Category Archives: General Investing

General Investing, Special Forex

Great American Financial Review: A Comprehensive Guide to Financial Services

In today’s fast-paced world, managing finances can be quite challenging. Whether you’re an individual, a small business owner, or a large corporation, it’s essential to have access to reliable financial services that can help you make informed decisions and achieve your goals. That’s where Great American Financial Review comes in.

Great American Financial Review is a leading financial services provider that specializes in helping clients manage their finances effectively. With a team of highly qualified financial experts, they offer a wide range of services designed to meet the needs of different clients.

Here’s a comprehensive guide to Great American Financial Review and the services they offer.

Investment Services

Great American Financial Review offers a variety of investment services to help clients grow their wealth. They provide personalized investment strategies that are tailored to each client’s unique financial situation and goals. Whether you’re looking to invest in stocks, bonds, mutual funds, or other investment vehicles, their team of experts can help you make informed decisions.

Retirement Planning

Planning for retirement can be overwhelming, especially if you don’t have the right guidance. Great American Financial Review offers retirement planning services to help clients prepare for their golden years. They help clients understand the different retirement options available and create customized retirement plans that align with their financial goals.

Insurance Services

Insurance is an essential aspect of financial planning. Great American Financial Review provides insurance services that include life insurance, health insurance, disability insurance, and long-term care insurance. They work with clients to determine the best insurance coverage options that fit their unique needs and budget.

Estate Planning

Estate planning is crucial in ensuring that your assets are protected and distributed according to your wishes. Great American Financial Review provides estate planning services that include creating wills, trusts, and other legal documents. Their team of experts can help you navigate the complexities of estate planning and ensure that your assets are protected.

Tax Planning

Great American Financial Review also offers tax planning services to help clients minimize their tax liabilities. They help clients understand the tax implications of their financial decisions and create tax-efficient strategies that align with their financial goals.

In conclusion, Great American Financial Review is a comprehensive financial services provider that offers a wide range of services designed to help clients manage their finances effectively. With a team of highly qualified financial experts, they provide personalized solutions that are tailored to each client’s unique financial situation and goals. If you’re looking for reliable financial services, Great American Financial Review is the right choice for you.

Forex Articles, General Forex, General Investing, Special Forex

Exploring the World of Forex Strategies

Are you looking to dive into the world of foreign exchange trading? If so, you’re in the right place.

Forex strategies are an essential part of successful foreign exchange trading. With these strategies, you can make informed decisions about when to buy and sell currencies, as well as plan for long-term investments. This can help you maximize profits while minimizing risk.

In this article, we’ll explore different forex strategies, including fundamental analysis, technical analysis and swing trading. We’ll also discuss strategies such as risk management and portfolio optimization. By the end of this article, you’ll have a better understanding of forex strategies and how they can be used to maximize your trading profits.

What Is Forex?

Forex, also known as foreign exchange or FX, is the trading of one currency for another. It is one of the most popular global markets where participants from all over the world can trade currencies. It involves buying and selling currency pairs in the hopes of making a profit from the exchange rate. The most actively traded currency pairs are USD/EUR, GBP/USD, USD/JPY, and USD/CHF.

Unlike stocks or commodities, Forex traders are not limited to trading one currency for another. They can also use tools such as spreads, contracts for difference (CFDs), and forex options to gain exposure to a larger range of global markets. In addition, Forex traders can take advantage of leverage to increase their potential returns from trades. This means that with a small capital investment they can control larger positions than they could with regular trading accounts.

Forex is an exciting way to speculate on global markets and create additional income sources. With its 24-hour availability and low transaction costs, it provides an efficient way to diversify your portfolio without having to pay large commissions.

Benefits of Investing in Forex

Forex trading can be profitable, but it is not a get-rich-quick scheme. It is important to understand the risks associated with Forex trading before investing any money. When done correctly, Forex trading has the potential to provide a steady stream of income.

There are a few key benefits to investing in Forex:

Leverage: The use of leverage can significantly maximize your profits, as you’ll only need to put up a small amount of capital (called margin) for each trade you make.

Liquidity: The large size and depth of the Forex market ensures that you can enter or exit any position quickly and easily, minimizing slippage.

Low Commission Cost: Most online brokers charge very low commissions on trades, allowing traders to realize more profit from successful trades.

24/Hour Market: The Forex market is open 24 hours a day, 5 days a week meaning you can take advantage of price movements at any time.

Limit Price Risk: By placing stop losses, traders can limit their risk level on each trade they make.

By being aware of these benefits and being mindful of the risks involved in Forex trading, investors have the opportunity to realize greater profits while also managing their risk exposure.

Different Types of Forex Trading Strategies

When it comes to forex trading, there are several strategies which investors can use, depending on their level of expertise, risk appetite and investment goals.

