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Happy days are certainly not here again. In fact, the days to come and the days that have gone by were never anticipated by the market men in last three- four years. The rising oil has played the spoilsport, which has resulted in India’s rate of inflation based on whole sale price index (WPI) shooting up into double digit and settling at 11.05% for the week ended June 20th. this has resulted in 30-shares Sensex of the Bombay Stock Exchange (BSE) tumbling down to six month’s low of 14,571 and broader 50-share S&P CNX Nifty of the National Stock Exchange (NSE) settling at 4,347 as on Friday June 20, 2008.

Now the Questions asked is that how long this situation will continue? The Simple answer is for the rest of the financial year 2009 (FY09). The shooting up of the inflation rate will bring in the Reserve Bank of India (RBI) into the picture. To reign in the rate of inflation, the central bank will try to use all the tools available as its disposal including hike in repo rate, hike in the cash reserve ratio and other measures periodically. Already the exercise of painting gloomy picture about the market has begun. Most of the research outfits have begun to come closed to the reality.

HDFC Securities in a note to its clients said, Indian inflation has shot into double digits to a 13-year, as higher fuel prices fed into the date, driving bond yields up and stocks down on expectations of more action from the RBI. Annual wholesale price inflation, India’s most widely watched measure, rose 11.05% in the 12 month to June 7; it’s highest since May 1995. Inflation near double digits is the last thing any Government would like to see in the run-up to the elections. The fact that this came much above the expected 9.82% shocked the street. India joined a growing number of Asian countries no longer able to afford big subsidies in the face of rising prices. China followed suit on Thursday with an 18 percent increase in petrol and diesel prices. This scenario is not unique to India. Eurozone’s inflation is at a 16 year high. Australia’s at a 17 year high and Pakistan’s at a 30 year high. Unlike most countries, India calculates inflation on the wholesale price of a basket of 435 commodities which means actual prices paid by the consumer are much higher.

More monetary tightening is now likely in a bid to calm inflationary expectations. Repo rate and / or CRR hike are some options available to the RBI at or ahead of its next schedule policy review is on July 29. At 1:12 PM on June20, the 10-year benchmark bond yield was at 8.64 %, it’s highest since November 2001 and 17 basis points above Thursday’s close of 8.47 percent.

Rising inflation could:

Lead to an increase in interest rates in the system based on expectation of monetary tightening by the RBI.

Impact demand for a host of industries – prominent being Auto, Consumer Durables, Realty

Make nominal interest rates more attractive/certain for a host of investors as compared to the uncertain equity markets

Lead to uncertainty in valuation of Banking and Financial space

Raise the risk premium demanded by investors in equities

Bring pressure on the Rupee, especially if the FIIs start withdrawing in a big way, This could create a cycle of lower Rupee and lower Stock prices

Lead to a downgrade in earnings in most industries

Lead to panicky pro-people, anti-business action by the Govt, that would not be welcomed by the market participants What can prevent any or all of these from happening?

A sharp fall in oil prices, that stay lower for a few weeks

Cooling down of food inflation in India due to a bountiful monsoon

Global sentiments towards equities and emerging equities stabilising

Calling of an early general elections in India.

Consider the following two letters to the Editor, recently written by the readers of The Hindu. The subject matter of the letter is Market Mayhem, which we have been witnessing in our markets since last couple of months.

The mayhem on the stock exchanges over the past few trading sessions was expected. The inevitalbe has occurred, whether due to the liquidity problem or the proposed circular on capital gains. The markets had grown steadily over a year or two bringing cheet to all. Concomitant to the rise of the Sensex, the bullion prices soared and there was an appreciable weakening of the rupee against the dollar. However, the fall in stock prices is only accompanied by a marginal reduction in bullion prices while the dollar still rules high. The small investor needs to be prudent while investing in stocks.

K.D.Viswanathan from Coimbatore opined that, This refers to the two editorals, aimed at creating awareness among unwary investors about the risks involved in share market and mutual fund investments. The small and medium investors, in general, appear to be a misguided lot. They ignore the basic principle of “BUY”, when the prices dip and “SELL”, when the prices go up.” Market corrections are inevitable but they affect many when they are severe. None can afford to throw caution to the winds.

