Invest $100

You may be wondering how you can start investing with very little money. For example, if you recently received $100 as a gift or from your tax return and you want to save it and make it grow, these ideas are great investments. You'll be surprised how quickly your money can increase and how much fun you can have investing.



Step 1

Open a savings account. This is the simplest option. Simply go to your local bank or shop around online for the best rate. You probably won't earn much, but your money will be safe.

Step 2

Invest in CDs. Certificate of deposit accounts, or CDs, allow you to invest your cash for a set period of time (3, 6, and 12 months or longer). You lock in a guaranteed rate of return which is paid to you plus your initial $100 at the end of the term. Some banks give you the option to receive your interest monthly. One caveat is that most banks have minimum deposit amounts that are usually $1000. However, if you invest with ING Direct, you can open a CD with any dollar amount.

Step 3

Purchase stocks. Like CD accounts at banks, many brokers have a minimum investment amount to purchase stocks. Sadly this amount is much larger than $100. Don't fret though, all is not lost in this category. Some discount brokers now exist online that will allow investments of $100 or less. My favorite example is Share Builder. You can invest your $100 in any stock you like (as long as it is on their approved list as most are). You could even invest $50 each in two stocks. Share Builder does charge $4 for each stock purchase, however. Let's say you want to put your entire $100 into stock of the company you work for. If the share price is $75, you would receive 1.28 shares for $96 with $4 going for the purchase fee. If your company pays dividends, Share Builder will reinvest them in partial shares for no charge. This is one of the best options for purchasing stocks with $100.

2009 World Wealth Report Finds Record Declines in the Ranks of Millionaires

World Wealth Report survey is conducted annually by Merrill Lynch and CapGemini. The report surveys the state of HNWI (High Net Worth Individuals, with investable assets $1 million and above) and Ultra-HNWI (investable assets $30 million and above) globally, reporting on macro-economic factors driving wealth creation and key trends in this demographic. It can be requested at CapGemini website here.
Struggling economy takes its toll on the wealthy

The 2009 report shows what we already suspected. The economic turmoil and the slumping stock and property markets have affected the wealthy dramatically. The effects are more pronounced in the United States compared to the rest of the world and the Ultra HNWI suffering greater asset declines than the mere HNWI. The statistics make for a sobering reading.

Here are the highlights of the World Wealth Report (all data as of end of 2008):

* Population of millionaires (HNWI) declined by 14.9% to 8.6 million. Total millionaire wealth declined by 19.5% to $32.8 Trillion. These declines erases the previous two years of increases.
* Population of Ultra HNWI declined by 24.6% and their combined financial wealth declined by 23.9%
* Total number of millionaires declined across all major geographies but the declines varied markedly. US saw a decline of 18.5%, UK 26.3%, Hong Kong 61.3% and India 31.6%. At the other end of the spectrum were Japan with only 9.9% decline, Germany with 2.7% and France with 12.6%
* US still has the highest concentration of millionaires with almost 2.5 million HNWIs.
* There are shifts in the concentration of millionaire population. While US, Japan and Germany still account for 54% of HNWIs in the world, China has now moved into 4th position surpassing UK. Similarly Brazil has now moved ahead of Australia and Spain in the 10th position.

Wealthy are changing their asset allocations

It is not surprising that the economic conditions and market volatility are causing investors to rethink their asset allocations. The trends in 2008 show that the HNWI population have significantly reduced their exposure to Equities (from 33% to 25%), increased their cash allocations (from 14% to 21%) and are now finding real estate (specially residential) more appealing (allocations changed from 14% to 18%). Fixed income component of the HNWI portfolio is now up 2% to 29% in 2008 compared to 2007. It would, perhaps, also come as no surprise, that the wealthy reduced their portfolio allocations to alternative investments (Hedge Funds, etc) in 2008 by 2% from 9% down to 7% of their aggregate portfolio. It is projected that the HNWI will maintain their conservative outlook in the short term.
Shopping- New York Style
Creative Commons License photo credit: david.nikonvscanon

The report also cites declines in demand for luxury collectibles (autos, yachts, jets), luxury consumables (handbags, shoes, clothing), art and jewellery. Spending on luxury travel also suffered.
Crisis of confidence, changing face of the wealth management industry

What is perhaps more telling of the extent of the damage to the confidence of the HNWI investors is the trends in their relationships with their financial advisors and wealth managers. Of all the HNWIs surveyed, 27% of them reported withdrawing assets (or leaving altogether) from their wealth management accounts in 2008. 46% of the HNWI surveyed reported that they lost trust in their primary advisor, while 78% said they lost trust in the financial system regulatory bodies.

The study forecasts that the HNWI wealth will recover to $48.5 Trillion by 2013 and the Asia-Pacific will overtake North America as the largest region for HNWI financial wealth.

Investment Strategy for Recession: Capital Preservation with Safe Investments

As you might have noticed, stock market volatility (mostly to the downside) is wreaking havoc with investment portfolios. As a result there appears to be a rising investment strategy trend toward capital preservation. Considering the fears that a recession sparks, it is not especially surprising that many are looking for safe investments. (Or safer investments; no investment is completely safe.) Rather than risk loss, preserving capital becomes an object for those with low risk tolerance — be it financial risk tolerance or emotional risk tolerance. Additionally, for those concerned about impending retirement, an asset allocation strategy with an increased (but not complete) stress on capital preservation is often advised.

