Investors dumping bonds

By Hibah Yousuf  @CNNMoneyInvest July 2, 2013




 

NEW YORK (CNNMoney)

Investors bolted out of bonds last month, yanking a record $80 billion from bond mutual funds and exchange traded funds, according to TrimTabs.

Those who fled were spooked by Federal Reserve chairman Ben Bernanke's recent announcement that the central bank could start pulling back on its bond purchase program later this year.

While fears that the bond market will collapse when the Fed begins reversing its stimulus programs are overblown, Oliver Pursche, president of Suffern, N.Y.-based investment advisory firm Gary Goldberg Financial Services, says bonds are still "very overvalued."
In fact, many of his firm's clients have light exposure to bonds.
Pursche said it doesn't make sense to hold long-term bonds because they will lose value as interest rates rise from their record low levels.
During the past two months, the iShares Barclays 20+ Year Treasury bond fund (TLT) has declined nearly 11%, while the 10-year Treasury yield has climbed to 2.5% from 1.6% in early May.
"We looked at bonds and made a fairly early call that they've become a very risky asset class as a result of artificially low yields that have been pushed down by monetary policy," said Pursche, whose firm has been bearish on bonds for the past year and a half.
For clients who can withstand a bit of volatility, Purshe invests in short-term bonds to dampen the ups and down of the market, but largely relies on high quality dividend paying stocks, such as Verizon (VZ, Fortune 500), AT&T (T, Fortune 500) and GlaxoSmithKlein (GSK), to generate income and deliver returns.
Given the ultra-low interest rate backdrop backdrop, Purshe had been wondering what took so long for investors to finally start pulling money out of their bond funds, and said there's still more room to go.
While the recent withdrawal reverses nearly three-quarters of this year's inflow into bonds, it doesn't even make a dent on the $1 trillion investors have plowed into bond funds since the financial crisis.

First Published: July 2, 2013: 8:04 AM ET 

 

Sumber :

 http://money.cnn.com/2013/07/02/investing/bond-funds/index.html?iid=obinsite

3 Reasons to Consider Spanish Stocks

3 Reasons to Consider Spanish Stocks

 By Russ Koesterich, CFA | Jun 17, 2013

 Europe is far from out of the woods.

Bond yields in Italy and Spain are creeping higher. The region also still faces record high unemployment, a lack of growth, a fragile banking system and political dysfunction.
But while I generally remain cautious on Europe, I am starting to see some modest improvement in some of the peripheral countries — particularly in Spain. In fact, as I write in my latest Investment Directions and weekly commentary pieces, I’ve recently upgraded my view of Spanish stocks to neutral from underweight. While Spain continues to face severe growth headwinds, there are three main reasons why I’m less concerned about the market now:
1.)   Improving Profitability. Following the completion of the Spanish government’s mandated cleanup of the country’s real estate sector and banks, Spanish corporate profits are expected to recover, albeit from a low base.
2.)   Attractive Valuations. While the Spanish economy will likely continue to struggle this year and into next, most of the bad economic news is now priced into current valuations. This is thanks to Spanish stocks’ massive underperformance in recent years. Since I initiated my underweight call on Spain at the end of 2011, Spanish stocks have underperformed other developed markets by around 20%.
3.)   Reduced Risks. Finally, the market’s risks have been reduced due to the European Central Bank’s (ECB) proposed asset purchase program, which is designed to fuel Europe’s growth.
However, Spanish stocks aren’t without their risks. One potential roadblock on the horizon for both Spanish and European stocks: An upcoming ruling from the German constitutional court on the legality of the ECB’s proposed asset purchase program.
In addition, until we see more aggressive measures from the ECB to boost lending to small- and medium-sized enterprises in Southern Europe, it’s hard to envision a quick turnaround for the region.
However, Europe has one distinct advantage to domestic equities: market watchers’ low expectations. In the current environment, even modest signs of good news can have a positive impact on European equities in general and on Spanish stocks. The latter can be accessed through the iShares MSCI Spain Index Fund (EWP).

Source: Bloomberg
In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Securities focusing on a single country may be subject to higher volatility.

