Archive for the 'ECONO-TIPS'
| Date: October 16, 2010 | Source: Sources |
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Loading ... Conclude that it is the right time to buy a home is not an easy process for people who want access to a residential property. In this long and grueling housing crisis, citizens have come to know details that speak of the collapse in demand, the price cut, but not all statistics agree on the magnitude of the decreases, they do in the trend-and the dramatic decline in housing starts. This tide of figures we must add other information, not less important and that is partly a consequence of the above: the high inventory of unsold homes, which in turn influences the overall real estate activity.
While this is the picture of the sector for over two years, some aspects of the housing crisis have worsened over time, but others begin to moderate. Meanwhile, a new element has crept to push the potential buyer to decide sooner whether to buy now or wait for prices in coming months are possibly lower. This is the substantive tax changes introduced by the Government in the State Budget for 2011, eliminating tax breaks from next year homebuying taxpayers with incomes in excess of 24,107 euros per year.
It is a very important factor. The tax savings could increase to about 34,000 euros for a mortgage of 25 years, and explain why the sale of houses has soared in August, according to recent data from the National Statistics Institute (INE), which include both private housing as protected, and the first and second hand. In that month, the transactions amounted to 43,817, a figure similar to that of July, but 29.6% higher than the same month last year. Also the accumulated data of the first half of 2010 the Ministry of Housing indicate an upturn in transactions: 256,606 compared to 224,641 the same period in 2009.
Is it advisable for a house purchase and, if you are destined to residence, to keep the tariff, as seems to point to the latest statistics? Experts say yes, provided it has been found that meets the objectives and needs. The idea, in this case, it would speed up procedures, not always easy-to secure bank financing and close the sale before the end of 2010.
More details of the story here .
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| Date: September 22, 2010 | Source: AlertNet |
Go ahead and rate this post Loading ... Do you use the interpretation of well-known, acclaimed and much-used PER?, How reliable is this ratio so often in the field of fundamental analysis?, Does it provide real and serious evidence showing the evolution of the prices of international financial markets? . In recent months, several international financial publications have questioned the usefulness of this ratio even though it is one of the basic pillars on which rest many investors and analysts when valuing a company.
Read also The PEG supplements the shortcomings of the PER with expectation of 5 years of benefits and also How do stress tests for banks?, are they reliable?
The Price Earnings Ratio or PER is the number of times the profit after tax of the company is contained in the price or share price (PER = Price / Earnings per share), meaning that the PER will reflect the number of years it would take to recover our investment in the sole factor "benefits" without taking into account inflation.
The main variables taken into account when determining the value of the RSP are:
- Growth. (The expectations of higher future profits will translate into increased shareholder value-growth treated as constant generation and increased cash flow benefits and always with a view that falls within a broad time horizon).
- ROE (return on equity).
- Payout (Part of proceeds to the dividend).
Using these variables it comes to solving one of the best kept secrets trying to answer this question. What criteria do investors to know what price they will pay each time for each title?
Importantly, loss-making enterprises often have a PER undetermined. PER values between 0-10 show situations of undervaluation. Between 10 and 17 results in a standard situation and positive. And levels between 17 and 25 indicate overvaluation, since in this context is thought that companies will have great benefits.
Common tendency to compare current with historical PER, and PER at sectoral level between companies in the same sector to try to justify investment decisions.
The PER is used as part of fundamental analysis, although we review the highly psychological component attached to it. It is a ratio to keep in mind when to include a value in a portfolio and that many times if you can give accurate guidance about what will happen to contributions especially in the long run.
What gives this ratio tracks?
Obviously, it should not be used for a short-term speculative investment but rather determining the composition of a portfolio or as a factor to consider in taking positions in a broad time horizon.
The combination of a low PE and high dividend yield often the perfect cocktail for taking a bullish position with a view over the long term.
By contrast, a high PER and a dividend yield more discreet will be the perfect argument for or kept out of the market waiting for more attractive prices or for taking bearish positions.
Basically this is the formula used by the world's major financial Warren Buffet, so I think it should not be as bad or have as much disrepute as some are trying to prove. Moreover, this is one of the keys to investment success not only Buffett but many international investors.
¿Divergence between price and performance?
A major criticism often made by leading critics of the PER, is given by the time lag between the publication of the profits of an enterprise and the reflection of those figures in their quotations. Many times we talk about current rates considering past profit figures.
One wonders what criteria based on the prices reflect the real value of a company based on the results of your accounts. If we adjust to the consideration of estimates for benefits after the current exercise, it may occur in the interim of time changes in the environment or economic conditions that make the estimates were taken as reference become inaccurate or misleading.
Loss of confidence
A controversial article in the Wall Street Journal recently published entitled "The Decline of PER" These data demonstrate a loss of confidence that is being generated by a sector of the international investment community with respect to this ratio that looks back more 100 years of history.
