Stock Price Expectations and Stock Trading - RAND Corporation

W O R K I N G P A P E R Stock Price Expectations and Stock Trading MICHAEL D. HURD AND SUSANN ROHWEDDER WR-938 October 2011 This paper series made possible by the NIA funded RAND Center for the Study of Aging (P30AG012815) and the NICHD funded RAND Population Research Center (R24HD050906). This product is part of the RAND Labor and Population working paper series. RAND working papers are intended to share researchers’ latest findings and to solicit informal peer review. They have been approved for circulation by RAND Labor and Population but have not been formally edited or peer reviewed. Unless otherwise indicated, working papers can be quoted and cited without permission of the author, provided the source

is clearly referred to as a working paper. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. is a registered trademark. Stock Price Expectations and Stock Trading Michael D. Hurd RAND, NBER and NETSPAR Susann Rohwedder RAND and NETSPAR October, 2011 Many thanks to the National Institute on Aging for research support under grants P01 AG008291 and P01 AG26571. The NIA and the Social Security Administration supported the collection of the ALP data used in this paper. We would like to thank the ALP project team and Alessandro Malchiodi for their hard work in fielding the surveys. 1 JEL numbers: D83, D84, G11 Stock Price Expectations and Stock Trading ABSTRACT Background: The fact that many individuals inexplicably fail to buy stocks, despite the historical evidence for a good return on investment has been referred to as the stock market puzzle. However, measurements of the subjective probability of a gain show that people are more pessimistic than historical outcomes would suggest. Further, expectations of future stock price increases apparently depend on old information, which would seem to be at odds with rational expectations in the context of efficient markets. To shed light on these apparent paradoxes, we analyzed the relationships between actual stock market price changes and the subjective probability of price changes, and between the subjective probability of price changes and the likelihood of engaging in stock trading. Approach: Drawing on 31 waves of longitudinal data on investment behavior from the American Life Panel surveys from November 2008 to the present, we tracked high frequency changes in expectations at the individual level and related them to high frequency changes in stock market prices. We analyzed both individuals who held stock in retirement accounts and those who held stocks outside of these accounts. Results: Changes in the subjective probability for one-year and 10-year gains in stock prices correlated with the Standard and Poor 500 Index with lags ranging from changes during the most recent week to changes more than a month before. This relationship was stronger among those who professed to follow the stock market and to have good knowledge than among those whose understanding is poor. Among individuals who held stock outside of retirement accounts, the likelihood of buying and selling stock was more strongly associated with recent stock behavior than among those who held stocks only within retirement accounts. Conclusions: On average, subjective expectations...

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An Empirical Study on Gold Investment Rage Among The Professionals

A COMPARATIVE ANALYSIS OF GOLD ETF, EGOLD AND GOLD FUNDS Jalpa Thakkar Assistant Professor, ASM’s IPS Sheenam Gogia Assistant Professor, ASM’s IPS Vatsala Manjunathan Assistant Professor, ASM’s IPS ABSTRACT Gold is the oldest precious metal and it has been valued as a global currency, a commodity, an investment and also a symbol of beauty. For centuries, gold has remained an auspicious gift, a heritage value, whether it's for a new born baby or for a newly married couple. Gold gets passed down generations and has proved to be a good investment over decades. India is world's largest consumer of gold. It is required is to address the larger

issue that is to encourage the substitution of gold purchases with alternate investment options available in the financial market which helps in increasing the productive capacity of the Indian economy. We in our study have tried to throw light on the different avenues of gold investment available in the market. We have also tried to find out the awareness and attitude towards the alternative methods of gold investments among the selected investors in the Pune region. The research highlights the need for encouraging investment in new gold alternatives. This will ensure that gold becomes tradable and generates revenue rather than lying idle as a dead investment. KEY WORDS: E-Gold, Gold ETF, Gold Funds, Gold Investment, Return and Risk. INTRODUCTION Investors across the world buy gold as an investment. The demand for gold has risen over the last few years. It is mainly safe and sound form of Investment from the point of view of large global investors who aim at protecting their investments in the current global economic uncertainty. A growing range of methods now allows investors to either buy gold, or simply gain exposure to gold price movements. From gold coins, online accounts, exchange traded funds and complex financial products, to mining stocks, the most appropriate gold investments will depend upon the investor’s specific requirements and outlook. (World Gold Council) WAYS OF INVESTING IN GOLD 1. Coins and bars INCON13-Fin-017 2 2. Futures and options 3. Gold Accumulation Plans (GAP) 4. Exchange Traded Funds (ETFs) 5. Gold funds 6. E- Gold 1. GOLD BARS For the serious and large scale investor, gold bars are a simple and efficient way to invest in gold. The larger bars are usually available at the lowest premiums over their intrinsic gold value; smaller bars tend to cost more. There is a trade-off however, in that larger bars are not as flexible when it comes to selling. If you own a kilo bar, and you wish to sell, say 100 grams, it's not easy to slice off one end of your bar. Your choice of buyer is also more restricted as you will need to sell to a larger dealer; it is unlikely that you will find a private buyer as most people are not familiar with gold bullion bars. GOLD COINS It is sensible to purchase one ounce gold bullion coins, guaranteed by a government Gold coins are mass produced; they are available...

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A Guide To Investing In Gold - Panda America

A Guide to Investing in Gold Gold HISTORIC ROLE OF GOLD 2 GOLD SUPPLY 3 GOLD DEMAND 5 THE PRICE OF GOLD 6 WHY INVEST IN GOLD 6 Long-Term Store of Value 6 Asset of Last Resort 8 Highly Liquid 8 Asset Diversifier 9 WHEN AND WHERE TO BUY GOLD BULLION 11 INVESTMENT FORMS 12 Gold Bullion 12 Gold Bullion Coins 13 Delivery or Storage 14 OTHER GOLD-RELATED INVESTMENTS 16 Numismatic Coins 16 Gold Futures Contracts 16 Gold Options 17 Gold Mining Stocks 17 GLOSSARY OF GOLD AND INVESTMENT TERMS 18 A Guide to Investing in Gold’s unique physical properties, its luster, easy workability, and virtual indestructibility have given it a special place in the history of the world. Over

centuries, gold has been prized for its rarity and beauty. One of the earliest records of gold used as money dates from 560 BC, when King Croesus of Lydia, today’s western Turkey, created a coin emblazoned with his own image. Before coinage, many commodities were used as a medi- um of exchange — cattle, cocoa beans, shells and hides, to name but a few. As the idea of the guaranteed gold coin gained gradual acceptance, gold became the formalized basis of economic life. Like ancient cultures, our modern society still recognizes the value and beauty of gold. Gold jewelry continues to adorn us; gold is used as an industrial metal in electronics, dentistry and other applications as well as an investment vehicle in the form of coins and bars. Gold is an internationally recognized monetary and financial asset. Significantly, governments hold one quarter of all the gold in existence. HISTORIC ROLE OF GOLD industrial metal in electronics, dentistry and other applications as well as an investment vehicle in the form of coins and bars. Gold is an internation ally recognized monetary and financial asset. Significantly, governments hold one quarter of all the gold in existence. • 3 • The supply of gold is limited by nature itself: thou- sands of pounds of ore are required to produce just one precious ounce. Gold is so scarce that all the gold that has ever been mined (approximately 135,000 metric tons) would fit into a cube measur- ing just 20 yards on each side. What’s more, the amount of new gold mined each year is relatively small despite the use of advanced mining technology. New supplies generally add less than 2% per year to the world’s total stock of gold. Around three quarters of annual mine production comes from the top ten gold-producing nations. Top Ten Gold-Producing Countries 1. SOUTH AFRICA 2. UNITED STATES 3. AUSTRALIA 4. CANADA 5. CHINA 6. INDONESIA 7. RUSSIA 8. PERU 9. UZBEKISTAN 10. GHANA Source: Gold Fields Mineral Services, 1999 There are four major components which make up the available supply of gold each year: 1) new mine production; 2) reclaimed scrap, or gold reclaimed from jewelry and other industries such as electronics and dentistry; 3) official, or central-bank sales; and 4) gold loans made to the market from official gold re- serves for borrowing and lending purposes (chart 1). GOLD SUPPLY The past decade has seen...

