The hike in interest refuses to stop as in India the cost of swap contract reaches its highest level since the year 2008. Central bank is following a tightening of the monetary policy by taking this new decision. According to the Bloomberg report, the floating payment of a swap contract, for five years, which is received at a fixed rate, has been increased to 120 basis points in the last year. This increase in the rate was the highest in all over Asia. The rate touched 8.09 % on January 20, which is the biggest hike within the last 27 months. A per the news survey conducted by Bloomberg, economists believe that  recently RBI (Reserve Bank of India) will increase its rate of repurchase by 25 basis points which amounts to 6.5 %. According to the statements of Subbarao, governor of Central bank,  [...] 

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If anyone tells you that it’s easy to become a millionaire, they’re making a fool of you. There’s no easy way to become a millionaire. But it’s also not nearly as difficult as some people are saying it is. The proof of this is perhaps in the success of books that teach us on how to become a millionaire. Some people choose to do it via real estate, some people make their fortune in oil or business, some choose investing and others get lucky and hit a major fortune. But here’s the most interesting part; you don’t have to be making a six figure income or be born into wealth in order to reach this target. Some people I know have a six figure income but only massive debt and a fancy car to show for it. Here’s how to become a millionaire in a few simple steps. Spend reasonably Rack  [...] 

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Picking up dividend payments from stocks and the likes are an excellent way to get ready for your retirement or to add to your current income levels. The shrewdest of investors have been picking up the top dividend stocks for several years now and this has helped them to build up a stream of income that is long lasting and strong fundamentally. But how have these investors gone about building their income? It’s not by picking big ticket stocks, that’s for sure. Chasing yields are not where it’s at. No, in order to find the best stocks, these investors have taken a look at the dividend growth rate of these stocks and that is the strongest indicator of growth for a company. Looking at the current dividend yield is not where it’s at. Solid companies will always have a robust  [...] 

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A close friend of mine was recently talking to a financial adviser, and for some reason she felt that she was being sold short so she turned to me for a second opinion. She was this close to writing the man a check, but before she took that leap of faith she wanted to be absolutely sure that she was giving her money to the right man. I could drone on and on about why that financial adviser was an absolute tool and why I was glad my friend didn’t blindly trust him. But I’ll spare you the life story and instead simply say that Pedro (let’s call the financial adviser Pedro) was trying to sell her a bunch of actively-managed funds that were seriously expensive. These are not index funds I’m talking about, obviously. Perhaps Pedro had a vested interest in pimping these mutual funds. So  [...] 

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Asian stocks have been on the rise of late following a rally on Wall Street. This has come about solely because the dollar was lagging under market pressure that was being exerted on account of the impending Federal Reserve announcement. The announcement that is expected to come through will provide a greater stimulus for a flagging economy and a recovery that has been insipid to say the least. Strong performance was seen across the board as the MSCI Index of the Asia Pacific region was up by .34% assisted ably by a rise in materials and energy in keeping with the sentiments on Wall Street. After the Republicans gained control of the House (but not the Senate), investors have responded positively and the pall of gloom that was hanging overhead seemed to be lifting. Hong Kong’s Hang Index  [...] 

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I remember as a kid often trying to foll my friends while tossing a coin to decide a matter. I used to often say (as quickly as I could), “heads I win, tails you lose” and toss the coin into the air and declare a result before anyone had a chance to raise an objection. It was a ruse that worked beautifully for me for the longest time, and one that got a lot of laughs, but there is nothing funny about the manner in which American banks such as JPMorgan & Chase are dealing with mutual and pension funds. Responsible for the money and savings of many Americans, JPMorgan Chase’s pitch is a very simple one; heads, we all win and tails, you lose. How is that possible? Allow me to elaborate. Here’s how it all works; funds lend instruments such as stocks and bonds to Wall Street  [...] 

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Even as nations around the world are doing all they can to try and encourage their domestic exports and manipulating their currency for their own benefit, Singapore has moved against the tide. The little Asian island nation has announced that they will allow for greater currency gains in an effort to curb inflation even as the economy contracted noticeably. Global demand and growth has slowed down across the board after there has been a drop in demand for electronics and medicines, two major exports of Singapore. The local dollar charted new highs but the Monetary Authority of Singapore has said today that it will increase the currency’s trading band while looking to attain a modest rate of appreciation for the Singapore Dollar. The Gross Domestic Product of Singapore contracted at an  [...] 

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There was a time, a kinder, gentler one, where countries contested to show off their financial muscle and a staunch commitment to sound money. Now, however, countries are signing a very different tune. Everyone wants to create more and the IMF has talked against these currency wars that are now brewing, decrying the manner in which countries are trying to boost their economy by trying to create as much incentive for export as they can. It is a world war like none before it, one being waged financially and there will again be only the victors and the vanquished if it goes on in this manner. It is almost a case of wishful thinking, with many regulatory bodies wanting to make the currency decline but not being able to make it happen. Japan has practically abolished interest rates with the Japanese  [...] 

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The Americans are starting to take on more debt than they can possibly manage at any one time and Hedgeye, an investment research firm, has even gone so far as to tell its subscribers that buying into U.S  government issued debt instruments could potentially be “junk”. This might be dismissed as an absurd notion by some since U.S government debt continues to be trading at very nearly all-time lows in terms of yield, which is the very opposite of what this argument states. But there is more to this than meets the eye; investors are alright with the idea of getting little in  terms of reward for holding U.S debt instruments given that America still holds its AAA credit status, but several economic metrics show a far bleaker picture than that which is present in front of the media. First  [...] 

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Everyone has plans for their future and a lot of it hinges on putting your money where your mouth is by investing sensibly yet somewhat aggressively. All of this is geared towards the long term and there are several different types of financial instruments and vehicles of investments you can hitch a ride on. After all, investments are not only meant for the fat cats plying their trade in the stock markets. Look, let’s be honest; you might be a workhorse and a huge asset to your company, but even the finest thoroughbreds are put out to pasture after some time. When your time comes, have you tucked away a little extra something for that rainy day? If you’re looking to the public healthcare system to take care of you, then even the good lord cannot help you. What if you have some serious medical  [...] 

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Stock market is pretty volatile. Bonds, however, are comparatively stable and dependable. But they too are defenseless against certain factors like economic changes and global financial conditions. One of the factors that highly influence the volatility of bond is prevailing interest rate. They both are inversely proportional. If you have purchased a bond, and the interest rate rises due to unexpected economic events, the face value of your bond will certainly plummet. If you hold the bond until maturity period, your investment wouldn’t be affected by interest rate changes. You will be given the amount you were promised initially, while purchasing the bond. However, if you do not hold the bond until maturity period and trade it like stocks, the only thing you must be concerned about is the  [...] 

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