Fed rate cut – will they help the stock?

Last month, the Fed took a drastic step to double the rate by a total of 125 basis points. And with a drop of 225 basis points from last fall, what does that say about the potential stock return? Let’s look at the historical facts.

Since 1950, the Fed has lost more than 200 basis points 11 times in an effort to mimic a weak economy. Economists believe the rate cut will take six months to take effect, which should last up to three years. So I examined the S&P 500 index for each rate-cut period and the one- and three-year returns of the FAMA / French Small Cap Value benchmark portfolio.

After deducting 200+ basis points, the average one-year return of the S&P 500 was 13.5% and two negative-return periods. The average three-year return of the S&P 500 was 31.8% with a negative-return period.

However, the Fama / French Small Cap Value benchmark portfolio does well. One year average return is 34.5% without any negative return. The three-year average return was 100.5% with only one negative-return period.

Periods of rate cuts S&P500 S/V* S&P500 S/V*
of 200bp or more 1y ret 1y ret 3y ret 3y ret

Oct 1957 - Mar 1958 32% 64% 55% 106%
Apr 1960 - Jan 1961 11% 23% 25% 47%
Apr 1970 - Nov 1970 8% 12% 10% -1%
Jul 1974 - Oct 1974 21% 34% 25% 149%
Apr 1980 - May 1980 -19% 46% 46% 175%
Jan 1981 - Feb 1981 -14% 10% 20% 131%
Jun 1981 - Sep 1981 4% 25% 143% 141%
Apr 1982 - Jul 1982 52% 96% 78% 174%
Aug 1984 - Nov 1984 24% 31% 41% 39%
Sep 1990 - Mar 1991 8% 29% 19% 89%
Sep 2000 - May 2001 -15% 19% -11% 57%
Average 13.5% 35.4% 31.8% 100.5%
*S/V = Fama/French Small Cap Value benchmark Portfolio
Data sources: Federal Reserve, Kenneth French data library

It is clear from historical data that lowering the Fed rate does not guarantee monetization from stocks. However, they do increase the likelihood of that happening – especially with small cap stocks. (Note: The probability of losing money with the S&P 500 index in any given year is about 30%.)

Martin Zweig once said:

Don’t fight the Fed!

How wise was his advice!

Bitcoin Buying Guide – Easy 3-Step Guide to Buying Your First Bitcoin

Looking for a Bitcoin Buying Guide? Wondering where to start? People have a lot of misconceptions about Bitcoin – the first widely known and recognized cryptocurrency worldwide.

For example, many people think that only hackers and shadowy people use it. However, Bitcoin is actually going mainstream with everyone from TigerDirect to Dell from Expedia.com and even Subway now accepting payments in Bitcoin.

Why so popular?

Well, Bitcoin has many advantages over other currencies. For example, you can send Bitcoin as a payment to someone without a bank intermediary (and hit with extra fees). This is much faster than sending money through a bank wire or transfer. You can send Bitcoin to someone and receive the coin in seconds.

With all this, it is not surprising that many people are now trying to buy Bitcoin for the first time. But it’s not as easy as going to your bank and withdrawing bitcoin – or going to a store and hiding some hard-earned cash for bitcoin.

The system works a little differently than that. This bitcoin buying guide will take you through a few things you need to know before you buy – so that you can buy safely and securely.

First, the price can be over $ 2000 per coin, you don’t have to buy a whole bitcoin. Most places let you buy a bit of Bitcoin for as little as 20. So you can start small and go from there because you feel more comfortable with the way you work.

Second, this article will not be taken as general purpose and financial advice only. Bitcoin can be risky and you should consult with your financial advisor before making any purchases to see if it is right for you.

So here are 3 easy steps to buy Bitcoin:

# 1 Get a Bitcoin Wallet

The first step before buying your coins is to get a virtual wallet to store your coins. This wallet is a string of text that people can use to send you bitcoin.

There are a variety of wallets available on your phone or computer, including online wallets and even offline, cold storage wallets.

Most people like to get a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo Mycelium and Zapo.

It’s usually as simple as downloading Wallet to your phone as an app or downloading software to your computer from Wallet’s main website.

# 2 Decide where to buy

There are different types of places to shop and each one is a little different. There, online sellers will sell you Bitcoin directly in cash (or bank wire or credit card).

There are exchanges where you can buy and sell bitcoin from others – like the stock market. There are also local exchanges that link you to vendors in your area who want to sell.

There are also ATMs where you go shopping with cash and deliver your coins to your wallet within minutes.

Every bitcoin seller has their advantages and disadvantages. ATMs, for example, are great for privacy, but they will charge you up to 20% above current prices, which is ridiculous. (At the BTC price of $ 2000, that’s $ 400! So you’re paying $ 2400 instead of $ 2000).

