US Economy Will Surpass The Challenges

The former economic adviser to the Obama Administration has some eye opening comments about the US economy. According to AustanGoolsbee, the former economic adviser to Obama, the US economy will continue to disappoint for the next 12 months. He added that the observers will be disappointed as they expect the economy to surpass the dull phase. According to Goolsbee, this is not going to happen overnight and the observers will have to face the reality.

Unrealistic expectations

He said this to a group of investment professionals in Chicago at an annual conference. But he also said that economy is just fine despite the lull phase. He said that the economic observers have unrealistic expectations about the economy. According to him, this has been the case since the Great Recession.

  • The problem with the economists was that they predicted that the country will return to the pre-recession economy, which was unrealistic.
  • Economists have been making wrong predictions all along.
  • They based their predictions on the past scenarios.
  • The Federal Reserve also made an ample number of mistakes.
  • Economists fail to see the fact that the economic boom we witnessed prior to the recession was based on a bubble. For the same reason, the same cannot be reproduced unless we have a new bubble.


Consumers are done with unhealthy behaviors

When it comes to a strong financial growth, consumers play a big role in initiating it. Here, economists expect that consumers will do the same all over again. They are wrong! The unhealthy spending behavior of the consumers led to the recession. And since they burned their hands in the process, none of them are ready to repeat the same mistake. Keeping that in mind, it is foolish to expect the economy to go back to a place which is dangerous. The said unhealthy behavior signified people spending more than what they earn. If we go back to that, we are up for another recession, which is unlikely to happen as consumers have become rather cautious considering the slow progress of the economy. And if you recall, many economists have been cautious about the Longevity Of A Strong US Economy. Read The Article Here To Learn More.

Things have changed

Economists fail to see the fact that things have changed dramatically over the past few years. It is unrealistic to expect consumers to go back to the spending habits they employed in 2005 and 2006. Consumers are focusing on saving their money now. And they are not in the mood for lavish and unhealthy spending. Therefore, one cannot foresee a sharp recovery in the economy any time soon. Moreover, the surge in oil prices is also a myth; consider the global demand is not strong. We have to consider the fact that emerging markets, China and Europe register a slow growth rate at the moment.

Job growth has peaked

Yes, considering the low productivity and slow growth, companies are not ready to hire additional workers. If we take a closer look, we can see that the most of the growth in the jobs has already happened. Keeping that in mind, a sharp economic recovery is just a myth. If somebody is feeding you that, then it’s time to stop believing that economist.

Why Is It Important To Embrace Online Banking?

The internet has revolutionized our lives in many ways. Technology has improved so many aspects of our life. Nobody can deny that the internet has made our life even more convenient. And it is easy to take these conveniences for granted sometimes. Online banking has made banking an easy process. We no longer have to stay in long queues for very long at the bank for a small transaction as a result. Online banking has enabled us to transfer and receive money 24×7 from where you want as long as there is an internet connection. However, many still refuse to trust online banking. Particularly many from the older generation refuse to embrace online banking due to security concerns. Digital Innovation Has Already Transformed The Banking SectorRead This Article Here To Learn More.

Many don’t trust online banking

Yes, online banking may not be the safest way of handling your finances. Online banking has to constantly fight with security threats. Irrespective of all these, online banking is very secure. Fraudulent activities are there to steal your money on the internet. But if you follow the basic safety precautions, you will not fall prey to these attempts. But some customers still continue to keep a distance from online banking. The customers who are familiar with computers and internet are not afraid to use online banking. As we can see, young customers have embraced the art of online banking. They no longer want to visit their banks unless it is necessary. Despite all these benefits, there are many who refuse to take advantage of the online banking. Can we address their distrust for online banking? Let’s take a look below.


Online banking facilities

Let’s take a look at the facilities offered by online banking. Yes, it is true that online banking has its limitations as it cannot perform every operation handled by your physical bank. However, almost 90% of those things can be done with online banking as well these days. When you open an account, you will get a user name and password for online banking. Go to the website and log into your account. It is a secure website and they have several security measures in place to make sure that your account is protected. For example, if you provide the wrong user name or password 3 times in a row, you will not be able to access your online for next 24 hours. Moreover, whenever you make a transaction, a security code will be sent to your mobile phone and you will be allowed to complete the transaction only after providing this code. Well, these are just examples and not all banks have the same security protocols. The security measure can vary from bank to bank.

When you log into your account:

  • You can check your account balance.
  • You can check your transaction log.
  • You can send or receive money.
  • You can pay your online bills.
  • In case if you encounter a problem, you can chat with the customer care executive through the live chat facility on the website.
  • Or you can reach them by phone or email.

