wealth. The first challenge is the recruitment, including front office positions: private bankers. To (re) establish a relationship of trust with their customers and convince them reveal all of their assets, private banks must recruit the best private bankers. There is strong demand on the part of banks, but the supply is low on the side of private bankers since the business of wealth management in Asia is still young. Private bankers represent a significant cost for the banks because they are rare and expensive to attract and retain.

To fully leverage the talents banks must redesign their business processes so that they are dedicated to the most pure and rewarding business tasks at the expense of more administrative tasks or support. The second challenge is that of customer segmentation to provide highly personalized services but profitable for the bank. The conclusion is that a bank cannot profitably serve all customer segments with a special offer.

Growth of Asian Market

Since from the middle of 2011, Asia was the front and foremost region in the world that have many number of millionaires (3.37 million millionaires, representing 30.4% of the number of millionaires in the world) with a growth of more than 20% in four or five years. They have a total wealth of 10 700 billion that is 25.5% of the overall wealth of millionaires in the world.

 In a market asset management generally quite gloomy figure of Asia is essential for growth for the major international private banks. In the longer term, the Asian continent is undoubtedly the one that produces the most wealth and hence the most millionaires. According to industry professionals, the rapid growth of wealth is expected to continue at a rate of more than 12 to 15% over the next 5 years. To successfully lead the conquest of this Eldorado gold, banks need to understand the specificity of this market.

 They must also define a profitable business model focused on customer segmentation adapted. Finally, they must analyze their strengths and weaknesses in the region to determine how to implement cost. On the one hand the onshore market, with millionaires Asian (Chinese, Indians) who made their fortune because of the considerable economic development in the region in recent past. This market is doubly exciting because at the growing number of millionaires adds their current low supported by private banks (only 20% of Asian millionaires are entrusted to private banks). To conquer the market is considerable. On the other hand the offshore market, with a clientele composed of customers in Europe, America and the Middle East who wish to outsource all or part of their holdings to access attractive Asian markets or to enjoy banking regulations and tax more conciliatory in this part of the world. For this reason Singapore is poised to dethrone Switzerland in her role as a global financial center offshore.

Market Cycles Vs Economical Cycles

The indices help the financial growth of listed companies; indices give us indications of future economic cycle. Therefore, the market operates in advance. In summary, the market cycle has a lead time of one or two quarters on the real economy. The graph above illustrates the gap between the economic cycle and the market cycle yellow blue. For long-term investors, it helps to have an idea of the sectors that beat the market during different periods.

In times of prosperity (middle-top bull), you have the total: robust growth, falling unemployment, rising wages, the credit facility. The technology sector, basic industry and capital goods will cost to investors.

 In times of crisis (early top-bear), we arrive at an inflection point. More money circulates with wage increases and low interest rates. Therefore, inflation appears like toothpaste out of its tube, which will cause a general decline in consumption. During this period, the non-cyclical sectors such as the food sector perform well. Finally, precious metals, energy and utilities benefit to the mortification of the purchasing power of households, inflationary effects.

In a recession or depression (early-late bear), households are deleveraging and they consume little, companies are restructuring according to demand and credit activity is scarce. So, we are in a vicious circle and despair reign. At stock, investors are in general, sector based discrimination favoring defensive sectors such as sustainable consumption and unsustainable and health.

 During recovery (late early bull-bear), returns for hope everything is done to break this impasse whatever means: growth is back, the activity is not shrinking consumption and restarts more beautiful. The sectors that will benefit from this new momentum are finance, health and consumer always.

 Hope this article will help you in enhancing your knowledge in the future your future stock market investments.