Wherever you decide to buy, be sure to do your research and go with a trusted seller with a good reputation and strong customer service. First-time buyers will have particular questions and may need additional assistance to help them with their first transaction.

Take your time and research different places to buy before you make a decision. Things to consider include currency prices, additional fees, payment methods and customer service.

# 3 Buy Bitcoin and carry it in your wallet

Once you find a place to buy, prepare your funds (meaning you can send a wire transfer or use your Visa to fund your account). Then wait for a better price. (Bitcoin prices fluctuate 24 hours a day, 7 days a week). Then place your order when you are ready.

Once your order is complete and your coins are ready, you may want to send them to your wallet. Just enter your bitcoin address and ask the seller to send your bitcoin. They will appear in your wallet within minutes to an hour (depending on how fast the seller is sending them).

Voila, you now own a bitcoin. You can now send coins to pay for other products and services, or hold them for rainy days.

One last thing to remember: Bitcoin is still in its infancy. There are huge price swings and the currency can be risky. Don’t buy more bitcoin than you can afford to lose.

A market mania stage

What is a mania? It is defined as a mental disorder characterized by agitation, agitation, delirium, and excessive activity. In the case of investing, it translates into investment decisions driven by fear and greed without analysis, reason or balance of risk and mood with reward results. Mania usually runs parallel to the business development of the product, but time can sometimes move diagonally.

The technology dot boom of the late 90’s and today’s cryptocurrency boom are two examples of how a mania works in real time. These two facts will be highlighted at each stage in this article.

Idea stage

The first stage of a mania begins with a great idea. The concept is not yet known to many, but the potential for profit is huge. This is usually translated as unlimited profit, since “something like this has never been done before”. The Internet was one such event. People who used paper systems at the time were skeptical that “how could the Internet replace such a familiar and accessible system?” The backbone of the concept begins to form. It has been translated into modems, servers, software and web sites that are needed to make the concept a reality. Investments in the concept stage start lazily and are made by people to “inform”. In that case, it could be dreamers and people working on projects.

In the cryptocurrency world, the same question is being asked: how can a piece of crypto code replace our currency system, contract system and payment system?


The first web sites were crude, limited, slow and annoying. The skeptics would look at the word “information superhighway” that dreamers were blowing and saying “how can this be really useful?” The forgotten element here is that ideas start from their worst and then evolve into something better and better. This is sometimes due to better technology, more scale and cheaper cost, better application for the product in question, or more familiarity with the product combined with great marketing. In terms of investment, early adopters are entering, but there is still no surge and astronomical return. In some cases, investments have made decent income, but not enough to make the public jump. This is similar to the slow internet connection of the 1990’s, the crash of Internet sites or the incorrect information in search engines. In the cryptocurrency world, this is being perceived by high mining costs for coins, slow transaction times, and account hacking or theft.


Word started to come out that this is the internet and “.com” hot new thing. The product and precision are being built, but due to the wide scale involved, the cost and time spent will be extensive before everyone uses it. The investment aspect of the equation begins to precede the development of the business as the market discounts the business potential with the value of the investment. The tide has begun to turn, but only among early adopters. This is happening in the cryptocurrency world with the explosion of new “altcoins”, and the big media press that is gaining ground.

The Euphoria

This stage is influenced by the parabolic return and potential offered by the Internet. Don’t think too much about implementation or problems because “returns are huge and I don’t want to miss out”. The words “irrational outburst” and “mania” are becoming commonplace because people are buying out of sheer greed. Negative risks and negatives are widely ignored. Mania’s symptoms include: dot com red hot with any company name, analyzes thrown out the window for optics, new entrants have less and less investment knowledge, expectations of 10 or 100 bagger returns are common and very few people actually know how the product works or Doesn’t work. It has played into the cryptocurrency world with great returns towards the end of 2017 and the company’s shares popping up hundreds of percentage points using “blockchain” in their name. There are also “reverse takeover offers” where shell companies that are listed on the exchange but inactive change their name to join the blockchain and the shares are suddenly actively traded.

Crash and burn

The business landscape of new products is changing, but not as fast as the investment landscape. Eventually, a switch of mindset appears and a huge sales game begins. Instability is widespread, and many “weak hands” have been removed from the market. Suddenly, the analysis is being used again to justify that these companies have no value or “overvalue”. Fear spreads and prices go down. Companies that have no earnings and who survive on hype and future prospects are blown away. Fraud and scams are uncovered to take advantage of greed, which causes more fear and sells securities. Businesses that have money are silently investing in new products, but the growth rate slows down because the new product is “an ugly word” unless profits are guaranteed. This is starting to happen in the cryptocurrency world with the high incidence of cryptocurrency lending schemes and coin theft. Some marginal currencies are falling in price due to their speculative nature.