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Understanding Commercial Property Investment

IPF Investment Property F orum Understanding Commercial Property Investment A Guide for Financial Advisers 2007 Edition The Investment Property Forum (IPF) has over 1,800 individual members drawn from a wide range of different professional communities including fund management, surveying, law, banking and accountancy. The Forum’s mission is to improve the awareness, understanding and efficiency of property as an investment, for members and others in the wider business community, including government, by: • Undertaking research and special projects • Providing education • Encouraging discussion and debate For further information on the IPF, visit: www.ipf.org.uk The Investment Property Forum Educational Trust is one of the leading promoters and supporters of education and research related to investment property as an asset class. The

objectives of the Trust are the advancement of education in connection with the financing, development, management, valuation, ownership and marketing of land, property and buildings, as well as other general charitable purposes. For further information, visit www.ipf.org.uk The British Property Federation (BPF) is a long established and well respected trade association, which has achieved a considerable degree of success in representing to government the interests of the property owning and investing industry. Its mission is to sustain and promote the interests of all those who own and invest in property in the UK. The key feature of the BPF’s strategy is to persuade the Government that the property industry is a vital component of a successful economy and also an important route by which the Government can achieve the delivery of many of its key policy objectives: particularly urban regeneration, social inclusion, entrepreneurial success, savings and pensions reform and environmental improvement. For further information, visit www.bpf.org.uk The Royal Institution of Chartered Surveyors (RICS) is one of the most respected and high-profile global ‘standards and membership’ organisations for professionals involved in land, valuation, real estate, construction and environmental issues. It has: • 136 years of representing property professionalism • 110,000 members across 120 countries worldwide • 300 degree level courses approved worldwide • 500 research and policy papers published per year • 50 national associations, linked groups and societies • 160 diverse ‘specialisms’ – represented across 16 ‘faculties’ Accountable to both members and the public, the RICS has four main roles: • To maintain the highest standards of education and training • To protect consumers through strict regulation of ethics and standards • To advise global organisations, governments and regional boards • To publish market information and research For further information, visit www.rics.org.uk This guide is also supported by Investment Property Databank (IPD). Set up in the UK in 1985, IPD is now the world leader in real estate performance analysis. IPD produces benchmarks, market indices and detailed research. Reporting and analysis from IPD helps players within the real estate industry, from investors to occupiers, get the most out of their property. IPD now operates in over 20 countries including 15 European Union members, the US, Canada, South Africa, Australia, New Zealand and Japan and continues to expand its global reach. For further information visit www.ipdglobal.com This guide was commissioned by the Investment Property Forum with funding from the Investment Property...

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Aviva Investors Property investment Fund

AvivA investors ProPertY investMent FUnD short rePort For the six months ended 15 July 2012 avivainvestors.co.uk Contents investment objective and Approach 2 Fund Manager’s report 3 Fund Facts 6 Comparative tables 7 Fund information 9 avivainvestors.co.uk1 Aviva investors Property investment Fund short report avivainvestors.co.uk 2Aviva investors Property investment Fund short report investMent obJeCtive AnD APProACh Investment Objective the investment objective of the Fund is to obtain a consistent income return with some capital appreciation, through investment principally in real property and with exposure to investments including bonds, government and other public securities, and units in collective investment schemes. Investment Approach in order to achieve its objective the Fund will primarily invest in: • approved immovables which will, initially, be properties

within the United Kingdom but the Manager may, in due course, consider it appropriate to invest in real property in other countries permitted by the regulations; • units in regulated and unregulated collective investment schemes, each to the extent permitted by the Prospectus and the regulations. the Fund may invest up to 100% of its property in approved immovables but will typically invest between 80 and 90% of its property in direct property and collective investment schemes that are principally invested in direct property. the Fund also has maximum flexibility to invest in such other investments which the Manager deems appropriate, including transferable securities, money-market instruments, derivatives and forward transactions (including those relating to property or property indices), deposits and gold, but subject always to this investment Approach and the regulations. ‘regulations’ means the FsA handbook of rules and Guidance. Full details of the investment Approach can be found in the Full Prospectus. Risk Profile the Fund’s investment portfolio is exposed to market price fluctuations. Property valuations are a matter of the independent valuer’s opinion rather than fact. the Fund is exposed to cash flow/liquidity risk and, in line with standard industry practice for valuing dual priced funds, can switch between a bid price basis and an offer price basis. Where funds are invested in property, investors may not be able to switch or cash in their investment when they want because property in the Fund may not always be readily saleable. if this is the case we may defer their request to switch or cash in their units. there are no material overseas investments so there is no exposure to foreign exchange risk. the yield from a property may be affected by tenant failure or availability of supply in the sector or micro-location. avivainvestors.co.uk3 Aviva investors Property investment Fund short report FUnD MAnAGer’s rePort For the six months ended 15 July 2012 Total Performance During the six months ended 15 July 2012 the Fund produced a total return (after the deduction of charges and non-recoverable expenses) of -4.89% (1) . to enable reasonable performance comparisons, the Fund’s total return for the period 31 December 2011 to 30 June 2012 (the nearest available comparison dates) was -4.56% (1) . the gross return from the direct property portfolio within the Fund to the end of June 2012 was -3.8% which compares with 1.2% from the investment Property Databank (iPD) balanced Monthly...

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The Property Investment Essentials - Shire First Mortgages

The Property Investment Essentials What you need to know when buying and financing your investment property Shire First Mortgages 1/96 Gymea Bay Road Gymea NSW 2227 T: 95317503 E: loans@shirefirstmortgages.com.au www.shirefirstmortgages.com.au CONTENTS WELCOME Thank you for taking the time to read about When investing, it is important to assess your the process of buying your investment current financial position. What are your cash WELCOME page 3 COSTS property and obtaining finance. This guide is reserves and what equity do you have in your Stamp duty designed to help you through the process to present home? OVERVIEW page 4 Loan application fee ensure nothing is missed and that many of your questions are answered. Look at your long term objectives. For

PURCHASING YOUR Legal example, will the property be part of your INVESTMENT PROPERTY Inspections Property has been considered a popular path retirement financial plan? Potential changes Why investing in property Insurances to wealth for Australians for many years. to your current situation should also be may be the answer Buying their own home is often the first factored in, such as the birth of a child, the Land tax Do your homework significant investment most people make. loss of one income or supporting parents in APPLYING FOR A LOAN Purchasing another property may well be the their later years. It is wise to seek advice from Taxation - positive vs LOAN APPROVAL second - even before shares and other assets. an investment adviser or qualified financial negative gearing However your first investment in property need planner to help determine your financial goals PROPERTY MANAGEMENT not be your home. and strategies. GETTING STARTED page 8 FACTORS TO CONSIDER WHEN PURCHASING BUYING YOUR INVESTMENT PROPERTY page 18 Buying a rental property can be a good way to When you decide to invest in property it is gain some capital growth that can be used later equally as important to seek the services RESIDENTIAL INVESTMENT PROPERTY A STEP BY STEP GUIDE to help buy your own home. of a qualified mortgage planner to help you FINANCE STEP 1 - Have your loan pre-approval in place structure your property finance correctly. Sensible investments in property have many We encourage you to call the office for more Using equity to buy your investment property STEP 2 - Choose the right property in the right attractions. Property can be less volatile than information or clarification about your own Buying an investment property through a location shares and it tends to be regarded as a safe circumstances and your future property superannuation fund STEP 3 - Make an offer haven when other assets are declining in value. investment potential. CHOOSING THE RIGHT LOAN STEP 4 - Conveyancer/legal representative Property has the potential to generate capital Interest only loans STEP 5 - Final loan approval growth (an increase in the value of your asset) We look forward to helping you prepare a as well as rental income. There are also tax long term mortgage plan which will help you Fixed rate loans STEP 6 - Insurance advantages associated with negative gearing. purchase your first and hopefully, many future...

