Rare Earth Stocks from the US Showing Promise,” Says New AbsoluteWealth.com Article - PRWeb Rare Earth Stocks from the US Showing Promise,” Says New AbsoluteWealth.com Article - PRWeb

Saturday, May 19, 2012

Rare Earth Stocks from the US Showing Promise,” Says New AbsoluteWealth.com Article - PRWeb

Rare Earth Stocks from the US Showing Promise,” Says New AbsoluteWealth.com Article - PRWeb

Rare Earth Riches AbsoluteWealth.com

Austin, TX (PRWEB) May 19, 2012

US rare earth stocks are turning out to be more valuable than anyone could have imagined, according to today’s AbsoluteWealth.com article. Even though China has dominated rare earth production for the last decade, one specific mine could be the key factor in loosening America’s and other country’s dependence on the Far East for these significantly important metals.

The mine in question is Mountain Pass, a 2,200-acre site in California, just 60 miles across the border from Las Vegas. Just a little over a decade ago, the article said that Mountain Pass was the largest rare earth-producing mine in the world.

Things shifted to the Eastern Hemisphere, as China began producing rare earths at breakneck speed and eventually began to provide the vast majority of the world’s supply. A rare earth stocks list rarely included a successful American company in the past ten years, said the Absolute Wealth article. The scenario is fully explained in Absolute Wealth’s Special Report “Rare Earth Riches: How to Cash In On China’s ‘Dirty’ Secret.”

China continued its head-of-the-line position for years, rendering the Mountain Pass mine nearly obsolete. The article said competition and low prices mixed with environmental concerns over the extraction and production process led Mountain Pass to shut down in 2002. For eight years, the mine sat empty and silent.

In July of 2010 the Mountain Pass mine was purchased by Molycorp, who vowed to revamp the production methods and make them far more environmentally conscious. Mining operations have presumed, and Molycorp stands at the starting gate of a race to meet global rare earth demands, said AbsoluteWealth.com.

From its discovery in the late 1940s, to its heyday of production from the 1960s to the 1980s, to its closure, and now its reopening, the Mountain Pass mine is a perfect representation of the rare earth story.

All this makes investing in rare earths a worthy endeavor, especially with the American companies emerging as major players, said the article. Molycorp can serve as an example, and the Mountain Pass reopening can serve as a blueprint for a winning rare earth production strategy.

Absolute Wealth is an expert team of real investors and advisors devoted to identifying winning strategies for exceptional returns. Members subscribe to the Independent Wealth Alliance for professional investment analysis and recommendations on the latest trends and progressions. For more information and subscription instructions, visit AbsoluteWealth.com.

Knowing what kind of investments hold the most potential is easier with “Rare Earth Riches,” which is why Absolute Wealth is releasing it to their subscribing members. The rare earth stocks in the US with the means and resources to affect the investment market are coming out from behind the curtain, and the Special Report explains why.

Biased financial advice is shockingly common, but investors don't take the unbiased stuff - Oregonian
In recent decades, research has shown what Wall Street's known all along: We are hazards to our own financial health.

We overestimate our abilities or chase the hottest trend. We fall prey to inaction, procrastination and information overload. Losses hurt a lot more than gains soothe.

Now, a flurry of research has emerged in the U.S. and Europe looking at whether financial advisers can help us overcome these pitfalls.

The results are not encouraging.

Advisers who get paid for the products they sell tend to harm their clients' portfolios, two studies suggest. These advisers appear to make our biases worse.

Unbiased financial advice exists. But investors who need it most don't seek it, a third study shows. Investors who do rarely follow it. And those who do follow it need the advice the least.

I'm not sure what to say about all this other than it's time we all woke up. Regulators, employers and advisers can do more to protect our savings from biased money managers. But a whole lot of our success hinges on us.

How bad is general financial advice? Fairly bad and widely available, according to a study published in March by the National Bureau of Economic Research.

In the study, researchers from Harvard University and Massachusetts Institute of Technology sent secret shoppers to nearly 300 financial professionals around Boston. These trained financial auditors pretended to seek help improving their retirement portfolios.

Some of the mostly female shoppers told the advisers they wanted to invest in the best-performing funds. Others walked in with one-third of their investments in their own employer's stock, another no-no.