At this stage, the investment landscape is burned by the story of loss and bad experience. In the meantime, the great idea is coming to clarity and it’s a roar for businesses that use it. It continues to be implemented in daily activities. The product began to become standard and dreamers were quoted as saying that the “information superhighway” was real. The average user notices an improvement in the product and it starts to take over widely. Businesses that had real profit strategies hit the crash and burn stage, but if they had the cash to survive, they went on to the next wave. This has not yet happened in the world of cryptocurrency. Expected survivors are those who have a real business case and corporate backing – but it remains to be seen which company and coin it will be.

The Next Wave – Business Catch Up to the Hype

At this stage, the quality and profitability of new products is becoming apparent. Business lawsuits are now based on earnings and scale rather than concept. A second investment wave starts with these survivors and extends to another early stage mania. The next stage was identified by social media companies, search engines and online shopping which is the derivative of the original product – the internet.


Manius works in a pattern that moves in the same fashion over time. Once one recognizes the stages and thought processes one by one, it becomes easier to understand what is happening and investment decisions become clearer.

Currency exchange market

Currency exchange market is a unique medium for your financial investment. For such investments you need to trade between the two currencies based on their past performance in the Forex market. Many are now investing in this market as long term investors or short term investors.

The uniqueness of the money market
The trading volume in this market is quite stupendous. There are over one million transactions per day and this is what makes this market a popular choice for investing. The currency trading market is also liquid and it makes it possible for investors to make a profit unless they make accurate predictions. Anyone in any part of the world can participate in Forex trading because it deals with world currencies. Most countries have their own local forex centers where traders and interested brokers conduct their business. Due to modern technology, investors have the option to purchase and install expert advisors on their computer systems.

These systems make the whole trading activity much easier and more efficient. Depending on the settings you put on them, they can predict market trends and conduct business on your behalf. Another unique aspect of Forex trading is the long-term trading except for weekly holidays. Trading never stops on weekdays as traders usually look for an investment opportunity. In fact, many of them work around the clock. Another feature is that the exchange rate varies depending on several factors. Some of them include market assumptions, sentiments and currency trends. Any change in variable factors may result in differences in exchange rates. Investors in this trade can also get leverage from brokerage firms or individual brokers.

Currency trading
Currency trading is quite a risky investment, especially when one makes a long-term investment. This is not always a guarantee that you will make a huge profit or win enough. While some investors may gain, others may suffer losses depending on how they predicted the market and the predictions they made on the currencies they traded. Trading is not an easy activity because you need to understand how the market works under different trends. To get information on how to conduct a currency exchange, an individual can set up a demo account so that they gain exposure to how the market works. In order for a person to win, they need to know how to study the past trend of the currency and make predictions based on that information. Trends are not always fixed; They change at different times due to different reasons. Market sentiments also play a role in determining the predictions that people may make in the market

The higher the risk involved in the Forex market, the better the option for investors. They do not have to conduct business on their own because there are ‘expert advisors’ who are effective in increasing the chances of winning. Consulting your brokers or traders can help you understand more about how the market works.

How To Survive And Succeed In The Forex Market With An Automated Trading EA

The Foreign Exchange, or Forex, is one of the largest markets in the world in terms of both market volume and transaction volume. Forex certainly offers a lot of opportunities to make a lot of money and make money fast.

However, there is an equal risk of losing just as much and at the same speed. The purpose of this article is to introduce you to automated forex trading to improve your chances of survival and success in this unforgiving market.

The importance of psychology in forex trading

You can use or develop lots of trading strategies to maximize your chances of success and give you a better chance of survival. Regardless of which strategy you choose, psychology plays an important role in the success or failure of any Forex trader.

This is the psychological aspect of forex trading that most traders can master the most challenging part. It is estimated that less than one in ten Forex traders survive to succeed in this market. The main reason why most people who try Forex fail is the psychological aspect of trading.

Even new entrepreneurs who follow the suggested steps to get started suffer from the mentality. They have studied the basics of forex trading; They have opened a demo account; They have tested several strategies; And choose the one that has provided the best returns. However, even after all the preparations, when it comes to doing business with their real money, it’s a completely different story.

It is common for inexperienced traders to open a trade too early, close too late, or vice versa. The results? The ‘perfect’ strategy that worked every time in a demo account, suddenly explodes and your capital starts to decrease. Of course, the strategy is not one that explodes; It is the trader’s response to the psychological aspects of their valuable capital business.

Automatic Forex Trading

A significant aspect of Forex trading is that the process can be automated. Doing so removes all stress from the trader and their all-human flaws! Automation puts trades in the hands of an expert advisor (EA).

So, what is EA? It is MQL-programmed software designed to run in conjunction with the MetaTrader Forex trading platform. It attaches the EA to the corresponding trading chart and sets it up to conduct business according to your strategy.

