Article by Graham Dyer

For many investors, there are only two assets worth considering most of the time – stocks or bonds. “When the stock market falters, switch to bonds for ‘safety.’ They might be dull and boring, compared to the roller-coaster ride shares can give you, but you can’t lose on US Government Bonds, because apart from less volatility, you have the strongest guarantee in the world.” So goes the argument.

Is this true? Are Uncle Sam’s Treasuries safe? Well, if you don’t mind lending your hard-earned savings to someone who already owes $ 9 trillion and has no chance of ever paying it back, I guess you could say they are safe.

Bonds are only safe because people (including international investors, even central banks) think they are safe. When it comes time for Uncle Sam to repay his loans, he simply borrows some more (issues new bonds), often from the same people. The lemmings love them. If that’s not a gigantic Ponzi scheme, what is? If you or I tried it, we’d be behind bars! But the scheme survives because people believe in it, as they do the fractional reserve banking system..

Just like money in the bank, technically bonds are a very unsafe investment. But whilst ever the public maintains confidence in the confidence trick that both represent, you should not lose too much.

But this brings up the main factor to consider when buying bonds. Creditworthiness is one thing. But the market risk is of even greater concern. And whatever I have to say about Treasuries here is doubled, tripled, quadrupled and more when it comes to junk bonds (lower than investment grade).

(Note: If you do not understand how bond prices rise when interest rates fall and vice versa, please read Chapter 5 of my book How to Profit from the Coming Great Depression).

Investing is so easy. You only have to remember one rule: Buy when prices are low; Sell when prices are high. It’s that simple. Yet it is human nature to do the opposite. When an asset has been on the bottom for years, nobody wants to touch it. Once it has doubled in price, everybody wants to buy it. Crazy, huh? But that’s why a study of crowd behavior (socionomics and Elliott Wave patterns) is far more important than a study of economic fundamentals.

So, where are bonds now? Like stocks, they are near record high levels (interest rates near record low levels). So what should you be doing – buying or selling? I told you it was simple.

The last time I recommended buying bonds was in 1989, when the yield on the Australian 10-year was 14%. It has since been below 5% and is still below 6%.

Today if you buy 30-year US bonds, you are locking in less then 5% per annum for 30 years. In 1981 you could have locked in 15% per annum. And you could have sold them along the way for a huge capital profit. Yet today they are infinitely more popular than they were in 1981, when bonds were a dirty word. That’s human nature.

“The 13

Article by Patrick Finnemore

In the hunt for a form of investment that will give a good return, Investment Bonds have become an increasingly popular way of saving. Why should this be so?What is the reason for this? There are a number of factors to explain their great success. A good point to start an explanation of the boom in Investment Bonds is to pin down what what this sort of investment is. Basically, they are investment plans sold by a life insurance company or other financial services provider. Investors pay in a lump sum, which is invested in one or more collective funds. They have the potential to be a very good tax-efficient way of holding a number of investment funds in one location. One of the good advantages is that they are professionally managed. They are usually designed to produce long term capital growth, but can also be employed to generate an income.




It is now clear that the global financial crisis is having an influence on the investment bonds market. Bearing in mind the present challenges, providers can still find consumers who are seeking out safer investment options that might give them a good return. A notable element of the Investment Bond market is that the minimum investment is in the region of five thousand pounds. They are viewed as medium to long-term investments, typically greater than 5 years. Another reason for the popularity of investment bonds is that they can be used as a means to reduce inheritance tax and personal tax. While it may be a fact that bonds are never going to be viewed as the most glamourous area of the world of investing they still have a place in a lot of investment portfolios. They provide more stable returns than those offered by the stock market, so they are a possible alternative for cautious investors or those whose portfolios are already risky enough. The drawback is that profits can be higher elsewhere, but a smart selection of bonds should still outperform cash over the long term.