A third group already held a portfolio of well-diversified, low-cost index funds, which research consistently shows to be the best way for average consumers to save for retirement.

The study doesn't reveal where the advisers were employed other than to say banks, retail investment firms and independent shops. Most were paid on commission based on the fees and volumes they generate.

Initially, many advisers praised the shoppers' portfolios, possibly to butter them up. But when they made recommendations, they favored funds with higher fees and commissions. In only 21 cases, about 7.5 percent of the time, did the advisers suggest index funds.

Worse, 85 percent of the shoppers with efficient, low-cost, passively managed investments were discouraged by the adviser from continuing with the strategy. Most were steered into higher-cost, actively managed funds. This was particularly true if the client was wealthy, where the fee income that would be generated for the firm would be higher.

"Our evidence suggests that advisers' self-interest plays an important role in providing advice that is not in the best interests of their clients," the authors wrote, adding that "the market for advice works very imperfectly."

A 2009 study of German advisers found similar results.

Researchers from Goethe University got access to the performance of 37,000 investment accounts at a commercial bank and a brokerage. They compared the results of investors who made their choices with those who relied on advisers.

Advised clients had significantly lower annual returns: 8 percent versus 13 percent for those who invested on their own. They also owned riskier investments. And they traded more often, which generates more income for advisers and their employers but lower overall returns.

"Our findings imply that many financial advisers end up collecting more in fees and commissions than any monetary value they add to the account," the authors wrote.

Surprisingly, those who relied on advisers were more likely to be richer, older, more experienced, self-employed, female investors rather than poorer, younger, inexperienced and male ones.

That led authors to liken these advisers to baby sitters.

Baby sitters, they said, are hired by well-to-do parents to perform a service parents can do better. They charge for it. But a child's achievement is not boosted by baby sitters.

The investors, the authors concluded, were experienced but inattentive and failed to effectively monitor advisers and the outcome of their activities.

It's buyer beware, right? If we'd just seek out financial advisers or planners who take no commissions -- or turn a nanny cam on those who do -- we'd be able to retire early.

Unfortunately, many of us seem both ignorant of these conflicts or eager to peer past them.

Remember those mystery Harvard/MIT shoppers? They expressed willingness to go back, with their own money, to nearly 70 percent of the advisers they visited, researchers found.

And if investors aren't ignoring what they see, they seem tone-deaf to unbiased advice, if they seek it at all.

Don't believe me? Get a load of this study, published in January in Oxford University's The Review of Financial Studies.

Researchers worked with one of Germany's largest brokerages in 2009 to offer 8,200 customers free advice for their self-directed portfolios. A computer program would produce the recommendations, with no commissions or other incentives tied to them.

All, it turns out, could've used some help. The customers' returns, on average, significantly underperformed benchmark indexes.

Still, only 385 customers took advantage of the free offer. Of those, 260 failed to follow the advice. The 125 who did take the advice didn't follow it very closely, and no one followed it perfectly.

And the 385 who accepted the offer were less likely to need advice. They were older, wealthier and more financially sophisticated than those who spurned it.

Had they followed the advice, their investments would have gained nearly 25 percent in the following six months, researchers found. Instead, those who made some changes logged, on average, a 21 percent gain. Those who made none gained 18 percent. Those who didn't participate gained 17 percent.

Perhaps as important, the recommended portfolios would have been much less volatile, or risky. That's a characteristic that gives investors more peace of mind.

When I asked this of the study's lead-author, Utpal Bhattacharya, an associate professor of finance at Indiana University, he spoke bluntly: "I don't know that I can say anything positive."

Bottom line, he said, the government's efforts to regulate biased advisers aren't enough. We need to better educate consumers, too, to rid them of their biases.

Some of Bhattacharya's colleagues in Germany are now researching the best ways to get investors to follow good financial advice.

Let's hope they come up with something.

Until then, it's time we bucked Wall Street and examined our own behavior. What kind of advice are we getting? How do we know it's good? Are we willing to seek out, and pay, for unbiased advice? Will we follow it?

-- Brent Hunsberger welcomes questions about his column or blog. Reach him at 503-221-8359. Follow It's Only Money on Facebook, Google+ or Twitter.