The beauty of EA is that it will run your businesses automatically, without hesitation like a human trader. Without having to suffer the psychological aspects of forex trading it will follow your strategy which makes nine out of every ten failed traders. It will continue to trade 24 hours a day (when the market is open), as long as you keep it online.

Programming and setting up an EA

You can learn MQL yourself to program your EA or hire a computer programmer to do it for you. You can find very reasonably priced and talented programmers on sites like Fiverr or Upwork.

Once your EA is programmed, it should be kept online and allowed to run 24 hours a day. Instead of running your computer permanently, consider using a Virtual Private Server (VPS).

A VPS can be located anywhere in the world and enables your EA to run 24-hours for about $ 10 per month. You may even be able to find a broker that offers a free VPS service. Once you get your VPS, login, install MT4, attach your EA to the relevant trading chart and start automated trading.

Optimize your trading

No matter what the effectiveness of your strategy, you will always have some losing trades. The key to success is optimizing your EA so you can minimize these losses. To do this, you can use the MT4 Trade Copier program. These programs copy Forex trades from one MT4 platform to another, and you can only set up programs to copy successful trades.

You will want to install two MT4 platforms, one for your real-money account and one for your demo account. The EA demo is run on the account, and the copier program is loaded on both MT4 platforms. Setting the copier program to copy only successful (positive value) trades will significantly increase your proportion of successful trades. All your lost trades are in the demo account – and this is the best place for them!

Forex Autopilot – Forex Killer – Leading Comparison of Automated Forex Trading Systems

ForexAutoPilot and ForexKiller are probably the biggest brand names in the automated forex trading system market. Both products are designed to help you profit from the huge, lucrative market for currency transactions, even without the knowledge of a professional Forex expert. In this article I will compare some key points between the two products to help you decide which of them suits you best.

  • Mode of operation

Forex Autopilot is a fully automated Forex trading robot. It doesn’t just decide what to trade – it can automatically issue buy or sell orders to your Forex broker. In this case, it can do the whole process for you, whether you have lunch or sleep in bed.

Forex Killer does not issue automatic orders to Forex brokers. It simply provides quick, ongoing analysis of the Forex market and offers you recommendations. It is up to you to place an order with your Forex broker. So you have some control over the process, and you ultimately go – but it requires your intervention.

  • Installation is easy

Forex Autopilot has received some complaints about its installation process. Although the process is well covered in its users’ manual, it seems to be a consistent complaint and apparently the installation process is not straightforward and smooth for some.

Forex Killer, to my knowledge, there are not many complaints about this.

  • Manufacturers Certificate

The creators of both Forex Autopilot and Forex Killer have extensive forex trading backgrounds.

Marcus Larry, creator of Forex Autopilot, is a senior Forex trader by profession. He co-created Forex Autopilot with Steven Strauss, a mathematician who helped develop mathematical formulas using Forex Autopilot.

Andreas Kirschberger, creator of Forex Killer, is a former Deutsche Bank forex adviser.

  • Supported trading platforms

Forex Autopilot operates on a single Forex trading platform, MetaTrader 4. Although it is one of the most popular platforms out there, it is not supported by all Forex brokers. You need to check with your forex broker if he works with this platform.

Forex Killer works with every known trading platform, so in this case it is more flexible. It is possible that your Forex broker works with one or more platforms supported by Forex Killer (although it is always advisable to check).

  • Review

Forex Auto Pilot and Forex Killer are both highly acclaimed. They have received thousands of enthusiastic testimonials from users, and are considered world leaders in the automated forex trading software industry.

I hope this comparison has helped you to shed some light on both of these highly respected Forex trading software products.

What your advisor told you about income investing, AQ and A.

One of the biggest mistakes investors make is ignoring the “earnings purpose” part of their investment portfolio … many people don’t realize that there should be such a thing. The second biggest mistake is to test the performance of income securities in the same way that they treat “growth purpose” securities (equity).

The following quizzes assume that portfolios are built around these four great financial risk minimizers: all securities meet high quality standards, generate some form of income, diversify “classically”, and sell when the “reasonable” goal is to make a profit. .

1. Why would an individual invest for income; Aren’t equities a better growth process?

Yes, the purpose of equity investing is to produce “growth”, but most people think of growth as an increase in the market value of the securities they own. I think of growth in terms of the amount of new “capital” that is generated through profit making, and compounding income when new capital is reinvested using “expense-based” asset allocation.

Most advisers don’t see profit with the same warm and vague feeling as I do … maybe it’s a tax code that treats loss more favorably than profit, or a legal system that allows people to sue advisers if retrospect is a wrong turn suggestion May be taken. Honestly, there is no such thing as a bad profit.