Sumber :
 http://isharesblog.com/blog/2013/06/17/3-reasons-to-consider-spanish-stocks/?cmp=isharesblog&chn=ppcsyn&c=Dianomi&kw=Spanish%20Stock%20Market&utm_campaign=isharesblog&utm_medium=cpc&utm_source=Dianomi&utm_term=Spanish%20Stock%20Market

Portugal ruling party vows to meet bailout goals after pact talks fail

 

By Andrei Khalip

LISBON | Sat Jul 20, 2013 2:10pm EDT

(Reuters) - Portugal's ruling Social Democrats (PSD) said on Saturday their coalition government would press on with meeting the country's economic bailout goals after talks on a broader political deal sought by the president collapsed.
Reigniting a three-week-old political crisis, the two centre-right coalition parties and main opposition Socialists broke off talks on Friday on a "national salvation" pact to ensure an EU/IMF bailout stays on track, leaving it to the president to decide how to proceed.
President Anibal Cavaco Silva will make a televised statement on Sunday at 8:30 p.m. (1930 GMT), the president's office said. It would not provide any details.
"We consider there are conditions of stability and cohesion in the coalition, that there are conditions for us to be able to fulfill the memorandum of understanding and lay the basis for sustainable growth and conditions for greater social justice," PSD vice-president Jorge Moreira da Silva told reporters.
"We lament the result of this dialogue process, but the Portuguese people know they can keep counting on us," he said, adding that his party awaited the president's evaluation "with serenity and confidence".
Political turmoil has already forced Lisbon to request a delay in the eighth review of the bailout by its creditors, originally scheduled to start last Monday, until the end of August or early September.
The 78-billion-euro ($102.5-billion) bailout program and accompanying austerity policies are associated with the worst recession in Portugal since the 1970s.
The centre-left Socialists said the ruling coalition had rejected most of their proposals aimed at ending the austerity policies and renegotiating the terms of the bailout.
The government says abandoning austerity would undermine Lisbon's credibility with lenders and investors.
The crisis, which started as an internal political rift in the ruling coalition and expanded to a debate over the rescue plan and a possible early election next year, has threatened to derail Portugal's planned exit from the bailout and full return to debt markets in mid-2014.
Analysts say the situation remains very uncertain but the president could still avoid an escalation of the crisis, and a likely blowout in Portugal's debt risk premiums, by keeping the ruling coalition in place rather than using his power to dissolve parliament and call a snap election.
He last week declined to say what the alternatives were if there was no cross-party pact.
The government easily defeated a parliamentary no-confidence motion on Thursday and said this had confirmed its legitimacy to govern.
(Editing by Sonya Hepinstall)

World

Sumber :

http://www.reuters.com/article/2013/07/20/us-portugal-crisis-idUSBRE96J08X20130720

Gold: Time to buy now?

 

NEW YORK (CNNMoney)

Gold has been a losing investment for months.

But in the last six days, the precious metal seems to have regained some of its luster, rising 5.8%. Last week, gold recorded its biggest weekly percentage gain since 2011, and it came after four weeks in a row of losses.

Some believe this could be the beginning of a new momentum.
"We're in process of finding a bottom," said Jeff Nichols, managing director of American Precious Metals Advisors.
Since April, investors have abandoned gold in favor of the stock market, where they have chased higher returns.
The price of gold is off sharply from the record highs of 2011, when it touched $1,900 an ounce. Despite its gains this past week, gold is still down about 24% since the beginning of the year. It's currently changing hands in the futures market at $1,284 an ounce.
Gold has been pummeled because of worries over the Federal Reserve scaling back its economic stimulus policies. Such a move takes away gold's value as a hedge against inflation. In the years after the financial crisis and recession, investors had rushed to buy gold because they bet that the Fed's extensive bond buying would undermine the U.S. dollar and drive up consumer prices.
Another big reason why gold has been depressed lately is that economic growth is slowing in emerging markets, including China and India, both of which are large buyers of physical gold.
Still, some veteran gold watchers say the sell-off presents an opportunity. Longer term investors might want to bulk up on the metal because there are no signs that appetite for gold from consumers in Asia has waned. At the same time, supplies from gold mines remains tight.
Nichols from American Precious Metals Advisors believes that gold prices over the next three to five years could surpass the 2011 highs.
He stressed, however, that gold buyers need to be patient. "It's not clear we will have a quick turnaround," he said.
Related: Is gold losing its safe haven appeal?

