Hedging your bets

Despite negative markets in June, hedge funds were able to attract new assets, with an estimated $5.6 billion flowing into the space during the month.

Oliver Schupp, President of Credit Suisse Index Co., LLC, said, "The Dow Jones Credit Suisse Hedge Fund Index fell 1.36% in June, with eight out of ten sectors posting negative performance for the month. Managed Futures continued to experience trading losses, falling -3.07%. Conversely, the Dedicated Short Bias strategy, which includes funds aiming to capitalize on deteriorating stock prices, was the best performing sector for the month, finishing up 1.57%." 

Schupp continued, "Despite overall negative performance, the industry continued to see inflows with an estimated $5.6 billion in assets entering the space in June. New inflows now total $33.3 billion year-to-date. We currently estimate overall industry assets have fallen to $1.81 trillion."

Performance for the Broad Index and its ten sub-strategies is calculated monthly. June, May and YTD performance numbers are  are available at www.hedgeindex.com.

Microsoft webcasts announced for Investors

Microsoft Corp. today announced participation in the following upcoming events with the financial community. Interested parties can listen to a webcast of these events on Microsoft's Investor Relations website at http://www.microsoft.com/investor.

Jefferies Global Technology, Internet, Media & Telecom Conference
Wednesday, May 11, 2011
11:10 a.m. EDT/8:10 a.m. PD T
Charlie DiBona, general manager, Server & Tools
JP Morgan Technology, Media & Telecom Conference
Monday, May 16, 2011
8:40 a.m. EDT/5:40 a.m. PDT
Kirk Koenigsbauer, corporate vice president, Microsoft Office Division

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Precious metals lure investors

Many investors prefer to have their money backed by precious metals instead of paper dollars. This has led to an increase in marketing offers for gold IRA that are being sought after in addition to 401k gold accounts that are not backed by paper dollars, giving those who do not have faith in the current currency system more security.

The premise is that should the economy falter, those who hold precious metals will maintain a higher degree of investment worth than those backed by US or other currency. This has extended to beyond purchasing precious metals into offerings of gold 401k accounts that use the same system as IRA gold accounts.

For those who have traditional currency backed IRAs there ways to transfer this to a precious metal based investment. Many brokers offer a gold IRA transfer so that you are able to take advantage of this type of an investment without having to start over. Gold has been the basis of an investment system for centuries, which is why many prefer to rely on gold or other precious metals as a part of their investment strategy.

Fannie Mae December report released

Fannie Mae's (OTC Bulletin Board: FNMA) December 2010 Monthly Summary is now available at www.fanniemae.com/ir/monthly.  The monthly summary report contains information about Fannie Mae's monthly and year-to-date activities for our gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, and serious delinquency rates.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers.  Our job is to help those who house America.

Gold market still holds interest

Not long ago when Gold Bullion was at it's highest price, everyone was talking about gold and other precious metals as an investment strategy. While some of the discussion has cooled just a bit, there are still many investment experts that advise their clients to buy Gold.

While some argue the fiat money system, others opt for Bullion as a hedge should there be any kind of a market failure. It's fairly well established that should some type of a major financial crisis hit that gold and other precious metals could play a role in keeping your financial status stable.

There are also other products out there like the Gold IRA. As your financial planner about it and do your research on the number of companies out there, like Regalgoldcoins.com that specialize in precious metals. The chart below shows you the prices of gold:

Gold Price

Decline in mortgage defaults reported

Data through December 2010, released today by Standard & Poor's and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed a decline in monthly default rates for first and second mortgages to 2.93% and 1.74% respectively. Auto loans experienced the biggest decline this month to 1.68% from 1.76% in November. The bank card index declined slightly to 6.73% default rate.

"Default rates across the four major categories of consumer borrowing declined in December from November and from a year earlier. Nationally, consumers continue to gradually improve their financial condition," commented David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P. "Separately, data from the Federal Reserve shows that bank card credit declined through November. Debt-service ratios, the proportion of disposable income that goes to paying debt, continues to decline. On a regional basis, the five cities we cover suggest that the Sunbelt continues to see greater than typical default rates."

Consolidate debt don't ignore it

If bills are piling up and creditors are calling, ignoring them won't make them go away or help your credit. Bankruptcy may sound tempting but that doesn't rebuild your credit. Debt consolidation can sometimes be the answer -- websites like http://www.anewhorizon.org are worth visiting.