Most people would not believe that, in the last 20 years, a 100% earnings portfolio will “exclude” the three major stock market averages on “Total Returns” … Conservatively uses an annual distribution number as 4%: Percentage Profit per year :

NASDAQ = 1.93%; S&P 500 = 4.30%; DJIA = 5.7%; 4% Closed End Fund (CEF) portfolio = 6.1%

  • * Note: In the last 20 years, the taxable CEFs were actually about 8%, tax-free, just under 6% … and then there was the opportunity to raise all the capital from 2009 to 2012.

Try viewing it this way. If your portfolio generates less revenue than you raised, then you need to sell something to cover the cost. Most financial advisers will agree that no less than 4% (payable in monthly increments) is required at the time of retirement regardless of travel, education of grandchildren and emergencies. This year alone, most of that money had to come from your principal.

  • Like the basic fixed annuity program, most retirement plans assume an annual reduction in principal. A “retirement-ready” income program, on the other hand, leaves the key for heirs while increasing the annual spending money for retirees.

How much income should an investment portfolio focus on?

At least 30% for those under the age of 50, then increasing the allocation at leisure … The size of the portfolio and the spending requirements should determine how much the portfolio may be at risk in the stock market. Generally, no more than 30% in equity for retirees. Larger portfolios may be more aggressive, but isn’t the real asset the knowledge that you no longer have to take significant financial risks?

As an added security measure, all equity investments should be in a diversified group of investment grade value stocks and equity CEFs, thus ensuring cash flow from the entire portfolio, at all times. But the key from day one is to calculate the allocation of all assets on the basis of location costs rather than market value.

  • Note: When the price of equity is very high, equity CEFs offer significant returns and excellent diversification in a managed program that allows individuals to participate in the stock market with less risk than individual stocks and even earn significantly higher returns from mutual funds and earnings ETFs.

Using the total “working capital” instead of the current or periodic market value, allows the investor to know exactly where the new portfolio additions (dividends, interest, deposits and trading income) should be invested. This simple step will guarantee that the total portfolio revenue increases year by year and accelerates significantly towards retirement, as the asset allocation itself becomes more conservative.

  • Asset allocation should not change based on market or interest rate forecasts; The primary problem is the reduction of the estimated income demand and financial risk ready for retirement.

3. There are many different types of income security, and

There are a few basic types, but lots of variations. To keep it simple, and in the increasing order of risk, there are US government and agency debt instruments, state and local government securities, corporate bonds, debt and preferred stocks. These are the most common variations, and they usually provide a certain level of half-yearly or quarterly payable income. (CDs and money market funds are not investing, their only risk is “opportunity” diversification.)

Variable income securities include mortgages, REITs, unit trusts, limited partnerships, etc. And then there are the countless estimates of Wall Street with incomprehensible “trench”, “hedges” and other techniques that are too complex to understand … the amount needed for prudent investment.

Generally speaking, higher yields reflect higher risk in personal income securities; Complex maneuvering and adjustment quickly increase the risk. The current yield varies by type of security, the basic quality of the issuer, the length of time until maturity, and in some cases, the conditions of a particular industry … and of course the IRE.

4. H.How much do they pay?

Short-term interest rate expectations (IRE, aptly), shake the current yield pot and keep things interesting as yields on existing securities fluctuate with “inversely proportional” price movements. Yields vary significantly, and at the moment “no risk” means between 1% for market funds to 10% for oil and gas MLPs and 10% for some REITs.

Corporate bonds make up about 3%, preferred stocks about 5%, while most taxable CEFs make up around 8%. Tax-free CEFs earn an average of about 5.5%

  • There is a wide range of income possibilities, and every investment type, quality level, and duration of investment is conceivable … there are investment products not to mention global and index opportunities. But without exception, closed end funds offer significantly higher returns than ETFs or mutual funds … it’s not even close.

Buying and selling all types of individual bonds is expensive (no need to disclose the mark-up of the bonds and new issue preferences), especially in small quantities, and it is virtually impossible to add to the bonds when prices fall. Preferred stocks and CEFs behave like equities and are easier to transact as prices move in both directions (i.e., easier to sell for profit, or buy more to reduce the cost base and increase yields).

  • During the “financial crisis”, CEF yields (tax-free and taxable) almost doubled … almost all could have been sold more than once before returning to their normal levels, at “one-year-interest-advance” profits. 2012.

5. How do CEFs create these high income levels?

There are several reasons for this huge difference in profits for investors.