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The Forex Market Tutorial - Investopedia

(Page 1 of 30) Copyright © 2010, Investopedia.com - All rights reserved. The Forex Market Tutorial http://www.investopedia.com/university/forexmarket/default.asp Thanks for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/contact.aspx Table of Contents 1) Forex: Introduction 2) Forex: What Is It? 3) Forex: Reading a Quote and Understanding the Jargon 4) Forex: Benefits and Risks 5) Forex: History and Market Participants 6) Forex: Economic Theories and Data 7) Forex: Fundamental Trading Strategies 8) Forex: Technical Analysis 9) Forex: Ready To Trade? 10) Forex: The Conclusion Introduction Foreign exchange (forex or FX for short) is one of the most exciting, fast-paced markets around. Until recently, trading in the forex market had been the domain of large

financial institutions, corporations, central banks, hedge funds and extremely wealthy individuals. The emergence of the internet has changed all of this, and now it is possible for average investors to buy and sell currencies easily with the click of a mouse. Daily currency fluctuations are usually very small. Most currency pairs move less than one cent per day, representing a less than 1% change in the value of the currency. This makes foreign exchange one of the least volatile financial markets around. Therefore, many speculators rely on the availability of enormous leverage to increase the value of potential movements. In the forex market, leverage can be as much as 250:1. Higher leverage can be extremely risky, but because of round-the-clock trading and deep liquidity, foreign exchange brokers have been able to make high leverage an industry standard in order to make the movements meaningful for FX traders. Investopedia.com – the resource for investing and personal finance education. This tutorial can be found at: http://www.investopedia.com/university/forexmarket/default.asp (Page 2 of 30) Copyright © 2010, Investopedia.com - All rights reserved. Extreme liquidity and the availability of high leverage have helped to spur the market's rapid growth and made it the ideal place for many traders. Positions can be opened and closed within minutes or can be held for months. Currency prices are based on objective considerations of supply and demand and cannot be manipulated easily because the size of the market does not allow even the largest players, such as central banks, to move prices at will. The forex market provides plenty of opportunity for investors. However, in order to be successful, a currency trader has to understand the basics behind currency movements. The goal of this tutorial is to provide a foundation for investors or traders who are new to the currency markets. We'll cover the basics of foreign exchange, its history and the key concepts you need to understand in order to be able to participate in this market. We'll also venture into how to start trading currencies and the different types of strategies that can be employed. What Is It? The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy...

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The “Real” Value of Gold - AllianceBernstein

Jon Ruff Director of Research—Real Asset Strategies Vincent L. Childers Research Analyst—Real Asset Strategies is driven mostly by sentiment, and The “Real” Value of Gold occasional mania. From ancient Egypt into the 21st century, gold has excited human passions. This debate has recently become Today, gold has once again become an object of desire—and of fierce headline news. As Display 1 shows, debate. But investors considering gold as a defensive investment may be gold is approaching its highest levels, better served by other “real” assets. adjusted for inflation, since the modern-day record set in 1980. Some prominent investment professionals Among investors, opinions regarding paper currency without gold’s backing have given gold further luster by talking gold have always been strong

and is essentially worthless. At the other up their purchases. In addition, new divided. At the one extreme are “gold extreme are skeptics who consider investment vehicles such as exchange- bugs,” who believe that gold is the gold to be a “barbarous relic” of traded funds (ETFs) have made trading ultimate store of real wealth and that ancient times whose perceived value in gold easier than ever before. Display 1: The gold bulls are running again Inflation-Adjusted Price of Gold, 2011 US Dollars 2,000 Current US$1,488 1,600 d l o G 1,200 f o e c i Average r P l 800 US$690 a e R 400 0 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 11 Past performance does not guarantee future results. Through May 17, 2011 Real price of gold represented by gold spot price ($/oz.) in May 2011 US dollars, adjusted for inflation using US Consumer Price Index for All Urban Consumers, All Items Source: Bloomberg, Federal Reserve and AllianceBernstein Investment Products Offered • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed Our research found the historical record of gold as an inflation hedge to be a mixed one. US dollar may ultimately lose its role as reserves. Another is that the growing Yet there are other, more reliable Display 2: Economic variables significantly explain gold’s price the global reserve currency has been a middle class in emerging markets will hedges against inflation than gold. A Effect on Gold Price strong driver of demand lately. But create a surge in demand for gold diversified portfolio of real assets, such even without such an extreme out- jewelry. Even the fact that gold invest- as real estate, commodities and the come, our research does show a fairly ment is growing may feed upon itself: stocks of their producers, may provide 3 Supply Mining Output Decreasing Mining Output Increasing strong correlation between a falling In other words, if investors increasingly attractive inflation-sensitive characteris- dollar and rising gold price since the use gold as a diversification and tics while at the same time potentially US Dollar Weakening US Dollar Strengthening early 1970s. risk-hedging asset in their long-term offering better risk-adjusted return Inflation Expectations Increasing Inflation Expectations Decreasing strategic allocation, they may create an prospects. Demand A related catalyst driving demand is enduring new source...

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Reasons Behind Gold Prices Increase

Global Issue Reasons Behind Gold Prices Increase January 2011 Global Issue : Reasons Behind Gold Prices Increase Table of Contents Page 1- Introduction 3 2 - History of prices 3 3- Reasons for price increases 3 4- World gold demand and supply 5 5- Forecasts 5 6- Conclusion 6 References Appendix 2 Global Issue : Reasons Behind Gold Prices Increase Reasons Behind Gold Prices Increase 1- Introduction Gold has been one of the most important metals that has occupied a major position in human's life; it was mainly used as jewelry and its use has developed along the history to include industrial production and investment. The precious metal has lost part of its brilliance after the Bretton Woods Agreement and

the end of fixing currencies exchange rates in terms of gold. However and after the recent increase in gold prices, more research about the history of gold prices and reasons behind their rapidly increase were initiated seeking a clearer view of its behavior through the past years. These high fluctuations in prices that had a significant impact on local and international jewelry markets have raised a world wide debate about the future of its prices and whether it will keep rising to hit new levels. 2 - History of prices After a relative stability of gold prices through the first half of the 20th century and till the 1970s, gold prices started to increase peaking on 21st of Jan, 1980 with $ 850 per ounce1 under fears of global war and Soviet tanks invading Afghanistan. Moreover, the decrease in the dollar value at those times has supported a strong demand for gold. Through 1990s and after the end of the Cold War, prices had a downward trend recording its hardest crash in 1999 with $ 278.55.However and since 2002, gold prices has rebounded till 2008 when it started to skyrocket, affected by the financial crisis, reaching near $1100 per ounce on 6th of Nov, 2009 for the first time in the history (See table 1 in the appendix). In 2010, prices have continued to increase and on the 9th of Nov. 2010, its price has recorded $ 1421 per ounce, a price was never reached before. On 23rd Nov. 2010, gold prices has sharply risen to record $ 1377.6 per ounce as a reaction to the north Korean attack on South Korea and the aggravation of the Irish debt crisis as a strong indicator for the trust of investors in gold as a safe shelter in such situations. 3- Reasons for price increases Gold prices have rapidly risen in the last two years recording unprecedented leaps in its rates with an obvious change in the patterns of gold demand with demand for gold as investment replaces the demand for jewelry. After turning into a widely used investment tool, gold circulation has become easier especially with the diversity of newly introduced gold investment channels making its prices more sensitive to fluctuations in demand and supply that are less effective with people holding it as jewelry for long times. This new situation has resulted from: 1 1 ounce = 28.3495231 grams 3...

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Property management guide - First National Newtown

Management Guide 13 16 66 firstnational.com.au Property IMPORTANT NOTICE: The information contained within this book is designed to provide an overview of the considerations required for ownership of an investment property. Readers are advised to obtain independent advice before investing in any specific property. To the extent permitted by law, First National Group of Independent Real Estate Agents Limited disclaims any liability for loss which may arise from reliance upon this booklet. Published by First National Group of Independent Real Estate Agents Limited. A.C.N. 005 942 192 NATMAR_0011 1 1 contents 2 Introduction 5 Why invest in property? 6 Do your sums 7 Arranging a new home loan 9 Using home equity 10 Property investment benefits 11 Choosing an investment

property 13 Who manages the property? 15 Landlord insurance 16 What costs will I have to meet? 17 How much should I rent the property for? 18 Your property on show 19 Marketing your property 21 The tenant 23 The role of the property manager 25 Legislation 26 Property management budget 27 Landlord and tenant agreements 29 Landlord and real estate agent agreements 31 What your First National Real Estate Property Manager can do for you 32 Glossary of Terms 2 3 Property represents a secure, long term form of wealth creation. As such, Australians are increasingly turning to property investment to secure their future. A well-managed investment property can offer distinct advantages, including income and capital growth. Many investors are able to use their investment property to reduce the tax payable on their assessable income. Property is also an important component of an entire investment portfolio, particularly, for people who do not need immediate access to their money and wish to protect themselves against inflation over the long term. It is important to be aware, however, of the responsibilities of managing an investment property and assuring its proper care. As considerable sums of money are involved, you should take the time to develop a comprehensive understanding before you act. This booklet is the first step in the process and is designed to provide an overview of the considerations required for any owner of an investment property. Remember, consideration of any financial investment presents wide and varied alternatives and there are always plenty of experts ready to share their opinion. It is wise, therefore, to always seek appropriate advice from a qualified financial adviser or accountant. introduction 2 3 4 5 4 5 Some people choose an investment property by assessing whether they would be happy to live there themselves. Think with your head and not with your heart when it comes to choosing the right investment property. For it to properly serve your needs, it must be capable of appealing to the widest possible market of potential tenants. Talk to an accountant or financial adviser before beginning your property search. It’s important to fully understand what type of investment property is most likely to serve your financial goals appropriately. Investment properties may be purchased using many different financial methods, all of which have differing tax implications and long-term impacts. 1. 2. why invest in property? There are some good...