Americans are buried in thousands of dollars of credit card debt, so don't feel as if you are alone. It's better to go with a service that is established and has a proven track record, read the fine print and ask questions. Reputable companies will have no problem with questions, they'll be happy to answer them for you.

There are no magic cures for credit problems. Though debt consolidation can get you on the road to credit recovery.

Retirement tips

Increasingly, Americans are entering the age of retirement without enough savings to do so comfortably. However, it is never too late to focus on life stage retirement planning to make the golden years glisten much more. Here are tips to do so.

• Saving should be a top priority. Some people may have procrastinated while others hit some bumps in the road. Either way, the closer a person gets to retiring, the less working years they have and less time to save. One should look at finances, consider needs and wants, and reprioritize.
• Delay retiring, especially if you started saving late in life. This is beneficially for Social Security and health insurance purposes. Social Security income is adjusted for inflation, tax efficient and guaranteed by the federal government. Every month a worker is able to put money toward this benefit, up to the age of 70, the more savings will accumulate. If an employer-sponsored health care plan is superior, depending on their situation, one can save a great deal. When retirement planning, people often forget that Medicare does not cover every needed item, which can be very expensive.
• Reconsider investments. Whether to invest aggressively or conservatively is a tough decision at any age, but especially for someone who is creating a financial plan later in life. One may invest aggressively to make up for lost time while another may shy away from risk because they don't want to lose what little they have saved. Risky speculation and eroding inflation are heavy considerations. The sound advice from a professional in the retirement planning field should be considered to make the right calls.
• Take advantage of tax efficient plans. Taxes can quickly chip away at savings. People entering an age to retire should especially consider as many tax efficient plans as possible, such as a 401k, Roth IRA and traditional IRAs.

About RetirementPlanning.net

RetirementPlanning.net offers a free service that connects you with a retirement planning professional who can help ensure a successful retirement. You can gain advice on portfolio management, retirement planning, estate planning, education planning, 401k rollover, and more. Visit the website to get financial advice and start planning your retirement today.

Will 2011 be the year to take the plunge and start a business?

Entrepreneurial Outlook: Is 2011 the Year to Start a Business?

Will 2011 be the year to take the plunge and start a business? Asher Epstein, managing director of the Dingman Center for Entrepreneurship at the University of Maryland's Robert H. Smith School of Business is optimistic. He says entrepreneurs with good ideas should go for it – but proceed with caution. A short video of Epstein talking about his predictions is available:http://www.youtube.com/user/SmithBusinessSchool#p/u/2/QMF8KRe23yY

Epstein's take for entrepreneurs in 2011:

"I'm cautiously optimistic. As entrepreneurs, we're hard-wired to be optimistic. We see a lot of talented people out there with good ideas."

Financial resolutions for 2011

At year's end we often find ourselves faced with good intentions that just never happened. Something we wanted to do, but never got around to it. The Illinois CPA Society suggests it's not too late. Make the financial move you planned on making in 2010 your New Year's resolution for 2011. Check this short list from the Society for things you might want to do in the year ahead:

• Find a way to save. Could you take the $50 you just spent on that sweater and save it instead? Cut back on downloads or dining out? Look at what you spent this year for ideas.
• Set a reachable goal. Whether it's getting out of debt or buying a home, plan to accomplish something with your money in 2011. Put away a small amount each month towards your goal.
• Start a rainy day fund. Prepare for a layoff or health emergency by working towards having three to six months worth of living expenses socked away.
• Make a will. Not pleasant to think about, but you want to make things easier on your family and protect your assets. State rules may apply if you don't have a will. And who would have custody of your children?
• Check your credit report. You've been meaning to check it, but perhaps afraid to look. Use it as a starting point to get your credit in good shape. Go to www.annualcreditreport.com for a free report.
• Take steps toward retirement. Begin to contribute to your 401K plan at work - at least enough to get the match if one's available. If you're already contributing, consider an increase of 1 or 2 percent.

Mortgage rates move up this week

Mortgage rates moved up notably this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate rising to 4.71 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.36 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage increased to 4.07 percent, and the larger jumbo 30-year fixed rate did as well, settling at 5.29 percent. Adjustable rate mortgages were also on the rise, with the average 5-year ARM climbing to 3.74 percent and the average 7-year ARM jumping to 4.08 percent.