Capital preservation

Capital preservation is just what it sounds like: You make safe investments in order to prevent loss of your original, principal investment. The return when employing such an investment strategy is usually fairly low, but you do enjoy some appreciation in nearly all cases. Capital preservation stands in contrast to a capital growth investment strategy, by which you attempt to aggressively increase your earnings. While the potential earnings are greater, the risk of loss is also greater — which is why, in this time of turmoil, few casual investors are thinking about capital growth and are instead choosing the preservation route.

Safe investments as part of a capital preservation investment strategy

If your main concern centers mainly around limiting your losses and saving what cash you have, capital preservation may provide you with peace of mind. Here are some of the more popular places that people choose for the purpose of conserving their cash in safe investments:

• Bonds. Bonds — especially U.S. federal bonds — are popular in times of economic turmoil. This is because U.S. debt, with its backing by the most stable tax paying base in the world, is considered one of the safe investments. Bonds have been growing in popularity as investors choose them as a protection from loss of their principal. Additionally, with the expected expenditures coming as a result of economic stimulus efforts, more debt will soon be available for investment purposes. Diversified bond funds are seeing a rise in popularity, since they offer better returns than a cash account.
• Money market accounts. These interest-bearing bank accounts (and even funds) pay interest according to the current market rate. One of the nice things about money market bank accounts is that they are fairly liquid, and you have easy access to the funds in the event of an emergency.
• CDs. Certificates of deposit offer another capital preservation option. Setting up a CD ladder can help you in terms of access to your money, as well as work as an investment strategy for effectively increasing your yield in this particular setting.

The main downside to a capital preservation investment strategy is that the returns are so low. While inflation is not a huge problem right now, it could become an issue in the future once the government starts injecting more cash into the market. Inflation can easily overcome low-yielding investments, even effectively eating away at the value of your capital. So, long-term, even a capital preservation strategy may not actually completely preserve the value of your cash.

Subscribing to a capital preservation style only can be harmful in the long run; you may not have enough cash to see you through retirement. Mixing in a few well-chosen stocks, ETFs or other less safe investments with higher returns can be a good idea, especially since there are so many good bargains to be had.

Save Money, Invest, Pay Off Debt, Travel and Still Live The Life of Your Dreams

Chances are, if you’re reading this blog you’re already well on your way to being more in control of your finances. You’ve probably read a personal finance book or two and maybe you already have your own home business and some non-registered investments for the future.

We all know what we need to be doing to get our financial act together; the problem is doing it. The problem is that there is so much to do. It can’t happen overnight. Yet sometimes we’re impatient and we take actions which we unconsciously think will get us to where we want to go, faster.

Examples: coming into some extra, unexpected money and putting it all on your credit card; getting a pay raise and deciding to put it all into an investment; finding out that your credit card company bumped your rate up, so now you’re not going to see any more movies or eat out again until you get that debt paid off.

You aren’t going to get ahead by privileging one component of your financial health above all others. It’s such a simple point, and it can take a long time to sink in. The path to financial health is BORING.

I’m assuming you don’t want to have a six-figure income if it means you’re also one million dollars in debt. I’m assuming you don’t want to have all your debts paid off by the time you’re 70, only with nothing left to retire on. The only way to be debt-free and swimming in cash flow so that you can retire early and live the life you want is to tackle ALL of these problems at once, bit by bit.

• Long-term buy-and-hold investments only work if you start them early enough.
• You’ll pay less interest on your loans and credit cards if you pay them off sooner rather than later.
• The sooner you pay off your mortgage, the sooner you’ll free up your expenditures.

These things all need to happen sooner rather than later.

The problem with solving one of these leaky faucets at the expense of the others in the short-term is that pretty soon you’ll be forced to attend to the other, and you will sabotage the forward-momentum you achieved in taking care of your debt, for example. The analogy I like to use is that of keeping a rowboat steady. You don’t want to rock it too far in one direction if it just means you’re going to fall into the water again.

Solution: Imagine you’re already as wealthy as you need to be. Imagine you are free from all finance-related stress. Now think in reverse to envision what allocations of capital got you to this stress-free financial place. In other words, what balance of capital inflows and outflows do you need in order to balance your obligations with what you need in order to get to where you want to go? If you have $1000 in monthly debt payments, $1000 in monthly shelter payments, $1000 in living expenses, and you also need $500 for your investment fund and $500 for a future travel fund, you need to find a way to pay all of this each month just in order to stay afloat. You can’t let one “money channel” fall behind, because it will just mean that you’re sabotaging the progress of another “money channel” in the future. You also can’t forgo developing the money channels you will need in the future, because then you will never make room for them in your portfolio.

Sounds pretty basic, and it is. But it’s the subtle shift in perspective that’s important. Rather than think of your financial obligations in terms of balls you have to juggle — on which view you can only hold onto one at once and it’s the balls that are really controlling you — think of it as a pie that you slice up each month. (Apologies for the awkward metaphors.) You’re in control. The difference is that each month you start with a full pie. As you become wealthier, the size of your pie will grow, but you will always start each month with a full pie. So how do you want to cut that pie up?

The trick to paying off your debt, saving for Costa Rica, buying a second home, and still socking cash away for retirement is to do ALL of these things all at once. You need to make room in your portfolio TODAY for everything you want to achieve and have in the future. That includes finding ways to keep that monthly pie growing. You may feel broke today, but just remember that you always start each month (or each new paycheck) with a full pie. Don’t give half of it to Mr. VISA only to starve Ms. Costa Rica, because later on she’ll be stealing from Mr. VISA again just to get even.