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How to invest as a college student?

College student investment ARC Workshop for BUS By Yun Xu Student investments • How to invest your money during college? Getting ahead financially before even embarking into the real world of work, mortgages and student loans can be a great way to jump start one’s finances. Investment methods • Savings Accounts • Business investments • Stocks • Bonds • Real Estate • Commodities • Foreign Exchange investment Saving account • Easiest way with little efforts • Low risk • Small profit Business investment • No set way • Invest another person’s business as a partner, or loan startup capital stocks & bonds • Stock: share or certificate of ownership in a company or business • Bond: a loan attained by

a company or government. They pay back borrowed money plus interest. • Trade stocks or invest in bonds with laptop and internet connection • Web-based investment companies offer 24 hours access to trading and accounts Real estate • Purchase a house as an investment and rent it out to people • You expect the value of the house to grow Commodities • Invest in precious metal such as gold, silver or crops such as coffee, sugar, and wheat through the futures market, exchange trade funds, stocks, mutual funds, and futures contracts Foreign exchange investment • Invest in foreign currencies like the Euro, the Yen, the Peso through banking institution or Forex Investment tips! Start small In order to begin investing money for your future, it’s not necessary to have a lot of money, but you shouldn’t neglect paying bills to do it. If you manage your money well, you should be able to set aside a few dollars from each paycheck for investment purposes. Doing this will benefit you in more ways than one. First of all, the money that’s invested will earn you more money if you do it right, and the lessons you learn from investing now will serve you well for the rest of your life. Even if you end up losing a bit of money in the beginning, you should be able to determine whether or not you made a mistake in your investment strategy, and if so, how you can avoid doing it again. Invest regularly It’s important that you develop an investment plan that will allow you to set aside a few dollars on a regular basis. Sticking a few bucks here and there into stocks or bonds most likely won’t earn you a good return, and isn’t a sound investment practice. Instead you should invest regularly by allocating a certain amount of money from each paycheck, even if it’s not very much. When setting up your investment account it’s important to make sure you won’t be able to touch the money easily–it could be too tempting to take out a few bucks now and then to buy tickets to the big game or a getaway at spring break. A sound investment strategy is called for–one that will hopefully grow consistently. Invest clubs If you know other people that are interested in learning how to invest wisely, it may be a good idea to...

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Stock Markets, Banks, and Economic Growth Ross Levine

Stock Markets, Banks, and Economic Growth Ross Levine; Sara Zervos The American Economic Review, Vol. 88, No. 3. (Jun., 1998), pp. 537-558. Stable URL: http://links.jstor.org/sici?sici=0002-8282%28199806%2988%3A3%3C537%3ASMBAEG%3E2.0.CO%3B2-9 The American Economic Review is currently published by American Economic Association. Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/journals/aea.html.

Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. The JSTOR Archive is a trusted digital repository providing for long-term preservation and access to leading academic journals and scholarly literature from around the world. The Archive is supported by libraries, scholarly societies, publishers, and foundations. It is an initiative of JSTOR, a not-for-profit organization with a mission to help the scholarly community take advantage of advances in technology. For more information regarding JSTOR, please contact support@jstor.org. http://www.jstor.org Tue Feb 19 03:43:10 2008 Stock Markets, Banks, and Economic Growth By Ross LEVINEAND SARAZERVOS* Do well-functioning stock markets and banks promote long-run economic growth? This paper shows that stock market liquidity and banking development both positively predict growth, capital accumulation, and productivity improve- ments when entered together in regressions, even after controlling for economic and political factors. The results are consistent with the views that Jinancial markets provide important services for growth, and that stock markets provide different services from banks. The paper also Jinds that stock market size, vola- tility, and international integration are not robustly linked with growth, and that none of the financial indicators is closely associated with private saving rates. (JEL GOO, 016, F36) Considerable debate exists on the relation- Besides the historical. focus on banking, ships between the financial system and eco- there is an expanding theoretical literature on nomic growth. Historically, economists have the links between stock markets and long-run focused on banks. Walter Bagehot (1873) and growth, but very little empirical evidence. Joseph A. Schumpeter (1912) emphasize the Levine (1991) and Valerie R. Bencivenga et critical importance of the banking system in al. ( 1995) derive models where more liquid economic growth and highlight circumstances stock markets-markets wliere it is less ex- when banks can actively spur innovation and pensive to trade equities-reduce the disin- future growth by identifying and funding pro- centives to investing in long-duration projects ductive investments. In contrast, Robert E. because investors can easily sell their stake in Lucas, Jr. ( 1988) states that economists the project if they need their savings before "badly over-stress" the role of the financial the project matures. Enhanced liquidity, there- system, and Joan Robinson (1952) argues that fore, facilitates investment in longer-run, banks respond passively to economic growth. higher-return projects that boost productivity Empirically, Robert G. King and...

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Risk Disclosure Statement for Forex Trading

RISK DISCLOSURE STATEMENT FOR FOREX TRADING AND MULTI-CURRENCY ACCOUNTS A. Overview: Interactive Brokers Multi-Currency enabled accounts allow IB Customers to trade investment products denominated in different currencies using a single IB account denominated in a "base" currency of the customer's choosing. IB Customers can also use their Multi-Currency enabled accounts to conduct spot foreign exchange transactions in order to manage credits or debits generated by foreign securities, options or futures trading, to convert such credits or debits back into the Customer's base currency, or to hedge or speculate. B. General Risk: Customer understands and acknowledges that buying and selling securities, options, futures and other financial products that are denominated in foreign currencies or traded on foreign markets is inherently risky

and requires substantial knowledge and expertise. Customers applying for Interactive Brokers ("IB") Multi-Currency enabled accounts represent that they are aware of and understand the risks involved in trading foreign securities, options, futures and currencies and that they have sufficient financial resources to bear such risks. C. Customer Responsibility for Investment Decisions: Customer acknowledges that IB representatives are not authorized to provide investment, trading or tax advice and therefore will not provide advice or guidance on trading or hedging strategies in the Multi-Currency enabled account. Customers must evaluate carefully whether any particular transaction is appropriate for them in light of their investment experience, financial objectives and needs, financial resources, and other relevant circumstances and whether they have the operational resources in place to monitor the associated risks and contractual obligations over the term of the transaction. In making these assessments, IB strongly recommends that Customers obtain independent business, legal, and accounting advice before entering into any transactions. D. Exchange Rate Risk: Exchange rates between foreign currencies can change rapidly due to a wide range of economic, political and other conditions, exposing the Customer to risk of exchange rate losses in addition to the inherent risk of loss from trading the underlying financial product. If a Customer deposits funds in a currency to trade products denominated in a different currency, Customer's gains or losses on the underlying investment therefore may be affected by changes in the exchange rate between the currencies. If Customer is trading on margin, the impact of currency fluctuation on Customer's gains or losses may be even greater. E. Currency Fluctuation: When Customer uses the spot foreign exchange facility provided by IB to purchase or sell foreign currency, fluctuation in currency exchange rates between the foreign currency and the base currency could cause substantial losses to the Customer, including losses when the Customer converts the foreign currency back into the base currency. F. Foreign Currency Exchange Transactions Unregulated: Although IB is registered with the Securities and Exchange Commission as a broker-dealer and registered with the Commodity Futures Trading Commission as a futures commission merchant, spot foreign currency exchange transactions between Customer and IB are not regulated or overseen by the SEC, the CFTC or any other regulatory agency. G. Nature of Foreign Currency Exchange Transactions Between Customer and IB: When Customer enters into a foreign exchange transaction through IB, Customer will be entering into a privately negotiated transaction with...

