Finance Weekly Updates

The Unique Advantage of Hedging with the NIR Group

By Staff Editor | March 22, 2018

As investors continue to feel the stress of bear markets, sluggish growth and financial uncertainty, many are looking for new ways and innovative strategies to make their dollars work harder for them.

One choice many investors have been exploring recently is investing in hedge funds. These specialized investment vehicles reduce the risk of market fluctuations on stock value while carefully choosing investments in companies with strong growth potential. This creates a fund which is less susceptible to the general market fluctuations and more likely to increase in real stock value.

There are many firms which specialize in hedge fund investment. One of these is the well-known NIR Group, headquartered in Roslyn, New York and headed up by Corey Ribotsky, head portfolio manager. The NIR Group has an additional unique feature, and that is the principals are not just managers of the funds, but are investment partners right along with their clients. This means that clients and managers always share the risks and are never subject to conflict of interest. This is a distinct advantage to investors and makes the NIR Group an excellent choice for investing at a time of economic uncertainty.

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Investor and Money Manager Should Ride the Wave Together

By Staff Editor | March 19, 2018

In today’s investment world of bear markets and bankruptcy it is no surprise that investors are proceeding with utmost caution and reassessing their entire investment strategy. One area of investing that is perhaps taken for granted but shouldn’t be is the relationship between the money manager and the investor.

Taking a deeper look we can see that there can be an inherent, if unseen, conflict of interest between the investor and the money manager whom he has hired to work for the best interests of the investor. Unless the money manager is equally invested with the people he is working for, there may be times when what is good for the money manager might not be equally good for the investor.

Harry Rady, CEO of Rady Asset Management located in San Diego, California has written an in depth article on this crucial subject. Rady is one of the more sought-after analysts of the economy today, frequently interviewed on CNBC’s “Closing Bell”, Fox Business News and other influential financial news programs. He also writes extensively on financial issues.

We recommend taking his opinion into account when about to embark on any new investment or financial decision.

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eToro’s Forex Trading Platform Secures $6.3M

By Staff Editor | March 16, 2018

Reprinted from http://www.vccafe.com

Israel-based eToro has secured $6.3 million in Series B financing from BRM Group, Cubit Investments and other unnamed investors. eToro offers an online financial trading platform that helps less experienced traders to easily conduct foreign exchange trades via a simple user interface. eToro’s interface provides six different “trading arenas” for traders ranging from beginners to experienced traders.

No matter if the economy is booming or crashing, traders thrive in volatile markets and eToro is enjoying the effects. Since September the company has doubled its staff, adding several thousand new users a month. Most recently, eToro added  long term Commodities Trading.

According to CEO and Co-Founder Jonathon Assia:

“Our vision of becoming the online destination and trading platform for everyday people has taken a quantum leap forward with our new platform. With more long term investors turning to forex as financial markets around the world continue to struggle, eToro has developed the platform with tools and parameters for the more conservative forex investor on the go.”

If you want to dabble in FOREX and learn the ropes, eToro is a good place to start. You’ll need to download a client and choose your level of expertise.
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Down we go again: Faint hope vanishes on Wall St.

By Staff Editor | March 13, 2018

NEW YORK — So you thought Wall Street might be out of the woods? Think again.

A surge of optimism that started a market rally late last year, mercifully quieting the stock market’s stomach-churning volatility, has vanished as economic recovery recedes further onto the horizon.

On Wednesday, stocks took a dive reminiscent of the terrifying jumps and drops of last fall, with the Dow Jones industrials falling more than 300 points before closing down 248.

It was the Dow’s biggest point drop since Dec. 1 and the first string of six straight down days since early October. The Dow is still 9 percent higher than its November low, but the bumpy decline feels all too familiar.

“It’s a good instinct to start a New Year off with optimism,” said Art Hogan, chief market analyst at Jefferies & Co. in Boston. “But unfortunately that tends to fade in the harsh light of reality.”