Well, there are several benefits attached with online banking. You shouldn’t worry too much about the security concerns as they have made sure that your security is not compromised. Follow their instructions and advises and you will have nothing to worry about.

Best 401K Investment Management Practices

Whatever is your age, retirement is definitely going to be a reality someday. Therefore, you have to keep working towards a happy retirement. For the same reason, you need to take care of your investments. The retirement planning industry will be after you to brainwash you. But you shouldn’t fall for that. You should make your own informed decisions based on the research. A long term investment is crucial when it comes to retirement. There are always better options before you. If you want to have proper pension, then you need to carefully plan everything. Speaking of 401K, everything depends on how you make a successful investment. There are always better options. It’s time for us to see those options. If you are looking for Pension Plans And 401ks in general, Take A Look At The Article Here.

When it comes to pension plans, 401K is very popular. But are you adopting the right practices?

Manage the 401K investment actively

  • You will be able to manage your investment on a daily basis with the help of the internet, as it is the best tool.
  • You can easily manage it every day by spending few hours before the computer. You will be doing it at the comfort of your own home.
  • I would suggest you to be part of one of the expert retirement management system. Being a member in one of these systems will make it easier for you to manage it from your home every day.
  • There are so many good management systems out there. Spend some time on Google and you will come across the best management systems in the business today.

Close up of 401K toy blocks and money

Invest carefully

Yes, it is your hard earned money. Therefore, you have to be very careful with the investment you are making. It is really important to invest in an intelligent choice. Remember, if you invest in a bad choice, you will lose everything. You definitely don’t want to be in that position. If you want 401K help, it is always available around the corner. It’s only a matter finding it. Never make a decision if you are confused. There are people who are able to provide very good advice. But you have got to listen to them. Otherwise, it would be difficult.

What if fund selections are limited?

Well, if you have many questions about your fund selections, don’t hesitate to take help from a retirement planner. He or she will be able to provide the right advice you need. An expert in the business can show you the right path. Your goal should be to invest in high return funds. You should get the right combination of 401 investment account to make sure that you have done the right thing.

Join a community

It is important to join a community to stay up to date and connected. Try to join a community where meaningful finance related discussions are carried out periodically. Such a forum can be really helpful in making the right decisions. The most important thing is to make sure that you are not committing a gross mistake with your money. It is your duty to ensure your future financial security and safety. For that, you need The Right Guidance.

Investing And Gambling – Know The Difference?

Many people who want to invest their money end up doing gambling! When it comes to investing, a lot of people are doing it wrong. In fact, many don’t understand the fact that they are gambling instead of investing their money sensibly. When it comes to selling or buying an asset, you should know why you want to do that. Many people do this because the price of the asset is rising. This is not a good reason as the price may stop rising after a certain point. To make sure that, you need to identify what drives the price of the asset. The problem with a lot of new investors is that they want to make a quick buck. And they follow a friend or relative who has already invested somewhere. They blindly follow their example without checking the pros and cons of their choice. Well, such kind of an investment is called gambling. We can’t really call it investing since you have made the investment based on the hope. Here, you haven’t made a decision based on the analysis. You shouldn’t make an investment without analyzing the pros and cons.

My friends are into it

Well, when it comes to most novice investors, ‘my friends are into it’ is the main reasoning for their investment. They don’t think beyond this. Is it a good strategy? It is not!

  • Your friends and relatives may not be the smartest investors around.
  • Otherwise, find out how successful they are in this before you make an investment.
  • The people you look up to might be pure gamblers.
  • Keeping that in mind, it is not a smart idea to follow their example.
  • You should better listen to a successful investor who knows do’s and don’ts in investing.


The example of gold

Let’s just examine the example of gold here. A few years ago, the value of gold was skyrocketing. In fact, the value of gold is still at a high. However, gold has come down from the peak it reached a long time ago. Many jumped at the opportunity and bought so much gold when it was really costly. Well, I can say without hesitation that many lost money with this move. You should invest only after finding out the factors that drive the price of gold. Now that the price of gold is not increasing sharply anymore, those who have invested heavily in it are paying the price of their gambling. If you are looking for Personal Investing Decisions, Read The Article Given Here.

What drives the price?

It is really important to find what drives the price of the asset. This is applicable to all sorts of investments it selling, buying, selling short etc. Make it a habit to predict the factors that are going to drive the price. You may be wrong at times and you may end up losing money. But you may be right as well. The point here is that you will nonetheless get better at identifying the factors that influence the price. With experience, you will make better decisions. When it comes to investment, it is really important to make the right move. As a beginner, you might make mistakes, but it is part of the deal.