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Gold Futures vs. Gold ETFs: Understanding the Differences and Opportunities

Winning the Trading Game and Trade Like a Pro cmegroup.com/metals Significant differences in the Differences in Market Liquidity It’s estimated that world gold reserves fall in the range of 120,000– liquidity, leverage and costs 140,000 metric tons. The largest gold ETF, SPDR Gold Shares ETF (GLD), is in its fifth year of existence with a total of $42 billion dollars of futures and ETFs that need under management and 1,100

metric tons of gold bullion in reserve. to be understood before any Originally founded in 2004, the SPDR ETF was specifically developed to track the price of gold and become an inexpensive alternative to investment decision is made. owning physical gold. Investors can purchase a share in the ETF which represents one tenth of an ounce of gold. It sounds great in theory, but the amount of bullion under management is fairly insignificant and the volume of gold traded by the SPDR ETF is fairly small when compared Gold has historically served as both a legitimate hedge against inflation to the daily volume transacted using COMEX Gold futures. and as an integral part of a diversified investment portfolio. But how Source: Bloomberg can individual investors participate in the resurgence of gold and use gold as a vehicle for investing, preserving and increasing one’s wealth? Currently, the SPDR Gold ETF trades an average of 24 million shares (GLD) on a daily basis representing 2.4 million ounces of gold. In Today, more than any other time in history, active investors have comparison, the average daily volume for COMEX Gold futures is available to them a variety of ways to invest in the performance of gold. over 200,000 contracts which equates to approximately 20 million From gold bars to mining stocks or derivatives, individuals have flocked ounces changing hands on a daily basis with an additional 48 million into gold-related investments in an attempt to benefit from the renewed ounces (or 1,366 metric tons) held in open positions. Over 90 percent interest in gold. Two of the more popular gold investments chosen by of these futures contracts are traded electronically. This, combined professional money managers are Gold futures (COMEX) and exchange with the large number of market participants and the significant daily traded funds (ETFs) based on gold. In many cases either the futures or volume, has the effect of making the futures markets very efficient. And ETFs are a suitable choice, but there are significant differences in the all transactions, as well as the best bids and best offers, are publicly liquidity, leverage and costs of each that need to be understood before available in real-time which further enhances liquidity and provides any investment decision is made. what is known as transparent price discovery. Transparent pricing and small bid ask spreads are key to a market’s success and a great benefit to...

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UK Property Investment Bulletin q4 2012 - Property Week

UK PROPERTY INVESTMENT BULLETIN Q4 2012 Overseas Investors – Safe Haven or Helicopter Money??? Summary 2012 saw £35.5bn of UK investment activity, up marginally by 1.5% from 2011 (£35bn). It was the year of overseas investment in UK property, comprising 46% of total activity for the year (£16.6bn) and being the only net investor for the year of £7.73bn. The largest overseas investor was the US at 28% (£4.7bn), followed by the Far East at 24% (£4bn) and the Middle East at 11% (£1.8bn). On the sell side for 2012, the overseas investors were again the largest at 25% (£8.8bn, followed by UK institutions at 24% (£8.5bn). The main overseas investors were the Irish at 31% (£2.7bn), followed by the

US at 23% (£2.0bn) and the Germans at 20.7% (£1.8bn). The dominant position of the overseas investors this year for both the buy and the sell sides draws into question the motivation: - either the UK is a safe haven for investment over a long period of time or the UK is just a temporary secure place to drop and park invest money for the shorter term until the global tensions reduce. Office was the favourite sector for the year at 39% (£13.9bn) followed by other and retail/office mix both at 10% (£3.4bn and £3.3bn respectively). London was the most popular location at 52% (£18.3bn), then UK wide at 13% (£4.5bn). Q4 2012 saw £9.2bn of UK investment activity, an increase of over 4.5% from Q3 2012 (£8.8bn). Overseas continued to be the largest investors at 43% (£3.9bn), followed by UK institutions at 24% (£2.2bn). On the sell side for the quarter, UK institutions were the largest at 35% (£3.2bn), followed by overseas at 23% (£2.1bn) and UK unlisted property companies at 22% (£2.0bn). UK unlisted property companies were the largest net disinvestor for the quarter at minus £1.4bn, making it 12 quarters of net disinvestment from Q4 2009 with the exception of Q1 2012 when it was positive. This investment segment had been highly leveraged and very affected by the drop in values, so took advantage of the recovery in prices. UK institutions were net disinvestors in Q4 of minus £993m. Overseas were the biggest net investors of £1.8bn for Q4 2012, taking it 23 quarters of net investment since Q1 2007 with the exception of Q4 2008. 1 The average lot size in Q4 2012 was £31.2m, an increase from the average lot size of £28.4m in Q3 2012 and above the average lot size of £25m (period Q1 07- Q4 2012). The average initial yield for Q4 2012 continued to move outwards by 41 bps to 7.97% from 7.56% in Q3 2012 as illustrated in the graph below. Office and retail warehouse initial yields compressed by 32 bps and 64 bps respectively. Retail and industrial initial yields moved out by 45 bps and 49 bps respectively. Source: Property Archive The chart below shows the relationship between UK net investment/disinvestment and the level of average initial yields. As UK institutions become net investors in UK property, yields tended to compress and as they become net disinvestors, average yields...

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Property Investment For Your Children Sample Chapter

Planning and implementing property investment strategies for your children's long-term benefit Investing in Property for your Children by Catherine Dawson © 2008 Lawpack Publishing Lawpack Publishing Limited 76–89 Alscot Road London SE1 3AW www.lawpack.co.uk All rights reserved Printed in Great Britain ISBN: 978-1-905261-78-9 Crown Copyright forms are reproduced with the approval of HMSO. Exclusion of Liability and Disclaimer While every effort has been made to ensure that this Lawpack publication provides accurate and expert guidance, it is impossible to predict all the circumstances in which it may be used. Accordingly, neither the publisher, author, retailer, nor any other suppliers shall be liable to any person or entity with respect to any loss or damage caused or alleged to be caused

by the information contained in or omitted from this Lawpack publication. For convenience (and for no other reason) ‘him’, ‘he’ and ‘his’ have been used throughout and should be read to include ‘her’, ‘she’ and ‘her’. This is an excerpt from Lawpack’s book Property Investment for your Children. To find out more about making money through property investment and avoiding tax, click here. Contents Introduction viii PART 1: PLANNING YOUR INVESTMENT 1 1 Choosing to Invest in Property 1 Knowing about the types of property investment 2 Assessing the advantages and disadvantages 4 Analysing housing market trends 7 Predicting investment trends and prospects 9 Assessing skills, knowledge and experience 14 Conducting background research 16 Summary 18 2 Knowing about Property Inheritance 19 Inheriting property 19 Understanding the procedure for transferring property after your death 24 Choosing what to do with an inherited property 25 Knowing about The Inheritance (Provision for Family and Dependants) Act 28 Seeking professional advice 30 Discussing inheritance with your children 32 Summary 33 3 Understanding Inheritance Tax 35 Knowing about Inheritance Tax liability 35 Understanding Inheritance Tax implications 38 Taking action to reduce Inheritance Tax 40 Giving away property and assets 41 Valuing your estate 44 Summary 46 4 Knowing about Inheritance Tax Exemptions 49 Exempt gifts 49 Potentially exempt transfers 52 Chargeable lifetime transfers 53 Making the most of exemptions, relief and transfers 54 Summary 56 5 Paying Other Tax on Property 57 Stamp Duty Land Tax 57 Capital Gains Tax 58 Pre-Owned Asset Tax 60 Council Tax 63 Paying tax on rental income 63 Reducing your tax bill 64 Summary 65 6 Planning your Finances 67 Assessing the financial viability of your property investment 67 Assessing the financial implications for your children 73 Children and tax 74 Raising capital 74 Protecting your finances 78 Summary 78 PART 2: CHOOSING HOW TO INVEST 7 Helping your Child onto the Property Ladder 81 Assessing the advantages and disadvantages 82 Understanding the financial implications 84 Providing financial help 87 Helping with the mortgage 89 Taking out an equity stake 94 Drawing up an agreement 95 Understanding tax implications 96 Summary 96 8 Buying Property for your Student Child 99 Assessing the advantages and disadvantages 100 Understanding the financial implications 102 Finding suitable properties 107 Letting your accommodation 110 Knowing about student letting rules and regulations 112 Managing your property 114 Protecting your property and investment 116 Summary...