Mr. Vishwanathan is right, no one can afford to throw caution to the winds and hence the most question that is being faced by the investors in the recent times of turmoil is what to do? Where to invest, when the markets world over are falling and other commodities like Gold and Silver are getting out of their reach and have been equally volatile. It’s not that only Western markets are in doldrums. Their Indian counterparts have also shown similar amount of choppiness, confusing the domestic investors more. Led by the US markets, due to its sub-prime related liquidity crisis, all the markets inculding the emerging markets have taken a severe beating in last three months.

In case of India, the 30-share benchmark Sensex of the Bombay Stock Exchange (BSE) and the broader 50-shares S&P CNX Nifty of the National Stock Exchange (NSE) have remained most volatile in August as well as in September. Both the Sensex and the Nifty saw volatility of 11.26% and 10.66% in the month of August, which almost doubled to 20.21% and 19.96% respectively in September.

The developments in the US markets at the end of the second week-end of september- the fall of Lehman Brothers, Bank of America taking over the embattled Merrill Lynch and the bail out of world’s financial gain American Investment Group (AIG) by the US government (it provided $85 billion) – bought in open the weakness of the US economy.

It’s not all over, two more leading US investment banks, Morgan Stanley and the Goldman Sachs, are also believed to be in line and more bail out by the US government is expected. This means that the crises is far from over and we may see the continuity of the volatility at the stock markets in the days to come. A report released by the Standard & Poor’s (S&P), world’s leading rating agency on how the world’s markets have performed in august is a worth look at. It says, year till date investors world over in the stock markets have lost more than $6.4 trillion (more than six times the Indian GDP.)

The report released in the first week of September says the world’s developed and emerging equity markets both lost ground in August, and have now produced double digit, negative returns over the past three-months. According to Standard & Poor’s monthly stock market review, The World by Numbers, developed equity market review, The World by Numbers, developed equity markets lost 1.56% in August and have fallen 11.55% over the past three months. The world’s emerging equity markets have fared even worse, falling 7.09% in August and 19.40% over the past three months “Global equity markets continued their dramatic decline that began in mid May, decreasing investor networth in August by $0.8 trillion,” says Howard Silverblatt, Senior Index Analyst at Standard & Poor’s and author of the report. “Year-to-date through August, investor net worth has declined by $6.4 trillion.”

Emerging markets posted their fourth monthly loss in a row (six out of eight for 2008) declining 7.09% in August. The three-month toll is now-19.40%, with the 12-month period now posting a -7.27% decline. Only the Philippines (+1.68%) and thailand (+0.90%) managed to produce positive gains in August. Pakistan declined 20.57%) as political unrest continued, while Russia declined 15.23%). Developed equity markets (-1.56%) did not fare much better in August as only the United States (+1.54%) and the Netherlands (+0.85%) produced positive returns during the month.

Six of the ten GICS sectors declined in August as Materials posted a 6.99% return. consumer Discretionary in the U.S rebounded to produce a return of 1.89%, but the ex/U.S. component of the group was off 1.99% for the month. Growth and Value were both down in August, but performance was split by region. Growth’s overall 1.60% decline during the month was the result of a 6.63% drop in the Asian Pacific market and a l.46% gain in the North American region. Value saw similar results, declining 1.50% during the month with Asia Pacific down 4.46% and North America up 0.92%. “U.S. decoupling, which was generally accepted late last year/early this year, has now been reversed with pundits again speaking about size, leadership, and the American economy’s ability to ride out the storm,” concludes Silverblatt. Though the ability of the US and other developed economies cannot be doubted as within a day of crises, all the major central banks including US Fed, Bank of England and the Bank of Japan injected $247 billion to ease the liquidty conditions i their respective economy point of view but if we see it from the India’s point of view, the amount injected is almost equivalent to the total foreign exchange reserve of the country.