The Influence On World Events In Forex Trading

When it comes to Forex trading, nobody can underestimate the significance of world events as they can be crucial for the market in deciding the value of the currency you are trading. Problems might arise at any time in any part of the world. And these problems can impact the value of the currency in that specific region. If you are able to evaluate the impact correctly, you will walk away with good profit from Forex trading. Things To Keep In Mind When It Comes To Forex Trading, Read The Article HereIf you are a Forex Trader, you can’t ignore the significance of world events!

Change in leaders

Yes, changes in world leaders are something you need to watch out for. When it comes to politics, leaders are bound to change every couple of years. When a new leader comes to the power, he or she might have a completely new policy outlook. But when it comes to Forex trading, violently overthrown governments can be really crucial. Unstable and volatile governments tell you a lot about the unstable economy of that particular country. Being a Forex trader, you should watch out for such governments. In the wake of a political crisis, the currency could be first to suffer. It’s all about how you handle the trading to your advantage.

Outsourcing jobs matter

Big corporations these days outsource jobs to other countries. This can have an impact on the currency.

  • You should watch out for what the major corporations are up to all over the world.
  • They tend to move the majority of their job to low-wage countries to make more profit.
  • When these companies send jobs to other countries, the currency suffers. When you outsource jobs, you are transferring money into the new location.
  • In such a scenario, you should know that the value of the currency is subject to change. If you do trade keeping this in mind, you will benefit.


National disasters

National disasters can have a profound impact on the economy on the country. Sometimes, you won’t see immediate effects. You can expect to see extended effects for sure. When national disasters happen, crops and export industries suffer. Keeping that in mind, you should be careful before taking a decision on this. You have to consider the impact of the national disaster in question. You should do your own research before you make an investment. Before you invest, try to get a clear picture about national disasters.

Test your theory

We have discussed about the effect of political upheavals and national disasters on currencies. You can derive your own theories based on them. But it is important to test these theories before you leverage the cash. If you have very little experience, you shouldn’t shy away from doing this. When you have little trading experience, you need to test your theory before making a move. You need to experience and time to become a pro in Forex trading. You shouldn’t hurry and should be willing to do research. You can have your sources to do the research for you. But this is not safe at all. I would suggest you to learn new stuff on your own.

Alternative Investment Opportunities You Need To Know

It’s time to Look Beyond Traditional Investment Options if you are serious about making money. As far as traditional investing options are concerned, you have choices like property, bonds, shares, cash etc. But there are alternative investment opportunities which might bring better dividends for you. You should definitely try some of these unusual investment opportunities. Smart investors invest in alternative investment opportunities as they are able to deal with the risks involved with this. Let’s take a look at some of the alternative investment opportunities below.

Financial Pie Chart

Structured products

Let’s check out structured products first.

  • Here we are talking about a contract with a particular financial institution.
  • The financial institution is supposed to pay a certain amount at certain interval depending on the performance of the stock market.
  • It is one of the safest alternative investments out there.
  • Could you lose money? Well, only when the stock market performs badly. Or in other words, it is a safe alternative investment opportunity for you.

Bridging finance

What do you mean by bridging finance? We are talking about short-term loans used by property buyers. They can approach a bank for a mortgage. But it may take so much time to get the approval. When it comes to private investors, you can think about investing in funds that deal with pool loans. What is really good about this is that you can reduce the risk factor considerably as there are so many borrowers involved in this. You get the loan by showing your property.

Peer-to-peer lending

Now let’s check out peer-to-peer lending next. As the name suggests, we are talking about a direct deal between the lender and borrower. The lender can meet with the businesses or individuals who want money. It works well for both the parties – lenders get to make more money on their investment, whereas the borrowers manage to get money on time without any hassles unlike in the case of a bank loan. However, it can be a quite risky investment for the lender for the simple reason that the borrower might become bankrupt. This is the risk that you need to deal with. When it comes to investing, investment diversification is really important. This article Will Tell You More About, Why Investment Diversification Is A Must?


Well, investing in woodland is a really good option because there are a number of advantages attached with it. For example, the price of the land might get increased with time. The same can be said about the trees on it. You can also consider an additional source of income – selling trees for timber. The increase in land price is the icing on the cake here. Also, you will enjoy very good tax breaks as well. The tax exemption makes this option even better. Exemption from inheritance tax is something that will put a smile on your face.

Buy-to-let property

Well, this is yet another good alternative investment opportunity you should try. It will be an asset for you and will be added to your overall wealth. If you want to use it as a deposit, you must have minimum 25% of the property value. You also need to consider the legal fees and refurbishment costs as well. But there are issues to deal with. You may face competition from professional landlords in the business. Rogue tenants also would pose trouble for you. Last but not least, you need to address the maintenance issues as well.

