Category Archives: Capital Markets

What is a Hedge Fund?

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRYkDhqX6zw5pz1rumFOVXasxyg1r8vQOGj5Qsml5_uYwHQYgP-A Hedge Fund is private investment fund which provides a hedge against market conditions and tries to make profit from buying/selling hedged positions. The Hedge Fund is not simple in practice. On a global basis there is over a trillion dollars of private investment capital that can literally invest in any commodity, currency indeses and stocks and bonds. Unlike traditional investing the Hedge Fund may go long or short the market. It is private equity and therefore the gains on transactions for fund owners is taxed differently that normal capital gains taxes.

A typical Hedge Fund is formed by individual investors who have a stake in the fund. The buy-in is in the millions. Noted Hedge Fund owners are George Soros and the Blackstone Group founded by Peter G. Peterson and Stephen A. Schwarzman. The Blackstone Group is a fairy tale. The Blackstone Group was founded by Peter G. Peterson and Stephen A. Schwarsman. According to the Blackstone Group corporate biography the iniital private funds in 1985 were $400,000. By forging alliances and partnerships with some of the most well-heeled on Wall Street their assets under management are over 88.5 billion dollars. Continue reading

What is the Stock Market?

https://encrypted-tbn1.gstatic.com/images?q=tbn:ANd9GcRLYnPosKtyMl-jNn5oFxXblxCYPqQHjElxzQo4oXbmzaQL1s1WvwGenerally speaking the Stock Market refers to equities where actually stocks and derivatives are traded. In the U.S.A. we think the Stock Market is New York City. In fact there are major Stock Markets in Hong Kong, Hamburg, London, Paris, Canada, Japan and others that influence one another and impact the world Stock Market.

The New York Stock Exchange (NYSE) may have stocks listed that are listed on other major Stock Markets. A company headquartered in Amsterdam may be listed on multiple stock exchanges. Many foreign organized companies are listed on the NYSE. There is tremendous value for foreign companies to be listed in the USA. The exposure and knowledge of a foreign company has a face on the New York Stock Market. An example would be a China stock Baidu. These information and search technology company has grown in leaps and bounds since it was introduced on the New York Market. Sometimes all it takes is making a good impression to stock analysts and a good review by key people to give the foreign company a boost. Continue reading

US Economic Outlook from Ben Bernanke Federal Reserve Chairman

http://t2.gstatic.com/images?q=tbn:ANd9GcRYRikgVavQhwfAfteQ8cFDD4cX0x7l2CfkrhEkHdfNngg3NiNrzQIt has been three years since the beginning of the most intense phase of the financial crisis in the late summer and fall of 2008, and more than two years since the economic recovery began in June 2009.

There have been some positive developments: The functioning of financial markets and the banking system in the United States has improved significantly. Manufacturing production in the United States has risen nearly 15 percent since its trough, driven substantially by growth in exports; indeed, the U.S. trade deficit has been notably lower recently than it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services. Business investment in equipment and software has continued to expand, and productivity gains in some industries have been impressive.

Nevertheless, it is clear that, overall, the recovery from the crisis has been much less robust than we had hoped. Recent revisions of government economic data show the recession as having been even deeper, and the recovery weaker, than previously estimated; indeed, by the second quarter of this year–the latest quarter for which official estimates are available–aggregate output in the United States still had not returned to the level that it had attained before the crisis. Slow economic growth has in turn led to slow rates of increase in jobs and household incomes. Continue reading

US July 2011 Jobs Data Shows Positive Increase

US Nonfarm payroll employment rose by 117,000 in July,
following 2 months of little change. The unemployment rate was
9.1 percent in July and has shown little definitive movement
since April. Private-sector employment increased by 154,000 over
the month.

Health care employment rose by 31,000 in July, as both
hospitals and ambulatory care services added jobs. Retail trade
employment increased by 26,000. In the manufacturing sector,
employment expanded by 24,000, with gains in motor vehicles and
semiconductors. Mining employment grew by 9,000 over the month
and was up by 140,000 since the most recent low in October 2009.
Employment in professional and technical services continued to
trend up in July; this industry has added 246,000 jobs since a
recent low in March 2010. Employment in temporary help services
was flat over the month and on net has changed little in 2011.
Other private-sector industries showed little or no change in July. Continue reading

Investment Opportunities in UK for 2011-2012

Hello Folks, since Jan 2011, we have been researching a few good Investment Opportunities in UK that can be used by investors and entrepreurs in our network – anyone based in the UK or abroad – location does not matter in such investments.

Our focus has been to look at businesses that are net exporters to the world, and have solid assets that will appreciate with time, even if the current economic weakness drags on for 1-2 years more. For some reason, many people in the UK automatically associate investment opportunities with property investments in the UK, but it does not have be like that because by investing in UK property, you are missing out on the growth happening in emerging economies like Brazil, Russia, India and China.

Many UK companies have business interests in these growth economies, and you must profit from them. Given the QE2 and overall positive liquidity in the global capital system, we believe natural resources are present a strong investment opportunity for anyone with 4 to 5 year timeframe.

Within the UK, Internet services, financial services, renewable energy, and pharma/biotech industries also present great investment opportunties that could give 25-50% return on investment in 2011-2012 timeframe. If you are interested to know more, please contact us .