cdaoruang's Blog

January 13, 2008

By Linda Stern

WASHINGTON (Reuters) - Wondering where to put your money in 2008? It may seem like all the choices are bad, and I'm not talking about the presidential candidates. Stocks, bonds, real estate, and money market funds have all been underwhelming -- at best. Chinese stocks, gold, oil and India suggest bigger gains but also much bigger risks.

It could be a wild ride.

The year 2008 is an election year; they're usually bullish. But it could be a slow (or no) growth year; a year in which recession AND inflation are very real possibilities, and in which it's worth remembering that the worst times always precede the best times.

It's also worth remembering this caveat from Tim Swanson, chief investment officer at National City Bank: "Markets often move in the direction that the fewest people expect."

With that said, here are some observations and trends about where to put your money down in 2008.

  • The economy. The comments by economists about the 2008 landscape are a festival of on-the-one-hand, on-the-other-hand predictions, but they can be boiled down to a big ho-hum.

 

The housing slump will continue downward pressure; globalism will help keep things humming. The weak dollar and low interest rates could signal growth; the tapped-out consumer could snuff it. Bottom line? The prevailing prediction is for a sluggish 2008; maybe including a full-fledged recession, and maybe not.

  • Stocks. That means investing in the right stocks for the right time. Think consumer necessities: the toilet paper and toothpaste stocks.

 

Next year seems like a year in which consumers who don't have to buy a car, for example, won't. Think about sectors that sell what people need, not what they want. That includes health care and banks, according to Larry Adam, an investment strategist for Deutsche Bank Alex. Brown. "The financial sector has historically been able to recover fairly quickly from a credit crisis," Adam notes.

  • Volatility. This is the one thing virtually everyone expects. Learn to live with it and prosper, by trading around the edges of your portfolio. Keep a shopping list and buy on bad days; trim on good days. Don't try to catch the absolute top or bottom; just use the jumpiness of the markets to maintain a good portfolio at good prices.
  • Inflation. Federal deficit spending, unpaid promises to baby boomers, the weak dollar, big foreign demand for materials, runaway oil prices are all signals of inflation to come. That's mitigated by opposing forces like the weak housing market and tight wages. But smart investors will keep some of their money in assets that do appreciate when prices heat up: paper products, food companies, metals, energy companies and more. How much? Some pros keep it constant at 10 percent of a portfolio, others go above or below that line depending on how much they are worried about the inflation specter.
  • Foreign stocks. Since 2003, foreign stocks have outperformed U.S. stocks by more than 140 percentage points, according to Charles Schwab analyst David Kastner. That may mean the foreign stock part of your portfolio has now swelled beyond its intended proportions. "Many sleepless nights could be in store... now that higher volatility has infected the global markets," Kastner said.

 

But globalization is here to stay. Bottom line? If you haven't diversified into foreign stocks, there are good reasons to do so. But if more than 15 percent of your portfolio is invested in them, now might be a good time to pull back a bit. Be careful, too, about using today's super-cheap dollar to buy costly European securities; you might be buying at the top of both the euro and of Euro-stocks.

  • Real estate. All of the things everyone said three years ago -- they're not making any more of it, it's an investment you can enjoy, mortgage rates and tax breaks make it even better -- are still true. Only now prices are lower. Nobody is telling investors to run into the condo-flipping market on Monday. But 2008 probably will be a good year to find some real estate bargains, either through careful house-hunting or by tucking a quality real estate mutual fund or exchange traded fund into your IRA.

 

One bright spot for real estate investors is private student housing, according to Millennium Credit Markets, a Troy, New York, firm which arranges private equity deals.

  • Foreign bonds. It's no secret that most other governments and companies are paying higher rates of interest to their lenders than are U.S. borrowers. Yields top 10 percent in Brazil, South Africa, and a host of other countries. Economists are predicting interest rate declines in Europe; investors who already own bonds there will profit when the rates fall. An easy, somewhat safe way to get some of this income is to invest in a fund that hedges currency, such as the Pimco Hedged Foreign Bond Fund.
  • Domestic bonds. There's not much excitement here. Going into 2008, yields are low, and there's not a lot of room for further lowering them (which would push up total returns of bonds.) A stronger-than-expected economy could hurt bond investors; a weaker-than-expected economy still doesn't give them much to celebrate.