Xpress Money may use the UAE as trial market for transaction service - Zawya.com

Saturday, May 19, 2012

Gulf News

Dubai The UAE could be one of two trial markets as the UK-headquartered payment services company Xpress Money makes a move into the individual to business (or business to individual as the case may be) transaction space. Its home market could be the other test market with the trials expected to start post-summer.

“There are very few payments facilitators who are already offering such a service capability and those who are got into it quite recently,” said Sudhesh Giriyan, who heads the regional operations at Xpress Money. “By getting in ourselves at the earliest we expect to narrow any advantage the others may have.

“As of now, we are trying to feel the market out by talking to institutional clients.”

Sources at local remittance houses reckon this is the way forward for the industry. Having institutional clients readily translates into substantial funds flowing through the remittance pipeline and that can only be a good thing for all industry players.

Xpress Money — which came into being in 1999 — only services individual to individual payments, with the UAE — where it has 350 locations operated by various exchange houses — and the GCC being one of its top transactional markets globally. Last year it entered the US and more recently Australia. The plans are to extend coverage to Latin America.

Widely rated

That is why the company wants to get into payment settlements involving individual to business and vice-versa. This category is widely rated within the industry as the next big thing.

Such services could be utilised to make an airline booking, whereby a customer can do the needful at a physical location where the Xpress Money service is available, or for a business to send salary contributions to outstation employees.

“We are formulating the systems and will also require having in place strict compliance practices,” said Giriyan. “Also, future corporate clients would need to be assured that we can provide optimum coverage through physical locations and that’s being addressed. We will also need to maintain bank accounts.

“It’s different to the typical compliance requirements for individual to individual and quite exhaustive.”

Not that remittance volumes involving individuals are showing any signs of slacking off. The estimated volumes last year through the GCC corridor were estimated at $76 billion (Dh278.9 billion). Saudi Arabia alone would account for more than $25 billion, enough to place it among the Top Three worldwide.

“But it’s still the US that is the biggest remittance market by far and the recession does not seem to have had any impact,” said Giriyan. “Last year it was estimated at $51.6 billion and it’s not difficult to see why — the whole of Latin America depends on individual remittances coming out of the US and so are many markets in Asia.

“China, India and Mexico remain the biggest recipients of remittance transactions, which goes to show that customer to customer volumes are not saturated. But customer to business opens up a whole new stream of opportunities.”

By Manoj Nair?Associate Editor

© Gulf News 2012. All rights reserved.

Financial Times: Ukraine's boycott blues - KPNews.com

Stifel Financial Earnings Hindsight: Down 13.0% in Last 10 Days (SF) - Financial News Network Online

When Stifel Financial (NYSE:SF) reported earnings a week ago on May 9th, 2012, analysts, on average, expected the company to report earnings of $0.54 on sales of $382.2 million. Stifel Financial actually reported earnings of $0.55 per share on sales of $409.3 million, beating EPS estimates by $0.02 and beating revenue estimates by $27.2 million. Since the company's report, shares of Stifel Financial have fallen from $35.89 to $31.21, representing a loss of 13.0% in the past 10 days.

There is potential upside of 28.7% for shares of Stifel Financial based on a current price of $31.21 and an average consensus analyst price target of $40.17. Stifel Financial shares should first meet resistance at the 200-day moving average (MA) of $32.84 and find additional resistance at the 50-day MA of $36.34.

Stifel Financial share prices have moved between a 52-week high of $40.57 and a 52-week low of $23.09 and closed Thursday at 35% above that low price at $31.21 per share. In the last five trading sessions, the 50-day moving average (MA) has fallen 0.8% while the 200-day MA has slid 0.4%.

Stifel Financial Corp. is a financial services holding company whose subsidiaries provide general securities brokerage, investment banking, and money management. The Company operates locations primarily in the Midwest United States.

Purchase home with some financial due diligence - Economic Times
In his mid-thirties , Sridhar is contemplating on buying a house. While the food inflation breached the doubledigit mark recently, the overall inflation shows no sign of taming down. Amidst the reigning financial uncertainties , Sridhar is undecided on taking a home loan to the tune of Rs 50 lakhs. A home loan is a huge financial burden and borrowers must have a safety net in place.

Is your safety net in place?

Optimum loan amount

How should you arrive at the right amount to borrow? The number of dependents, other debts, additional sources of income, expenditure level and interest rates has a direct bearing on the right loan amount.
Lenders know pretty well that borrowers cannot afford to spend more than 40 percent of their gross salary towards a home loan repayment. When estimating the home loan amount, ensure that you take into account additional costs like stamp duty and other legal fees.