Gold got a boost last week after Fed chairman Ben Bernanke said U.S. monetary policy will remain "highly accommodative" for the foreseeable future.
The remark lowered expectations that the Fed will begin to cut back on its $85 billion-per-month bond-buying program this year.
"I think the Fed is being overly optimistic and won't get around to tapering this year," said Chuck Butler, president of EverBank World Markets. "If that's the case, then I think gold will really start to rebound."
Butler said gold prices could climb back to $1,450 an ounce if the Fed delays tapering. But he cautioned that the market has been extremely volatile and that further declines cannot be ruled out.
He noted that the cost to bet against gold, by shorting, has increased recently. That suggests that speculators are becoming less convinced that gold is headed lower.
Gold prices in the futures market are mainly driven by short-term traders, such as hedge funds, that rarely take possession of physical gold, said Steven Feldman, chief executive of Gold Bullion International.
But he said demand for physical gold, including bars and coins, has been strong in China and other Asian markets.
Related: Gold bugs regain some swagger
Feldman said the fundamentals of supply and demand should push gold higher over the long term.
Despite an expected slowdown in China, he said demand for physical gold, including jewelry, should remain robust in the world's second largest economy. In addition, he said gold should continue to benefit as global central banks look to diversify their reserves.
Meanwhile, gold supplies have tightened.
Feldman said miners are "under siege" in some parts of the world as "resource nationalism" is on the rise.
"I'm very bullish long term based on the fundamentals," he said. "Supply isn't going to go up, and demand is strong as China continues to grow, central banks diversify and investors warm up."

First Published: July 16, 2013: 1:49 AM ET

Sumber : http://money.cnn.com/2013/07/16/investing/gold-prices-buy/index.html?iid=Lead&hpt=ibu_r1  

Factory, labor market data offer bright signs for economy

 

By Jason Lange

WASHINGTON | Thu Jul 18, 2013 2:34pm EDT

(Reuters) - New claims for jobless benefits fell last week and factory activity picked up in the Mid-Atlantic region in early July, signs of a stronger economy that could help push the Federal Reserve to ease its monetary stimulus.
Thursday's data bolsters the view that economic growth could pick up after a dismal first half of the year in which consumers were smacked by tax hikes and deep cuts in the federal budget.
"This is an encouraging sign heading into the second half of the year," said Ryan Sweet, senior economist at Moody's Analytics in West Chester, Pennsylvania.
Fed Chairman Ben Bernanke expects the economy will gather enough steam by the end of the year for the Fed to begin scaling back a bond-purchase program it has used to push down borrowing costs, and Thursday's data appeared to support his case.
The Philadelphia Federal Reserve Bank said factory activity in eastern Pennsylvania, southern New Jersey and Delaware rose to its highest level in more than two years as employment and shipments picked up.
The bank's index of business activity index rose to 19.8 from 12.5 in June, far exceeding economists' expectations. Any reading above zero indicates expansion in the region's manufacturing.
The report adds to early signs that U.S. manufacturing is expanding despite weakness in the global economy. The New York Fed said on Monday factory activity accelerated in New York state in July.
LABOR MARKET RESILIENCE
In a separate report, the Labor Department said initial claims for state unemployment benefits dropped by 24,000 to a seasonally adjusted 334,000. It was the lowest reading since May and a steeper fall than analysts had expected.
The drop in new claims was the latest data to point to resilience in the labor market. While Washington's austerity measures appear to have dragged heavily on growth in the first and second quarters, the pace of hiring has barely slowed, with employers adding 195,000 jobs in June.
At the same time, the labor market data from last week was clouded by seasonal factors. Readings for claims can be volatile in July because many auto factories close to retool, and it is difficult for the government to adjust the data for seasonal swings because shutdown schedules vary from year to year.
Still, a four-week average of new claims, which smoothes out volatility, fell 5,250 from a week earlier.
"This is still consistent with moderate job growth," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
The dollar extended a rally against the yen and yields rose for long-term U.S. government debt, signs that investors were betting on tighter monetary policy in the future. U.S. stocks rose to record highs after investment bank Morgan Stanley posted stronger-than-expected profits.
The jobless claims data covered the same week in which the Labor Department looks at employers' payrolls to estimate how many jobs the economy added during the full month. Compared to the survey week for last month, the four-week average for claims was 0.7 percent lower last week.
A third report showed a gauge of future U.S. economic activity held at a near five-year high, with the Conference Board's Leading Economic Index flat at 95.3 last month.
Bernanke, who appeared before lawmakers for the second straight day on Thursday, repeated his message that the Fed would only begin withdrawing its support if the economy improves as much as policymakers expect.
In a potentially negative sign for the labor market, the Labor Department said the number of people still receiving benefits under regular state programs after an initial week of aid rose 91,000 to 3.1 million in the week ended July 6.
However, analysts said the increase could also be related to difficulties in adjusting the data for seasonal swings around America's July 4 holiday.
(This story is corrected to show jobless claims at lowest level since May, not March)
(Reporting by Jason Lange; Additional reporting by Rodrigo Campos and Richard Leong in New York; Editing by Andrea Ricci and Neil Stempleman)

