Money & Investing - Banks.com

There are always a lot of investing ideas, tips and advice floating around out there. Today I thought I’d take a look at some of what’s going on in the investing world, from forex trading to real estate trends to commodities.

Forex trading

One of the investing products that has been growing in popularity lately is the forex exchange traded fund. ETFs can be traded on the stock exchange, and forex ETFs allow you to diversify into currencies without actually getting involved in forex trading.

Now, addressing the lack of forex ETFs for emerging market currencies, there are some new currency funds for countries like India and Brazil. And interesting thought.

Real estate investing

In the hardest-hit markets, it may be a great time to buy. As home prices move lower, investors are swooping in. This means that in some real estate markets, signs of life are starting to appear. If you are looking to make a real estate investment, and you can secure the funding, it may be a good time to go for it. Just make sure that you carefully consider the area you are looking into. You want to buy in real estate markets that, though hard hit, are more likely to recover.

Commodities investing

Oil prices are heading down right now, but how long will they stay down? Worries over how emerging markets will be able to keep up with prices have oil prices steadying. But will they fall further? Or will they make a turnaround and head back up? If you think they’ll be heading back up, maybe now might be a good time to buy — you know, while they are retreating.

For an interesting look at oil prices and how they are related to gold prices, check out this post on Power Wealth.

Finally, if you are looking for a list of good online discount brokers that can help you get started in investing, Blueprint for Financial Prosperity has a great review of some of the best.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. 

Fresh on the heels of a speech on the difficult economy made by President Bush, the stock futures were a little lower this morning. However, thanks to some positive economic data, Wall Street is moving back up after a lackluster opening bell.

Federal Reserve expected to lower interest rates today

While the Fed is expected to lower interest rates, some feel that Wall Street will not be satisfied with the predicted cut of “only” 25 basis points. Indeed, another issue that has investors disenchanted is the expectation that this will be last rate cut in the recent cycle of monetary easing. The Fed is expected to end its series of rate cuts on the premise that inflation is becoming a concern.

So, stock market investors should pay attention to the rhetoric that accompanies the Fed interest rate decision.

Positive economic data boosts stock market

The GDP reading for the first quarter beat the estimates, and the jobs data is expected to show an addition of 10,000 jobs. This is good news for an economy that has been hit by plenty of bad news in the last few months. Additionally, some of the companies reporting earnings (notably General Motors — GM) aren’t losing as much as predicted. All of this good news — in addition to the bump expected when the Fed interest rate decision is actually announced is combining for an optimistic start to the day.

Other investments

It is worth noting that the US dollar is making some headway in forex trading, especially against the euro. Some think that it may have bottomed out, and is poised to regain its strength. And oil prices dropped this morning to $115 a barrel, despite warnings from OPEC that $200 oil could be on the horizon.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.

Tags: stock market, stock market news, investing blog, Fed rate decision,
economy, investments, forex trading

This morning, a report on US consumer confidence was released. The result? Consumer sentiment is at a 26 year low. After yesterday’s promising rebound on the stock market, the news hit the stock market and it is now faltering.

With Americans increasingly worried about the personal financial situation many are finding themselves in, and with oil prices continuing to climb, many are concerned about family budgets. New worries include how to deal with food prices inflation, in addition to concerns over gas prices. Focus is not longer on consumer spending, and the stock market knows it. Instead of buying products, more of the available household budget is going to go into food and gas.

US dollar rally in currency trading

The story with the US dollar is a little different, however. There is a US dollar rally in currency trading right now, as some analysts see an end to the credit market crisis approaching. Additionally, the Fed is expected to stop cutting interest rates after another cut on the 30th of this month. (This could also be affecting the stock market.)

However, some are wondering if the consumer sentiment numbers will affect the US dollar rally as it does the stock market. However, the euro is struggling with reports out of Germany showing decreased confidence, and the sterling is dealing with British economic problems. So maybe it will even out, keeping the US dollar in its first real show of strength in a year.

Consider economic information, such as consumer sentiment, when making investing decisions. It could help you see which way the wind is blowing.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.

Tags: investing blog, stock market, currency trading, US dollar rally,
oil prices, consumer sentiment, food prices inflation