Invest, Save and Grow Your Money

Investing your money is a good choice because you can beat inflation, achieve financial goals like buying a house or a car, and earn enough so you can stop working and retire! We will talk about the different ways you can choose to invest so we can achieve these goals.

1. Step 1

   High Interest Savings Accounts - This is a great place to start because before you can make risky investments you have to have a base to fall back on. A High Interest Savings Account is a great place to store your "Emergency Fund" that holds about 3-6 months worth of salary. An Emergency fund is a fall back plan in case you loose your job or anything bad happens. This type of savings account is good for this type of fund because it is very liquid and you can get to it in a hurry if you need it. Be careful not to make it to easy to get to because you will be tempted to tap into it for the smallest things. A good practice to get into is to automatically deposit a certain amount into this account from the bank account that you receive your paycheck. When money is automatically transferred and you do not see the money it makes it easier to save. High interest savings accounts typically are online and receive an interest rate anywhere from 1.5% - 4% APR.

2. Step 2

   401K or IRA - This is most people's main source for retirement (if a pension is not available). Most employers will match up to a certain percentage of what you put in here. The earlier you start investing in this fund, the earlier you can stop working and retire. The minimum you should contribute would be what your employer is willing to match because it is FREE money!

3. Step 3

   Stocks, ETFs, Mutual Funds, and Index Funds - You can pick these options to invest in depending on how much you have to invest. Index Funds are always a safe bet and one of my personal favorites. An index fund that tracks the S&P 500 is your ticket to an investment that has traditionally returned about 10% per year. There are usually very small administration fee so these are always a attractive option. Second on my personal list to invest in is an ETF fund. These are very similar to an index fund but usually does not cover a complete index. They are managed a little more than index funds so they sometimes have a higher administration fee but it is still very low compared to mutual funds. Mutual funds are third on my list because they have a high administration fee but still give you diversity. If this is where you want to put your money, I would suggest doing A LOT of research before you choice one. My last pick would be individual stocks because it does not give portfolio diversity like the other funds we talked about so far.

Investment & Investing

Investment

Investment refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns. Various investment options are available, offering differing risk-reward trade offs. An understanding of the core concepts and a thorough analysis of the options can help an investor create a portfolio that maximizes returns while minimizing risk exposure.

Types of Investments

The various types of investments are:

* Cash investments: These include savings bank accounts, certificates of deposit (CDs) and treasury bills. These investments pay a low rate of interest and are risky options in periods of inflation.

* Debt securities: This form of investment provides returns in the form of fixed periodic payments and possible capital appreciation at maturity. It is a safer and more 'risk-free' investment tool than equities. However, the returns are also generally lower than other securities.

* Stocks: Buying stocks (also called equities) makes you a part-owner of the business and entitles you to a share of the profits generated by the company. Stocks are more volatile and riskier than bonds.

* Mutual funds: This is a collection of stocks and bonds and involves paying a professional manager to select specific securities for you. The prime advantage of this investment is that you do not have to bother with tracking the investment. There may be bond, stock- or index-based mutual funds.


* Derivatives: These are financial contracts the values of which are derived from the value of the underlying assets, such as equities, commodities and bonds, on which they are based. Derivatives can be in the form of futures, options and swaps. Derivatives are used to minimize the risk of loss resulting from fluctuations in the value of the underlying assets (hedging).

* Commodities: The items that are traded on the commodities market are agricultural and industrial commodities. These items need to be standardized and must be in a basic, raw and unprocessed state. The trading of commodities is associated with high risk and high reward. Trading in commodity futures requires specialized knowledge and in-depth analysis.

* Real estate: This investment involves a long-term commitment of funds and gains that are generated through rental or lease income as well as capital appreciation. This includes investments into residential or commercial properties.

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real estate investment articles - "Home Buyer: Negotiation and Communication"

The goal in a real estate negotiation is to reach a good agreement - one in which the underlying interests of both buyer and seller are met. The results of a poor agreement often return to haunt the parties after closing. Many of our real estate clients have been experienced negotiators in other industries, and we have learned from their skill and experience. Review these tips as you prepare for the purchase of your home.

What do you want to achieve in the negotiation?

The first step in getting what you need is simply to let the seller know - in a clear and reasoned way. For most people, the highest priority is the price they will pay for the property. The best way to establish this is by a market analysis of the neighborhood. Set an offering price range that makes sense. Knowing your range allows you to balance the price with other needs. Your interests might include:

Buying at the lowest price possible.

Setting a closing date that meets your time frame.

Settling any repair issues fairly.

Having your concerns heard and addressed.

Locking in an acceptable mortgage loan rate.

Clearing any title or survey issues that come up.

Completing your relocation and job change process.

Getting your family settled into a home and neighborhood.

Forging a good working relationship with the seller.

Having no future problems after closing.

Is an adversarial or cooperative approach more effective?

Effective negotiation does not result from stubborn demands. There is nothing more destructive to the negotiation process than combative behavior. Professional negotiators try to preserve the relationship between the principals. The goal is to avoid an impasse in which neither seller's nor buyer's goals are met. In many cases, the contract negotiation process begins with some initial distrust between buyer and seller. Effective negotiators move in the direction of trust as quickly as possible.