Fundamental Analysis

Fundamental analysis is a popular approach to forex trading which involves studying news events and economic data such as inflation numbers and interest rates in order to determine the direction of a currency pair over time. Fundamental analysis is especially useful for long-term investments as it helps traders gain an understanding of how external factors could affect the value of a currency over the course of weeks, months or even years.

Technical Analysis

Technical analysis is another type of forex trading which involves analyzing the movement of price action to predict future market activity. This type of analysis focuses on chart patterns and indicator signals such as MACD and RSI. Technical analysis is often used by short-term traders who are looking for quick profits by taking advantage of small price movements in the market.

Scalping

Scalping is a type of forex trading strategy that attempts to make multiple small profits from short-term market movements. Traders who use this strategy will enter and exit positions very quickly, usually within minutes or seconds, in order to profit from even the slightest increase or decrease in a currency’s price. This type of strategy requires traders to remain very active in the markets, often making multiple trades within a single hour.

Technical Analysis for Forex Trading

Technical analysis is an important strategy for forex trading, as it looks at patterns in the market to identify future trends. It involves analyzing all the data available about a particular currency pair and its history of movements, to determine how the price will change.

The key principles of technical analysis are:

Identifying support and resistance levels – This refers to the areas where prices tend to stop rising or falling in a trend.

Analyzing chart patterns – This involves looking for repeating patterns in price movements that can signal possible changes in direction.

Keeping an eye on indicators – Technical analysts use various indicators such as moving averages or stochastics, to show possible areas of support and resistance, momentum and overbought/oversold conditions.

Technical analysis is most effective when used in conjunction with other strategies such as fundamental analysis, which looks at the overall economic picture and influences on currency values, or sentiment analysis, which looks at investor sentiment towards certain currency pairs. By combining these strategies, traders can gain valuable insights into future market movements and make informed decisions on when to open and close positions.

Fundamental Analysis for Forex Trading

The fundamental analysis approach to Forex trading is one of the primary strategies within the industry. This methodology looks at key economic indicators such as GDP, employment figures, and inflation, as well as central bank policies to predict how these may influence currency markets.

Traders who engage in this strategy often try to identify which currencies will do better or worse than others over a period of time. By taking into account political and economic developments, traders can develop an overall picture of how the exchange rate between two different currencies might move.

Fundamental Indicators

Fundamental indicators are those that provide insight into the general health of an economy. This includes information such as gross domestic product (GDP), inflation rates, interest rates, unemployment levels, retail sales data, and manufacturing activity reports. All of these factors can have a significant impact on currency prices as they help to determine a country’s ability to support its own money when compared to other nations.

Central Bank Policies

Central banks are responsible for setting interest rate policies for their respective countries. These policies can have a direct effect on currency markets due to their ability to influence global demand for a particular currency pair. For example, if the US Federal Reserve set higher interest rates than other central banks then investors would be more likely to purchase US dollar-based securities in order to reap higher returns on their investments. By taking into account the actions of central banks around the world, traders can get a better understanding of overall market sentiment and determine potential price movements in specific currencies.

Managed Accounts & Automated Trading

Trading forex can seem intimidating, but using a managed account or automated trading system can make it easier. Managed accounts are hands-off investments in which a dedicated trader manages your portfolio and trading activities for you. Automated trading systems, on the other hand, allow you to set parameters and rely on software programs to make trades for you.

Managed Accounts

Managed accounts provide access to professional traders who have the knowledge and experience to help you maximize your returns while minimizing your risk. These traders use a range of sophisticated strategies that take into account both short-term and long-term trends in order to achieve success.

Automated Trading Systems

Automated trading systems are computer programs that use algorithms to make decisions about when and how to trade forex. This means that you don’t need any prior experience as a trader in order to use them – all you need is a computer with an internet connection. Automated trading systems can also be used on multiple devices, so you can manage your accounts even when you’re away from the office or home.

Conclusion

In conclusion, when it comes to successfully trading forex, there is no one-size-fits-all strategy. Every trader must assess their risk appetite, style of trading, market conditions, and resources to identify a strategy that works for them.

By combining technical and fundamental analysis, traders can develop strategies that make the most of their trading capital. With the right combination of research and practice, traders can develop strategies that will help them reach their goals.

The world of forex can be overwhelming and intimidating at first, but with the right resources and strategies, you can become a successful forex trader. With time, dedication, and a willingness to learn, you can build a strategy that works for you.

General Forex, General Investing

Quantitative Easing – That You Should Know

Quantitative EasingQuantitative easing (QE) is a monetary policy of the Central Bank is used to stimulate the economy when monetary policy is no longer effective standards. Central bank implements quantitative easing by purchasing financial assets in the manner specified number of commercial banks or other private institutions, thus raising the price of financial assets and lower yield, and at the same time increase the monetary base (money supply).