The bail out and subsequent injection of liquidity had its desired impact on the bleeding stock markets across the globe including the India, where the Indian finance minister stepped in to dissuade investors fears and declared Indian systems completely insulted from the global crisis and the Indian banking sector is least affected by the global turmoil.. The Sensex and the Nifty posted its one of the biggest intra-day gains on Friday September 19,2008.


Source by Girish Patel

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Where to Find Those Efficient and Hardworking Affiliates?




Everyone wants a hardworking affiliate, employee, associate, partner, or even spouse, and why not? It’s the next best thing to doing the work yourself. However with the massive outbreak of work and income opportunities available online, how can you beat everyone else and find that one (or more) ideal person who will make your online business explode with success? Here are some of the most ingenious and uncommon ways to snag the idea affiliates for your affiliate program

Direct Sales Agents

Direct sales people are really one of the most enterprising, hard-working individuals in business. They mostly work on commissions or rebates and are willing to literally go door-to-door offering their products to anyone and everyone they bump into. Imagine how much easier their job would be if they could be an affiliate and simply work via the Internet and a mobile device or desktop.

Also, most direct sales people tend to carry more than one brand in their product arsenal so signing up as an affiliate would be almost the same type of work but using a different approach.

Colleges and Universities

Many college kids would be interested in a part-time income opportunity if it would mean funds to help pay for their education, loan, or partying. All you have to do is make sure to offer them products they can endorse as a student.


Did you know that the U.S. Census Bureau’s latest annual report show that 75% of U.S. businesses used freelancers in 2011? Freelancers earned a whopping US$990 billion in 2011 which is a 4.1% increase from the previous year. The only industries where the number of freelancers decreased were in insurance, finance, and construction. Most probably your affiliate program isn’t a part of these 3 industries.

Furthermore, online business and finance experts are predicting the growth to increase incrementally every year even with an economy that is improving. People just want income security and more control over their earnings. With the spate of lay-offs, it’s understandable why many would prefer to work as an affiliate than as an employee.

Scout For Them At Affiliate Conventions

There are annual affiliate conventions held in different cities around the country. You should try to catch one when it is held somewhere near your location. The average turn-out for these types of conventions has increased regularly over the years. Last year, many of them were sold out weeks before the event.


The US Census Bureau has said that as of 2012, 15% of Americans are poor, 43% of young adults depend on their parents to some extent for money. Even more surprising is that the median income of young adults in 1982 was $31,583 and last year it was $30,604 for the same age group! Income is dropping and people are looking for ways to earn additional income outside of their 9 to 5 jobs. That’s where you can come in playing the hero and helping others realize their dream income.

Finally, go online and talk about your product. Make the affiliate marketers come to you and have the luxury of picking the best candidates. You will need some help in marketing your affiliate program so target a marketer who’s experienced in affiliate program and SEO.


Source by Lina Stakauskaite

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Recession Is Here… Six Costly Mistakes Home Sellers Make During Recessions And How To Avoid Them




The U.S. is officially in a recession. What is a recession? A recession is a business cycle contraction or general economic decline due to significant drop in spending and other commercial activities. Most pundits and politicians will blame Covid-19 crisis for the recession, but even pre-Covid-19 the proverbial writing was on the wall.

The U.S. had over 120 months of economic growth, which was the longest expansion in the modern history. Other indicators, such as negative yield spread on treasuries (long term bonds having lower interest rates than short term T-notes), were pointing to an imminent change of the economic cycle and an impending recession. The only real question was: when and how bad?

Then Covid-19 came… If the cycle was going to change anyway, Covid-19 acted as a huge and unexpected accelerant to make the recession much more immediate and severe.

Inevitably during recessions all classes of real estate, including residential homes and condominiums, will be negatively impacted as lower consumer spending and higher unemployment rates affect real estate prices and marketing times.

Here are the six costly mistakes home and other real property sellers make during recessions and how to avoid them:

Mistake #1: This will pass and real estate market will be hot again soon

First thing to remember is that real estate cycles are much longer than general economic cycles. Even if the general economy recovers, which eventually it always does, a typical real estate cycle takes as long as 10 to 15 years. The cycle has four key stages: Top, Decline, Bottom and Rise.