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Publication of Revised version of the Investment Services Rules

th 7 March, 2013 Amendment of the Investment Services Rules applicable to Money Market Funds The MFSA is today publishing a revised version of the Investment Services Rules for Professional Investor Funds and of the Investment Services Rules for Retail Collective Investment Schemes and the Investment Services Rules for Professional Investor Funds (hereinafter referred to as the “Rules”). The changes to the Rules, as indicated below were made following a peer review which has been carried out by ESMA with a view to ensure uniform requirements applicable to money market funds, across all the EU Member States. Further to the above, the following amendments have been made: Investment Services Rules for Professional Investor Funds Appendix 1 – Supplementary Licence Conditions

A new Section 6, herewith attached as Annex 1, has been introduced prescribing the conditions applicable to Money Market funds which will be set up as Professional Investor Funds. Investment Services Rules for Retail Collective Investment Schemes Appendix 7 - Supplementary Licence Conditions Applicable to Schemes set up as Money Market Funds In paragraph 1 Appendix (sub-paragraph 1.1), a specific requirement has been added so that all Retail Collective Investment Schemes established as money market funds shall have the primary objective of maintaining the principal investment of the fund and shall aim to provide a return in line with money market rates. Accordingly, the new sub-paragraph 1.1 of Appendix 7 will read as follows: “1.1. A money market fund shall: (a) comply with the provisions of the Act, the applicable conditions prescribed in Parts A and B of these Rules as well as the supplementary licence conditions prescribed hereunder.; and (b) have the primary objective of maintaining the principal investment of the fund and shall aim to provide a return in line with money market rates.” In paragraph 4 of this Appendix it is now clearly established that the MFSA shall not allow a fund to include the term “money market fund” in its name unless the fund adheres with the supplementary conditions set out in this Appendix. The new paragraph 4 will therefore now read as follows: “4. Applicability 4.1. Funds labelled or marketed as money market funds which are created on or after the 1st July 2011 shall comply with these SLCs . The MFSA shall not allow a fund to include the term “money market fund” in its name unless the fund adheres with the above supplementary licence conditions, as applicable.” Any queries with regards to the updated Rules should be addressed to Dr. Sarah Pulis, Manager, Securities and Markets Supervision Unit [e-mail: spulis@mfsa.com.mt] or Mr. Nathan Fenech Analyst, Securities and Markets Supervision Unit [e-mail: nfenech@mfsa.com.mt]; or Mr. Jonathan Sammut, Analyst, Securities and Markets Supervision Unit [e-mail: jsammut@mfsa.com.mt] Communications Unit Malta Financial Services Authority th 7 March, 2013 Annex 1 – New Section 6 of Appendix 1 to the Investment Services Rules for Professional Investor Funds 6 Supplementary Conditions for Professional Investor Funds set up as Money Market Funds in accordance with CESR/10-049 (CESR’s Guidelines on a common definition of European money market funds) General Requirements 6.1 A money market fund shall; (a) comply with the provisions...

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Trading in the Retail Off-Exchange Foreign Currency

Trading in the Retail Off-Exchange Foreign Currency Market: What Investors Need to Know National Futures Association 200 West Madison Street, Suite 1600 Chicago, Illinois 60606-3447 800-621-3570 www.nfa.futures.org National Futures Association is a congres- sionally authorized self-regulatory organiza- tion of the United States futures industry. Its mission is to provide innovative regulatory programs and services that protect investors and ensure market integrity. NFA has prepared this booklet as part of its continuing public education efforts to provide information to potential investors. The booklet presents an overview of the retail off-exchange foreign currency market and provides other important information that investors need to know before they invest in the off-exchange foreign currency market. INTRODUCTION Companies and individuals may speculate in foreign currency

exchange rates (commonly referred to as “forex”), and a num- ber of firms are presently offering off-exchange foreign cur- rency futures and options contracts to the public. If you are a retail investor considering participating in this market, you need to fully understand the market and some of its unique features. NFA has prepared this booklet to educate you about off-exchange foreign currency trading. Like many other investments, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all investors. In fact, you could lose all of your initial invest- ment and may be liable for additional losses. Therefore, you need to understand the risks associated with this product so you may make an informed investment decision. You should also understand the language of the forex markets before trading in those markets. The glossary in the back of this booklet defines some of the most commonly used terms. This booklet does not suggest that you should or should not participate in the retail off-exchange foreign currency market. You should make that decision after consulting with your financial advisor and considering your own financial situation and objectives. In that regard, you may find this booklet help- ful as one component of the due diligence process that investors are encouraged to undertake before making any investment decisions about the off-exchange foreign currency market. Finally, the discussion in this booklet assumes you are funding your forex account with US dollars. The principles in this booklet apply to all currencies, however. 1 THE FOREIGN CURRENCY MARKETS What are foreign currency exchange rates? Foreign currency exchange rates are what it costs to exchange one country’s currency for another country’s currency. For example, if you go to England on vacation, you will have to pay for your hotel, meals, admissions fees, souvenirs and other expenses in British pounds. Since your money is all in US dollars, you will have to use (sell) some of your dollars to buy British pounds. Assume you go to your bank before you leave and buy $1,000 worth of British pounds. If you get 565.83 British pounds (£565.83) for your $1,000, each dollar is worth .56583 British pounds. This is the exchange rate for converting dollars to pounds. If £565.83 isn’t enough cash for your trip, you will have to exchange more US dollars for pounds while in England. Assume you buy another $1,000 worth...

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Danske Invest Gold Fund G (non-UCITS) Alternative asset class funds

Danske Invest Gold Fund G (non-UCITS) Alternative asset class funds YTD 1 month 3 month 6 month 12 month 36 month Start Fund -6.06 -5.30 -8.05 -6.98 -8.65 40.99 14.19 Benchmark index -5.95 -5.05 -7.98 -6.73 -8.58 37.72 14.59 Fund facts Major investments 28-02-2013 Innehaven visas inte för denna fond. % Performance 28-02-2013 Performance 28-02-2013 Value 28-02-2013 (EUR) 3.118 ISIN FI0008808001 Distribution of income No Web site www.danskeinvest.fi Launch 11-11-2004 Total assets , million (EUR) 14.24 Base currency EUR. Minimum subscription 500 EUR or 30 EUR/month Subscription fee 1,00 % / 8 EUR Redemption fee 1,00 % / 8 EUR TER 2011 2,21 % Management fee 1.90 % Investment policy Danske Invest Gold (non-UCITS) is intended for investors who are

looking for an invest- ment solution on the gold markets that is profitable, professionally managed and well- diversified. The fund is well-suited, for long- term investment, to experienced investors who can accept even substantial changes in the value of the fund from time to time. Due to its higher risk level than that of a normal mutual fund, the fund is recommended only as a small part of a diversified investment portfolio. The recommended investment hori- zon in the fund is more than five years. The Assets of Danske Invest Gold (non- UCITS) are invested in gold derivatives. The fund’s liquid assets are invested mainly in money market funds. Variations in the price of gold are reflected in the value of the fund. Risk and reward profile Key figures - 1 year 28-02-2013 Volatility (%) 13.754 Sharpe -0.686 Tracking error 0.839 IR -0.495 Alpha -0.271 Beta 0.986 Duration - GSCI Gold Excess Return Index (unofficial) Benchmark index The investment funds presented in the danskeinvest.fi Service are managed by Danske Invest Fund Management Limited and Danske Invest Management A/S. Past Fund performance is no guaran- tee of future returns. The value of the investment may rise or fall and investors may not get back the amount originally invested in the Fund. Even though the aim has been to give reliable information, bank, Danske Invest Fund Management Ltd and Danske Invest Management A/S guarantees neither the completeness nor correctness of the information contained in the danskeinvest.fi Service nor shall be held liable for any errors or omissions in the information contained therein. Danske Bank Oyj, Registered address and domicile, Hiililaiturinkuja 2, 00075 DANSKE BANK, Helsinki, Busi- ness Identity Code 1730744-7. Danske Invest Management A/S is domiciled in Denmark at Parallelvej 17, 2800 Lyngby; its business identity code is 12522576. Danske Capital, Sampo Bank plc Portfolio manager 06-mar -13 - ht tp://www .danskeinvest.f i/en - 2397_N Portfolio manager review Danske Invest Gold Fund G (non-UCITS) Alternative asset class funds 2008 2009 2010 2011 2012 Fund -4.02 32.77 30.60 7.75 8.24 Benchmark index 2.35 22.66 28.55 9.57 5.99 Return and dividends for individual years Return The investment funds presented in the danskeinvest.fi Service are managed by Danske Invest Fund Management Limited and Danske Invest Management A/S. Past Fund performance is no guaran- tee of future returns. The value of the investment may rise or fall and investors may not get...

