Stock market investment – Bull or Bear

Stock and shares, commodities , bonds have always remained on the top list when one heads towards the financial community. How market would play is an all time question whether it comes to an economic crunch or it comes to a boom.

Predictions have proved to be useful techniques helping an investor to take decisions regarding investment and divestment as well. Technical analyst give their predictions based on comparative study with past data, trends, cycles, price movements and ratios of a particular scrip , company, industry or market as a whole

Fundamental analyst forecasts on the basis of intrinsic values of the stock, sales, profit, taxes, growth of the company etc.

However, there are as many factors that has the bearing over share prices and the market as well. Such factors include national and international economic health in terms of GDP, inflation, prevailing tax rates , Foreign direct investments , foreign institutional investment, foreign exchange, climatic conditions, political situations, company’s performance in terms of profit and loss, reserves, capital structure, projects and many more.

Besides all such factors I would like to rate “Sentiments” as the driving factor which indicates the market to be “Bear” or “Bull”

Here are some guidelines which would help my friends who want to have some investment in the stock market. I am sure it is going to help you a lot as it helped me reaping good returns .These guidelines have come from market experts and ten long years of my investing experiences and analysis.

Be sure- Investing, speculating or gambling

The very first rule of the market is to understand your own intentions whether you will behave as an investor to reap steady returns gradually, with nominal risk on long term investment, or speculator to reap fast returns with high risk on short term investment or as a gambler to earn abnormal profits with infinite risk irrespective of the time horizon.

Study the market

Having clear intentions of your stand , market study becomes the most important aspect of investing. Collect information about the economic conditions of the country and projections of its future movements. When economic conditions such as GDP , saving ratios, foreign exchange reserves of the country are stable and increasing it’s the right time to invest and vice a versa. Steady growth in economy helps out investors and fluctuations favors the speculators

Do not put all eggs in one basket

It is the golden rule of the market and investment. Be sure of what you are investing in. Making investment blindly in every scrip would bring your portfolio to a no profit no loss situation and even huge losses. Be very choosy about scrip by looking to its past paerformances, dividend rates, expectations of further growth, recent projects and its synergy with other industry performances.

Wait for the right time

Right time to sale and right time to purchase is the factor which will benefit you the most.

Invest at a time where the share prices are to maximum low (bottom line) and divest when it stop rising up. But the point is how to determine the optimum time? This can be determined by reading cycles of that individual stock in various economic conditions.

Boom triggers investment and depression aggravates divestment.

However , recession and depression in the economy can also be an ideal time to start investment or even speculation because of the fact that shares can be availed at all time low prices and then tends to shoot up. The only fear factor is chances of delisting which is very low in case of Big player and even for blue chips.

Tips

Here I am talking about advices one should take from equity research companies, brokers and investment houses. They at times really get hold of some very useful and internal information about a particular scrip or company which will be fruitful for investing.

I don’t know how to succeed but I know overconfidence is the key to failure. It is better to be equipped before war rather than asking for a sword in middle of the battlefield.

Financial Planning – This Christmas

Financial planning and Christmas together is very difficult to enjoy. World go mad about Christmas especially European countries and Christian communities paying a very little attention towards maintaining their personal finance ending up in serious troubles of overspending like heavy cash outflows, negative budgets, low savings in their bank accounts and the most serious is the alarming debt amounts.

Christmas brings the season of “credit boom” with itself and creditors literally behave like poachers to engulf the needy and the unconscious. This fact has to be understood by people who do not want to end up in debt traps and restrain themselves from overspending and borrowing and land up in a finance proof section of the society.

Enjoyment and pleasure beyond your reach will only bring you worries, distress and debts for future. To synchronize enjoyment and prosperity, financial planning becomes a must.

See your wallet

It is very important to figure out available funds that can be managed to spend so that it would not harm your current status and future development. Look out for those amusements and entertainments that fits your wallet.

Budgeting

When it comes to expenses and expenditures, budgeting is indispensable. It is an art as well as a technique to allocate funds and resources for different avenues and requisites.

Budget has to be prepared strategically so that important needs and wants are fulfilled

And at the same time satisfaction can be derived out of such expenses.

Prioritize your wishes/wants

Wants and demands are unlimited and endless but resources are very scarce to meet them. Fulfillment of one leads the beginning of the other want. This is where one has to take reformative actions and prioritize their need accordingly.

Such needs and wishes can be prioritized on various parameters like estimated satisfaction, family , kids etc on level of their importance.

Spend smart

This is the time to look out for offers that are dumped on the market. Now watch out Needs in your priority list that can be matched or satisfied with the market offerings at cheap or discounted prices so that you can save some more penny.

Such market offers may come in the form of discounts, free gifts, gift vouchers and even scratch coupons.

Avoid overspending

Overspending in cakes, excess decoration, partying, sending greetings cards, gifts etc will upset the budget you initially prepared. A good idea is probably organizing get together functions instead of individual parties that would entertain you at the same time.

So plan your finances this Christmas to up live the subtle essence of this “Holy Day”

Lets check out how can you reduce your debt

Debt has become a hot topic of discussion particularly after recession which caused debt to rise abnormally beyond the control level. But of course, economic meltdown, layoff, retrenchment, rising levels of NPA (non-performing assets) and inflated capital products are associated with recession that added fire to the cause.

Money flow suffered seriously in the market which aggravated huge and dearer borrowings which borrowers of course where unable to pay back. These all created a vicious circle that nobody wanted to enter.

I am here not to discuss about the causes of meltdown or its repercussions on the economy. I just want to show some ways to debtors on how to come out of debt which they were unable to resist and are now again feeling unable to push it back.

Savings

Savings at a go can create a huge fund that can be utilized to pay off debts or at least utility bills and local authority taxes. Savings can be generated simply by restraining oneself from using luxurious items and items with low utility. Again idle funds created from savings are of no use and hence is better to keep it or invest in an option which would add interest or return on it. Yes, of course banks , blue chip stocks, commodities , government bonds ,mutual funds and currency trading are beautiful instruments that would help the cause.

Some other corollary ways to generate saving is by implementing cost cutting techniques. These may come from reducing electrical consumption, mobile and telephone usage, cutting short with water taxes and finding cheaper means of transportation.

Other sources of income

The irony is that one hand earns and there is couple to spend. Relying on a single source of income is not at all advisable when markets are going dearer. There are hell lots of ways to add extra income to the family. Teaching , part time tuitions , networking , commissioning , trading , workshops on own area of expertise , internet business like affiliate programs , imparting online training etc can make a huge difference and definitely draws a line between the creditors and debtors.

Debt consolidation organization – the last resort

When creditors make your life like a hell by disturbing phone calls and surprise visits and you are unable to strike a balance between your debt amount and income, it is always advised to take help from debt consolidation companies who counsel you and help you in reducing debt outstanding to a considerable lower amount, generally 40%-60%.

There are many such organization in the market which will help you to restore life balance and to continue with smooth life ahead.

Apart from these pointers, switching to a cheaper house , droping a car , tapping your assets and allowing rental accommodation or paying guests accommodations would help the cause.