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Tag: personal finance

The dollar should be your investing darling

From the earliest days of the most recent financial crisis the U.S. dollar has been beaten up by, not just Wall Street, but Main Street as well. That’s all about to change says Jonathan Hoenig of

“We’ve talked about that weak dollar literally for years,” he says, “and I think now is actually the time to reverse that trade and go long the dollar.”

Hoenig says a rising short term interest rate is one catalyst behind his call for a surging greenback. A more attractive investment environment here in the states is also helping. “Look at the turmoil in Europe,” Hoenig notes, “not just economic but geo-political as well. And it’s not hard to imagine why the Euro is sinking.”

Hoenig points to the U.S. dollar index which is tied closely to the price of the Euro. “So when the Euro sinks the U.S. dollar moves higher.” He also notes that while trading currencies was once reserved those with indepth knowledge of those markets, the proliferation of ETFs, is changing all that. Hoening specifically mentions the PowerShares DB U.S. Dollar Bullish ETF (UUP), “an exchange traded fund that follows the value of the dollar. Anyone can play this and I think it’s a trend worth investigating.”

Regardless of whether or not you decide to get into the buck here or not there’s a larger investing lesson to be learned. “You always want to try and be a contrarian,” Hoenig advises. “At a time when most people think the U.S. dollar is gonna collapse I think now is actually the time to buy it and go long.”

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U.S. wage growth picking up as labor market tightens

A job seeker meets with a prospective employer at a career fair in New York CityA job seeker (R) meets with a prospective employer at a career fair in New York City, October 24, 2012. REUTERS/Mike Segar

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. labor costs recorded their biggest gain in more than 5-1/2 years in the second quarter and a gauge of trends in the jobs market fell to an eight-year low last week, bolstering the economy’s outlook.

Though economists cautioned against reading too much into the rise in the employment cost index, they said a tightening jobs market suggested wage growth would soon accelerate significantly.

“If the unemployment rate keeps declining, compensation pressures simply have to increase. Most members of the Federal Reserve appear to believe it will be a lot later and not very rapidly but I am not that sure,” said Joel Naroff, chief economist at Naroff Economics Advisors in Holland, Pennsylvania.

The Employment Cost Index, the broadest measure of labor costs, rose 0.7 percent. That was the largest gain since the third quarter of 2008 and followed a 0.3 percent increase in the first quarter.

It is one of Fed Chair Janet Yellen’s favorite labor market gauges and is being closely watched for clues on the timing of the first interest rate increase from the U.S. central bank.

Fed officials on Wednesday acknowledged the improvement in labor market conditions, but said “significant underutilization of labor resources” remained.

Economists, who had forecast the employment cost index increasing 0.5 percent in the second quarter, are critical of the Fed’s views on the labor market, particularly wages, as anecdotal evidence of companies raising wages increases.

“We do expect to see a steady inflection higher in wage growth going forward that we think will call into question the Fed’s contention,” said Ted Wieseman, an economist at Morgan Stanley in New York.

In the 12 months through June, labor costs rose 2.0 percent. They had advanced 1.8 percent in the 12 months through March.

Wages and salaries, which account for 70 percent of employment costs, increased 0.6 percent in the second quarter. That was the largest gain since the third quarter of 2008 and followed a 0.3 percent rise in the first quarter.

Wages and salaries were up 1.8 percent in the 12 months through June after rising 1.6 percent in the 12 months through March. Benefit costs jumped 1.0 percent in the April-June period, the largest increase since the second quarter of 2011



In another report, the Labor Department said the four-week average of initial claims for state unemployment benefits, considered a better gauge of labor market trends as it irons out week-to-week volatility, fell 3,500 to a seasonally adjusted 297,250 last week, the lowest level since April 2006.

While overall claims increased 23,000 to 302,000 last week, that reflected difficulties smoothing out volatility from the data around this time of the year because of automobile plant shutdowns for retooling.

“The pace of layoffs is slowing, reflecting the need on the part of companies to retain more workers in the context of improving economic activity,” said Anthony Karydakis, chief economic strategist at Miller Tabak in New York.

The economy rebounded strongly in the second quarter after contracting in the first three months of the year. Growth is expected to remain on a faster path for the rest of the year.