Good news regarding the U.S. economy alternated with European debt worries and tensions on the Korean Peninsula. Despite ample nervousness among investors – a condition that would typically drive rates lower – mortgage rates posted a notable increase for the second time in three weeks. The November employment report due Friday Dec. 3 could be the catalyst for the next move in mortgage rates, with evidence of solid private sector job growth fuel for higher rates.

The last time mortgage rates were above 6 percent was Nov. 2008.

Trick or treat from the Fed?

A follow up article to the earlier one on the proposed action by the Federal Reserve. Newsweek asks the question -- Has the Fed run out of tricks?. It's a recommended read, part of:

What the Fed is expected to authorize in November is a large purchase of U.S. Treasury bonds with the intent of driving down their interest rates, and rates on other long-term debt securities. It has already done this once. In late 2008 the Fed approved massive bond purchases; these ultimately totaled $1.725 trillion of mortgage-backed securities, U.S. Treasury bonds, and Fannie Mae and Freddie Mac bonds. Bernanke has said the program “made an important contribution” to the economic recovery.
But the measurable effects were small. A Fed study estimated that rates on all 10-year bonds might have dropped by 0.6 percentage points. The decline this time might be less, because starting interest rates are already low (about 4.3 percent for a 30-year mortgage) and the purchases might be smaller. Guesses generally range from $500 billion to $1 trillion.
Economists at Bank of America think new purchases would have “only a modest impact on the economy” but are “better than doing nothing.” A plausible program might cut the unemployment rate by 0.2 percentage points (say, from 9.6 percent to 9.4 percent), says Moody’s Analytics. The stock market would be slightly stronger, leading people to spend more, and a depreciated dollar would aid exports. Indeed, because Bernanke and other Fed officials have signaled a new round of bond buying, financial markets may already reflect some of these effects.

Opinions on HUD to ads and more

The ways you can share material that you blog, and make a bit of revenue at the same time continues to grow. You can learn about adsense revenue sharing and the opportunities as far as where you can blog and earn revenue.

You can also find a variety of other things, even things like how to find HUD apartments for rent in your area. There is a huge amount of information out there related to social services.

Even advice on selling structured settlement can be found on the net. You should always look at the credentials of the person who is giving advice, especially if it's not anecdotal in nature. That written, at times we can learn from the experiences of others as far as what to do and what to avoid.

Leading Risk Factor in US Debt Leverage

Debt Leverage Still Leading Risk Factor in American Economy, Says GARP Risk Index

- Quarterly survey of risk management professionals also finds market volatility, macroeconomic factors among top influences on economic risk

- Perception of Systemic Risk falling, but more acute than overall risk

- Risk Managers in China among the most optimistic about U.S. economic risk

NEW YORK and LONDON, Oct. 1 /PRNewswire-USNewswire/ -- Debt leverage is still the key risk factor affecting the American economy, despite the increased influences of a "jobless recovery" and other macroeconomic factors, according to the second quarterly Risk Index from The Global Association of Risk Professionals (GARP, www.garp.org), released today. The Risk Index, a quarterly gauge of global perception of the risk factors affecting the U.S. economy, found overall perception of the riskiness of the economy unchanged, as the Central Risk Index remained steady at 109.

Lehman Brothers artwork for sale

The whole saga related to the Lehman Brothers is one that's gained focus in Ohio with the gubernatorial election involving a former employee, John Kasich. So it was interesting to see CNN and several other media sources cover the auction of art work that used to adorn some of the Lehman Brother's offices.

London, England (CNN) -- Artwork that used to adorn the walls and halls of Lehman Brothers' offices in London is expected to fetch £2 million ($3.1 million) when it goes up for auction Wednesday.
Christie's auction house in London is selling the art, which includes works by Lucian Freud and Anthony Gormley, antique maps and surveys, Chinese ceramics, and even Lehman Brothers' signs.
A separate sale of Lehman Brothers' artwork from their North American offices, due to take place at Sotheby's in New York on Sunday, was estimated to bring more than $10 million, according to the auction house.
Lehman Brothers filed for bankruptcy in the United States two years ago after a nearly $4 billion loss, the failure of buyout negotiations with Bank of America and Barclays Capital, and the refusal of U.S. regulators to offer a government-backed bailout.
At the same time, Lehman in the United Kingdom went into liquidation, with administrators PricewaterhouseCoopers (PWC) appointed to sell off the assets.

