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Market View
Tracked by: 0 Boarder
Despite the current market turmoil - rest assured - there are still places where your money has some degree of protection.
With stocks and bonds in turmoil, and the housing market still in the dumps, you`re probably wondering: Are there any safe places to stash your money in this market?
It may not seem like it, given that some of the most conservative vehicles, including money-market mutual funds, have come under pressure in this financial crisis.
For example, The Reserve, the nation`s first money fund firm, announced in mid-September that investors in its Primary Fund would lose value. This marked the first time in more than a decade that a money fund has handed its investors losses.
Savers who tried to eke out a little extra yield than money funds provide experienced their own set of chills recently.
Ultra-short-term bond funds invest in debt with maturities ranging from three months to a year - and are therefore supposed to be just one notch higher than money funds when it comes to risk.
But thanks to, you guessed it, bad bets on mortgage-backed securities, the average ultrashort bond fund lost around 4% over the past year. Some funds, like Schwab YieldPlus Fidelity Ultra-Short Bond have seen double-digit losses in the past 12 months.
But rest assured, there are still extremely safe places to stash your cash. Among them:
Bank money-market accounts and CDs
While it`s hard to tell which banks will eventually survive this financial meltdown, remember that bank CDs and money market accounts (not to be confused with money market mutual funds that are run by fund companies) are FDIC-insured.
That means deposits up to $100,000 per person per institution ($200,000 for joint accounts) will be protected by the Federal Deposit Insurance Corp.
Even better: Because the Federal Reserve has not yet lowered short-term interest rates, many CDs and money market accounts are offering higher yields than you would find in a taxable money fund.
Recently, you could earn as much as 4.5% on a one-year CD, while bank money market accounts were yielding as much as 3.5%. Both are far better than the average 1.9% rate on money market funds.
Stable-value funds
Chances are, your 401(k) offers a stable-value fund. Check it out. Stable value funds invest in high-quality short- to intermediate-term bonds, which are guaranteed by insurers against loss, as well as interest-bearing contracts from insurance companies.
Has your faith in insurance companies been somewhat shaken in this financial storm? Don`t worry. Most stable-value funds invest not only in a diversified portfolio of debt but also in securities covered by several different insurers. And these funds were recently yielding around 4%.
Money Market Funds
Even though one prominent money fund just broke the buck, Uncle Sam has recently stepped to shore up confidence in these popular cash vehicles. On Sept. 19, the Treasury Department put in placea new guarantee for money funds - essentially a type of FDIC insurance - promising that investors will get $1 back for every $1 invested, with no dollar limit.
The so-called Temporary Guarantee Program will last only three months but can be extended into 2009 if needed. Because it only applies to cash that was in money funds as of Sept. 19 - and since not all money funds will choose to sign up - you still have to do to some homework to stay safe.
So call your money funds to see if they intend to purchase this government insurance. Also, stick with financial firms such as Vanguard, Fidelity and American Funds that have the financial resources to preserve the $1 share value in their funds.
And don`t "stretch" for yield. The average yield for taxable money funds is 1.9%. If you see one whose yield is much higher, that could be a sign that it`s taking too many risks.
By Money Magazine staff
...
Tracked by: 0 Boarder
I beg to differ with you. Bhave & Subbarao are greta beaurocrats and dynamic too. What you see today seamless trading & demat transaction is Bhave`s creation. RBI`s hawkish stand has actually saved Indian economy. Infra sector lending was discouraged by RBI two years ago. RBI was criticised when $ came down to Rs. 38.50. If RBI had not allowed Re to slide, software exports would have hit and economy would have gone in to recession. By going back by two steps, RBI has actually saved India. Crude will come down to $ 50 and Dollar will collapse, so we should not worry about todays exchange rate. SEBI will interven at an appropriate time in stock market. If India becomes super power tomorrow, you need to thank RBI, SEBI, IRDA, ICAI and of course the policymakers....
In reply to:
Paulson`s Poison & Antidote
Posted by :
Sriman35
-Q-
It all depends how imaginative our PM and FM are. Being a good person is not enough. India needs leadership of highly imaginative persons who are relatively young (40+ to 55-) who can stay longer.
-UQ-
Dear Kalidas ji,
It is my understanding, from your previous posts, that the trio (PC/Reddy/Damodaran) lacks imaginative skills.