Separately, the Chicago Business Barometer dropped 10.0 points to 52.6 in July, the lowest level in just more than a year. Managers, however, viewed the downturn, which was the largest since October 2008, as a lull rather than the start of a new downward trend.

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U.S. seen maintaining solid pace of jobs growth in July

Job-seeker completes an application at a career fair held by civil rights organization National Urban League as part of its annual conference, in Philadelphia

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A job-seeker completes an application at a career fair held by civil rights organization National Urban League as part of its annual conference, in Philadelphia July 25, 2013. REUTERS/Mark Makela

WASHINGTON (Reuters) – U.S employment growth likely retained enough momentum in July to help buoy the economy for the rest of the year.

Nonfarm payrolls probably increased by 233,000 this month, according to a Reuters survey of economists. That would be a step down from June’s hefty increase of 288,000 jobs and the monthly average of 272,000 jobs gained in the second quarter.

It would, however, be the sixth straight month that employment has expanded by more than 200,000, a stretch last seen in 1997. The jobless rate is seen holding at a six year-low of 6.1 percent.

“It looks like employers are not shy about adding to head count. The recovery is on solid ground and we are expecting the data to show that in the month of July,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.

Second-quarter gross domestic product data on Wednesday is expected to show the economy expanding at a 3.0 percent annual pace, rebounding from the first-quarter’s weather-related 2.9 percent slump.

That pace of growth is expected to be sustained for the remainder of this year, and economists point to the solid job gains as evidence for their optimism.

“Due to the strength in the labor market, we maintain that the weakness in economic growth in the first quarter is a one-off event and the trend in the labor market better represents the current direction of the economy,” said John Silvia, chief economist at Wells Fargo in Charlotte, North Carolina.

The Labor Department will release its monthly employment report, which is closely watched by financial markets around the globe, at 8:30 a.m. EDT (1230 GMT) on Friday.



The firming labor market – corroborated by steady declines in new weekly applications for unemployment benefits and independent surveys showing increased hiring – raises the risk of the Federal Reserve increasing interest rates sooner and a bit more aggressively than financial markets currently anticipate.

Fed Chair Janet Yellen warned of that possibility earlier this month.

Most economists look for the first increase in the second quarter of next year. [ECILT/US] The Fed has kept its benchmark lending rate near zero since December 2008.

The private sector is expected to account for the bulk of the employment gains in July. Government payrolls are expected to increase modestly after increasing by 26,000 in June.

Employment in the manufacturing sector is forecast increasing by 15,000 after adding 16,000 jobs in June. Economists, however, said factory job gains could surprise on the upside as data from automakers suggest strong production in July.


Construction employment could accelerate a bit, but weak housing starts during the month pose a risk to the downside.

Some moderation is expected in services industries employment growth, led by the retail sector.

Average hourly earnings, which are closely monitored as a signal of labor market tightness, are expected to have increased 0.2 percent. That would leave the annual rate of increase at 2.2 percent, still well below the levels that make Fed officials nervous.

But gains in recent months suggest wage growth has been quickening.

“The last couple of prints on average hourly earnings have almost rounded to a 0.3 percent increase, which would be consistent with a faster annual pace of growth closer to 3 percent than the 2 percent we have been seeing,” said Laura Rosner, an economist at BNP Paribas in New York.

The length of the average workweek is forecast steady at 34.5 hours, but could surprise on the upside because of strong auto production.


(Reporting by Lucia Mutikani; Editing by Paul Simao)

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Credit Profile – How Important It’s For You Personally

improve-bad-credit-ratingCredit rating is crucial not just when acquiring a credit, but also for many other cases. 1 good look in a person’s record know lots regarding a person. To illustrate, most organisations do a look at person’s record before they employ them being an worker. Would you truly would like to get declined for any decent employment position, because you haven’t checked your credit rating sufficiently? You will find a number of other reasons why wouldn’t you take a look at having to pay more awareness for your credit history.

You will find a number of different factors which will provide an impact on your legal credit history, both adversely and positively. In United kingdom you will find several foremost companies that provide credit confirming services. A set of high quality ones In my opinion are Experian at Equifax. You may either request your survey by visiting their company department or have it on the web. I love to get it done on the web, simply because it saves me a lot of time ultimately, although the choice is ultimately your decision. It is 2 pounds to purchase your report.