In preparing your offer, let the marketplace establish your price, while remaining very complimentary of their home. Buyers sometimes submit a letter to the seller pointing out deficiencies and explaining why their house is not worth what they are asking. This will always backfire and start the negotiation off with a defensive seller. Sellers have an emotional attachment to their home, and will have a strong negative reaction to a critical buyer.

How do you handle an adversarial strategy by a seller or agent?

You may find that you have to work with a combative seller or agent. Their strategy may include: defensive arguments, emotional statements, snide remarks, threats to terminate, ego involvement, and stated positioning. Creative solutions are difficult to find in this environment. Good control over your own emotions is critical when working with a combative style negotiator. Here are some pointers:

Do not argue. Arguing will position them more strongly and drag the negotiation off course.

Do not respond emotionally. An angry or defensive response will escalate the negotiation into a no-win battle.

Do not accept or reject their arguments. Listen and show that you understand their points.

Accept the fact that strong emotions are present. Strong emotions arouse fear and anger in others. They may be a negotiation tactic.

Avoid an "us-against-them" strategy. Attach cover memos to your responses in order to communicate with the seller and break down barriers.

Show that your proposals were not been made unreasonably. Firmly anchor pricing, repair requests and other points to outside data.

Be careful not to allow hazy proposals to stand. Put everything in writing. An emotional negotiator will often produce an unclear agreement.

Make your offer as attractive to the seller as possible. Look for ways to meet their underlying interests.

Offer some wins on some of the terms. Face saving is important. Do not try to win every point.

Keep your long term goals in mind. The seller may have a beautiful home that meets your needs.

Is every point in the contact negotiable?

Yes. However, one of the most effective ways to come to an agreement is to rely on accepted norms when possible. For example, it is common practice in our area for the seller to pay for the title policy, and buyer to purchase the survey. Using consistent standards reduces the need to haggle over every point. However, every term in a contract can be used to help structure the deal. By trading off, both parties can come closer to getting what they need.

How do you move in the direction of "trust"?

Keep in mind that contract negotiation is a sensitive area, and anxiety can be high. All parties are under pressure, with future plans at stake. It is possible that the buyer or seller may have had a previous bad experience. Acting with integrity does not mean that all cards have to be put on the table. It is not proper to discuss your personal strategy or needs. A high level of trust raises the level of cooperation between the parties and forwards the negotiation. The seller will be much more cooperative if the he feels that the buyer and agent are acting with integrity. Here are ways to develop trust:

Listen and understand what the seller has to say.

Express appreciation for the seller's home, gardens, decorating.

Respond within a reasonable time to counter offers.

Reassure the seller of your ability to close.

Reveal some personal information about yourselves.

Finding common ground with the seller can be a very powerful tool in the event of multiple offers. Sellers often choose their contract for personal reasons. For example, the buyers reminded them of their own family when they moved in with young children. Or, they were of the same religion. Or, the new owners would care for their gardens or feed the birds.

How much leverage do you have?

A crucial part of your strategy in a negotiation is an accurate perception of the real estate market. You must know the underlying market condition. If you are in a sellers' market you must act quickly, and be willing to present an offer at the top of the range. This is most important if the home is in a hot area and has strong appeal. If the seller has multiple offers, you must make your very best offer up front.

In a buyers' market your prospective home may have been on the market for months. There may be a small buyer pool for the home because of economic conditions or due to repair or updating needs. In this case you have a lot more leverage than you would with a new listing. Some knowledge of the sellers' needs may help you improve your leverage. If you can meet some of their needs you have gained leverage for a lower price.

It is important to make your offer as straightforward as possible. Contingencies will reduce your leverage for a lower price in a buyer's market, or for any consideration in a seller's market. Be proactive about showing the seller your desire and ability to close. Here are some possible contract contingencies:

1. Contingent on sale of your home: Usually, the seller will not accept a contingency to find a buyer for your home. It is more likely to be accepted if your home is under contract. Attach a copy of the contract and status report.

2. Contingent on inspections: In our area this is covered by an option period. Keep the option time within accepted norms. This contingency can be removed to strengthen your offer. Do this only if you are knowledgeable about the property condition.

3. Contingent on financing: Strengthen your offer by obtaining credit approval. An approval letter with your offer improves your leverage, and is crucial in multiple offers. If you are making a cash offer, get a letter from your banker stating that the resources are available.

How much under list price should you offer?

Unless there is a strong seller's market, buyers usually offer less than list price. Establish your price by a market analysis. It is usually counter-productive to offer so low that the seller will automatically reject the offer. This will set a negative tone from the beginning. In a recent deal the seller responded to a low offer with an above-list-price counter.

How are multiple offers handled?

The listing agent and seller will decide how they will handle multiple offers. They may disclosure to all parties, or disclosure to none, that multiple offers have been received. By disclosing that there are multiple offers, the seller is not "shopping your contract." Shopping occurs when the seller discloses the terms of an offer to induce a buyer to submit a better offer. This can have a negative result by creating distrust of the process by all parties, and possible loss of the buyers. The standard procedure is to notify each potential buyer that there are multiple offers, and give each a chance to raise his offer by a certain time. When all are received, the seller will review the offers and choose one to work with.

Article Source: http://www.realestateinvestmentarticles.net

real estate investments : real estate investment articles - "Smaller Homes For Boston?"