Now PC is same. (Finance minister)
Damodaran replaced by Bhave (puppet in my opninion i.e almost all SEBI chairmans)
Y.V.Reddy gave way to D.Subbarao(puppet in my opninion i.e almost all RBI governor`s)
Any change in your opinion, now considering the changes...! Is the latest team good enough..?
-Q-
India needs leadership of highly imaginative persons who are relatively young
-UQ-
I believe you are one of the qualified person. But you are 5000 miles away from many many years. You know what I am trying to say..!
Have you ever felt that `I could have done better, in terms of social wealth, If I had stayed back In India`..!?
Regards,
Sri 
Tracked by: 108 Boarders
those TOM and HARRY were buying at 6000,they have to sell now at 50% price otherwise they will be forced to sell at 25% of price....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : aahoo
Dear BSR
All in the street are talking about market crash. Every TOM and HARRY is selling. To me it seems bottom have arrived. From here it is going to be different story. For a long time Indian market is tracking US market. It is time to concentrate on our own strength. Policy makers are also preparing the ground for stability. It is time to invest rather than looking for elsewhere for cues.
aahoo (the real bull)
Tracked by: 108 Boarders
Hi sanjay,
Everything is possible. But nothing happens without
significant reason behind it....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : sanjay38000
if we can go from 700 to 6300..why we can not return..to 1800. everything is possible.
Tracked by: 108 Boarders
Oh okie, googol.
Thanks!
Gud luk & happy investing! :)
...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by :
googol
0604
Dear BSR,
While many were predicting dooms day for the last one year just citing chart as the reason,only Kalidas explained the hole called subprime that American cos are in,by last Dec so precisely and said that Indian mkts would tank at the latest by III week of Jan and the fall would be more than 70% (from 6000 levels)and advised all to sell all their holdings and keep as cash.Pl.go thro` the archives to see some of his gems.He was the first one to predict the dooms day of ICICI bank when it was at 900 saying that it would fall to 200-.
He even now maintains that more pains are in the offing
Regards,
Tracked by: 108 Boarders
Dear BSR
All in the street are talking about market crash. Every TOM and HARRY is selling. To me it seems bottom have arrived. From here it is going to be different story. For a long time Indian market is tracking US market. It is time to concentrate on our own strength. Policy makers are also preparing the ground for stability. It is time to invest rather than looking for elsewhere for cues.
aahoo (the real bull)...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : BullSheetRules
Dear fmcgbites,
Latest BS views say Limited Downside and Sharp Upside Movements! :)
Let us hope better sense prevails among those Big Players!
Firm Support for Nifty around 3450 just like 9800 currently for DOW!
Those FIIs just need to stop that MAD SELLing for one or two days to get those Swift Movements!
Gud luk & happy investing! :)
Tracked by: 108 Boarders
bear market is going to end? so soon? it has not begin yet, this is just some healthy chop & correction. time wise pain and depression has yet to hit stock market....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : hindlevernet
Dear Vicku,
Many thanks for compliments. Bear market is likely to
end soon. if it does in near future, then I will be able
to see the next peak very clearly with my EWT telescope.
As soon as I see the peak, I will start a new thread here
which may read like....................................
WILL NIFTY CROSS 7000 BEFORE 2009 END ?
Thanks again
Tracked by: 755 Boarders
Dear Bhavna,
You are risking your investments if you are investing in FMPS for the yield you mentioned , even FDs today have a better return than that and that too at no capital risk.
Liquid Funds should have been the funds of your choice in these markets.
Anyways, good to know you are happy with what you are doing.
Enjoy the fall.
:-)...
In reply to:
Its time to prepare shopping list guys !
Posted by : bh2008
hi ankur, as usual i saw ur mssg a little late... i used to chk the site everyday but nobody seemed to be here.. so got tired and stopped chking...
thanks for ur inputs... and u are rite this is a good market to make money...esp. yesterday and today was very good... i had bought some shares like unitech, relcap, bharti, icicibank when the markets were at its lowest and made good profit doing intra day. i am buyig and selling at the first opp. and not getting very greedy.
i have already invested some money in fmps when the yeild was quite high...10.45.... and i do not have any f.d's but thanks for the advice.
pls keep posting ur suggestions and what u are doing!!!!!! "a little more regularly." people like me are always waiting for some inputs from u and ritesh. thanks bhavna
Tracked by: 108 Boarders
Dear fmcgbites,
Latest BS views say Limited Downside and Sharp Upside Movements! :)
Let us hope better sense prevails among those Big Players!