Id theft is certainly a typical fraud presently. This really is frequently another excuse why it is crucial frequently monitor your credit history for changes, because it can prevent you from effects identity theft could cause. A lot of companies provide individuality safety insurance protection services and that i highly recommend you choosing on their behalf. You shouldn’t be cheap over it and will also help you with time. Legit companies offer monitoring services and can warn you whenever dubious changes occur to your lower credit rating, that may be potential indications of fraud. When you have plenty of free time to deal with, you can monitor it by yourself, but you need to realize that these facilities may also be useful when and when you feel a target of scam.

Besides monitoring and monitoring items and services, I still lure you to definitely consider the statement yourself every occasionally. Oftentimes individuals who obtain a loan or mortgage browse around to find the best deals. A small % seem to be conscious that asking numerous credit programs will get reviews for your credit history. This can be an indication for any bank that you simply either have been in a very poor finances, or perhaps manifestation of fraud out of your finish. Just in case you socialized like this, it is advisable to report on their behavior towards the business that even though you made application for a financial loan, you did not receive it and let them know to wipe from the record from your history. Regular adjustments to your home address may be a poor indicator and may adversely impact on your legal credit history.

Try to have a very good credit rating and you will be astonished by the amount of many advantages an easy 3-digit number provides you with. You’ll certainly get decreased rates, wider selection of banks pleased to provide financial loans and a variety of other edges. Remember that it is simple to damage your credit rating right away, however it takes an infinitely more time and energy to have it in good ratings.

Uncover easy methods to obtain credit history and appearance your credit rating online with no charges. Also learn the best way to have a track in your credit reviews all 3 agencies and steer clear of credit errors.

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Fundamental Understanding of Borrowing is required


Credit ratings around australia are ready with a specialized agency supplying information regarding the loan good reputation for an individual. The loan worthiness of the applicant may be the primary identifying factor for loan companies. Particulars regarding accounts, previous financial loans, bankruptcy or no, late obligations and cheques bouncing because of inadequate money is checked out through the agency. Any arrears of obligations are listed like a default on the file of the character. If an individual has past poor debt payment, they’ll be treated like a high credit risk customer, and perhaps declined credit or might finish up having to pay a greater interest rate. The present system around australia covers just the negative credit information. It’s being stated that positive credit information is going to be incorporated within the file shortly.

How credit rating is completed in Australia

The 2 primary credit confirming agencies around australia that credit rating are Veda advantage and Dun & Bradstreet. Loan companies calculate an individual’s credit rating to evaluate the danger they pose for them when it comes to payment. The greater the score, the low may be the interest rate offered. The credit rating is dependant on a scale of -1000 using the average credit rating being 750. Credit ratings around australia can handle stopping loan companies from giving money or passing on in a greater interest rate people must check their report every so often just to make sure that everything is needed. Supplying particulars for example title, address, birth date and license number is ample to obtain a copy from the report. Mostly, default entries and historic information can’t be taken off a credit history unless of course it is known as wrong.

Managing debt takes actions to lessen debt

Some managing debt solutions include reducing charge card debt the initial step to reducing all debt. Moving debt for an zero interest card is yet another managing debt solution that may be checked out. This process is going to be appropriate only when the customer finds it easy to pay back all of the debt on inside a recommended period of time. Giving the financial institution standing instructions regarding charge card payment is a great step that removes all overtime charges. Debt consolidation reduction loan is the best way to lessen debt, because it has numerous advantages in one plan.

How people enhance their credit rankings

If you will find any errors inside a credit history, people immediately make contact with the confirming agency with recorded proof showing the mistake made. Having to pay promptly and having to pay lower financial obligations increases the likelihood of a higher rating. Unused accounts without any negative reviews also play an important role in improving a person’s rating. Individuals using a mix of credit types obtain scores increased up. Mixture of credit types would come with getting a vehicle loan, house mortgage and efficient utilization of charge card. Getting an addition on charge card with perfect history likewise helps to some large degree.

Author’s Bio:

Author has years of experience of article writing. He is easily the most celebrated and acclaimed author in financial sector. His many articles happen to be released online. Now he’s supplying info on credit rating Australia and managing debt solutions online.

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4 Ways of Budgeting Your Home Like A Business


Are you always falling behind in your bills? You can’t find any money after payday? You’ve thought about using your credit cards or taking out a loan just to keep food on the table?