  • CEF is not a mutual fund. They are individual investment companies that operate a portfolio of securities. Unlike mutual funds, investors buy shares of the company’s stock and there is a limited number of shares. Mutual funds issue an unlimited number of shares, the value of which is always equal to the net asset value (NAV) of the fund.
  • The price of a CEF is determined by market strength and can be above or below the NAV … Thus, they can, at times, be purchased at a discount.
  • Income Mutual Fund Total Return Focus; CEF investment managers focus on spending money.
  • The CEF raises cash through an IPO, and invests the proceeds in a portfolio of securities, from which the bulk of the proceeds will be paid to shareholders in the form of dividends.
  • Investment companies can also issue preferred shares at a guaranteed dividend rate that they know they can get in the market. (E.g., they could sell a callable, 3% preferred stock issue and invest in a bond that pays 4.5%.)
  • Finally, they negotiate very short-term bank loans and use the proceeds to buy long-term securities that offer higher interest rates. In most market conditions, the short-term rate is much lower than the long-term, and the loan period is short enough to allow for IRE conditions …
  • This “leverage lending” has nothing to do with the portfolio, and, in the event of a crisis, managers can close short-term debt until a stable interest rate environment is restored.

As a result, the actual investment portfolio contains significantly higher yielding capital than IPO earnings. Shareholders receive dividends from the entire portfolio. For more, read my article “Investing Under the Dome”.

Keywords: Annual, Fixed Price Fund, Personal REIT, Income ETF, and Retirement Income Mutual Fund

Annuals have a number of unique features, none of which make them a good “investment”. These are excellent safety blankets if you do not have enough capital to make enough income on your own. Adding market risk to the “variable” diversification equation (at some additional cost) destroys the actual fixed amount of annual policy.

  • They are the “mother of all commissions.”
  • They charge fines that, in effect, lock up your money for up to ten years, depending on the size of the commission.
  • They guarantee a minimum interest rate that you will get because they give you your own money back on your “actual life” or actual lifetime, if it is long. You push by a truck, pay off.
  • You can pay extra (i.e., reduce your payments) either to benefit others or to ensure that your heirs will receive something when you die; Otherwise, the insurance company gets the full balance whenever you check out the program.

The Stable Price Fund assures you that you can get the lowest possible yield in a fixed income market:

  • They include short-term bonds to limit price volatility, so in some cases, they may actually yield less than money market funds. Those who have a slightly higher yielding paper have an insurance “wrapper” that guarantees price stability at an additional annual cost.
  • These are designed to reinforce the misleading Wall Street over market price volatility, interest rate sensitive securities’ innocence and normal personality.
  • If money market rates ever return to “normal”, these bad trick products will probably disappear.

Private REITs are the “father of all commissions”, ineffective, mysterious portfolios, far inferior to the variety traded publicly in various ways. Take the time to read this Forbes article:
“An investment choice to avoid: personal REIT” By Larry Light.

Income ETFs and Retirement Income Mutual Funds are the second and third best way to participate in the fixed income market:

  • They provide a diverse portfolio of individual securities (or mutual funds) (or track prices).
  • ETFs are better because they look and feel like stock and can be bought and sold at any time; The most obvious downside is that they are designed to track indicators and not to generate revenue. Some of the things that seem to be produced above 4% (for information only and not recommended at all) are: BAB, BLV, PFF, PSK, and VCLT.
  • In the case of Retirement Income Mutual Funds, the most popular (Vanguard VTINX) has a 30% equity component and yields less than 2% of actual money spent.
  • There are at least 100 “experienced” tax-exempt and taxable income CEFs and forty or more equity and / or balanced CEFs that pay more than any income ETF or mutual fund.

More questions and answers in the second part of this article …

Advantages and disadvantages of MetaTrader 5 (MT5)

MetaTrader 5 (MT5) The new solution to replace MetaTrader 4 is the most popular financial trading platform among Forex, CFD and equity brokers from MetaCotes Software Corporation. MT5 is currently in universal testing. In this article I will review the software and give my opinion about the advantages and disadvantages of this publication so far.

-Market Liquidity Pool (Market Watch) will be available to see the depth of the market. This advantage will help to avoid low volume trading instruments that lack liquidity.

-It offers four different types of execution: Market, Instant, Request and Exchange Execution which is a useful feature that will meet the execution demand of all traders.

– The expert advisory code that is passed to the remote agent is never stored on the agent’s hard disk but only in a modified form which makes it impossible to dump. A remote agent does not know the names of expert advisors and does not store the results of the data computed on the hard disk.

-MT5 is a highly flexible and reliable trading platform that enables expert traders as well as newcomers to trade efficiently and clearly.

-8 built-in technical indicators, 39 graphic objects and many MQL5-indicators cover most if not all popular indicators.

-Security and encryption have been improved.


-Hedging inactive in MT5. This is probably the worst problem of MetaTrader 5 because hedging is a big risk management method not to mention that since most liquidity providers allow hedging positions it is expected that spreads will increase if hedging is disabled.

– All expert advisors and custom indicators written with MQL 4 for MT4 need to be re-coded with MQL 5 for use with MetaTrader 5.