A failure to accommodate young people in some of the realty markets has happened due to the fact that, nationwide, most homes have become larger and therefore more expensive over the last fifty years.

Consequently, they have finally become too pricey for the average first time buyer and according to a recent survey in Massachusetts, this is causing Boston to lose its youth. This withdrawal of youth has been acknowledged and discussed in Boston, but the solution is still undecided.

Indisputably, average house sizes have expanded over the years. Whereas in the post World War Two era, homes were considered luxurious if they were over 1,000 square feet, nowadays the average home is 2,500 square feet and is still increasing!

The fact that most homes have become larger and more expensive has pushed most first time buyers out of the market. Many builders have noticed a short fall in the small homes market and may start adding smaller homes to their inventory.

What brings this new awareness that small homes are okay? Is it the sustainable living guilt, or is it that so many baby boomers are out there looking for smaller homes to retire to? Apparently the answer depends on which part of the USA you're referring to.

There have been extensive studies of house prices and affordability for young people carried out recently, and they show that young people will often leave areas that are offering only high cost homes. One recent study was carried out in Boston, Massachusetts, an area that is known for its opulent and luxurious housing.

Boston is the third most expensive property market in the nation and according to the 'Boston Globe' newspaper, young people are moving away 'in droves' because of the house prices. This is costing Massachusetts the 'human capital' needed for future growth and economic expansion.

In Boston, this youthful exodus has been recognized and hotly debated. Part of the blame has been laid at the local government's feet with their residential zone rulings favoring large lots. A study proved that homes built from 1998 to 2002 used an average of 1.3 acres per lot.

With the cost of a building lot in Boston quoted at around $300,000 and a house costing around $250,000, young people have no chance of owning a home. This type of situation could easily be replicated in many parts of the USA.

For instance, Florida could have the same problem due to its older population; because it is such a popular retirement area approximately 17% of the population is over 55.

Perhaps learning from Boston's mistakes and not wishing for it to be duplicated in Florida, the news in this southern state is that the government is trying to encourage more first time buyers. This will expand the younger segment of Florida society and consequently will also be likely to increase the permanent population.

Usually, new homes boast considerable square footage and cost substantial dollars. It is a recognized fact that the average first time buyer cannot buy a brand new single family home.

They will often have to buy an existing home and become established in the realty market before buying a brand new home. This entails accruing equity in the home, perhaps renovating it, and then selling it to move up the property ladder.

Builders in Florida have announced that they will be constructing larger numbers of smaller homes in order to offer a choice of lower priced properties.

The St. Petersburg Times reported that a Tampa Bay Builders Association spokesman said that builders will still be building super-sized homes but there will be more of the smaller ones being built as well.

This change in thinking is not seen as a fad by builders, but as one way of bringing down the price of a house to a more affordable level. Lower prices in the housing market are more popular with prospective buyers than such luxuries as king size bathrooms and extra large rooms.

People are economizing when buying a new home, say the builders. For instance, they often choose not to install granite counter tops, knowing that they can do it themselves later.

An average 'shrink back' is from 2,200 square feet to 1800 square feet. Some two bedroom houses are actually being built with the square footage not much over 1,000.

The cost of the raw land is also a factor in the price of the house. If the home is smaller and two units can be built on one plot of land instead of one unit, then obviously the price of the house will be lower.

The news in Florida that the government is trying to encourage more first time buyers shows that they are ensuring that the younger generation can still flourish in Florida. Hopefully this means that Florida will avoid the same pitfalls as Boston; perhaps it also shows the way for Boston to re-coup?

Article Source: http://www.realestateinvestmentarticles.net

China is world’s next super power for trade and investment

HANGZHOU, China: President Asif Ali Zardari on Saturday said China is world’s next super power for trade and investment and a place for the world to learn a lesson.

Addressing a forum on Pakistan Zhejiang Trade and Investment Opportunities: Current Cooperation and Future Prospects, the president said China is also a great opportunity to learn and enhance one’s knowledge.

“Chinese progress is becoming a lesson for the world to look at. It is the future’s super power in terms of investment and trade,” President Zardari said.

The forum was organised by Pakistan embassy and Department of Commerce Zhejiang Province. Representatives of Zhejiang’s 16 top business houses, whose combined annual turnover runs into billions of dollars, attended the forum.

Some of them also made presentation to the president about their companies and said they were keen to invest in Pakistan. They said they highly regard Pakistan and its people and would contribute towards the development of that country.

President Zardari said the Chinese have indigenously developed their own parameters of progress, from which not only Pakistan would like to learn, but it is something for the whole world to learn from.

President Zardari recalled that a solid foundation of Pakistan-China relationship was laid by late Zulfikar Ali Bhutto when he was the foreign minister. “Our friendship is higher than Himalayas and deeper than oceans,” he added.

He also mentioned that his son attended Beijing Olympics and received an overwhelming welcome from the Chinese.

“Future generations of the two countries should cherish the bonds of friendship that Pakistan and China enjoy.”

He said he was fulfilling his promise of visiting China after every three months and every time when he comes to China, he visits a new province.

“Every time I come I visit a new Chinese province, I learn. I want to educate myself and enhance my knowledge and capability,” the president remarked.

He said it was his dream that Pakistan should become a gateway for Chinese exports to world markets as his country’s ports were nearer than China’s own water fronts. He said from some of Chinese cities, it takes over three weeks for the export material to reach the nearest port. “Pakistan can be a transit to all trade to and from China. Your strength is our strength and our strength is your strength.”