Looking at a graph of the PER of S & P 500 we see currently in the area of 12.2. Note that earnings expectations in the estimates of analysts constantly being revised downwards. Recently, there has been a decline from the level of 14.5 in May to 12.2 today. The decline in the last year was 36%, the sharpest drop in PER of S & P 500 since 2003.
At these levels where the PER is historically always have been sharp upward movements in financial markets in the 7 or 8 years later. As the current economic climate responds to an exceptional situation, we can find levels even lower PER of current and therefore lower prices than we can see today.
It is very likely see levels of PER in the S & P 500 in the environment 9-10, and those levels translate into the possibility of a winning investment almost certainly in the long term. Remember that after the Second World War the PER of the S & P 500 hit its lowest at 5.9. And in the decade of the 80 values were 6.68.
The case of Spain
In regard to the national level, the current PER Ibex 35 is located in the environments of 10.72 and PEG ratio estimates (Price / Earnings to Growth) for 2010 are negative in our country (-0.50 .) This PEG ratio takes into account profit and share price and then compared with expected growth.
Comparing the Spanish PER PER with other countries such as Italy (PER13, 93), Germany (PER15, 50), UK (PER14, 11) PER shows that our quotes are not expensive, but we'll see lower prices. Within companies of Ibex 35 companies with a higher PER Iberdrola showing levels of 23.35 PER, certainly nothing attractive to investors who look at this ratio when investing.
And among those that we see very attractive with a PER and an investment opportunity if we consider this ratio is BBVA, with a PER of 7.93. I think the most likely scenario translates into a market correction between 10 and 15%, and then we would have a historic opportunity to regain money on the stock exchange within 5 to 10 years.
"The Price is what you pay. Value is what you get." This famous phrase Buffet describes very well the importance of the PER. And no doubt be said that this ratio should be above the table of anyone who is considered a good manager, analyst or investor.
Information provided by Hanseatic Brokerhouse Financial Service
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| Date: September 4, 2010 | Source: Europa Press |
Go ahead and rate this post Loading ... Here you have a list of the best mortgages at the time and recommendations to follow for anyone who is deciding to buy a home.
Variable Mortgages
The most talked-month reduction has undoubtedly been the ING, which now offers its customers a discount of 0.20 points in Orange Mortgage, reaching Euribor + 0.49% in both purchasing and subrogation maintaining its main advantages repayment term of 40 years and no commissions. To achieve this rate so low, customers must have their payroll on ING domiciled for more than 6 months and hire a life insurance and home insurance.
Other online mortgage variable rate that, despite not being changed, remain in the top of the cheapest at the beginning of September are the Housing Mortgage Oficinadirecta Usual, Plus On Loan Caixa Galicia and the letter A -e, with interests ranging from Euribor + 0.35% and Euribor + 0.39%.
For the rest of variable mortgages sold outside the Internet, include the Mortgage Rate of Barclays Bank and BBVA, with spreads between 0.45% and 0.50%.
Fixed Mortgage
Bankinter has struck down the fixed mortgage interest for first and second homes. Thus, the fixed rate for a 20-year mortgage down from 4.14% to 3.67% now and the interest of a 30-year mortgage down from 4.67% to 4.06% is now . Fees remain the maximum allowed by law and funded percentage has remained stable compared to last year: 80% for first home and 55% for the second.
Fixed mortgages more competitive market to 30 years are, in order, Bankinter with an interest of 4.06%, the Barclays with an interest of 4.4% and SabadellAtlántico with an interest of 5.2 % tying with fixed mortgages Solbank and Active Bank.
And in regard to non-competitive so there was also a novelty: SabadellAtlántico has reduced the fixed rate of the first period (4 years) of joint mortgage of 4.40% to 4.10% and the interest of fixed mortgage. If before the holidays 20-year fixed rate was 5.60%, now is 5%, and interest to 30 years, down from 5.80% of 5.20% is now. The repayment term is the same in all mortgages: 40 years, except for its fixed mortgage, funded up to 30 years.
Mortgages on the rise and anti-crisis strategies
In the section on mortgages that have worsened conditions during the summer period stand 3: Mortgage Discounted IberCaja, which has increased both the fixed rate (4.10% to 4.85%) and variable (Euribor + 1 to Euribor + 1.10%) of their joint mortgage, the Young Mortgage Caja Rioja, which goes from 0% to 2.95% interest for 3 months, and the Mortgage Subrogation iBanesto, no longer Euribor + 0.38% offers but Euribor +0.45%.
It seems that strategies to tackle the banking crisis can be summarized into three: one, if the entity has not been greatly affected, reach more customers through rebates, two, when the bank has suffered more losses, more expensive to try to increase the income mortgages, and three, if the bank in question has a large stock of houses, trying to sell mortgage very attractive (as Caixa Penedès Euribor + 0.25% or 0.20% Bankinter) financed 100%.