-MT5 is coded from scratch and not based on MT4 which means there will be many bugs. We all know how many bugs there were when MT4 was launched, so all we can do is debug most of the bugs during beta testing.
At the moment MetaTrader 5 is still testing but we may soon start seeing it on the live account but how soon? Well it all depends on the results of the public test and the feedback that the developers will get.

Preparing for a Cryptocurrency World: China Edition

Over the past year, the cryptocurrency market has suffered one major setback after another from the Chinese government. The market has taken a hit like a fighter, but Combos has taken its toll among many cryptocurrency investors. The weak performance of the market in 2018 is pale compared to the thousand-percent profit in 2017.

What happened?

Since 2013, the Chinese government has taken measures to control cryptocurrency, but nothing compared to what was implemented in 2017. (See this article for a detailed analysis of official notices issued by the Chinese government)

2017 was a banner year for the cryptocurrency market with all the attention and growth it has achieved. Extreme price volatility has forced the central bank to take further drastic measures, including banning initial currency offerings (ICOs) and a clampdown on domestic cryptocurrency exchanges. Soon, mining in China was forced to close due to excessive electricity consumption. Many exchanges and factories have moved abroad to avoid regulations but remain accessible to Chinese investors. Yet, they still failed to escape the claws of the Chinese dragon.

In the latest in a series of government-led efforts to monitor and ban cryptocurrency trading among Chinese investors, China has expanded its “Eagle Eye” to monitor foreign cryptocurrency exchanges. Suspicious companies and bank accounts for dealing with foreign crypto-exchanges and related activities are subject to measures ranging from limiting withdrawals to freezing accounts. There are even ongoing rumors within the Chinese community to take more drastic steps to implement it on foreign platforms that allow business among Chinese investors.

“Whether further regulatory action will be taken, we will have to wait for the order of the higher authorities.” Excerpts from an interview with the leader of a team from China’s Public Information Network Security Supervision Agency under the Ministry of Public Security on February 26

Why why !?

Imagine that your child is investing his savings in a digital product (in this case, cryptocurrency) that has no way of verifying its authenticity and value. He can be lucky and enrich it, or lose it all if the crypto-bubble bursts. Now scale it to millions of Chinese citizens and we are talking about billions of Chinese Yuan.

The market is full of scams and meaningless ICOs. (I’m sure you’ve heard of people sending coins to random addresses with the promise of doubling their investment, and ICOs that aren’t easy to understand). Many unskilled investors are in it for the money and will think less about the technology and innovation behind it. The value of many cryptocurrencies is derived from market estimates. During the crypto-boom in 2017, participate in any ICO with a reputable advisor onboard, a promising team or a decent promotion and at least 3X your investment will be guaranteed.

Lack of understanding of the firm and the technology behind it, combined with the proliferation of ICOs, is a recipe for disaster. Central bank members report that about 90% of ICOs are involved in fraudulent or illegal fundraising. In my opinion, the Chinese government wants to make sure that the cryptocurrency remains ‘controllable’ and not big enough to fail within the Chinese community. While China is aggressive and controversial, it is taking the right steps towards a safer, more regulated cryptocurrency world. In fact, it could be the best move the country has taken in decades.

Will China issue an ultimatum and make cryptocurrency illegal? I highly doubt it because it is quite meaningless to do. Currently, financial institutions are prohibited from holding any crypto assets when individuals are permitted but are prohibited from conducting any type of transaction.

A state-run cryptocurrency exchange?

In the annual “two sessions” (named because the two main parties – the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPCC) both attend the forum in the first week of March, leaders discuss necessary issues and Gather to correct.

Wang Pengjie, a member of the NPCC, has launched educational projects on blockchain and cryptocurrency in China, along with the possibility of a state-run digital asset trading platform. However, a certified account will be required to allow trading on the proposed platform.

“A regulated and efficient cryptocurrency exchange platform, in collaboration with the People’s Bank of China (PBoC) and the China Securities Regulatory Commission (CSRC), will serve as a formal way for companies to raise funds (through their ICOs and investors).” To retain and gain capital appreciation ”is part of Wang Pengjie’s presentation at the two sessions.

March towards a blockchain nation

Governments and central banks around the world have struggled to cope with the growing popularity of cryptocurrencies; But one thing is for sure, everyone has accepted the blockchain.

Despite the cryptocurrency crackdown, blockchain is gaining popularity and acceptance at various levels. The Chinese government is supporting blockchain initiatives and adopting technology. In fact, the People’s Bank of China (PBoC) is working on a digital currency and has made mock transactions with some commercial banks in the country. It is not yet certain that digital currency will be decentralized and will provide features of cryptocurrency such as anonymity and immutability. The last thing China wants in their country, despite being anonymous, would be no surprise if it turned out to be just a digital Chinese yuan. However, created as a close alternative to the Chinese yuan, the digital currency will be subject to existing monetary policy and legislation.