This article can help you then to get you into the mindset of thinking of running personal finance affairs and your home like a business. If you do that and run your home or personal finances like a corporation does. Your life will become much easier and you will find money and resources you never knew you had. You say you don’t know how to do those things. Great! Then you will learn some new skills along the way.

I will offer up a simple solution and 3 optional plans A, B, and C you can follow if you so choose. Each will do the job with varying degrees of sophistication and costs. You need a model to work off. The simplest way to run a household or a business is to have a model to work from. To most people that means a spreadsheet. You can get many templates to do this from the internet. You can then do it way millions of other people are doing their finances. You could also do it with a ledger, which is the way it has been done since Dickens’s day in”A Christmas Carol.”

I prefer a third alternative and that is to use multiple notebooks I call:

Plan A: The Economy Approach

  • Notebook 1 – General Ledger – Money in Money out.
  • Notebook 2 – Home Inventory – Items – Value.
  • Notebook 3 – Code #s to define your activities in your life and home.
  • Order book – Keep track of exactly where all the money is going by order #.
  • Notebook 4 – Keep Track of your time.

In the Business world, this would be called 100% activity reporting.

You are forced to:

Inventory your Assets and Codify your activities.

You discover where your money and resources are going and what you really have available.

By tracking your time you find the time thatyou are wasting. and thus allows you to budget and conserve it.

Time lost can never be replaced.

At first, it will be awkward and your family will not be happy with it or you. But, stick with it and it will become automatic. You will then start to discover where things can be cut and reallocated to save time and money.

Plan B: A Simpler Method

Plan B would be considered the midsize version. It has more options, is simpler, and has absolutely everything you need.

It’s called Business in a Box. Yes, I know you are working on a home budget. But, a home is a business and so is your life and job as well. After 2008, everything has changed and it is time for you to change to compete in a tougher market economy.

Business is a box is 1300 formatted forms that are used to start a business. One of the first forms is a home budget all ready for you use and fill in. In fact, in the older version I own, I used to actually run a business and I only used four of the forms under General Administration. This package will get you into business habits that run a successful home as well as a business.

Here it is for you to look at:

But, there of course is Plan C to consider.

Plan C: The Full Sized Option

My Ultimate Solution to running a home budgeting was to automate everything and here is how I did it. I had my boss way back when order me a copy of QuickBooks Pro and I created amulti-million dollar computer network for her using it to plan, budget and order hundreds of servers and support systems.

I have since bought and used it formy home and personal consulting businesssince 1996.

I mean Pro not the checkbook or any of the cutdown stuff. If you are going to run a professional business or a home your can’t skimp. Here it is: Desktop_Exact_Tier2_G_S_quickbooks pro_txt&ef_id=Uzz26wAAAVDmZBqd:20140608084534:s

The neat thing is you can download it for free and play with it to see if everything I am going to tell you nest is crazy or not.

When it comes up, it will ask you for name and business name etc…

What you want to do is select a service business with the product option. You will get a bewildering number but keep those two options in mind.

This gives you the ability to enter services and products into an inventory.

Now you have options to fill in budget information, which is then indexed and codified for you. (See simpler already). It now also will maintain your banking and inventory of household goods and activities.

This is why I said choose both options. You now have an automated system that runs your home just like a company.

House repairs become Job proposals and job orders with estimates that print out. You now know how much a new pool will cost out, as it becomes a job order. So planning becomes a snap.

Time tracking becomes automated as well. You will start to see where you could again reallocate your time to get things down and not have to rob Peter to pay Paul.

We used to call that the 7Ps. Look it up on the internet. It is just as true now as when I was serving my country.

You now have Plans A, B, C that can handle any Home budgeting need you will ever have to face. Your home will start to stabilize and if you should desire it, you could quite easily explore actually running a home based business, as you will already have developed many of the skills needed by running your home like a business.

I would call that an education that is worth the price and a Win-Win for you and your family. But if you don’t have enough money to start your business try taking out a loan to get your business up and going. Run your home like a business, you will have more money, free time and peace of mind knowing that you are doing the necessary things to guide your home safely and have it survive in these uncertain waters of the 2nd decade of the 21st century

Your home will start ot stabilize and if you should desire it you could quite easily explore actually running a home based business as you will already have developed many of the skills by running your home like a business.

I would call that an education that is worth the price and a Win-Win for you and your family.


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