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The 7 Steps to Successfully Building a Property Portfolio

Would you like to build a property po i rt o cc essfully Building a folio but don’t know where to start? There seems to be lots of different opinions on what is the best way to go about it; negative geared, positive geared, buy and hold, buy and sell, renovate or demolish and develop. It seems that everyone has an

opinion and also that everyone is making money out of property, but every now and then you hear the horror story of someone who lost their shirt in property. Do you worry that a wrong decision could cost you tens of thousands of dollars? If the answer is “yes” then you should read this report before you do anything. Our Goal – “To help our clients achieve their goals sooner” www.investmentpropertyfinders.com.au Call 1300 131099 © Investment Property Finders 2010 The right Strategy and Long Term Plan The 7 Steps: The right Tax advice and Cash-flow Strategy The right Finance The right Risk Assessment The right Property The right Property Management The right Coaching. Either directly or through our network of associated professional we are able to assist you with advice in each of the areas above. Our network of associated Professionals includes: • Accountants • Mortgage Brokers • Financial Planners • Real Estate Agents • Property Managers • Property Developers • Property Development Consultants • Builders • Property Valuers • Solicitors • Conveyancers All to providing the very best of advice to our clients... Our Goal – “To help our clients achieve their goals sooner” www.investmentpropertyfinders.com.au Call 1300 131099 © Investment Property Finders 2010 It ha s be en sa id th a t: “I f you fail t o plan... you pla n to f ail” T The h re e al q u r e i st g ion h is t no S t “w t h r at a is t th e e g rig y ht st a ra n teg d y?” , L bu o t ra n the g r “ w T ha e t i r s t m he ri g P ht s l t a rat n egy for you?” You shou ld n ot in v est in pr operty unt il you know y our s trategy .. . beca u se the s tr a te gy will d et ermine wha t type o f prope rty you shou ld bu y a n d how you shou ld buy it. Many people accidentally end up investing in property. They either upgrade their home and decide to keep the old one as an investment or they might have inherited a property from a deceased relative. In both cases little or no planning...

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Your Investment Property Guide - Prudential Locations

Your Investment Property Guide Adding A Home To Your Investment Portfolio Table Of Contents Adding A Home To Your Investment Portfolio Investors Are Becoming Landlords ................................................................................................3 What Is An Investment Property? ..................................................................................................3 Things To Consider Before Investing Does An Investment Property Fit Your Financial Plan?..................................................................4 Do You Want To Be A Landlord? ..................................................................................................4 Location, Location, Location ........................................................................................................4 The “Typical” Rental Property ......................................................................................................4 Setting Parameters..........................................................................................................................5 Beginning Your Search The Preapproval Process ....................................................................................................................5 Shop Like An Investor....................................................................................................................5 Considering Condos or Co-ops ......................................................................................................6 An Expert Home Team Makes A Big Difference Building Your Team ......................................................................................................................6 Real Estate Agents..........................................................................................................................6 Appraisers ......................................................................................................................................7 Investment Property Financing Experts ..........................................................................................7 Follow Up Teamwork With Homework Do Some Research ........................................................................................................................7 How Much Should Your Property’s Rent Be? ................................................................................8 Calculating

Cash Flow ..................................................................................................................8 Tax Implications ............................................................................................................................8 Applying For Your Loan..........................................................................................................9 Preparing For Closing ............................................................................................................9 Renting Your Investment Property Finding The Right Tenants ..........................................................................................................10 Setting Your Standards ................................................................................................................11 Preparing a Lease: Get Legal Advice ............................................................................................11 The Lease-To-Purchase Option ....................................................................................................11 Maintaining Your Investment Property Keep Your Investment In Shape....................................................................................................12 The Property Manager Option ....................................................................................................12 Additional Resources Investment Property Checklist......................................................................................................13 Real Estate Listings Decoder ........................................................................................................15 Glossary ....................................................................................................................................16 2 Adding A Home To Your Investment Portfolio Investors Are Becoming Landlords Stocks go up. Stocks go down. Economies ebb and flow. The value of real estate rises and falls. No single investment can promise uninterrupted profit. That’s why savvy investors diversify their holdings. Since real estate — like the stock market — tends to ride out its up and downs well, providing good long-term results, record numbers of people have been buying second properties as investments. Purchases have risen 25% over the last five years to $50 billion and are expected to reach $150 billion by 2005. In fact, forecasters expect Americans to purchase 3.6 million second homes over the next 10 years. That’s about 1,000 a day! While the majority of all second homes are used for recreation, a benchmark study by the National Association of Realtors® (NAR) says investment property sales rose from 20% in 1999 to 37% in 2002. And in the first quarter of 2003, for the first time ever, more people bought investment properties than vacation homes. Is it the right time for you to follow this growing and potentially rewarding trend? This guide will help you make the decision. It provides an overview of what to look for in an investment property, the benefits and potential problems of being a landlord, and the choices for financing your investment. What Is An Investment Property? Primarily, an investment property is one purchased strictly for the purpose of generating income. It’s neither your current primary residence nor a vacation home used only by your family. An investment property is usually purchased with the intention of either renting it out or renovating it to resell at a profit. There are also some variations on that theme. For instance, when a family relocates or decides to downsize, a primary residence can become an investment property if it doesn’t need to be sold. Another investor may buy a multifamily property, choosing to live in one part while renting out the other. Other owners may choose...

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Caution About Cash-Out - MyFRS

This publication is a summary of the Investment Plan termination options available to FRS employees, written in non-technical terms. It is not intended to include every program detail. Complete details can be found in Chapter 121, Florida Statutes, the rules of the State Board of Administration of Florida in Title 19, Florida Administrative Code and the Investment Plan Summary Plan Description. In case of a conflict between the information in this publication and the statutes and rules, the provisions of the statutes and rules will control. The examples used in this document may differ from your personal financial situation depending on factors such as your tax filing status, actual investment return, and account balance. Caution About Cash-Out Many people

choose to cash out their retirement account and spend the money on today’s expenses. But cashing out is typically not in your best long-term interest. Here’s why: Your Investment Plan benefi t is intended to provide you with retirement income. If you spend this money now, you may not have enough money to live comfortably in retirement … not to mention the taxes and penalties you will have to pay on your distribution. Penalties And Taxes If you receive a distribution of any of your Investment Plan balance (including a rollover to another plan): • You will lose any non-vested prior FRS Pension Plan service. • If you are re-employed by an FRS employer in the future, you: • Will not be entitled to membership in the Special Risk class. • Will not be eligible to receive disability coverage. • Will not be eligible to participate in the Deferred Retirement Option Program (DROP). If you withdraw your money now, there are tax consequences. You’ll owe income taxes on your entire distribution in the year it’s paid to you, unless you roll it over into another qualifi ed plan. • A mandatory 20% will automatically be withheld, as required by federal regulations, from funds that are not directly rolled over into another tax-deferred retirement plan. • If you’re under age 59½ when you receive a distribution, you may owe an additional 10% federal tax penalty on the taxable portion of your distribution unless you meet one of the exemptions. Call 1-866-446-9377 for details. Depending on your tax bracket, an Invest- ment Plan account balance of $30,000, for example, may be worth only $21,000 if you cash it out. On the other hand, if you leave it invested until retirement age, it will be worth the full amount, plus investment earnings. Think carefully about whether it’s really worth it to potentially sacrifi ce as much as 30% or more of your retirement savings. Loss Of Earnings There’s more to consider than just taxes and penalties. If you take a distribution, you will lose the earnings you could have gained by leaving your money in the Plan. Thanks to compounding – or the snowballing effect of gaining interest on earnings – your savings can really add up. You choose… Keep your money working Cash out now Current balance $30,000 $30,000 Current balance Growth over 20 years +$86,000 * -$9,000 Pay penalties and taxes...