Firm Support for Nifty around 3450 just like 9800 currently for DOW!
Those FIIs just need to stop that MAD SELLing for one or two days to get those Swift Movements!
Gud luk & happy investing! :)...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : fmcgbites
BullSheetRules,
can you seeing 3200 now on nifty? what is your latest BS views?
Tracked by: 1 Boarder
Shares of GE fall to 11-year low
Bellwether of U.S. economy in steady decline amid financial crisis, company reports losses in loan and lease business
PORTLAND, Ore. (AP) -- Shares of General Electric Co. hovered at around $20 Monday, the lowest point in more than 11 years as a sell-off pulled down broader markets.
The share price of the industrial and commercial conglomerate, a bellwether of the U.S. economy, has slid steadily since the financial crisis hit Wall Street last month. On Sept. 25, GE (GE, Fortune 500) cut its earnings forecast for the year, blaming volatile financial markets damaging the profitability of its loan and lease business that accounts for almost half its income.
Last Thursday, share prices fell nearly 10% as GE announced an offering that was priced at a discount to the stock`s closing price the previous day. GE priced 547.8 million shares at $22.25 each - the same price GE extended to Warren Buffett, whose Berkshire Hathaway Inc. on Wednesday agreed to receive warrants to purchase $3 billion worth of common stock over the next five years.
The price for the $12.2 billion offering represents a 9% discount to GE`s Wednesday close of $24.50.
Shares of GE lost $1.12, or 5.2%, to $20.45 in morning trading. The stock earlier fell as low as $19.69. GE last dipped below $20 on May 9, 1997 when shares traded at $19.42.
...
In reply to:
No one is too big not to fall
Posted by : sambala
Funds dry up in Golden State
By Matthew Garrahan and Nicole Bullock in Los Angeles
California’s economy, which would be the eighth biggest in the world if the state was a separate country, is teetering on the brink of a financial crisis intensified by the credit crunch.
California is weeks away from running out of money. In a letter to Hank Paulson, the US Treasury secretary, Arnold Schwarzenegger, California’s governor, last week admitted an immediate $7bn (€5bn, £4bn) was needed to pay for essential public services, such as police and fire-fighters
California would normally generate interim funding by issuing “revenue anticipation notes” in the short term credit markets to tide it over until tax revenues arrive later in its financial year. But the door to the credit markets is firmly closed.
Other states are also suffering from poor economic conditions and declining tax revenues.
Florida, Nevada, Massachusetts and Ohio have dipped into their reserves to maintain spending, according to Robert Kurtter, managing director of Moody’s US public finance group. But he said California’s situation was unique as it often relied on the capital markets to maintain spending commitments.
“When you have that dependency year-in-year-out you are going to get caught out when the markets are disrupted,” he said. “And that’s exactly what happened.”
Unlike most other states, California does not have a reserve fund and because it depends heavily on capital gains tax and stock option realisations, its revenues can be volatile. The looming cash flow crunch has caused considerable alarm.
“We are two weeks or so away from not being able to pay teachers and fire-fighters,” said Ross DeVol, director of regional economics at the Milken Institute, a Los Angeles-based think-tank.
Passage of the $700bn bail-out bill last week may not have solved the state’s immediate problems. “If we could get through the next two or three weeks without another financial institution being taken over that might restore confidence in counter-parties. But I don’t think the bill will free up the credit markets in the near term.”
Others in the municipal bond arena are more hopeful the bail-out will ease credit conditions for state borrowers. “I am hopeful that this bill will serve as the catalyst to provide stability and a resumption of normal activity,” said Ben Watkins, director of bond finance for the state of Florida.
Florida is facing a projected budget deficit of about $1.4bn and recently postponed a $200m bond issue earmarked for school construction.
Bill Lockyer, California’s treasurer, said immediate cash needs could be met with as little as $3bn.
But to end its reliance on the markets, California must first become better at balancing its budget, said Mr Kurtter. “Typically, when entities get into trouble it begins with cash flow. And when you are chronically running budget deficits, your cash is going to dry up.”
Tracked by: 108 Boarders
Dear Vicku,
Many thanks for compliments. Bear market is likely to
end soon. if it does in near future, then I will be able
to see the next peak very clearly with my EWT telescope.
