Mutual Funds vs ETF's

By Peggy Black

Owning mutual funds can be expensive when you consider the 1.5% average charge for advisory fees that go to the broker or financial planner that helps you select the funds. Exchange traded funds (ETF) can be your answer to greater flexibility at a lower cost.

Mutual funds are only required to declare their investment holding twice a year. Investors in funds are in the blind and not sure what they own until it is disclosed.

The history of Exchange Traded Funds goes back to the first such instrument created, the S&P Depository Receipt known as SPDR. The shorthand symbol is SPY and is composed of the 500 companies that make up the S&P 500.

Professional traders keep the market price of ETFs in line with the value of the underlying stocks by arbitrage of any price disparities. Unlike mutual funds where their price may get distorted in regard to the underlying value, ETFs give a fair deal.

Just like a stock, one can place loss protection in the form of stop-loss and limit order. You are able to see quotes on a real-time basis.

The expenses to own an ETF is negligible. For instance, fees for SPY (S&P 500 index ETF) are pegged at 0.09 percent.

Unlike a mutual fund, with an ETF you know exactly what that index is composed of. There is no mystery.

If there is a choice between mutual funds or ETFs, one should be aware of fund management past history and direction. How do they do in a bear market? How do they perform in a bull market? Do the beat the ETF for the same investment area? - 23223

About the Author:

Find learned insight on Exchange Traded Funds plus major financial news coverage, read the Wall Street Journal. It is the paper of students and professional alike for breaking investment news and the latest rumblings that will affect the financial future. Get free delivery of the Wall Street Journal for 80% off news stand price at Wall Street Journal Subscription

Does GM need saving?

By Dino P Delellis

Amongst GM employees, aside from the fear of getting a pink paper next week ( or the week after ) speculation is high as to whether the concept vehicle, being called the Volt, is going to be as revolutionary as the hype suggests.

After the disastrous shelving of the original working EV1 a few years back and taking incredible heat for being one of the BIG 3 engaged in fighting California in a bruising battle of who has the largest team of Lawyers, GM has gone back to square one ( perhaps a little unrepentant ) and is once again making an electric car.

It was said that the link between GM and big Oil was never so blatant as when the EV1 was shelved, the many patents accompanying that huge R&D effort was simply sold to BIG OIL.

Balancing the books, one might claim. Lots of Research and Development costs, nothing to show for it, so sell the technology. It wasn't an objective decision. After an acrimonious battle with the state of California, GM management couldn't get rid of the technology fast enough. A billion dollars later, GM executives didn't stop to think that perhaps core elements could play a critical roll in future transportation technology. They had to wait for the Japanese to prove that similar technology could and would be a huge element in the future of transportation.

So much for the history lesson, this week, we are back at square one watching a video interview with GM's Chief Designer as he discusses the new GM Chevy Volt.

The Volt is probably GM's last, best hope for the future and certainly its most significant upcoming vehicle. Saddled with dwindling market share, credit-strapped consumers, and a lingering reputation as a purveyor of gas-thirsty vehicles, GM executives need the Volt to become an iconic product, like Apple's (AAPL) 1998 iMac or even Chrysler's 1980s K-car before. The Volt has to affirm the company's ability to innovate and, eventually, create a financial foothold from which the battered automaker can begin to turn itself around.

The car is also GM's gambit to outpace foreign competitors like Toyota (TM) and Honda (HMC). Unlike conventional hybrids-including the best-selling Prius-the Volt is essentially a plug-in electric car with an onboard gas-burning engine that can recharge the vehicle's batteries. This enables the Volt to travel some 40 miles before the driver turns on the gas.

According to GM research, many drivers will not need to switch to the gas engine because simply recharging the vehicle via a regular outlet at home overnight will satisfy most of their driving needs. When I first heard this, I thought - What a useless car. Who wants a car that does only 40 miles per charge, but in truth, the car simply switches to the small gas engine at that point and continues its merry way.

