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Fixed Deposits, Bonds, Real Estate: Where To Invest?

There are a lot of reasons why people choose to invest their surplus money. Some do it for the financial security whereas some do it so they can have the money to purchase whatever it is they want to. So if you have some surplus money or if you have recently got a raise, how will you choose to spend this money will you invest it or would you rather use it to buy something that you wanted.

It is a common belief that you need to work a lot in order to save a lot of money. But that’s not the truth. You need to think wisely and invest your money at the right time to get profitable returns. The idea of investment itself gives a relief that the money invested is secured. Especially for the ones who are investing for the first time. Everyone wishes to have a good return irrespective of the amount of money they invest.

Getting a higher rate of interest on FD investments can be great as you can get closer towards your goals. But the risk involvement also increases as you get higher interest returns. If you are close to your retirement the risk involved is low. But in case if there is a drop in the market rate, it can be extremely risky for you.Since there are various investment options available in India like Fixed deposit, bonds, and even real estate. Find out which option is better:

  1. Fixed deposit: Fixed deposits can be the best option when it comes to investments. Bank fixed deposits are the easiest and a commonly preferred way to save some funds in India. Fixed deposits are measured as a safer option as opposed to the stock market and mutual funds. Term deposits can be of two types: fixed deposits and recurring deposits.

Fixed deposits are a onetime investment option where you will devote all your funds at a single time. If you opt for recurring deposits, you will have to invest your funds regularly over a period of time. The procedure of the fixed deposit is very easy and it is considered extremely secure.

  1. Mutual funds or bonds: When you are talking about mutual fund investment the first thing that comes to mind is Systematic Investment Plan (SIP). In SIP the installments on mutual fund investments are for several months or years. But instead, you can also invest in a lump sum amount.

Mutual funds are highly volatile in nature and they are easily affected by how volatile the market is. You need to figure out the right time to invest in the market and look for the opportunities that give you maximum returns. You need to make sure you don’t invest at a wrong time as you can face a loss too.

  1. Real estate: Real estate is fast becoming one of the top sectors in India. If you have surplus money that you want to invest, you can invest in real estate. A real estate is a good option when it comes to investing for a long term. The real estate prices change every 6 months in India and even if you invest for a year or two, you will definitely good returns. But you also need to keep in mind that the real estate market can be affected by various things like the recent demonetization drive in India. No matter where you choose to invest your hard-earned, make sure that you do proper research before doing so. There are a lot of people who look to scamming us and we need to secure ourselves against such people.
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Wall Street ends lower as Apple falls, bond yields rise

Traders work on the floor of the New York Stock Exchange

By Caroline Valetkevitch

NEW YORK (Reuters) – U.S. stocks fell on Tuesday as Apple (AAPL.O) shares declined and as bond yields hit their highest in a month on concerns the Federal Reserve could raise interest rates sooner than some investors had expected.

All 10 S&P 500 sectors ended lower. Apple shares, which jumped as much as 4.8 percent earlier in the session after the company unveiled a smartwatch, ended down 0.4 percent at $97.99. Apple also announced two larger iPhones.

Benchmark 10-year U.S. Treasury note yields rose to 2.5 percent.

Sectors with high-dividend paying stocks including utilities were among the day’s weakest. The utilities sector (.SPLRCU) and telecommunications (.SPLRCL) each fell 1.2 percent.

Improving U.S. economic conditions may force the Federal Reserve “to tighten sooner rather than later,” said Doug Cote, chief market strategist with Voya Investment Management in New York.

“Rising rates are an immediate discount for financial assets, including equities,” he said.

Shares of Home Depot (HD.N) fell 2.1 percent, a day after the company confirmed its payment security system had been breached.

The Dow Jones industrial average (.DJI) declined 97.55 points or 0.57 percent, to 17,013.87, the S&P 500 (.SPX) lost 13.1 points or 0.65 percent, to 1,988.44 and the Nasdaq Composite (.IXIC) dropped 40.00 points or 0.87 percent, to 4,552.29.