Let us consider the last real estate cycle, which lasted approximately 14 years:

  • 2006 – Prices hit the Top
  • 2006 to 2012 – Prices Decline
  • 2012 – Prices hit the Bottom (Trough)
  • 2012 to 2019 – Prices Rise*
  • 2020 – Prices hit the Top
  • 2020 to? – Prices Decline

*NOTE: In 2016 the national residential real estate price index reached its pre-recession 2006 peak levels. It took 10 years for the real estate market to recover.

The way to avoid this mistake is to recognize that real estate cycles take years to run and plan accordingly. Additionally, nobody knows for sure when the prices will hit the top or bottom until after the fact.

Mistake #2: Low interest rates will make the economy and real estate market rebound

Between 2006 and 2011 the interest rates (Fed Funds) were continuously cut by the Federal Reserve Board and went from low 5% to almost 0%. However, that did not stop the real estate recession and depreciation of property values.

Undoubtedly, low interest rates made the economic decline and real estate recession less severe and saved some properties from foreclosures, but it still took six painful years for the real estate market to hit the bottom and then four more years for the prices to go back to their pre-recession levels.

Some markets had never fully recovered. For example, residential home prices in some parts of California, Arizona and Nevada are still below their 2006 highs.

To avoid this mistake, one needs to realize that although low interest rates help stimulate the economy and the real estate market, they do not cure them.

Mistake #3: I don’t need to sell now, so I don’t care

If you do not need to sell until the cycle plays out, which typically is over ten years, then you will not be as affected, especially if you have a strong equity position, limited mortgage debt, and solid liquid assets.

However, it is good to keep in mind that “life happens” and either professional or personal circumstances can change and we may need to sell property before the downturn runs its course.

Furthermore, if a property has a mortgages and its value declines to the point being “upside down,” meaning the mortgage loan balance exceeds the value of the property, then the options of selling, refinancing or even obtaining an equity line of credit, will be significantly limited.

This does not mean that everybody should be rushing into selling their real estate if there is no need to do so, just keep in mind that circumstances may and often do change and property options will be affected, so plan in advance. As one wise proverb says: “Dig your well before your thirst.”

Mistake #4: I’m selling, but I won’t sell below my “bottom line” price

This is a common and potentially very costly mistake. Generally speaking, every seller wants to sell for the highest price and every buyer wants to pay the lowest price. That’s nothing new. When selling real estate, most sellers want to achieve a certain price point and/or have a “bottom line.”

However, it is important to understand that the market does not care what the Seller, or his/her Agent, think the property value should be at. The market value is a price a willing and able buyer will pay, when a property is offered on an open market for a reasonable amount of time.

Overpricing property based on Seller’s subjective value or what is sometimes called an “aspirational price,” especially in a declining market, is a sure first step to losing money. When a property lingers on the market for an extended period of time, carrying costs will continue to accumulate and property value will depreciate in line with the market conditions.

Additionally, properties with prolonged marketing times tend to get “stale” and attract fewer buyers. The solution is to honestly assess your selling objectives, including the desired time-frame, evaluate your property’s attributes and physical condition, analyze comparable sales and market conditions, and then decide on market-based pricing and marketing strategies.

Mistake #5: I will list my property for sale only with Agent who promises the highest price

Real estate is a competitive business and real estate agents compete to list properties for sale which generate their sales commission incomes. It is not unusual that Seller will interview several agents before signing an exclusive listing agreement and go with the agent who agrees to list the property at the highest price, often regardless if such price is market-based.

Similarly to Mistake #4, this mistake can be very damaging to Sellers, as overpriced properties stay on the market for extended periods of time costing Sellers carrying expenses such as mortgage payments, property taxes, insurance, utilities and maintenance.

Furthermore, there is the “opportunity cost” since the equity is “frozen,” and it cannot be deployed elsewhere till the property is sold. However, the most expensive cost is the loss of property value while the real estate market deteriorates.