Start Up Investing Is In For A Change

A big change is coming about for startup financing. JOBS Act is getting a key component changed which will help tech investing in a big way. In private investing there is a change coming about. It will surely revolutionize the way small businesses are being financed. Investors who are unaccredited will be able to buy stock and invest in startups. The JOBS Act came about in 2012. It was a way of helping start ups get public funding. The public offering, which was cut down when a financial crisis occurred, is instrumental in opening up investments for startup companies. Ordinary citizens could not take part, but it was probably not something that they expected to do.

What the act promised

When the act was being signed, Obama declared that new start ups and small businesses will be able to access funds from a large pool of investors that would comprise of Americans at large. Ordinary citizens would be able to invest in entrepreneurial ventures by simply logging online. This was a big step in making the Act more effective. The Act had come into vogue several years, but the pledge of the Act had gone unfulfilled. That was because the Securities and Exchange Commission had been dragging its feet in the regulatory stages whereby investors who were unaccredited could invest in small companies. This week that aspect has seen a change.


Changes brought into force

In Jobs Act, Title III has come into force. This allows investors who are unaccredited to invest in entrepreneurial ventures along with accredited investors. Accredited investors are those who have a net worth of about one million and more, or have certain specified income sources. The unaccredited investors can now gain equity shares in startups. Hence, even if you have a lower net worth you will be able to invest in the same way as accredited and wealthy investors. They are not held back to be able to invest in market products that are of a certain category or being restricted to products that have reached completion stage. For know Why Investment Diversification Is A Must , Click Here.

Investing in hot start ups

Hence, ordinary Americans will be able to invest in startup projects that have hot prospects. It would be similar to Marc Andreessen, who was an investor in Silicon Valley and has backed startup ventures like Airbnb and Facebook. Before the rules changed, investors were able to crowd fund products, but they were not issued shares in these startup ventures.

Advantages to reap

The opportunities will open up to the general public akin to venture capitalists. Many venture capital firms often report cash return that is eight times the original investment. Many have also succeeded in gaining high returns through crowd funding. Some who have backed start ups at $5000 have been able to reap profits of $1 million and more. Some were restricted in regulatory limits. Today all that is set to change and it definitely makes things easier for startups to gain funding as well.

Japan Threatens To Make Forex Intervention

The Japan finance minister might be indicating intervention as US dollar falls against yen and makes Japan less competitive than US. Taro Aso makes a direct reference of intervening in forex when he was in Washington last month. The finance minister stated that the country would intervene if the foreign exchange market saw any further rise of the yen. The country would take a step that America discourages in most cases. This comment was made by Taro Aso at the parliament on Monday. He directly referred to an intervention in the forex market. He currently serves as finance minister in the office of Shinzo Abe, who is the current Prime Minister.

03What the remark signifies?

The remarks made by the finance minister cannot be taken lightly. It is a sign of the tension that exists between Japan and US, especially with regard to exchange rates. Both countries are facing a gaining traction as the global growth rate slows down. As yen has been gaining it has dealt a blow to the exporters of Japan. They are becoming less competitive in the trade market as compared to US traders.

Tensions between both countries

The comments that the Japanese finance minister made helped to push up the rate of the dollar against yen. This occurred on the same day and reflected in trading in the New York stock market. There were certain facts different about the discussion that the Japanese finance minister had. He broke protocol when he was discussing forex markets. Usually the norm is that currency negotiations between different countries are done in a confidential manner. This is done in order to avoid speculations happening, which will have an impact on the market. The open comment of the finance minister was a threat to the US and a sign that the two countries are in conflict over this subject. It was evident from the comment that US Treasury department and the Ministry of Finance of Japan have not been seeing eye to eye when it comes to yen appreciation matters.

Mr. Aso pointed out to different instances to support his stance. He stated that the yen had strengthened by five yens against the dollar in a matter of two days at one time. This was definitely in excess. US Treasury officials have been on a different line of thought. They feel that the yen has not appreciated so high that one has to be concerned. This has become a point of argument between the two countries. Things To Keep In Mind When It Comes To Forex Trading, Go Here.

Report findings

The semi annual currency report has been issued by the end of the month where US Treasury has placed Japan to be one of the trading partners whose policies in exchange rate need to be monitored. Japan meets two criteria out of the three specified by US department to showcase a fair and competitive trading environment. However, one of the criteria is not being met where it becomes an unfair advantage for Japan. Investors feel that US has made an indication that Japan is inching towards intervention which is not fair towards global competitive trading scenario.