As soon as I see the peak, I will start a new thread here
which may read like....................................
WILL NIFTY CROSS 7000 BEFORE 2009 END ?
Thanks again...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by :
vicku07
HNL,
Targets achieved. Congrates!!! The next target nifty 7000 by 2009 is the one i will be waiting for.
Tracked by: 108 Boarders
yes 700 and below 700 is also possible too. everything must be sold....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : sanjay38000
if we can go from 700 to 6300..why we can not return..to 1800. everything is possible.
Tracked by: 0 Boarder
-Q-
It all depends how imaginative our PM and FM are. Being a good person is not enough. India needs leadership of highly imaginative persons who are relatively young (40+ to 55-) who can stay longer.
-UQ-
Dear Kalidas ji,
It is my understanding, from your previous posts, that the trio (PC/Reddy/Damodaran) lacks imaginative skills.
Now PC is same. (Finance minister)
Damodaran replaced by Bhave (puppet in my opninion i.e almost all SEBI chairmans)
Y.V.Reddy gave way to D.Subbarao(puppet in my opninion i.e almost all RBI governor`s)
Any change in your opinion, now considering the changes...! Is the latest team good enough..?
-Q-
India needs leadership of highly imaginative persons who are relatively young
-UQ-
I believe you are one of the qualified person. But you are 5000 miles away from many many years. You know what I am trying to say..!
Have you ever felt that `I could have done better, in terms of social wealth, If I had stayed back In India`..!?
Regards,
Sri...
In reply to:
Paulson`s Poison & Antidote
Posted by : Kalidas
for drswastik
Banking collapse has begun. Even Japan has started withdrawing money from everywhere, this is why Japanese Yen despite Zero interest, is going up against US$, Euro, GBP, Aussie $ etc.
It is a home coming of all currencies. All foreign investments of FII will be liquidated either out of strategy, or requirements of funds redemption back home. It has nothing to do with the fundamental of individual companies.
When the banks collapse, the people will shift the money to treasury bonds. When they find that even treasury is useless, they buy only one thing - GOLD
WHERE IS IMF? Have you heard its name in such humongous crisis? Whenever there was crisis in Asia or Latin America, they were rushing here and there and offering many solutions on stringent terms. Now that their original mentor USA is in deep trouble, they do not utter even a single sentence.
Finally, after these currency and banks collapse, the world monetary system will be linked to Gold as standard. It may happen when the current crisis is fully played out.
Almost all troubled banks are nationalized. The only countries to come out strongly will be India (China too), France and Brazil.
India is very strongly positioned. It is least leveraged, almost all banks are already nationalized, so there will be no run on the banks, has over 30,000 tons of gold with private holders, people are now more literate now, and the country is blessed with well defined friendly weather. There is no better place than India. Most NRIs will start sending money to India from their banks (except perhaps Canada). If only RBI does not intervene to keep the rupee low, which is the most hazardous policy over decades - rupee should have been at Rs 26 now - that is biggest disincentive to NRIs
We can not predict the market even for tomorrow, so do not talk about 2010 and 2011 like an Astrologer.
Yes, one thing, The best opportunities for long term investment is coming in a few months. Brace it for that. If some FII withdraws the money from India that causes the loss of hundreds of points, that is more due to his weakness, or requirements back home, rather than the weakness of Indian economy.
It all depends how imaginative our PM and FM are. Being a good person is not enough. India needs leadership of highly imaginative persons who are relatively young (40+ to 55-) who can stay longer. We should not have leaders for whom we would have national holidays in a few years with flags hanging out at half mast.
Kalidas, Hong Kong`
6-10-2008
Tracked by: 108 Boarders
if we can go from 700 to 6300..why we can not return..to 1800. everything is possible....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : pkk07
Nifty at 1800? That will never come. Never ever. Unless there is a nuclear war of course...
Tracked by: 108 Boarders
My losses since January 2008. I don`t know what to do......
(75,996.59) September
2,001.97 August
31,590.12 July
(102,509.70) June
(37,439.67) May
39,519.15 April
(68,353.29) March
(13,233.85) Feb.
(118,205.02) Jan.
(342,626.87)
...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : googol
0605
Dear vam,
This week:
Mad Monday
Terrible Tuesday
Worrisome Wednesday
Tranquilizing Thursday*
Fearsome Friday
Good Luck
*Market holiday