Despite the GM bashing that many of us might engage in, on occasion, we all truly want a Volt or something like it. Traveling and seeing new places isn't just a wish for the elite. But with gas prices threatening to go higher and the slightest threat of war poised to carry them beyond even the previous high of $147 per barrel, having a vehicle with the potential of the Volt is simply everyone's dream.

So will or can the dream car Volt save the General?

To answer that question, perhaps we should ask - Does GM need saving?

In May 2005, Business week estimated GM's Cash Reserves to be 45 Billion. However, for the first 6 months of 2008 the BostonHerald estimates that both Ford and GM burned through an average of a Billion dollars a month each, with accelerating burn rates towards the end of the year as sales in highly profitable vehicles like SUVs were down an improbable 18%.

According to an article in Detroit News Oct 14th 2008

GM had access to about $21 billion cash, $5 billion in available credit lines and is raising $5 billion through asset sales and borrowing.

Cost-cutting associated with the aforementioned 10 Billion in cuts, intensified when GM announced it was closing plants in Grand Rapids and Janesville, Wis. 2500 workers are affected by these measures in plants that produce sport-utility vehicles and parts for pickups/SUVs.

So, since 2005 to 2008, GM and it's fat cat, top heavy management burned thru 25 Billion in cash and part of that was during 2 years of strong sales. The rumour is, that GM is eyeing the cash reserves of Chrysler ( estimated 11 Billion ) to help it through to 2010 when the Chevy Volt and Cruz are expected to help effect a rescue

So, what are our expectations for the Volt? GM says its expecting to sell about 10,000 Chevy Volts at between 30-40,000 USD each in 2010. So, that's about 3-4 Billion dollars in gross sales with a net of about a 800 Million dollars annually at an estimated 20% profit per car.

So, is this innovative car of the 2010 year - Volt just a little, just too late?

Looking at these numbers alone, I would wager, most emphatically no. - 23223

About the Author:

Dino Delellis writes on a number of interesting topics. To see more of the Dino personal journals hop on over to musings of Dino P. Delellis and catch his odd views on the globe at large.

Tips For Correct Investment Research

By John Maccain

There are, literally, thousands of opinions, viewpoints and schools of thought when it comes to investing cash. Used in restoring different types of flooring, and I'll go over the basics here so that you understand what is involved.

It isn't advisable to make investments according to just emotion or impulse. It's your cash; parting with it is not an option. The most important thing to do before investing is performing good research.

Scientific and historical research that is required to really understand the subject of investing in three dimensions. These five elements are of utmost importance in making a correct analysis of where you should put your hard earned money.

Pillar 1, Technical. This is anywhere you analyze the pattern of the world market by figures. Once you are able to discern these patterns you will be more effective in being able to predict market changes over time. Now this one support might be the basis of a whole article, but this is just a tip to get you at least look in the right way before invest.

Pillar 2, Economic Trends. This, like Pillar 1, is a statistical analysis, but it's specific to economics. At this point you should answer questions for yourself like what is going on with the global economy? What trends are occurring? What shift contain occur? Tell me the short and long term trends? Uncovering this type of information will allow you to eliminate areas that exhibit poor trends.

Pillar 3, Politics. What are the political conditions surrounding the areas which you have now discovered may be profitable, according to your research from Pillars 1 and 2? Find this out, as well as other pertinent in order like changes in management, wars and other conflicts inside or between/among nation. The economy and market conditions of a nation are definitely affected by what is going on there, politically. So it's significant information to gather to give you an overall world view and a correct estimation for future or present savings.

Pillar 4, Geo Politics. At this point in the investigation you will be analyzing world geography, social science, history while examining international power and looking for patterns. What is the influence of the past and topography of the place on associations with different nations? This works very closely with Pillar 3, but from a geographic perspective.

Pillar 5, Solar Geography. This pillar is associated to Pillar 4 but at this junction you would be researching historical events from the point of view of meteorology, oceanography and seismology, and how these topics impact the state of the planet and specific countries and as a consequence the economy of the countries.