In conclusion it is up to every individual investor to decide the relevant facts about Investment Bonds to determine whether or not they are suitable. One should take into account the volatility of stocks and shares in recent months and the fact that prices can rise as well as go down. The scale of risk that you may expose yourself to is a really important factor for any investor. You have to select a level of investment that you are content with. It is therefore immensely important that you consider the available options before you arrive at a final decision. After all it is the decisions that you make at this point that will decide what you get back later so time and effort should be devoted to looking for the most suitable deal that you can get. It is hoped that this explanation of what an Investment Bond is and what it can do for you will furnish you with a useful basis with which to come to the decisions that will have massive implications for your future and financial well-being.

Naples, FL (PRWEB) October 17, 2011

Gilman Law LLP, a prominent national securities law firm, announces the launch of a new website designed to inform the public of current securities fraud investigations. For over 30 years, Gilman Law LLP has successfully enforced the rights of investors who have been the victims of securities fraud. The firm specializes in prosecuting cases relating to securities fraud, stock manipulation and shareholder?s rights, and is nationally recognized for its securities, antitrust and consumer practices. With this new securities website, Gilman Law LLP hopes to aid victims of investment fraud with the information needed to take legal action.

Visitors can access the new site and learn more about current securities fraud investigations by going to Gilman Law LLP?s main website, http://www.gilmanlawllp.com or http://www.gilmanlawsecuritiesstocksbondsfraud.com or the main investigation page Securities Under Investigation.

CURRENT INVESTIGATIONS

Ralcorp: Ralcorp. Holdings Inc. (Ralcorp) and its Board of Directors has been named in a putative shareholder class action lawsuit in Missouri Circuit Court alleging a breach of fiduciary duty to shareholders and violations of numerous state and federal laws (courthousenews.com/2011/09/19/Ralcorp.pdf”) (Cause No. 1122-CC09665) The allegations stem from Ralcorp?s allegedly unreasonable refusal of a proposed offer to acquire the company made by ConAgra Foods, Inc., even though the generous cash offer was well above Ralcorp?s market price.

Question by foofy2u2: Is investing Government saving bonds a good investment?
I remember buying stamps at 10 cents a stamp to put in a book. Then took it when full to redeem for a bond. Does it still work this way and is it even wise to buy bonds anymore?

Best answer:

Answer by justine 2
No why would you want to invest in a fiscally and morally bankrupt entity such as the Federal Government

Know better? Leave your own answer in the comments!

Troy, Michigan (PRWEB) August 29, 2011

MyInsuranceExpert.com, an online life insurance brokerage firm currently based in Troy, Michigan, announced it has received a significant investment from Rockbridge Growth Equity, LLC, a private equity firm based in Detroit.

The company, which presently employs 85 team members, has plans to hire an additional 200 employees in the next several months and move its office and entire brainforce to downtown Detroit by the end of the year.

“Beyond simply raising capital, it was imperative for us to find the right strategic partner for our business. We’ve done that through this relationship with Rockbridge Growth Equity,” said MyInsuranceExpert.com CEO Lorne Zalesin.

“As a web-based, culture-driven company, we are extremely fortunate to now be partnered with an extraordinary family of companies that includes Quicken Loans, Detroit Venture Partners, ePrize, and One on One Marketing, to name a few,? Zalesin added. ?We are looking forward to an exciting collaboration and are eager to be counted among the new wave of web-based businesses that are making Detroit their home.?

Founded by the Schechter Organization and NFP (NYSE: NFP), MyInsuranceExpert.com uses the internet to engage directly with consumers to facilitate the purchase of life insurance from the top insurers nationwide. The company, named one of Michigan?s 50 ?Companies to Watch? in 2011, combines the ease of the web, proprietary internal technology, and the expertise of their licensed advisors to provide a world-class client experience.

?MyInsuranceExpert?s focus on client experience and simplifying the life insurance process positions it to be the dominant player in an industry that is still extremely local and fragmented. As demand for life insurance continues to grow and more consumers move online to begin their search, the potential to grow this business is tremendous,? said Brian Hermelin, managing partner, Rockbridge Growth Equity.

?Also, as a Detroit-based private equity firm, we are very excited to be making an investment in not only a Michigan-based, but a soon to be Detroit-based business,? Hermelin added.