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Guide to Online Forex Trading eBook

Trader Start Trading and Making M re on x e y T in r F a o d re i x n g If this is your first time coming across the online Forex market, then you have come to the right place! This guide will provide you with the basic knowledge and tools and techniques a novice Forex trader should have as you take your first steps in the fascinating world of Forex Guide to Online Forex Trading Index Use the following index to navigate your way around the guide. Introduction: Why Forex? 3 Profitability 4 Cashing in on Price Movements 5 The

Trend is Your Friend 7 Use of Leverage 10 A simple Trade Example 11 Hedging Risks and Rewards 12 The Quest for Volatility 13 Money Management 14 Glossary of Terms 17 2 Guide to Online Forex Trading Introduction: Why Forex? If you are reading this guide, you have most likely taken some sort of interest in the Forex market. But what does the Forex market have to offer you? Accessibility – It’s no wonder that the Forex market has the trading volume of 3 trillion a day – all anyone needs to take part in the action is a computer with an internet connection. 24 hour Market – The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop. No need to bite your fingernails waiting for the opening bell. Narrow Focus – Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no room for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening. Liquidity – The foreign exchange market is the largest financial market in the world with a daily turnover of just over $3 trillion! Now apart from being a really cool statistic, the sheer massive scope of the Forex market is also one of its biggest advantages. The enormous volume of daily trades makes it the most liquid market in the world, which basically means that under normal market conditions you can buy and sell currency as you please. You can never be in a jam for currency to buy or stuck with currency that you cannot unload. The Market cannot be cornered – The colossal size of the Forex market also makes sure that no one can corner the market. Even banks do not have enough pull to really control the market for a long period of time, which makes it a great place for the little guy to make a move. Click here to open a free ICM practice account and join the Forex market today! 3 Guide to Online Forex Trading Profitability It doesn’t take a financial genius to figure out that the biggest attraction of any market, or any financial venture for that matter, is the opportunity for profit....

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Forex Market A Reference

This nuts-and-bolts guide offers essential information about trading currencies and includes a simple action plan for getting started with a practice account. Whether you’re an experienced trader in other markets looking to expand into currencies, or a total newcomer to trading, this book is an ideal place to start. Mark Galant founded GAIN Capital in 1999; today, the firm's proprietary trading platform is used by clients from 140 countries around the globe. Brian Dolan has over 18 years of experience in the foreign exchange markets and oversees fundamental and technical research at FOREX.com. ISBN: 978-0-470-25143-0 Book not resalable The fun and easy way ® to get started in online currency trading Your guide to getting star ted with y our

forex pr ac tic e acc ount Getting Star ted Edition Capitalize on the growing forex market @ H12012 Find listings of all our books H12012 Choose from many different subject categories H12012 Sign up for eTips at etips.dummies.com Currenc y T r ading Mark Galant Chairman and founder, GAIN Capital Group Brian Dolan Chief currency strategist, FOREX.com A Reference for the Rest of Us! ® FREE eTips at dummies.com ® Explanations in plain English “Get in, get out ” information Icons and other navigational aids Top ten lists A dash of humor and fun Compliments of Get the most out of your forex practice account! Identify trading opportunities Understand what drives the market Execute a successful practice trade Use orders to minimize risk and maximize profit Welcome to FOREX.com There has never been a more challenging and exciting time to be trading in the foreign exchange market. What started out as a market for professionals is now attracting traders from all over the world and of all experience levels. At FOREX.com, we focus exclusively on the needs of individual forex trader, offering an advanced trading platform, premium tools, and customized services for the way you trade. Our commitment to your success extends to our professional dealing practices and world class service. After reading this Getting Started Edition, I encourage you to explore our Web site for additional information about the forex market and our trading services, and to sign up for a free practice account to experience both firsthand. Mark Galant Chairman & Founder GAIN Capital Group If you like this minibook, you'll love Currency Trading For Dummies Featuring forex market guidelines and sample trading plans, Currency Trading For Dummies is the next step in identifying all your trading opportunities. ISBN: 978-0-470-12763-6 $24.99 Available wherever books are sold! by Mark Galant and Brian Dolan Authors of Currency Trading For Dummies Currency Trading FOR DUMmIES ‰ GETTING STARTED EDITION 01_251430 fm.qxp 8/22/07 7:07 PM Page i Currency Trading For Dummies ® , Getting Started Edition Published by Wiley Publishing, Inc. 111 River Street Hoboken, NJ 07030-5774 Copyright © 2007 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of...

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The Growing and Evolving Gold Retail Investment Market in China

ALCHEMIST ISSUE SIXTY EIGHT 20 The Growing and Evolving Gold Retail Investment Market in China By Albert L.H. Cheng, Managing Director, Far East, World Gold Council The World Gold Council’s 2012 Q2 Gold Demand Trends report puts China’s gold jewellery and investment half-year demand at 400.1 tonnes, making it increasingly likely that China will overtake India to become the largest consumer of gold. China’s gold retail investment market has tripled in size since the establishment of the Shanghai Gold Exchange (SGE) 10 years ago in 2002, with ongoing growth suggesting that the country will remain a major player in the international gold market. Golden tradition jolted by modern history China has been infatuated with gold for thousands of years. This

auspicious element has always been associated with Imperial China and represented good fortune. Shanghai also has a particular history with gold: in the 1930s and 1940s, Shanghai was already a renowned financial centre in the Far East and was home to the largest gold trading centre in the region. In the new Chinese republic, the government decided gold was an important strategic resource and assumed management of it. In 1950, the People’s Bank of China introduced measures to control gold and silver trading. In 1983, the State Council issued new regulations that placed the control of all purchasing and distribution of gold and silver under the central government. Two decades passed before controls on the domestic gold market were loosened. On October 30, 2002, SGE was opened as part of a range of market-oriented financial reforms. The World Gold Council played an important role by sharing expertise and knowledge in the formation of this spot exchange gold market in China 1 . In 2004, China classified gold for investment and permitted individuals to invest in the precious metal. In late 2005, the SGE and the Shanghai branch of the Industrial and Commercial Bank of China (ICBC) launched the Jinhangjia, a spot trading product for private investors, thereby accelerating the development of China’s retail gold market. In December 2006, with marketing support from the World Gold Council, China Gold Group issued its first two-way trading gold bullion product – the China Gold Investment Bar – traded at the prices listed on the SGE with a tight margin for domestic investors. Since the Shanghai Futures Exchange (SHFE) launched the gold future in January 2008, gold futures trading volume has significantly increased; in 2011 alone 14.4 million contracts were traded. This gold futures market together with the spot trading of SGE form the basis of the Chinese gold market. A ripening retail investment market In the recent context of rising inflation, stagnation in domestic equities and government attempts to curtail a real estate bubble, individuals are exploring other alternatives to preserve their wealth. Gold is becoming an increasingly popular investment vehicle and the industry is responding rapidly by introducing more gold-related financial products. In our survey 2 conducted in February 2012, 57% of the 1,407 interviewed investors had gold as an investment at that time, and 71% planned to invest in gold during the coming year. Around 70% of existing gold investors found...

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27 intelligent ways to create wealth through property

27 INTELLIGENT WAYS TO CREATE WEALTH THROUGH PROPERTY By Jeff Matthews, IQ Property Investments This 10 minute read could change your life ... Creating wealth is not easy. You have only got to look at some investors who poured money into property, pensions and equities around 2007 and 2008 at the height of the market. By often acting on a whim or a trend - most people invested where the masses went and did not use foresight to carefully look at real opportunities. 2009 and 2010 will be the years of opportunity where property prices will be lower than previous years. Those savvy investors who stayed out of the market in 2007 and 2008 will be poised to re-enter the

market and secure big discounts. Investors are also changing their priorities now that the economic landscape has changed. Most investors now want solid and reliable yields on their property to replace nominal returns from the banks and other investments. Creating wealth through property now needs an element of thought, planning, careful execution, selective timing and a bit of luck sometimes! In this short book that we have produced, we will share with you our tips for getting a really solid head-start in growing your property portfolio. Imagine being able to replace your earned income with passive income from property. Imagine the choices that would open up for you. Do you carry on working? Do you give up the day job and spend more time with your family? Do you become a full time property investor? By replacing earned income with property income - you have the choice. At IQ, we are passionate about sharing knowledge. We want to share our experiences and help you create wealth, choice and freedom. Jeff Matthews Managing Director, IQ Property Investments 01: Set your Goals and Strategy right from the outset What are you looking to achieve? Are you looking for Capital Growth or Passive Income? By what date do you want to achieve that? For example – what do you want 31 December 2012 to look like financially? ‘By 31 December 2012 – I want to create £50,000 of income from property which will allow me to give up my day job’. 02: Have a solid base to start from Where are your funds now? Are they accessible or are they tied up? If you are borrowing money to reinvest – have the funds been agreed? 03: Head not Heart! It is easy to fall in love with a property for the wrong reasons. Ask yourself, as an investment – does this work and does it fit in with your strategy? 04: Exit Route – what is it? Actually, this should be one of your first considerations. When you want to realise your profit on sale – who will want to buy this property? Are you making the investment widely sellable or are you limiting your options by being too specialised? 05: Use Leveraging – sensibly Borrowing other people’s money to grow your portfolio is a great way to grow your portfolio quickly. If you do this – then make sure you are allowing...

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