End of the tax deduction
But surely, two impending changes that will have a direct and material effect on the mortgages are (1) the rise in Euribor and (2) the end of the tax deduction for home purchase.
After five months on the rise, the mortgage rate has just closed in August to 1.42% more expensive mortgages fees for the first time in nearly two years, specifically, between 6 and 14 euros compared to August 2009. This slight but steady rise in the Euribor has also led some mortgages have their interest rate up a few cents, just to cover the swing of the market. This applies to the Mortgage Vivenda Oficinadirecta Usual, just raise the interest of their fixed period of six months from 1.60% to 1.75%. This is an understandable rise when you consider that maintaining the 1.60% to August 2010 would amount to a variable interest rate of Euribor + 0.18%. And as the end of the tax deduction for home purchase for incomes above 24,000 euros per year, is expected to cause an increase in the acquisition of mortgages in the latter period of the year that is not happening. In fact, recent data suggest that the INE the number of mortgage loans fell by 17.7% last June.
Will have to wait a few weeks to see which profile takes the new framework of market, banks and users at the gates of 2011.
Data published by helpycash .
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| Date: July 31, 2010 | Source: Sources |
Votes: 1 Rating: 4.00 / 5) Loading ... In summer proliferate miracle products that ensure we will lose weight and look a splendid figure in a few weeks with the only effort to take these pills or potions final. It's the same with investments that promise spectacular profits without risk or profitability exaggerate or minimize the risk or, quite simply, are a scam.
Before going into depth with the theme, elemental track non-professional investor you should put on red alert: investments promise monthly returns above 20%. Such revenues are only available to exceptional investment professionals, such as Warren Buffet.
What kinds of risks?
We're used to hearing that investments are safe or are at risk. We could define risk as the probability of an event occurring (favorable or unfavorable) associated with the returns (higher or lower real return on investment), the cash flows (cash or not cash a dividend of one share, for example) or the value of an asset (for example putting a market price for a home today).
Here are some types of risks to consider:
A. - The no investor should ever face: the risk of fraud. Obviously we are not announcing that the product we offer is a scam, we know the basics of financial product, analyze the professionalism, history and creditworthiness of the issuer and the company selling the product.
2. - Pure risk: losing the investment associated with adverse events in the style by fire or other disasters, accidents or bankruptcy of the issuer of the investment product (it is not very far for Spanish investors bankrupt American investment bank Lehman Brothers).
3. - Operating or financial risk: internal or external factors that may affect the business such as changes in markets, different strategies of competitors, general economic crisis or in specific sectors, changes in asset prices underlying the investment (which raise the price of gold by investing in companies that sell this product, for instance) or changes in legal regulation, among others.
4. - Risks related to profitability: It is said that an investment is at risk if you do not have a guaranteed return. In this type can include the risk of losing money by the nature of the investment product. Stocks, for instance known to all, are at risk because of its profitability (which could be equated to the company distributes dividends) and its price (you can lose money if we bought the shares fall in price and we have to sell for liquidity). 5. - Liquidity risk asset: time or difficulty of making investment in liquidity (money). Today's homeowners need to sell have run smack into this problem: the houses that used to be sold without problems now very difficult to sell even at a loss. 6. - Inflation: If you believe that the best way not to take risks is not investing your savings is to leave them in your bank checking account, think again. Generalized inflation or price rise, is eaten every year the value of your money. To avoid losing money, at least have to get a fixed term at the bank that offers a return equal to inflation.
GETTING TO INVEST IN
It seems self-evident, but not so never invest in a product you do not understand. Not as easy as it looks if you just trust the employee of your bank that suggests that investment fund with a name so overblown is a great investment and is "as safe as a fixed term" regret it. The workload and lack of expertise of many bank makes its advice is not enough to decide for either product. We must understand how it works.
To summarize very briefly the most common investment products with which they usually encounter, we might mention: Public Debt of the State: We could say that is the risk-free asset par excellence. We give a guaranteed return without risk (in fact there is always the sovereign risk, which breaks the state as happened to happened to Greece and could not pay their debts). They are known for state bonds, to differentiate it from the fixed income and private companies. Time deposits of financial institutions: Technically known for IPF (time deposits). In a normal situation often have a certain profitability below Euribor (taking the reference banks and the cost of money for them). They are safe investments, unless breaking the entity (in the case of Spain the Deposit Guarantee Fund insured up to 100,000 euros per person per financial institution).