MyInsuranceExpert.com is one of the newest members of Dan Gilbert?s Family of Companies, a collection of financial services, sports media & entertainment, consumer direct marketing and education businesses. Gilbert, Founder and Chairman of Quicken Loans, Majority Owner of the Cleveland Cavaliers, and Partner of Detroit Venture Partners, is leading Detroit 2.0 by creating a technology-based urban core where young and creative professionals can work, live and play in downtown Detroit.

About MyInsuranceExpert.com

With more than three decades of experience, MyInsuranceExpert.com is a Michigan-based company offering affordable insurance services and support throughout the United States. Named one of Michigan?s 50 ?Companies to Watch? in 2011, MyInsuranceExpert.com was honored with Top Workplace awards from The Detroit Free Press in 2009 and 2010, and Metropolitan Detroit?s 101 Best and Brightest Companies to Work For in 2010. For more information, please visit http://www.MyInsuranceExpert.com.

About Rockbridge Growth Equity, LLC

Rockbridge Growth Equity, LLC is a Detroit-based private equity firm that invests in financial and business services, consumer-direct marketing, and sports, media & entertainment industries. Rockbridge owns equity stakes in AccountNow, Protect America, Northcentral University, Connect America and One Reverse Mortgage, and is affiliated with other leading businesses in its target sectors including Quicken Loans, the Cleveland Cavaliers, Title Source, Fathead, Xenith and ePrize. For more information on Rockbridge Growth Equity, visit http://www.rbequity.com.

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More Equity Market Press Releases

In January I predicted 00 Gold and we hit that mark today. Dave ramsey has an entertaining take on gold and you can hear his take by typing “Dave Ramsey Gold” into Youtube search. If we compare todays gold price to what happened in 1980 we can see how low gold still is however at this level it is due for a correction sometime soon.

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As China struggles with its transition to capitalism, its equity markets are the ultimate example of the free enterprise system’s concept of supply and demand. The country’s middle class population is larger than the total of all entire U.S. citizens, but the investing options remain limited: the number of Chinese companies publicly traded in China’s markets total less than a third the number in U.S. markets. The result is the ultimate example of the economic concept of scarcity that drives share prices on volatile Chinese markets.

For U.S. investors, this has largely been a spectator sport. As attractive as this exploding market has been, Chinese companies have traditionally been closed to outside investors. But, now, there are some ways to invest in China including Chinese a shares.

There are approximately 208 Chinese companies that are listed in the NYSE (26), Nasdaq (165), and AMEX (17) exchanges. Unfortunately, the scars from the 2006 -2008 Chinese company listing in the U.S. rush and subsequent implosion have not entirely healed. The positive outcome of that trauma is that the U.S. investing public is now seeing much higher quality companies list in the U.S. While the U.S. investor should cast a wary eye at the AMEX reverse IPO listings, China-based equities are still a good investment. China Life, China Mobile, PetroChina, and China Telecom are all examples of stable, quality investments with operations solely in China that are listed on U.S. exchanges. These companies must comply with SEC filings and regulations and most have recognizable, quality auditors – always the first box we check when researching Chinese Companies. Additionally, there are 1,400 stocks listed on the Hong Kong (Hang Seng) exchange with operations in China. These companies are not subject to the U.S. style regulations, so one must be careful, but they are open for purchase to international investors.

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There are plenty of success stories according to leading China investment research firms. Take Zhongpin (HOGS), a leading food processor in China. It has been growing rapidly as an important source of pork, the meat most consumed in China. Those who invested in it have seen a 35% increase in its stock price this year as the company has reported hard-number increases in revenue and profits.

On the other hand, there have been the ones that looked good, but failed. For instance, there’s Bodisen Biotech, Inc., the largest China-based environmentally friendly bio fertilizer company that looked poised to grow, but through a series of financial failings has seen its shares drop from a high of in 2006, to the current price of .57.

Keep in mind that the Chinese equity market has only been in existence for 20 years and the free markets have really only existed in the country for less than ten. So, you don’t go into it without some cast iron body parts. But, given the modest number of public companies for distribution to an expanding investing public bolstered by appreciating currency, China is going to become an important part of the world’s investment strategy for many years to come. The key to investing in China? Sound China company research from a respected China investment research firm.