About 5.7 billion shares changed hands on U.S. exchanges, above the 5.5 billion average for the last five days, according to data from BATS Global Markets.

In the options market, Apple options volume rose to a record daily volume of 2.97 million contracts traded, according to Henry Schwartz, president of options analytics firm Trade Alert. Contract volume was about three times normal and calls led puts by a ratio of 2.1:1, according to Trade Alert data.

The largest percentage gainer on the New York Stock Exchange was Pulse Electronics (PULS.N), which was rising 53.47 percent, while the largest percentage decliner was Usec (USU.N), down 18.05 percent.

Among the most active stocks on the NYSE were Brazil’s Petrobras (PBR.N), down 2.83 percent to $17.83 and Pfizer (PFE.N), down 0.58 percent at $29.23.

Besides Apple, Yahoo (YHOO.O), down 2.5 percent at $40.78, and Microsoft (MSFT.O), up 0.6 percent to $46.76 were among the most actively traded on Nasdaq.

Declining issues were outnumbering advancing ones on the NYSE by 2,338 to 698, for a 3.35-to-1 ratio on the downside; on the Nasdaq, 2,046 issues were falling and 637 advancing for a 3.21-to-1 ratio favoring decliners.

The broad S&P 500 index was posting 17 new 52-week highs and five new lows; the Nasdaq Composite was recording 56 new highs and 58 new lows.

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U.S. coal stocks could gain on Russia tension

Sign is seen on Wall Street near the New York Stock Exchange

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NEW YORK (Reuters) – Beaten-down U.S. coal company stocks may receive a lift in coming weeks if deteriorating relations between Russia and the West push President Vladimir Putin to shut off Europe’s natural gas supply.

The crisis in eastern Ukraine has emboldened Europe and the United States to impose broad sanctions on Russia. But Europe finds itself in a precarious position, with almost a third of the natural gas the continent consumed in 2013 flowing from Russia, according to the U.S. Energy Information Administration.

Europe’s heightened concerns about energy security could provide an opportunity for U.S. coal companies, which have been hurt by declining domestic consumption, to step in and fill the gap as winter approaches. More than half of U.S. coal exports already reach Europe.

“Export demand will certainly increase, with the situation in Russia and Ukraine having a big impact on Europe with respect to natural gas,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust in Bryn Mawr, Pennsylvania.

“In the short term, there’s no question that a rise in export demand will be helpful to coal stocks.”

Yet significant headwinds at home would likely make any comeback in coal companies’ stocks short-lived and hard-fought.

Even as the broader stock market has rebounded from the lows seen during the financial crisis, coal stocks have languished.

Shares of Peabody Energy Corp (BTU.N), the biggest U.S. producer of coal, have declined more than 27 percent since March 9, 2009, when the S&P 500 hit its financial crisis nadir, closing at 676.53 points.

While the S&P has nearly tripled from that day, the Dow Jones U.S. Coal Index (.DJUSCL) has lost 7.7 percent in that time. The last three-plus years have been particularly bad for the coal index, which has lost nearly three-quarters of its value since April 2011.

The index includes just three stocks – Peabody, CONSOL Energy (CNX.N) and Alpha Natural Resources (ANR.N). CONSOL, which is more diversified and derives around a third of its revenue from natural gas, is the only one up on the year so far. It has gained 5.3 percent, but still lags the wider S&P 500 (.SPX), which is up more than 8 percent.

Peabody is down around 20 percent this year, and Alpha Natural has swooned 45 percent.

CONSOL is the only one of the three expected to show a profit in the next two years, according to Thomson Reuters StarMine, which tracks corporate profit estimates.

Competition with natural gas, the emergence of renewable energy technologies and new environmental regulations contributed to a fall in U.S. coal production in 2013 to the lowest levels since 1993, according to the Energy Information Administration.