In order to completely know the subject of investing in three dimensions you really need to know about a lot of technical, scientific and historical things that are needed for it. But that's what separates the great investors from everyone else. If you want to get good at this subject, you have two choices, Study, study, study and learn it yourself. Or do your investigate in finding a expert who by now know this subject. what's known as "diamond grinding" is used. In also case, it can be a thrilling and satisfying subject when done properly. - 23223

About the Author:

He has had achievement in with the Five pillars of worldwide marketing influences to be able to predict investment prospects with immense accuracy. To learn more, visit www.mystrategicforecast.com.

Practical Forex Made Easy Tips

By Chan Boldene

Forex Made Easy is not always easy. Before we delve into figuring out this whole Forex business (and it is a business), I thought I'd share some simple yet important Forex Made Easy tips. I will be going back to this periodically because they're important not just because you're learning to trade 4x but because they are good sound principles to live by.

If you've been around any length of time, you've heard or read how the basketfuls of money we can make from Forex Trading (or FX Trading), so what are the tips and rules and strategies we can incorporate to make money from 4X Trading? Below are the seven Forex Made Easy Tips that the staff and management of Forex Made Easy (me) came up with to help make you money in this crazy but rewarding field of 4X Trading.

Tidbit #1: Don't Be Greedy.

This is embarrassingly simple. When you're on a sizzling hot winning streak, it's easy to think that you can't lose, but it is the kind of thinking that is very dangerous. Trading is relatively easy, but you can lose your shirt, your pants, and your precious bank account in short order too. Greed can consume you and deplete your trading account faster than you can say "but they didn't teach me that in the Forex Made Easy blog!" Greed can devastate.

Tidbit #2: Learn All You Can.

Who says you have to be a market genius to make money in Forex? The Forex Made Easy blog will help you with that. Any man, woman, and child can learn how to trade, and anyone can make money. You don't need to spend tons of time getting educated either, but a trader with real world experience trading is invaluable.

Tip #3: The Best Proven Systems are Simple

This tidbit is the most difficult to overcome because we like tools and programs and systems and indicators and gadgets. Use the KISS method: Keep it Simple Stupid. It still works (not only here but in many areas of life). Keep your "system" simple: use few indicators, and support and resistance. Don't get complicated. Simple trading "systems" are far more robust and full proof than complicated ones. If you aren't able to explain in a few sentences to an onlooker what your indicators are doing for you, then there's too much on your screen.

Forex Made Easy Tip #4:Make sure you have Risk and Money Management Rules

This Forex Made Easy tip is boring. Success in this business is built on risk management and money. Not risking more than 10% of your account on any one trade will take you far. No more than five percent is even better.

Tip #5: Discipline - Set the Rules and Stick to Them

No matter how good you think you are, you will pile up losses over time. You need disciple. So, let me repeat that, you will lose occasionally and you will have losses. But you need to have discipline to ride out the losses and return to the trading table. Know the rules you've created for your trading style. Test them, then trade them. Stick to them. Leave nothing to your emotions. Write your rules down and follow them. I can't emphasize this enough, because if you don't follow what you created when there was no pressure on you at all, then you probably will lose money. It all depends on how far you deviate from your rules.

Forex Made Easy Tip #6: Have Fun

Trading the Forex markets can be rewarding and challenging. It can also be exciting. Don't take your gains OR your losses so seriously. Don't monitor the markets all day. Get outside. Relax. Spend time with your family. Watch a sunset. Play with your kids. The markets will always be there tomorrow.

Tidbit #7: Paper Trade First Until You "Make Some Money"

Practice Practice Practice. I can't say that enough. There are software programs on the market (and some that we will recommend) to help you so that you won't lose money quickly. You can test strategies, theories, and win a million dollars - all with no money changing hands! You need to "paper trade." If you can't make money when there's no real money on the line, what makes you think you can make money when you're risking money?