Sumber :
 http://www.reuters.com/article/2013/07/18/us-usa-economy-idUSBRE96A0G320130718

U.K. plans big tax breaks for shale gas

 

LONDON (CNNMoney)

The U.K. government is planning to slash taxes for energy companies in a bid to stimulate a U.S.-style shale gas boom.

The Treasury has proposed cutting the tax rate on production income to 30% for the fledgling shale gas sector, compared to the typical 62% rate that most oil and gas companies pay.

"Shale gas is a resource with huge potential to broaden the U.K.'s energy mix," said Chancellor George Osborne. "We want to create the right conditions for industry to explore and unlock that potential."
The proposal also outlines other financial incentives for the sector. The government hopes the measures will stimulate £14 billion ($21 billion) in shale gas investment this year and create thousands of jobs.

A handful of energy companies have been granted licenses to look for shale gas opportunities in regions across the U.K. According to a recent report, it shouldn't be too difficult to find those deposits.
The British Geological Survey estimates that northern England has as much as 2,281 trillion cubic feet of gas - a monumental amount given that the U.K. uses only 3 trillion cubic feet each year.
However, experts say only a fraction of the available shale gas -- between 10% to 30% -- can actually be extracted from the ground, while the remainder is unreachable and uneconomical to pursue.

Techniques such as hydraulic fracking -- which involves injecting water, sand and chemicals deep into the ground at high pressure to crack the shale and allow the oil or gas to flow -- have made the extraction of oil and gas from shale rock commercially viable.
The process is controversial, however, with environmental campaigners arguing that fracking could pollute water supplies and possibly trigger earthquakes.
The U.S. has been a pioneer in the fracking field, and the International Energy Agency issued a report saying this will help the country become energy independent by 2030.
The American shale gas industry accounted for over 600,000 jobs and paid almost $20 billion in taxes in 2012, according to the U.K. government.
The new tax proposal will go through a consultation period before being presented to parliament.  

Sumber :
  http://money.cnn.com/2013/07/19/news/economy/fracking-uk-taxes/index.html?cnn=yes

Pintar Pilih Voucher Diskon

Pintar Pilih Voucher Diskon

Banyak pilihan voucher diskon yang ditawarkan lewat berbagai situs diskon saat ini. Potongan harga hingga 50 persen sukses membuat kita nge-deal untuk membeli voucher diskon yang dijajakan. Tapi tak ada salahnya untuk berpikir dua kali, apakah diskon bisa membuat kita hemat atau malah mengeluarkan uang dua kali lipat. Nah, agar diskon tak jadi bencana, sebaiknya :

1. Periksa kembali sebesar apa kebutuhan belanja. Misalnya, Anda tergiur dengan potongan harga makanan di sebuah resto, jangan keburu deal bila belum pernah mengunjungi resto itu sebelumnya. Perkirakan soal rasa dan harga, siapa tahu ada resto yang lebih familiar dengan harga yang lebih ekonomis. Termasuk saat ingin membeli produk, apakah benar Anda akan sering menggunakannya? Sebab, tawaran diskon dinilai bisa membuat Anda lebih konsumtif untuk hal tidak perlu.

2. Pahami term and condition voucher. Mulai dari masa berlaku, apakah boleh memakai beberapa voucher sekaligus, lokasi penggunaan voucher, dan lainnya.