About the ongoing projects that Chinese engineers and experts are carrying out in Pakistan, President Zardari said he personally monitors their progress by holding regular meetings with Chinese ambassador in Islamabad.

Earlier, Pakistanís ambassador to China Masood Khan in his remarks said Zhejiang’s high GDP and per capita income makes it one of the critical engines of growth of modern China.

President Zardari sought Chinese assistance in hydel, thermal and solar power generation to overcome Pakistan’s power crisis and invited Chinese companies to carry out feasibility study in the country.

After a presentation on small and medium sized dams, water conservation and irrigation by Zhejiang Design Institute of Water Conservancy and Hydroelectric Power, he said Pakistan is peculiarly energy deficient country.

“We need solar power for individual housing units and I want the Chinese to carry out study in Pakistan,” he remarked after the presentation.

President Zardari said Pakistan was ready to provide Chinese companies every assistance they need to set up power units that are not only cheap but also feasible for housing as well as commercial units.

Earlier, Li Yueming the president of the institute said they had also carried out studies of couple of medium sized dams in Azad Kashmir and constructed over 100 such dams around the world, especially in Africa, South America and Turkey. He said the projects initiated by his institute are cost effective and environment friendly.

Later, Chairman Wapda Shakeel Durrani said the institute would be invited to bid for construction of 12 small dams in Pakistan which are ready for construction.

In a meeting with President Zardari, President Zhejiang Zhengtai Solar Energy Science and Technology Company Yang Liyou said his company was ready to carry out solar power generation in Pakistan as it has plenty of sunlight available throughout the year. President Zardari said he would like the company to come to Pakistan and start small and medium sized solar power generating units as they are not only cheap but less costly to maintain. He said Pakistan offers great investment opportunities and the companies from China would be given every facility to set up their projects.

In his meeting with President Zhejiang Academy of Agriculture Sciences Chen Jianping, President Zardari said to provide grain to a burgeoning population in his country, there is a need for better agri-practices which not only give high yield but also use less irrigation water. President Zardari said Pakistan, which has very fertile soil, could exploit its potential in a better way if it uses hybrid varieties of seeds. He said China has progressed tremendously in the field of agriculture and Pakistan would like to benefit fully from its experience.

After the meeting, Jianping told APP that the academy will collaborate with Pakistani agricultural institutes and scientists to guide them to better agriculture practices.

President Zardari on Saturday said China and Pakistan have unanimity of views on all bilateral, regional and international issues and a base for cordial and strong bilateral relations was laid first by Shaheed Zulfikar Ali Bhutto and later by Shaheed Benazir Bhutto.

In a meeting with Secretary Communist Party of China Committee of Zhejiang province Zhao Hongzhu, the president said he holds China in high esteem.

“How important China is for Pakistan can be gauged from my fourth visit within one year of assuming the office of the President of Pakistan,” he said. “I have no hesitation in telling the world about how much Pakistan cares for China. Whichever province of China I had visited, I felt as if I am amongst my own people.”

Zardari said in future Pakistan will be a leading route for world trade and he would like China to take full benefit of his country’s geographical location.

“Our relations should be such that the future generations of both the countries should feel proud of them,” he added.

He categorically stated that as President of Pakistan, he would never back out from his commitment to improve relations with China.

“I am steadfast in my stance. I have made it to the Presidency from gallows.”

Zhao Hongzhu said China and Pakistan are cooperating in various fields like trade, science, education and he found Pakistan’s policies pragmatic. He expressed his satisfaction that besides trade, bilateral relations between Pakistan and Zhejiang are also improving.

He informed the president that the province has progressed on a fast track owing to encouragement of the private sector which was instrumental in developing steel and heavy industry. Later he hosted a dinner for the president.

Meanwhile, Pakistan and China on Saturday signed a Memorandum of Understanding for construction of Bunji dam in northern areas of Pakistan.

The agreement was signed between Pakistan’s Ministry of Water and, Power and China the Three Gorges Project Corporation. Chairman Board of Investment Saleem Mandviwala and Li Yang’an, signed the MoU for their respective sides.

President Asif Ali Zardari, Pakistan’s ambassador in China Masood Khan and senior Chinese officials witnessed the signing ceremony.

Also, a Memorandum of Understanding (MoU) was signed to manufacture vaccines to cure Hepatitis B and C. The document was signed from Pakistani side by Director General Health Dr Rasheed Juma while from the Chinese side the representative the of China Investment Promotion Agency.

The two countries will also exchange information related to therapeutic drugs, latest trends and techniques, respective laws and regulations and list of registered manufacturers and wholesalers.

The other MoU signed on the occasion related to investment promotion cooperation between China Investment Promotion Agency and Pakistan’s Ministry of Commerce and Board of Investment.

Investor's Corner: Short, Tight Patterns Can Be Bullish Ones

When a stock stomps up from a breakout and holds onto its gains, it's exactly the kind of leader you're looking for.

But what if it starts holding in hushed volume? It doesn't move much, up or down, from week to week. Is the stock stalling?

Not necessarily. It can be a bullish sign in some cases.

Strong stocks sometimes will close three straight weeks within 1% of its previous week's close. Its volume will stay on the light side during this period. This unusual model is called a three-weeks tight.