We believe that anybody with even a little bit of courage and education can make money trading Forex. The effort you put in will be well rewarded. So don't forget this rule: simplicity is best; stick with the plan you created for your own style. Simple, steady, and well-executed strategies will earn you a significant amount of money in the FX markets. - 23223

About the Author:

Mr. Boldene is a freelance technical writer and has written many articles on the currency markets. Join him at currency Tips for a few key pointers. Visit also currency Rumors.

Real Estate Business Wealth -- Taking a Closer Look

By Christine Blake

Recently I came across a program called Real Estate Business Wealth (previously called Turnkey Real Estate System) and it looks to be a real game changer for the entrepreneurial real estate investors out there. If you have spent any time thinking of how to free up your time and create a passive income stream from your real estate business, then you realize how difficult this can be. The website for Real Estate Business Wealth states that using this product is so darn simple that a monkey can follow the steps to produce passive income. Now I'm not so sure you should go out and hire ten monkeys to work for you, but you get the idea. Ok, let's stop the monkeying around. He doesn't claim this to be magic. He actually admits on his webpage that to start receiving the passive income stream, then some effort on your part is required. First though, let's examine the claims made.

The creator, Otto, states his Real Estate Business Wealth system makes it totally feasible to establish thousands of dollars of passive income each and every month just by following the steps of the program. This will give you:

* Passive Income in your bank account each month.

* Vacations with the Family to where you want and when you want.

* More Deals - The systems you'll have installed will allow you to double or even triple the amount of deals you do.

* 20+ Hours Extra/Week - You will recover at least 20 hours/week with these steps, guaranteed.

* No More Stress - No more worrying and always second-guessing what the results of your decisions will be.

Well, I love the sound of that, but what precisely will I get from the system to help me achieve all this? Good question. Here is a list of the major components you will receive with Otto's Real Estate Business Wealth home study.

* Quick Start Guide - "How to Get Started and Have Your Business Create Passive Income for You".

* 10 Step by Step Instructional Audios - Develop passive income from any real estate investing business. These audios will tell you how.

* 3-Step Detailed Process that covers 230+ pages of manuals - Addresses subjects such as how to create systems, hire the best people that will run your business for you, monitor you success, etc.

* 10 Audio Interview Training Series - Tutorials and training interviews with leading investors, business growth experts, and strategists.

* Passive Income Generation Templates - Simply use the systems and templates already developed!

* Blueprints - Just like the blueprints of a home, these will give you the visual understanding and show you exactly how to automate your business. Simply plug your business into the blueprints.

* Bonus Information and Materials in addition to a personal phone call consultation with Otto.

Definitely worth making mention of is the compelling two-part "Dummy-Proof" guarantee he gives. The first part of the guarantee states you have three full months "to examine everything, use what you wish, and, if for any reason or even no reason, you want a refund, just return everything and Ill put your money back in your bank account". The second part states "At Least Automate Your Business So You're Able to Enjoy Passive Income, or return it for a full refund plus a $500.00 gift!". That pretty much says it all.

As I understand it, there will be a product launch that will happen around mid-May. And Otto has already stated that only a specific number of clients are going to be accepted into the program and then he will stop accepting orders.

We are currently working to get a personal discussion with Otto about Real Estate Business Wealth and then take that interview and upload it to our review blog at RealEstateBusinessWealthReview.com. Visit us to see the additional review info that is available.

In any case, I must say this. If this product provides the real estate business wealth it claims, then you have got to really think about this versus your present business model. One deal means thousands and luckily most real estate investors haven't even discovered this great opportunity! - 23223

About the Author:

The author, Christine Blake, is a real estate investor that has 20+ years of real estate industry experience. Visit her website Real Estate Business Wealth Review to get more information about the Real Estate Business Wealth system and how you will be able to free up your time and create a passive income stream from your real estate business...starting right now.