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Bond investing is a type of debt investment where investor has two options, he can either earn a fixed income according to its coupon or percentage rate for a fixed time period until its maturity, or he can sell it off at a possible higher price when the market fluctuates. They are many different types of bonds depending upon the type of issuing entity, but all these bonds are issued with the common motive of procuring capital by selling debt, unlike stocks which sell equity. Based on your risk assessment level, here are some of reasons why you should start investing in them as soon as possible-

A) Retaining the Principle- When you lend out money, the interest rate can vary depending upon the credit rating of the borrowing party. But the credit rating, no matter how high, can never fully guarantee that the party will pay of the loan with interest in the given amount of time, in other words, there is a high risk for default. But when you buy bonds, you are splitting the risk of the debt investment with millions of other bond holders and since bond issuers are usually powerful corporations, the principle amount which is invested in the bond is always retained, by hook or by crook, at the end of the maturity period.

B) Saving- Issuing bonds cannot be done by just any company, as the company is required by the regulating bodies to have a strong history of repayments and a stable cash flow since the last five years in order to qualify to issue deb via bonds. So this exclusive criteria for entities secures the investments of the bond investors by guaranteeing them a fixed sum of money based on the type of bond or its coupon  ( principle ). This can be an excellent tool for long term saving, which quiet frankly is more profitable than putting it in a saving accounts of a banks.

C) Mitigation of risk- A typical interest paying bond works on a simple formula, the investor spends money on the bond and depending upon its interest rate, the person will receive a fixed amount of money as interest repayment until its maturity where all the invested money is paid of with interest. But in times of financial disasters like an economic recession, since the interest rates of the bonds are bound to increase due to higher default rate, people will obviously prefer newly issued bonds with a higher interest rate of payments, thus the price of the current invested bond is reduced to match the demand of the people in  the bond market. To put it in simple words, the price of the bond and the interest rate have a inverse relationship where one can be compensated in the place of the other, thus securing the invested principle and reducing risk efficiently.

So these are the factors that make bonds an attractive investment option to most value investors. But it should be noted that as far as the financial market is concerned, there is always a chance that a person would face some kind of loss, so even when investing in bonds, it is very important to have some experience or do some substantial research beforehand. (SOURCE)

http://www.pioneercredit.com/newsletters/articles/archive/savings_bonds_investment.asp

Savings bonds are a safe way to invest some money for the future. A bond is a piece of paper that shows a person has agreed to loan money to the U.S. Government. The money you give to the government helps pay bills and programs that the United States runs. The government then pays you back with interest. Interest paid on these bonds is exempt from state and local income taxes.

There are two primary types of bonds; “I” bonds and “EE” bonds. With “EE” bonds you buy the bonds at half the face value and they gain interest over time. (For example a 0 bond will cost .) You can also buy them electronically online for face value. It will mature to the face value at 20 years but can still continue to gain interest for ten more years for a total of 30 years. “I” bonds are issued at face value and will also gain interest over time.

If you are a U.S. citizen and over 18 years old you can buy savings bonds. You can buy Series “EE” Bonds and Series “I” Bonds from most banks or credit unions where you live. You will fill out the purchase form and the bank will send them to the Treasury and you will receive the bonds in the mail a few weeks later. Some employers will allow you to purchase bonds through a payroll deduction. You can also go online and setup an account and buy savings bonds through the treasury department (www.treasurydirect.gov). Bonds bought online are bought at face value. (Ex. 0 bond costs 0 to purchase)

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Series “EE” and “I” Bonds come in denominations of ; ; 0; 0; 0; ,000; ,000; and ,000. You can buy up to ,000 of Series “EE” and “I” bonds per person in a calendar year.

At the time of purchase, a bond can be registered to a single person (“single ownership”), registered to two people (“co-ownership”), or can be registered to a primary owner and a beneficiary (“beneficiary”). In co-ownership either of the named individuals can do whatever they like with the bond without consent of the other person. With a beneficiary registered bond, the primary owner controls the bond, and ownership passes to the beneficiary if the primary owner dies.