It's pretty easy to spot it on a weekly chart. Soon after a stock has broken out of a base, it will begin trading sideways.

What does it mean? The three-weeks-tight pattern signals that mutual funds and other institutional investors are comfortable with the stock's new, higher price and aren't about to take any profits yet.

Once the stock launches above the high of the consolidation, you have your next breakout.

The three-weeks tight tends to work best with the market's best leaders.

Research In Motion (NasdaqGS:RIMM - News) surged out of a three-weeks-tight pattern the week of June 15, 2007, in elevated volume (point 1). The weekly closes in the three-week span were no more than 0.8% away from each other.

Although it slipped a bit the week after the breakout, it never fell more than 6% from its buy point.

The smart phone maker soared the week of June 29, ratcheting up a 17% gain (point 2). The stock then launched a five-month, 105% run-up before it corrected again.

Another bullish signal is even rarer to spot. Known as the short stroke, it's a relative of the three-weeks-tight pattern.

Just a couple of weeks long, the short stroke starts with a big advance one week. The next week, it trades in a tight range. The swing from the stock's weekly high to its low will be within a few percentage points. Ideally, the stock rises for the week, but doesn't make a new high. On a chart, it looks like the short stroke of a pen -- which is where the name stems from.

As with the three-weeks tight, the short stroke shows a stock not giving up its big gains.

Business software developer Pegasystems (NasdaqGS:PEGA - News) started a short stroke when the stock skyrocketed 40% the week of May 8 (point 3).

The stock made a narrow move the next week to earn its colors as a short stroke. (point 4 )Despite a modest pullback, Pegasystems continued rallying to a peak earlier this month.


Source:-

http://finance.yahoo.com/news/Investors-Corner-Short-Tight-ibd-2052064002.html

MILLIONAIRE FOCUS ON FREEDOM

Want to get to the top financially? Take advice from those who are
already there.

At a glance

Name: Keith Cameron Smith
Hometown: Ormond Beach, Fla.
Education: Calvary Christian Academy, Ormond Beach, Fla.

Career highlights:
Author of the national best-seller, "The Spiritual Millionaire"
and "The Top 10 Distinctions Between Millionaires and the Middle
Class"
Entrepreneur and self-made millionaire at age 33
Hosted "Flames of Truth," a motivational radio program, for five
years
Hosts seminars and teaches success principles to individuals,
churches and companies across America

Financial guru Keith Cameron Smith, author of the best-selling "The
Spiritual Millionaire" and himself a self-made millionaire at age
33, invested $100,000 and two years of his life to meet face-to-face
with some of the world's wealthiest people to learn what makes them
tick.

Overwhelmed by the life lessons they imparted, Smith holed himself
up in a North Carolina cabin and, in one week, distilled their
wisdom into a 100-page crib note for successful thinking, "The Top
10 Distinctions Between Millionaires and the Middle Class."

Some of the distinctions are commonsensical (millionaires think long-
term, the middle class, short-term; millionaires take risks, the
middle class avoids risk). Others are quite illuminating
(millionaires ask themselves empowering questions, the middle class
ask themselves disempowering questions; millionaires learn and grow,
the middle class, not so much).

Smith, who became independently wealthy with a string of furniture
stores in his hometown of Ormond Beach, Fla., continues to seek
opportunities in networking and real estate as he travels the
country teaching financial success principles to individuals and
companies.

As part of our Financial Literacy tuneup, Smith shares with Bankrate
his insights into how to think like a millionaire.

You were not born wealthy.

(Laughs) Oh no. I grew up on the lower end of the middle class. My
dad never made more than $25,000 a year. He sold auto parts to
different garages. He had different routes to a couple of different
towns around Florida.

Did you attend college?

I went to college for two weeks and said that's not for me. I'm on
the list of millionaires that just did it in the real world and
didn't go to school. School is phenomenal for some people. Some
people absolutely need to go to school as part of their purpose. But
some people don't need to go to school. They don't need to get a
good job so the government or your corporation can take care of you,
because as we know, that formula doesn't work anymore.

When you go through failures like I have and like other millionaires
have, you learn something on an emotional level that you cannot
learn when you go to college. When you get intellectual knowledge
from a book or a lecture, it's not the same as investing money in
something and then seeing all that money disappear. When you learn
something on an emotional level, that is what really starts making
you stronger.

Your original goal was to be a golf pro, right? What happened?

I had an apprentice position at the LPGA International in Daytona
Beach when they first got started. I helped them get their pro shop
up and running and I had my handicap down to about a four and I
thought for sure I was going to pursue golf as a career. I took the
PAT, the player's ability test, a couple of times; that's where you
have to play a couple of rounds and shoot like 150 between two
rounds of golf. And I could never do it; my nerves just couldn't
handle it. But that was one of the turning points in my life. I sat
down with the pro there at the time and asked how long it was going
to be before I could really start making good money. I was making
$20,000 a year as an apprentice. He said, "I'm going to be honest
with you, it's going to be at least five or six years before you can
move up." And I said no way, I'm not going to sit here and make
$20,000 a year for five or six years.

How did you lift yourself out of the middle class?

Education. I started learning, but it wasn't education in the school
system. It was education from my real-world experience as an
entrepreneur and taking risks and having some good successes and
some failures, too. Those are always tough when you go through them,
but I honestly can say, thank God for those, too. Because those are
the situations I really learned the most from, so I had some new
knowledge to apply on the next endeavor.