So what happened?

Holiday sales turned out to have been worse than expected, the jobless rate exceeds 7 percent for the first time in 16 years, the global economy is eroding faster and corporations from Alcoa to Intel to Wal-Mart have disappointed investors.

Apple was the latest company out with bad news Wednesday, with CEO Steve Jobs saying he is taking a medical leave of absence.

“Right now we just don’t have any evidence to show that that free fall is over,” said Robert Dye, senior economist at PNC Financial Services Group in Pittsburgh.

For a time, it seemed like the worst might be over for stocks. After hitting a trough on Nov. 20, the major stock averages all rose by more than 20 percent within six weeks – the kind of rally that usually takes years.

The rally was driven in part by hopes for Washington’s aggressive fiscal policies and the upcoming change in the White House. But lately bears rule Wall Street again as one corporate report after another spreads gloom.

Like others, Dye thinks the market could fall back toward the low point of November. That was when the Standard & Poor’s 500 index reached its lowest close in 11 years, at 752, and the Dow reached its lowest in more than five years, at 7,552.

On Wednesday, the S&P closed at 843, the Dow at almost exactly 8,200.

Stock market recoveries usually precede economic recoveries by about six months. Translation: Investors don’t expect the economy to turn around before the second half of this year.

“Wall Street wants instant gratification, but economic cycles take years and an economic cycle like this is going to be deeper, longer and uglier than any one we’ve ever faced,” said Harry Rady, chief executive and portfolio manager for Rady Asset Management in San Diego.

Sam Stovall, chief investment strategist at S&P, puts it another way: Investors have put on their 3-D glasses, trying to figure out “the depth, the duration and the diffusion of this global economic slowdown.”

And not having much luck.

For now, Hogan says stocks may trade in a much narrower range than they did during the white-knuckle days of October and November, when the Dow routinely rose or fell by 500 points or more in a day.

That range is perhaps 8,000 to 9,000 for the Dow, and 825 to 910 for the S&P, Hogan says. But more bleak news from corporations or Washington could still steer it lower.

For those looking for hopeful signs, consider these:

– Only once since World War II have stocks bounced back 20 percent in a bear market without signaling the start of a new bull market, according to Stovall. That lends hope the surge could resume in the not-too-distant future.

– A huge amount of money that was pulled out of stocks in last year’s big sell-off remains on the sidelines and should re-energize the market at some point when investors see more encouraging signs, according to Liz Ann Sonders, chief investment strategist for San Francisco-based brokerage Charles Schwab Corp. At year’s end $8.85 trillion sat in cash, money markets and savings accounts, an all-time high, she noted.

Other experts urge calm and suggest putting the recent slide in perspective.

Robert Doll, global chief investment officer for the investment firm BlackRock, says the market’s latest swing down is normal and was to be expected after a 20 percent rise and some bad data.

“We’re going to get more bad data and we should expect some more selling squalls,” he said.

Just keep those rose-colored glasses in your drawer for a while.

Dye said stocks could fall again if Washington isn’t quick to come up with planned spending to boost the economy after President-elect Barack Obama takes office next week.

There is an expectation that we’re going to have an $800 billion package in place very quickly, he said. “If that doesn’t happen in a timely fashion that would be another negative for the markets.”

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On Recessions and Depressions

By Staff Editor | March 10, 2018

What is the difference between a depression and a recession, and which are we experiencing now? Until the Great Depression, and for some time after, any downturn in economic activity was known as a depression. But in the late 20th century, economists and politicians were reluctant to alarm the public by using that loaded term, and so they coined the alternative, “recession” to denote a relatively minor economic downturn. Some have attempted to give formal definitions, based on the extent of shrinkage or the duration of the negative period. But the best definition remains the somewhat humorous one: “A recession is when other people lose their jobs. A depression is when you lose yours.” To this we may add, for the current recession: “A recession is when other people lose their homes, a recession is when you lose yours.”

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