With “EE” and “I” Bonds you have the choice to declare the gained interest each year or defer it until you cash it in. Savings bonds can be cashed in at many banks and credit unions. Call your banking institution ahead of time and ask if you will have to bring in any documentation. You can also redeem your bonds through the mail, on the web, or at a local branch of the Federal Reserve Bank. You can cash in bonds anytime after 12 months of the issue date. “I” Bonds cashed within the first five years are subject to a penalty of three months worth of interest. This is to encourage long-term investing.

The main difference between “I” bonds and “EE” bonds are the rate. “I” bonds have a fixed base rate and earn additional interest based on the current inflation rate, which is calculated each month. (The current rate at time of publication for an “I” bond was a fixed base rate at 1.20% and a composite rate of 4.80%.) The interest rate for an “EE” bond is good for 20 years. The Treasury can set a new rate for the last 10 years of the bond’s 30-year life. (The current rate at time of publication for an “EE” bond was 3.50% for 20 years).

If your Savings Bonds are lost, stolen, mutilated, or destroyed they can be replaced. You need to contact the Department of Treasury and provide them with as much information possible. Have a copy of the serial numbers, the issue dates, denominations of the bonds, and know the name and social security number of the owner of the bonds. The more information you can provide the faster they will be able to replace your bonds.

Bonds make great gifts for children. A bond can be bought when a child is born and will grow with the child. They can also be purchased for birthdays, weddings, graduations, or any other special holidays. Check with your banking institution on what type of bonds they can help you with.

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Invest in bonds on the stock market as they are a safe investment with a steady amount of profit. This could be good advice for someone who likes to use a low risk strategy.

When you are considering entering the stock market with bonds, it is advisable to find out a bit more about them.

Here are the 4 main bond types:-

* our national government offers them
* offered by corporations
* government at a local or state level
* governments overseas

Your original investment amount is protected with these bonds, unlike normal stock market trading.

So anyone just starting out with online stock market trading will feel a lot safer. So will people who are low risk investors.

The 4 types are:-

Treasury bonds are on the market from the United States Government Treasury.
These bonds can be for a short term of three months or a long term of thirty years or any length of time in between.
Treasury Notes (T-Notes) and Treasury Bills (T-Bills) are instances of these. These are the most safe investment of the lot as they are backed by the central banks in conjunction with the U.S. Government.
The downside of them though is that the return tends to be low. Another good bit is that you only have to pay taxes on the interest portion.

Corporate Bonds are on offer from the Securities market.
They are offered basically when a corporation wants to pass on its debt.
They offer a bit better interest rate so are a medium risk investment. The risk is that the company offering them will go belly up.

State or local government bonds.
They work more or less the same as corporate bonds. Problems at state or local level are more frequent which makes them a bigger risk than national government bonds.
There is not tax whatsoever on them. That is their great plus. The interest is free of tax. Except maybe a small bit at state level. This makes these municipal bonds an attractive investment.

The rarest are overseas bonds.
The common way to have them is via a an investment in a mutual fund. These should only be considered by a person with a much higher risk strategy. The economies of foreign countries are out of our hands. We have no control over them whatsoever.

You can take out another bond when yours reaches its maturity date.

Finally to reiterate, when you want to invest in bonds, national government ones are safest and foreign government ones are the most risky.

For the latest Marc Faber, go to MarcFaberBlog.com – In the context of all the defaults by governments all over the world, the debt of Dubai is a very small problem. Anytime there is a serious problem, the central banks come in and print a bunch of money. Next 6 months to a year there won’t be any serious problems because they can print money, but eventually countries will go bust, including the United States. Initially countries will be bailed out, but throughout history we have seen huge government defaults. We had stimulus packages and quantitative easing. You don’t have to run away from US bonds today, but the upside looking ahead to the future don’t have much upside. The dollar is weak, so your bonds will pay you less and less each year. There is also a credit risk on the bonds if the United States defaults on its bonds. Government bonds will soon yield more than corporate bonds. When you look at the world, you see Western Europe, the US, and Japan. The emerging markets combined are now larger than the economy of the three biggest economies combined. Moving forward, you should have half of your portfolio in emerging markets.
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