3. Membeli voucher diskon di resto yang letakkan jauh dari rumah atau kantor? Bila belum tahu kapan akan berkunjung, sebaiknya tahan dulu dibanding hanya menghamburkan uang karena sudah telanjur beli tapi tak sempat datang. Bila sudah telanjur, mungkin Anda bisa memberikan voucher tersebut sebagai hadiah untuk rekan sekantor.

4. Masa berlaku transaksi, dari Anda deal hingga membayar biasanya hanya 48 jam. Jadi, bila tak memungkinkan untuk membayar di hari yang sama, sebaiknya pilih hari lain.

Satu lagi; berburu diskon boleh, asal jangan sampai gaji ikutan didiskon ya akibat keasyikan belanja. Happy shopping…

(Ayunda Pininta Kasih/Precilia Meirisa)

Sumber :
 http://www.chicmagz.com/read/1991/pintar-pilih-voucher-diskon

Investasi Emas? Perhatikan 4 Hal Ini

Well sebenarnya saya bingung mau nulis apa, tapi kemudian pas saya lagi searching ketemu artikel bagus yang mungkin bisa bermanfaat buat orang-orang.

 

Investasi Emas? Perhatikan 4 Hal Ini

 

Mulai berpikir untuk berinvestasi? Salah satu investasi yang bisa kita coba adalah investasi emas. Nah, tapi kita juga perlu memerhatikan beberapa hal sebagai berikut sebelum membeli perhiasan. Simak ya!

1. Belilah perhiasan yang meningkat nilainya, seperti emas, berlian, dan batu permata lainnya.

2. Pastikan perhiasan tersebut mudah untuk kita jual kembali kala membutuhkan dana tunai. Sehingga, kita harus mengetahui di mana dan siapa yang bersedia membeli perhiasan milik kita itu.

3. Periksa kembali dokumentasi pembelian, seperti sertifikat, kuitansi dan lain sebagainya.

4. Persiapkan lemari besi yang aman untuk tempat penyimpanan di rumah, dan tempatkan di lokasi yang aman dan tersembunyi.

Tapi ada juga lho kerugian jika kita menjadikan emas sebagai investasi. Ini dia beberapa di antaranya:

1.    Ongkos pembuatan yang akan dikurangi dari harga pembelian. Harga jual perhiasan tersebut hanya menghitung berat gram emasnya.

2.    Terlebih perhiasan buatan luar negeri (seperti Itali dan Prancis) yang ongkos pembuatannya sangat tinggi, bahkan lebih mahal dari harga berat emasnya.

3.    Mudah rusak bila terjatuh atau tersangkut, sehingga akan menurunkan nilai perhiasan tersebut.

4.    Memerlukan perawatan yang lebih dan tempat penyimpanan yang cukup besar dan aman.

Tip! Belilah emas dalam bentuk logam mulia batangan, karena jauh lebih menguntungkan karena tidak dikenakan biaya pembuatan. Selamat berinvestasi

(Freddy Pieloor/ Precilia Meirisa)
Foto: Thinkstock

sumber : http://www.chicmagz.com/read/2225/investasi-emas-perhatikan-4-hal-ini

 

TUGAS 4 (Taq Questions)

TAQ QUESTIONS

 

Tag questions merupakan gabungan dari sentence dan questions tag.

Example :                                                          
Add question tag at the end of the following sentences. They want to come, don’t they?

1. They won’t be here, will they?
2. Cristian is a student, isn’t he?
3. He has learned a lot in the last couple of years, hasn’t he?
4. He has a car, doesn’t he?
5. She’ll help us later, won’t she?
6. Nothing is wrong, are they?
7. I am invited, aren’t i?
8. She cried last night, didn’t she?
9. He went to bandung yesterday, didn’t he?
10. Those aren’t your books, are they?
11. Everyone can’t come, can they?
12. Class ends at 11.30, doesn’t it?
13. Nobody has told you the secret, has they?
14. You haven’t seen that movie, have you?
15. We have class tomorrow, haven’t we?
16. She is never late to class, is she?
17. Fahmi sat in front of maya yesterday, didn’t she?
18. You had good time last week, didn’t you?
19. These keys don’t belong to you, does they?

 

sumber : 

 http://www.ariesta-fh.blogspot.com/2013/07/tag-questions-tugas-4.html