During the last recession, we have seen multiple cases where overpriced properties stayed on the market for years and ended up selling for 25% to 40% below their initial fair market values.

The solution is to make sure that your pricing strategy is based on the market, not empty promises or wishful thinking.

Mistake #6: I will list my property only with Agent who charges the lowest commission

Real estate commission rates are negotiable and not set by law. A commission usually represents the highest transactional expense in selling real properties and is typically split between Brokers and Agents who work on the transaction

Some real estate agents offer discounted commissions, in order to induce Sellers to list their properties with them. But does paying a discounted commission ensure savings for the Seller? Not necessarily.

For example, if the final sales price is 5% to 10% below property’s highest market value, which is not that unusual, due to inadequate marketing, bad pricing strategy, and/or poor negotiation skills, it will easily wipe out any commission savings and actually cost the Seller tens of thousands of dollars in lost revenues.

The solution is to engage an agent who is a “Trusted Advisor,” not just a “Salesperson.” A Trusted Advisor will take his/her time and effort to do the following: 1) Perform Needs Analysis: listen and understand your property needs and concerns; 2) Prepare Property Analysis: thoroughly evaluate your property and market conditions; 3) Execute Sales and Marketing Plan: prepare and implement custom sales and marketing plan for your property; and 4) Obtain Optimal Results: be your trusted advocate throughout the process and achieve the best possible outcome.

Finding such a real estate professional may not be always easy, but it certainly is worth the effort and will pay off at the end.

In conclusion, this article has outlined six costly mistakes real estate Sellers make during recessions and how to avoid them. The first mistake is not understanding that real estate cycles are long and take years. The second mistake is a misconception that low interest rates alone will create a recovery. Another mistake is not realizing that circumstances may change and not planning in advance. Mistakes number four, five and six pertain to understanding the market value, proper pricing and selecting the right real estate professional.

By understanding and avoiding these mistakes, real estate Sellers have significantly better chances of minimizing the negative impact of a recession while selling their properties.


Source by Robert W. Dudek

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Useful Tips To Build The Best Gaming Computer




Every gamer will want their computer to be the best gaming computer among their peers. Sometimes, with a little knowledge and tips and tricks, it is possible to build the best gaming computer and show it off to your peers. This article will show you how:

1) You can’t get the best gaming computer from computer retailers

If you want to get the best gaming computer, you have to build your own. Different gamers have different requirement for their gaming machine. Unless you are willing to pay a high price, you will not be able to buy a commercial computer that fulfills all your gaming needs. The only option you have is to build your own gaming computer.

2) You don’t have to be rich to build the best gaming computer

It is not necessary to burn a hole in your pocket to build the best gaming computer. With some due diligence, do some market research and compare prices around the marketplace. Merchant such as TigerDirect and NewEgg give regular discount to their products and you could save a lot of money if you catch them during their promotional period.

3) Most expensive parts do not have to be the best part

Sometime, the latest model or the most expensive model does not have to be the best part for your computer. It requires various components to work together to form the best computer system. When choosing a computer part, what matters is how well it can integrate with the rest of the components. Compatibility is more important than individual performance. What use is there if you spend lot of money on the latest quad-core processor and find that your motherboard doesn’t support it?

4) You don’t need to change the whole PC to own the best gaming computer

It is a misconception that you have to change the whole gaming machine to build the best gaming computer. If you already have a good barebone system, what you need to do is to upgrade the necessary parts and your gaming computer can roar back to life instantly.

5) Brand is important

Unless you want to see your computer system malfunction every few days, it is important that you purchase the parts from branded manufacturers with strict quality control. Motherboard brand such as Gigabyte, ABIT, ASUS are some quality brands that you can consider

If you follow diligently to the tips stated above. You will be on your way to build the best gaming computer. While price can be an issue, it is better not to scrimp on important computer parts such as motherboard, CPU, RAM and graphics card as it will cost you more to upgrade in the future.


Source by Damien Oh

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