Axa Will Stop Investing In The Tobacco Industry

Axa is known to be one of the largest insurers in the world. This company has recently taken a decision to Stop Investments In The Tobacco Industry. It has about 1.7 bn in Euros in this sector, which it plans to sell. It stated that it did not make sense to invest in such a sector where death tolls are near to six million due to smoking. The move was done by Axa in order to support government initiatives which are targeted to help people reduce smoking habits. Tobacco companies had put up a challenge in the High Court last week where it sought to sell cigarettes in plain packaged covers. They lost in the court case.

1Axa’s shares in tobacco companies

It might be or not a coincidence that Axa asserted that they will stop investing in tobacco companies whose products are deemed to be harmful for public health as it contradicts their corporate image and policy that is more about preventing than cure. The assembly of World Heath that came about in Geneva was recently held where the member nations met to discuss about the public health policies. Axa group is known to manage assets that amount to 1.36 trillion in Euros. It will be selling off shares that it owns in tobacco companies which amount to 184 million in Euros. Its bond holdings in tobacco industry amount to about 1.6 bn in Euros.

As of now, this amount is about 0.6 percent of the total bond holdings of the company. The decision that the company has taken might not be easy as it would cost money. However, savings would be generated as there would be fewer claims for diseases related to tobacco. Hence, it is apt that the company has been releasing ads with captions like investing in tobacco does not make business sense. The chief executive of the company was hopeful that the decision of the company will encourage other institutional investors to follow suit.

An emerging market trend

This is a trend that has emerged of late. For more investing advice like Why Investment Diversification Is A MustGo Here. Investment funds that follow ethical business practices are shunning their shares in the tobacco industry. US pension Fund Company Calpers has decided that it would not invest in shares that belonged to tobacco companies. This is not a decision that is new but was taken a decade back. Axa is, however, an institutional investment fund with a major presence in the European market that is pulling out of this sector. Many critics feel that the bonds and shares of the company would be a significant amount that will also coincide at a time when the share prices of the tobacco companies has risen. However, for Axa it is simply not a matter of buying or selling of shares, but the significance of the move. As a health insurer, they feel that it does not make sense for the company to stay invested in tobacco companies.

G7 Finance Authorities Discuss On Forex Market

G7 meeting ends with divided views between the finance ministers. The finance chefs of G7 seem to be divided in their approach towards the forex market and how the conditions need to be regulated. G7 represents the Group of Seven whose finance chiefs have differing views on foreign exchange rate and the steps they need to take to boost the spending for public market conditions. The two day meeting was held in Sendai, northeast Japan this Saturday.

US and Japan have been two countries who are trying to see eye to eye in case of foreign exchange market policies. Japan would like to continue easing the monetary pressure in order to keep up the competitiveness of its traded products in the global market. With the Japanese yen appreciating into the forex market, they are seeing it as an urgent need. On the other hand, US Federal Reserve does not want to pursue loosening its grip over the dollar and yen interactions. In the G7 meeting Japan stated that it wants to boost spending for public initiatives which will drive up global economy but Germany also did not favor this suggestion. For more information on Forex Trading Easier Go Here.

Reports are coming in that the finance chiefs being divided on the global stance that is necessary has led to an inconclusive summit of the G7 leaders. There might not be anything definite that might emerge from the results of the meeting. In the meeting the ministers talked about

  • Deploying an action plan which will block funding to different terrorist groups. This will be achieved by sharing information as well as enforcing strict rules when it comes to transactions in finances.
  • Most of the central bankers remained united in their thoughts towards terrorism as well as the refugee crisis that exists in EY.
  • With Britain set to exit from being part of the EU there are certain risks being contemplated in the global economy.

Word Forex on the background of one hundred dollar bills

On the issue of Japan and Us forex markets, intervention remains a threat from Japan, which US does not want to consider. US secretary kept up the pressure even at the G7 meeting even when Tokyo has been issuing repeated threats that they will devalue the currency in order to bring in competitiveness for their yen. Even though the recent rise of yen’s value in forex markets has been difficult for the exporters, US authorities do not feel that it justifies that the finance minister intervenes in the market. Japan has taken a stance that it should intervene, which was discussed at G7 meeting and was opposed by Germany and US. The topic remained high on the priority list in the two day meeting that took place in northern Japan.

The main points of contention that arose from the meeting were that finance minister of Japan felt that an intervention is necessary and it would not go against the norms set for G20 countries. On the other hand US feel that the competitiveness of the market should be allowed and yen strengthening is a sign of an economic slowdown and should not be corrected by intervention.