Zhou Xiaochuan, Governor of the People’s Bank of China. Source: CNBC

“Lots of cryptocurrencies have seen explosive growth that could have a significant negative impact on consumers and retail investors. We don’t like (cryptocurrency) products that exploit the huge scope of speculation that gives people the illusion of getting rich overnight,” excerpts Friday, March 9th. Xiaochuan interview.

In a media appearance on Friday, March 9, the governor of the People’s Bank of China, Zhou Xiaochuan, criticized the cryptocurrency schemes that help cash in the crypto-boom and fuel market speculation. He further added that the development of digital currency is ‘technically inevitable’.

At the regional level, many Chinese cities are running blockchain initiatives to grow their territories. Hangzhou, famous for its Alibaba headquarters, ranked blockchain technology as one of the city’s top priorities in 2018. It is also proposed to build an incubation center in Chengdu to encourage local governments to adopt blockchain technology. City Financial Services.

Local conglomerates such as Tencent and Alibaba have formed partnerships with blockchain firms or started projects themselves. Blockchain companies like VeChain have also secured multiple partnerships with Chinese companies to improve the transparency of the supply chain in China.

All the clues indicate that China is working towards a blockchain nation. China has always had an open mind towards emerging technologies such as mobile payments and artificial intelligence. Hence, it is doubtful that China will be the first blockchain-enabled country. Will we see the Chinese government retreat and allow its citizens to trade again? Perhaps, when the market has matured and is less volatile but definitely not in 2018.

Legal status of virtual currency / cryptocurrency in India

The legitimacy of cryptocurrency is a major concern in India. This puts many investors on a side where people think that investing in cryptocurrency can get them into trouble or they can lose their money. This is totally a hoax because investors have been involved in this excellent money multiplication process for quite some time.

If we put aside MLM based projects in India or the world and we choose cryptocurrencies wisely, then of course there is no problem. Nevertheless, for those who are still worried about this impending vibrant market, I will try to cover all aspects of the legalization of cryptocurrency in India.

Although China has already banned cryptocurrency trading to come up with regulations, Japan has taken the first steps to regulate these currencies. The United States and Australia are already setting guidelines for regulation as soon as possible.

Fintech Valley Vizag, the flagship initiative of the Government of Andhra Pradesh, JA Chowdhury, IT Advisor to the Chief Minister, is involved in laying a solid foundation for the development and adoption of blockchain technology by Indians. There are also plans to open schools to teach blockchain to the younger generation. So, when strategies at this level are being created and implemented, you will understand that the country welcomes blockchain and projects based on it. Of course, cryptocurrencies will soon be regulated

Speaking at a KPMG fintech event, RBI Executive Director Sudarshan Sen said, “Right now, we have a group of people looking at the Fiat cryptocurrency. Something that is an alternative to the Indian rupee, so to speak. We are seeing it. Close.” The statement said the RBI would not take any responsibility for investors in cryptocurrencies. As the Indian government sees the internal growth of cryptocurrency with a mixture of fears and conspiracies, local startups are leading the way in including Bitcoin and other cryptocurrencies in India’s high digital ambitions. If you look closely, you will see that various crypto schemes are already working in the market such as Indicoin (a cryptocurrency) and Zebpay (a bitcoin exchange).

In particular, Indicoin successfully completed their Presell and ICO and sold over 95% of the total available tokens. The figure clearly indicates that investors from all over the world, not just from India, have shown overwhelming support for the project. Indicoin is set to be traded on HitBTC and other major exchanges worldwide. So, even if the regulations take some time to come, investors can trade with Indicoins. The transactions are not in Fiat currency so there is no harm in national law.

Zebpay, a bitcoin exchange has been active for a long time. They are allowed to work in the market and they are doing great! So, if projects like Indicoin and Zebpay can create a platform and attract their customers and create the right awareness, it will be a catalyst for investing in cryptocurrency in the near future.

Now if you go to bitcointalk and try to find regulations in india, you will notice expert comments, which have the motivation to continue trading in most cryptocurrencies.

India is certainly not a communist country like China where only one regime determines the fate of the country. It is a democratic country and if the whole system welcomes cryptocurrencies, the government cannot deny it. We all know the potential of cryptocurrency and it is definitely going to increase the economic base of the common man.

The regulations are at the doorstep, the structure will come into effect soon after the committee sets the rules. Regardless of the regulations, one thing is for sure, trading will not stop and Indicoin and other projects are going to create a great buzz in the market. So, I think everyone should come together and be ready to witness a whole new era of virtual currency and digitization. It’s all going to be different and better, isn’t it?