This is different from the usual policy of buying or selling short-term government bonds that aim to establish the value of inter-bank lending rate at a specific target.

Expansionary monetary policy (easing) to stimulate the economy is usually carried out by the Central Bank by way of purchase of government bonds with the aim of lowering short-term interest rates in the short term. However, when short-term interest rates already close to or reaches zero, this method can not work anymore. QE can then be used by the authorities to stimulate the economy further by buying long-term assets, thereby decreasing long-term interest rates further.

Quantitative easing can be used to help keep inflation in order not to fall over again at the bottom of the target. This policy is often seen as the final step in an effort to stimulate the economy.

The purpose of QE is to increase the money supply rather than to lower the interest rate can not be lowered anymore. However, if the Central Bank also purchases financial assets are more risky than government bonds, it can cause a decrease in the yield of the asset.

QE will only be applied if the Central Bank has control over the currency used by the country concerned. Central banks in the euro zone countries as a whole cannot take action to increase the money supply so that the policy should be set by the European Central Bank (European Central Bank – ECB)

History of Quantitative Easing

before 2007

First implemented quantitative easing by the Bank of Japan (BOJ) to fight deflation in early 2000, began on March 19, 2001 Bank of Japan for several years, even until February 2001, states that “quantitative easing” was not effective, and refused to implement the monetary policy. The BOJ has set short-term interest rates at zero level since 1999.

With the QE, liquidity flooded commercial banks to support lending to the private sector, and lead to excessive reserves. BOJ achieve this by buying more government bonds than required for setting interest rates at the zero level. BOJ then do also purchase securities with collateral assets (asset-backed securities) and extend the term of the purchase program.

BOJ to raise commercial bank account balance of 5 trillion yen to 35 trillion yen (approximately $ 300 billion) over a period of four years starting in March 2001, the BOJ also increase the number of long-term Japanese bonds that can be purchased per month.

After 2007

After the events of the global economic crisis in 2007 – 2008, a similar policy has been adopted by the United States, United Kingdom, and the euro zone. Quantitative easing implemented by countries such as the short-term nominal interest rates are at or near zero. In the United States, this rate is called the federal funds rate, in the United Kingdom called the official bank rate.

At the height of the financial crisis of 2008, the Central Bank of the United States and United Kingdom implementing quantitative easing as a monetary policy that aims to get out of the financial crisis.

THE EFFECTIVENESS OF QE

According to the International Monetary Fund (IMF), the QE policy implemented by the Central Bank of developed countries since the financial crisis of 2008 contributed to the decrease in systematic risk (systemic risk) that occur after the bankruptcy of Lehman Brothers. The IMF also stated that these policies contribute to the restoration of market confidence and the release of the G7 economies from the lowest point in mid-late 2009.

Economist Martin Feldstein argues that QE2 (quantitative easing phase 2) the cause of the rise in the stock market in mid-2010, which resulted in economic growth in the United States in late 2010 Former Federal Reserve Chairman Alan Greenspan calculated that since July 2012 there has been little influence on the economy. Jeremy Stein Federal Reserve officials said that the policy of quantitative easing asset purchases massively large role in supporting economic activity.
Economic Impact of QE

Quantitative easing could lead to a rise in inflation is higher than the targeted amount of easing in the event of excessive and too much money is created by way of purchase of assets.

However, there is the possibility of failure in achieving the goal of QE if the banks remain tight in lending to consumers and businesses. However, QE can impact yields lower. However, there will be time lag between monetary growth and inflation; inflationary pressures with respect to monetary growth caused by QE may occur before the Fed acts to anticipate. Inflation risk will be reduced if the economic development of the system exceeds the speed of increase in money supply due to easing.

When the factors of production in the economy grew because of the increase in the money supply, the value of the currency unit can be increased, even though the currency is available in large quantities in the circulation. For example, if the economy of a state to output at a rate equivalent to the amount of debt, inflation pressure can be neutralized.

This will only happen when banks issue loans, rather than precipitating his money. In a period of high economic output, the Central Bank always has the option to restore the backup level to a higher level by increasing the interest rate or other means, thereby effectively reversing (neutralize) easing measures that have been taken.

Increasing the amount of money supply tends to weaken the exchange rate of the country’s currency relative to other countries, through the interest rate mechanism. Low interest rates led to a lack of foreign interest against the currency, resulting in a flow of capital out of the country, resulting in the weakening of the country’s currency.

This brings advantages for exporters in the country, and low interest rates will also benefit the borrower, because less interest to be paid. But otherwise bring harm to the creditors as yields obtained from fewer loans because interest rates are low. Currency debasement is also bad for importers, as the cost of imported goods is higher due to the devaluation of the currency.