The full article.

Your own personal Wall Street...

As we've often focused, you can do almost anything online that used to take phone calls or a trip to an office. Take online trading as an example, it used to be that you'd have to go down to a broker's office to open an account if you were interested in stock trading and then call that broker when you wanted to buy or sell something.

Now, you can use an online broker and even set up your account online. You have the power to control your own account instantly, with no hours of operation, only how much time you want to spend and when you want to spend it. You can even do mobile trading depending on the type of cell phone service you have. With online banking and other financial options, you can even handle your IRA accounts from your home or work computer.

Those of you who want the traditional services still can access them, however, those of you who want to harness the power of the internet? Have that choice.

College students & credit

A story from Newsweek that I recommend reading on the topic of college students and credit. What's interesting is the number of credit cards most college students have:

Half of college students have four or more cards, according to a 2009 Sallie Mae survey, and only 17 percent report regularly paying off their balance. As the school year begins, parts of 2009’s credit-card reform bill will finally begin to protect the young from their own spending habits. For starters, students will no longer see card issuers offering giveaways on campus. And for the first time, they won’t be able to sign up for a credit card if they’re younger than 21 unless they can find a cosigner or prove a source of income.

Personally I think the changes in the law make it harder for those who are 18, they are considered adults and the government should not treat them like second class citizens...

McDonald's stock sign of consumer feelings?

It is being stated is a sign of the economy -- McDonald's stock position -- from CNN:

Shares of Mickey D's are up 18% this year, putting the company neck and neck with DuPont (DD, Fortune 500) as the best-performing company in the Dow Jones industrial average. The stock is near a 52-week high, having gained nearly 6% just this month.

McDonald's (MCD, Fortune 500) is your classic consumer staples company that typically holds up better than sexier growth stocks during times of economic weakness.

Even if consumers are cutting their spending habits, they're probably a lot more likely to not go on a pricey vacation or buy a new car as opposed to cutting back on Big Macs and Chicken McNuggets.

"When people feel stressed about the economy, they are going with brands that are convenient, they are comfortable with and offer good value. McDonald's fits the bill," said Frank Ingarra, co-manager of the Hennessy Total Return fund in Stamford, Ct., which owns the stock.

The Hindenburg Omen

I read about this today in the Toledo Free Press - Four ways to avoid the ‘Hindenburg Omen’. I started searching for a bit more information on the "Omen" -- Also recently written about in the Wall Street Journal:

The Dow is down 3.2% since the Omen was first triggered on Aug. 12. As avid Marketbeat readers know, the indicator’s creator Jim Miekka is looking for a 20% drop by approximately the end of September, so time will tell if his “omen” will come to fruition.

As reported in today’s Journal, the 50-year-old Miekka, blind former physics teacher, who is also an avid target shooter, might be the least likely person Wall Street would pay attention to, but he’s definitely on the radar these days as investors desperately look for any pointers on the direction of the stock market. Miekka splits his time living in remote parts of Maine and Florida, far from the concrete canyons of Manhattan, and publishes an obscure investing newsletter — the Sudbury Bull & Bear Report — that you’ve probably never heard of.

It's also been the focus of many other news reports, including this earlier piece from August 17 - What Exactly is the Hindenburg Omen:

But wait: Mad Money viewers know that Cramer views technical analysis as, for the most part, nothing more than divination. It’s a voodoo of sorts, by which technicians study past patterns in stock movements to predict where those stocks will go next. The only reason Cramer ever defers to the charts is because money managers often consult them. And because these large institutional players literally set market prices, it’s important to know what they are thinking at any given time.

Small Investors Flee Stock Market

Recommended article, in the New York Times about small investors. It's one that you should read if you are currently investing or thinking about investing in the stock market:

Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds.

If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked.

Small investors are “losing their appetite for risk,” a Credit Suisse analyst, Doug Cliggott, said in a report to investors on Friday.

One of the phenomena of the last several decades has been the rise of the individual investor. As Americans have become more responsible for their own retirement, they have poured money into stocks with such faith that half of the country’s households now own shares directly or through mutual funds, which are by far the most popular way Americans invest in stocks. So the turnabout is striking.