Consider a scenario where Sridhar takes a loan to the tune of Rs 40 lakhs. For a tenure of 15 years, at a 10 percent rate of interest , his monthly EMI is Rs 43,000. If Sridhar's loan amount was Rs 60 lakhs, his EMI will be Rs 64,000.

Borrowing less translates to lesser monthly financial commitment towards a home loan.

Factor in rate increase

Floating rate loans can fluctuate in either direction . A drop in the rate will translate into monthly savings . On the contrary, a rate hike can lead to increased financial outgo.

Consider a loan amount of Rs 40 lakhs. For a tenure of 15 years, at a 10 percent rate of interest, Sridhar's monthly EMI is around Rs 43,000. If the interest rate goes to 15 percent, the EMI is Rs 56,000.

If a borrower has to pay the increase in EMIs over the years, they will become difficult to manage without a sound financial plan. Hence, factor in rate increases when calculating your loan repayments.

Build a contingency fund

It is recommended that you have three to six months' salary in your cash reserve. This contingency buffer should be expanded in the event of an increase in outstanding debts, more dependents or greater expenditure .

Failing to build a contingency buffer before taking a home loan could prove to be difficult in the event of an unexpected expenditure.

Have protection plan in place

There are numerous home insurance plans targeted at home loan borrowers . They provide cover to a home loan in the event of any unforeseen event happening to the borrower . In such a situation, the family of the borrower will have the support of the insurance cover to pay for the outstanding home loan, without being burdened by monthly EMIs. Read the terms well before narrowing on a home loan insurance product.

A borrower must aim to be debt-free soon. In the event of a financial windfall , try to repay your outstanding debt towards the home loan. A home is a precious asset to which the family has an emotional attachment . Build a financial safety net so that your home purchase process is without glitches.

Broadridge Financial Solutions Earnings In Retrospect: Down 7.3% in the Last 11 Days (BR) - Financial News Network Online

A week ago on May 8th, 2012 Broadridge Financial Solutions (NYSE:BR) reported earnings and analysts, on average, expected earnings of $0.25 on sales of $564.0 million. The company actually reported EPS of $0.28 on sales of $547.0 million, beating EPS estimates by $0.03 and missing revenue estimates by $17.0 million. Shares of Broadridge Financial Solutions have slipped from $21.85 to $20.25, representing a loss of 7.3%, since the company reported earnings 11 days ago.

Over the past year, Broadridge Financial Solutions has traded in a range of $19.01 to $24.94 and closed Thursday at $20.25, 7% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has declined 1.3%.

Broadridge Financial Solutions Inc. provides technology-based outsourcing solutions to the financial services industry. The Company offers a broad range of solutions that help clients serve their retail and institutional customers across the entire investment lifecycle, including pre-trade, trade, and post-trade processing.

Broadridge Financial Solutions (NYSE:BR) has potential upside of 22.5% based on a current price of $20.25 and analysts' consensus price target of $24.80. The stock should run into initial resistance at its 200-day moving average (MA) of $22.38 and subsequent resistance at its 50-day MA of $23.13.

PM's wrong policies responsible for financial crisis: BJP - Daily News and Analysis

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The financial crisis in the country was the result of wrong policies of Manmohan Singh government, the BJP alleged in Mumbai on Saturday. Stating that Dr Singh's economics was not working for the country, MP and BJP spokesperson Shahnawaz Hussain alleged ...

Financial cuts looming for Ga. Perimeter College - Gwinnett Daily Post

ATLANTA (AP) — The new leader of Georgia Perimeter College says he wants to have a rough plan to close a massive financial deficit by next week.

Interim President Rob Watts is working to find ways to bridge what could be a $25 million deficit by next year.

Watts told the college's faculty and staff during a Friday meeting that the school must protect teaching programs for its 27,000 students. But some reports are saying that Watts said that 90 percent of the college's budget is spent on personnel.

University System of Georgia Chancellor Hank Huckaby disclosed the shortfall earlier this month and announced that the college's previous president, Anthony Tricoli, had stepped down. Watts said prosecutors are reviewing the situation because of allegations of fraud.

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