Structured bonds: corporate bond product that has many problems as it is of high complexity (they are products that combine a secure investment with a financial derivative) and has been marketed to retail investors in a somewhat massive. It combines a guaranteed return product with a financial derivative. For simplicity, an issuer (Company A) is issuing this bond that can not ensure or total investment, with a return that depends on the evolution of some underlying asset (eg the value of 3 actions), a bank (Bank X) markets the bond commission charging for it and invest in a particular product (usually each bond costs 50,000 euros). Any problems serious happened with the bankruptcy of Lehman Brothers? That was the bond issuer (Company A), marketed by Spanish banks (Bank X). The issuer bankruptcy, Lehman Brothers, and the investor can not claim, in principle, the bank has "sold" the bond. Have to wait to settle Lehman Brothers to see that some of their money recovered.
Actions: Title negotiable in different bags that are a percentage of ownership of it. Equity is best known for the ordinary investor. The risk of this investment is both profitability and price as also the bankruptcy of the company. Consider that the shareholder is, in fact, a business owner, is the latest to charge if the company has to liquidate.
Mutual funds and ETFs ( Exchange Traded Funds Investment ): In this type of product you buy shares in a basket of products in which the Fund invests. Normally are baskets of stocks of certain markets or sectors chosen by the policy of each fund manager. ETFs are a new type of investment funds that are listed and can be bought and sold like stocks, as they have money at all times. Instruments are more complex and, as the need to invest in indices, gold and many different investments, plus the need to earn if the Ibex (short or ultrashort ETF s), for example, and others who earn if it rises .
Products
: Its value depends on the evolution of so-called underlying asset (shares, indices, commodities and so on). The best known are futures and options. Futures are a compromise between two parties by which at a future date a party to buy something and the other is obliged to sell it. A future on a stock at a price of X euros and due date XX / XX / XXX means that when this date arrives one is obliged to buy the stock for X euros and the other to sell, worth what it's worth in reality this action that day. The options which entitle the purchase (paying a premium to the seller) to buy (call option) or sell (put option) the underlying asset at a specified price at a future date. So who buys the option may or may not exercise it. There are already products of complexity must remove the unskilled investor.
Investment "exotic" for the amateur investor
In this section we include any unusual product for the normal client, often marketed by nonbanks. You should never invest in these instruments without knowing the product well, the issuer and the intermediary who sells it. We could mention the outright purchase of gold bullion, investments in the Forex market currencies, promissory emissions of certain private companies.
ANALYZE THE ISSUER AND INVESTMENT BROKER
It is very important to understand the product in which it invests, but equally essential is to know who is issued or sold. Knowing your basic data, solvency and career.
The network provides all this information in a fast and a very low cost:
A. - Info own company website: what can obviously interested, but information is starting. If no web, no need or follow. Do not invest in it. Another very useful information that can be extracted from their website is indirect: Can you see the name, tax domicile and contact details? If the answer is no bad start, as are mandatory by law. The same applies if you have a contact section and has its privacy policy and the rights that the Law on Protection of Information (Act) provides to users. There are indications that fails the professionalism of the company, at least.
2. - Google and other search engines: It's amazing the information that we obtain with the simple precaution of putting the company name into a search engine and visit the links. Read carefully the pages that criticize the company or its products and why.
3. - Social networks: Facebook, Twitter, LinkedIn or Xing are abundant sources of information. Visit the profiles of the company, employees who claim to work on it and what users say.
4. - Blogs about: The financial blogosphere allows us to be well informed, independent professionals often, and make our doubts about the company that offers an investment or on the nature of the product itself.
5. - CNMV and Bank of Spain: Official information about organizations that are behind the investment. If not included in your records, do not invest in them or, at least in these entities advice on business and investment. They have created a helpful page for non-professional investors called Finance for all.
6. - Registry and Land Registry: We provide public information on the balances of the entity and its properties. Balances with steady losses or companies are no bad omens property investors.
7. - Companies specializing in business analysis: Perhaps the most used is einforma. For little cost you can have a full report on the solvency of the company.
We conclude the entry noting that investing is not something to be taken lightly nor made in haste. You have to know the product is invested and the company offers investment.
If they put us in a hurry, we say it is a unique investment for a limited time, overwhelm us with technical and assure us that there is no risk and always wins, I recommend caution, well informed and never put your money in the hands of companies that do not know well. It is not the thing to throw money.
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| Date: February 9, 2010 | Source: Sources |
Go ahead and rate this post Loading ... The General Council of the Judiciary provides that the number of foreclosures to be around the 180,000 this year, compared to almost 60,000 in 2008 and 114,000 last year. If we add allo real estate developments that have remained unsold, the result is an accumulated stock of housing is forcing many banks not only reduce the price of the property, but to launch the so-called bargain mortgages, whose advantageous Free deficiencies and conditions include terms up to 50 years.
This line has opted Bancaja, which offers mortgages with three-year grace period on payment of the mortgage payments of both principal and interest as well as some real estate portal that goes on sale at preferential stock floors in ICU ( Credit Union Real Estate, marketer of Banco Santander and BNP Paribas), Banco Pastor and GMAC (General Motors's financial), among others.
Keep reading here .
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