Your book seems to strip down dozens of motivational books to their
essence.

What I tried to do in my book was to stay away from specific areas
like real estate or stocks or small businesses and instead encourage
people to pursue their own passion to create wealth. What would they
love to do to wake up and make money every morning? That's the key
to it. By far, one of the biggest things I learned talking to all
these millionaires was they really enjoyed whatever they were doing.

You maintain that the wealthy expect different things from money
than the rest of us. How so?

The very poor and the poor are stuck in survival mode; they just
want to survive. The primary goal of middle-class people is comfort;
I just want to have enough; I just want to be comfortable. When you
get into the rich and the very rich, their primary goal is freedom;
I'm going to do whatever it takes to experience freedom. That's the
biggest difference. It's OK to have a plan for survival, it's OK to
have a plan for comfort, but just make sure that most of your mental
energy is focused on freedom. Then you'll start experientially
understanding the old saying, "Seek and you will find." If you seek
to survive, you will. If you seek to be comfortable, you will be.
But if you seek freedom, you will find it. It just takes longer to
create freedom in your life than it does to create survival. Does it
take longer to grow a weed or an oak tree? Financial freedom is like
an oak tree, where survival or comfort is like growing a weed or a
little bush; it doesn't take too long.

Do you remember when you turned the corner and began to think like a
rich man?

Yeah, I do. I can remember banging my head against the inside of an
elevator. I had just worked 11 hours at a golf course as an
assistant pro and I was going to work at a high-dollar restaurant
that night from 7 until midnight, and I was banging my head against
the elevator, thinking, "God, there's got to be an easier way to
make money than this." Shortly after that, I decided I was done
working for somebody else. I was going to learn how to earn profits.
That has made all the difference. From the age of 15 to 25, I worked
for wages. At 25, I started working for profits, and at 33, I became
a millionaire for the first time.

Your book seems to strip down dozens of motivational books to their
essence.

What I tried to do in my book was to stay away from specific areas
like real estate or stocks or small businesses and instead encourage
people to pursue their own passion to create wealth. What would they
love to do to wake up and make money every morning? That's the key
to it. By far, one of the biggest things I learned talking to all
these millionaires was they really enjoyed whatever they were doing.

You maintain that the wealthy expect different things from money
than the rest of us. How so?

The very poor and the poor are stuck in survival mode; they just
want to survive. The primary goal of middle-class people is comfort;
I just want to have enough; I just want to be comfortable. When you
get into the rich and the very rich, their primary goal is freedom;
I'm going to do whatever it takes to experience freedom. That's the
biggest difference. It's OK to have a plan for survival, it's OK to
have a plan for comfort, but just make sure that most of your mental
energy is focused on freedom. Then you'll start experientially
understanding the old saying, "Seek and you will find." If you seek
to survive, you will. If you seek to be comfortable, you will be.
But if you seek freedom, you will find it. It just takes longer to
create freedom in your life than it does to create survival. Does it
take longer to grow a weed or an oak tree? Financial freedom is like
an oak tree, where survival or comfort is like growing a weed or a
little bush; it doesn't take too long.

Do you remember when you turned the corner and began to think like a
rich man?

Yeah, I do. I can remember banging my head against the inside of an
elevator. I had just worked 11 hours at a golf course as an
assistant pro and I was going to work at a high-dollar restaurant
that night from 7 until midnight, and I was banging my head against
the elevator, thinking, "God, there's got to be an easier way to
make money than this." Shortly after that, I decided I was done
working for somebody else. I was going to learn how to earn profits.
That has made all the difference. From the age of 15 to 25, I worked
for wages. At 25, I started working for profits, and at 33, I became
a millionaire for the first time.

Some people reject the idea of wealth, "It's lonely at the top" and
so forth. What do you say to them?

A lot of people are still stuck in the comfort mode, they just want
to have enough, and they think if they pursue all that money,
they'll lose their family; they'll lose their health. That's not me
at all. God, family and finances are my priorities. I never wanted
to be somebody that went after financial freedom and lost my health
or lost my family. I refuse to go down that path. But I've known
people that do that. They put money as such a high priority in life
that they lose the things that matter most. But if you keep your
priorities in order and focus on financial freedom, it's a wonderful
world. I love people and I use things. There are some millionaires
out there that love things and use people and that is definitely the
wrong formula.

Do you manage your own money?

I did everything on my own, yes. I never went to a professional to
handle my money for me. What I've come to find out is, while some of
those guys are great, a lot of those guys just put on a front;
they're making $50,000 a year and they're trying to tell someone who
is making a million dollars a year how to invest their money and
they really don't know; they're just doing what they've been told to
do. I'm not knocking anyone; if you're going to use one, make sure
you find a good one who is doing very well financially themselves.

What do you see yourself doing 10 years from now?

There are some things we do for money that are only good for a
certain season. That's why we have to keep our eyes open for new
opportunities. I'm constantly polishing my portfolio and looking at
different forms of income. I never got heavily involved in the stock
market. I am still dabbling in real estate but nothing real serious
right now. I'm still a young entrepreneur. I still have a lot to
learn. I haven't mastered all those principles; I'm still living
them on a daily basis. When I focus on them, it seems like
opportunities come my way and I make some better decisions. It's not
just about the money, it's about the learning process.



Source:
http://finance.yahoo.com/banking-budgeting/article/103779/Millionaires-Focus-on-Freedom.html