Domestic coal consumption is slated to decline by 2.7 percent in 2015, as federal standards requiring power plants to reduce air pollution expedites a shuttering of coal power plants. U.S. coal consumption peaked in 2007 and has declined nearly 37 percent since then, EIA data shows.

That may temper any gains in coal stocks, both in scale and duration.

“I just don’t know if any of this – the situation in Russia and Ukraine – would be sufficient enough to overcome significant pressure in the domestic market,” Cecilia said.

Energy stocks have overall remained favorable for investors, but not necessarily those with money in coal. The S&P 500 energy sector (.SPNY) is outperforming the wider index with a 9.3 percent gain so far in 2014.

“We look at the domestic energy landscape, and the abundant supply of natural gas has impacted coal dramatically,” said Timothy Rooney, vice president of product management and research for Nationwide Funds.

“Generally, energy in the U.S. is a good long term investment, but that’s really being driven by oil and natural gas.”

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TOP 10 global events in the cryptocurrency market

bitcoinsThere are a wide range of different news events that are starting to draw in attention from many within the Bitcoin community. Some people will be watching to see whether these changes may prove to be a positive development for the cryptocurrency. It could actually presage some of the major changes that are going underway for these Bitcoins. Investors and fans alike will need to stay on top of these developments and make sure that they are adapting to them accordingly. This could be a worthwhile way to follow these changes and to learn more about what Bitcoin may be offering to people out on the market.

10. MIT Fundraiser Nets Bitcoins For Students

A unique new fundraising project  has started to draw in attention from many within the Bitcoin marketplace. This is owing to the fact that these students have actually raised enough funds to disperse Bitcoins to a wide swath of students. The fundraisers hope to provide $100 in Bitcoins to students to raise awareness about this project.

9. Regulators Issue Warning About Bitcoins

The NASAA has opted to issue a set of warnings about the way that Bitcoins are used. The organization is stressing that users should remain cautious when it comes to trading the currency.

8. Legality Of Bitcoins In India

As Bitcoins expand to worldwide markets, many foreign investors will be wanting to learn more information about the unique nature of these coins. There is some debate among lawmakers in India about the status of the currency and how it should be used.

7. Bitcoins To Be Tracked By Bloomberg

This news will undoubtedly interest many investors out on the market. They may appreciate that Bloomberg has opted to start tracking the Bitcoin cryptocurrency. This could actually lend some credibility to the format and help people become interested in what it has to offer.

6. Update On Bitcoin Mining

Investors may want to check up on how Bitcoin mining has evolved over time. This practice has actually become much more popular for people over the years. This is owing to the fact that there are a few different resources that will make it possible to secure this currency going forward.

5. Does Dark Wallet Support Money Laundering?

There are many so-called wallet providers out on the net, who provide a way to store Bitcoins. Dark Wallet is drawing in some controversy, because many claim that the company is supporting different types of money laundering organizations.

4. Failed Class Action Lawsuits

The Mt. Gox controversy has undoubtedly produced major changes to the world of Bitcoin trading. Though the event caused quite a stir, attempts to conduct a class action lawsuit have actually faltered.

3. Mastercard Working With Bitcoin

In another major development for Bitcoin, Mastercard has opted to make its presence felt in the cryptocurrency marketplace. The company has chosen to collaborate with Bitcoin and work out a few different types of payment plans going forward.

2. More Security For Bitcoins

There are new regulations on the horizon for the Bitcoin currency. This is causing a fair amount of debate, since traders aren’t exactly sure yet what this will mean for them. They may want to track these developments to see how it could impact their cryptocurrency.

1. Are more regulations a good thing?

Much of the debate about Bitcoins tends to revolve around the relatively safety of the currency. It has undoubtedly risen and fallen by a surprising amount over the past few years. This has got many speculating as to whether more regulations could improve the way that people tend to operate.

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