General Investing

South East Asia’s Eye on African Investments

Asia was one of those regions that profited from the opportunities of investing in Africa. It’s countries took early leads of doing business from the emerging continent. The most notable Asian country was China. The Sleeping Giant is currently enjoying its affair with Africa. They are gaining while creating rooms for growth among Africans by creating jobs. They’ve got investments in several sectors, the largest is on infrastructure. Middle East countries and those from other corners of the world’s largest continent are also spiraling their way to the Black continent. They became aware of what African needs and what they will get from it. By now, Asian countries were the most informed of the investment opportunities in Africa.

South East Asia and Sub Saharan Africa were two regions being always compared when it comes to their economy. Now, both areas are showing eagerness to progress, and their efforts are being paid off. Each regions are supporting each other shoulder to shoulder. By making more investments, especially in Africa, they are both ahead of better days.

One of those South East Asian country that has prospects in Africa is Singapore. Just last month, 31 Singapore-based firms cooperated in a business affair in the said continent. $66 million worth of deals under negotiation is what they brought home. The country become envious of what China has become because of their investments in Africa. Asia’s Lion city is eying the oils and minerals in Nigeria and other business sectors in South Africa and Ghana.

Malaysia is also a South East Asian country that has established good business relationship with Africa since 1990s. In fact during that time, both parties showed end up with very notable increase on their trade and investment sectors. Now, they are reviving what has transpired between them before. Just like many other nations, they are investing in Nigeria. Several Malaysian plantation companies are thinking of investing in the Black continent of the similarity of its soil condition with Europe. The country is thinking of expanding their oil palm sector, through the help of Nigeria. Malaysia, Indonesia and Nigeria were the top three largest palm oil producer in the world.

And speaking of Indonesia, they also have an eye at Africa. Business organizations think that there is a similar climate conditions between them. And so, aside from oil palm, they will also try to develop their rubber plantation industry. They think they have the advantage on the said sector since only few economies have noticed the potential of the region (Africa). Indonesia’s prospect countries were Liberia and Ivory Coast.

Vietnam and Algeria also have a good connection. The two countries are cooperating to boost energy production. This is after they agreed in a partnership between the Vietnam National Oil and Gas Group (PetroVietnam) and Sonatrach, an Algerian state energy group.

Other countries with and will do investment in Africa are Laos, Brunei,and Thailand.

General Investing

Gold Investments

European Central Banks renew sales pact and Boost Gold

Europe agreed to renew their pact to cap sales of gold for another five years causing gold prices to boost.

This reaffirmed gold’s status as a key reserve asset. Also, the new Central Bank Gold Agreement reduced the maximum amount of gold that can be sold by the signatories.

Under a new deal to replace the current five-year pact, the limit for sales has gone down to 2,000 tons from 2,500 tons. Annual sales are now capped at 400 tons, down 25% from 500 tons – a quota that was not reached in recent years.

Gold sales were first capped by European in 1999 in an attempt to reduce market volatility. Their agreement to prevent markets being flooded with the gold has been an important factor in its rally over recent years.

Because of the recent economic plummet, gold’s status as a safe-haven asset has also helped boost the price of gold.

The new deal and its tighter sales quotas help cement a view that the days are over of central banks’ anti-gold stance and the kind of big sales announcements – notably by the Bank of England at the end of the 1990s – that led to wild swings in prices.

The World Gold Council welcomed the new deal. “The announcement is a clear endorsement of gold’s role in today’s global economic and financial architecture and a reflection of the success of the previous Central Bank Gold Agreements,” said chief executive, Aram Shishmanian.

“The agreement to limit the sale of gold over the five-year period to 2,000 tons demonstrates that, at a time of continued market volatility and inflationary fears, gold’s unique investment qualities provide the necessary hedge and protection that central banks are seeking.

“The reduction in the annual ceiling on sales … reflects an acknowledgment of the fact that the central banks’ appetite for sales is diminishing.”

Investing in the US

In the worst financial crisis since the great depression, the U.S. government has responded with $13.5 trillion in pledged or potential outlays. Meanwhile, rising unemployment and slumping corporate profits are crimping the U. S. Treasury’s tax revenue.

Because the credit worthiness of the U. S. government is raising concern, it’s no surprise that the eagerness of foreign governments and investors for dollar-denominated investments has diminished.

The dollar’s standing as the world’s de facto reserve currency is impaired. Nations are looking to diversify their foreign exchange reserves away from the dollar and showing a liking for gold. The combination of liquidity circulating through the U. S. economy and a tanking dollar stokes inflation. Gold is being sought out as a safe-haven by investors who sense the threat of inflation.

Gold Price Outlook

Gold is once again approaching the psychologically important $1,000 per ounce mark. Rallies in the price of gold have peaked in the $900-1,000 per ounce range three times since the start of 2008. I believe gold will crack the four-figure mark in 2009 and move on to exceed its 2008 highs. Given the state of the U. S. economy and the monumental challenges ahead, the $1,000 per ounce figure can well become a support or floor for a long time to come.