 

The exception? High-yield bonds of companies with questionable credit ratings. The yields are better, as are the prospects, in either a strengthening or weakening economy. Protect yourself against default risks by buying them in a big, diversified mutual fund or ETF, instead of trying to pick and choose which risky bonds you want to buy.

(Linda Stern is a freelance writer. Any opinions in the column are solely those of Ms. Stern. You can email her at lindastern@aol.com. )
sb
January 13, 2008
By Michael Kahn

LONDON (Reuters) - Drinking is healthy, exercise is healthy, and doing a little of both is even healthier, Danish researchers say.

People who neither drink nor exercise have a 30 to 49 percent higher risk of heart disease than people who do one or both of the activities, the researchers said in the European Heart Journal.

"The main finding is there seems to be an additional beneficial effect of drinking one to two drinks per day and doing at least moderate physical activity," said Morten Gronbaek of the University of Southern Denmark, who led the study.

Several major studies have found that light to moderate drinking -- up to two drinks a day on a regular basis -- is associated with a lower risk of heart disease, and some have also found this leads to a lower risk of some cancers.

But the Danish study, one of the largest of its kind to examine the combined effect of drinking and exercise, found there were additional protective effects gained from doing both.

The researchers collected information on the drinking and exercise habits of nearly 12,000 men and women aged 20 years or older between 1981 and 1983.

Over the next 20 years, some 1,200 of the participants died from heart disease and about 5,900 died from other causes.

Non-drinkers had a 30 percent to 31 percent higher risk of heart disease compared to moderate drinkers, no matter the amount of physical activity they undertook. Moderate consumption was defined as between 1 to 14 drinks per week.

But teetotalers who exercised at least moderately were able to reduce their risk of heart disease, an important finding for people who abstain because of religious beliefs or other health issues such as pregnancy, the researchers said.

People who had the lowest risk of dying from any cause were physically active, moderate drinkers while those at highest risk were the physically inactive, heavy drinkers, the study found.

sb
January 13, 2008
Caught in thoughts? You definitely can be an online tutor. Earn from the ease of your home. Teach people from anywhere around the globe the knowledge you have. Spread it, educate the world and earn a good bunch of money. This is no catchy slogan or dream sayings, it is the truth. This is very much possible. Online education is not limited to boundaries of a city, country or continent. Same is the case with online students and online tutors. As we, studying a course virtually from an institution are real time people. Similarly those who teach us on the other side of the monitor are also real time people, teachers, instructors, people who are spreading their knowledge. Educating the world.

Being located in Tokyo, you can teach students from California, New York, Australia, Middle East, any where! There is no end to the territories involved. Majority of people who are much informed about the system of online education simply never believe that there really are teachers who impart education. They take it all as fake and bogus. But all those of you who are currently reading this article have accepted the importance of online education and are very well aware that is exists, exists in reality and is helping people all over the world. It has made learning easier and convenient.

Institutions that provide online courses also hire teachers for those courses. As learning is a never ending experience, so is the process of teaching. There is always need of more lecturers, more qualified personnel to distribute there knowledge. Online tutoring is not just through the online universities and institutions, but there are also many private institutions that outsource services of tutors to students who need help or assistance in their daily coursework, homework, assignments etc. These tutors work on daily or hourly salary basis. Such outsourcing organizations work as a mediator between the student and tutor. They make sure that a student gets a tutor according to his needs and a tutor gets students according to his experience and qualification. It ties the student and tutor into a bond or a contract. This way the student gets full academic assistance for the amount he pays and the tutor gets his due payment after teaching the student. This way the rights of both the tutor and student are secured.

This system of online tutoring is very helpful for people who are disabled yet educated. We have many such people around us who may be genius a mind but due to some disastrous circumstances, have to now spend there lives bound to bed or chairs at homes. They can now earn for themselves, instead of sitting and wasting their lives, ending up being a paranoid. They can join such outsourcing organizations as tutors and make use of their lives.

One misconception that I'd like to clear here is that it is not necessary that you possess a big university degree to become a tutor. Well it definitely is a requirement when you apply to some College or University as an online teacher, but when teaching via these outsourcing organizations it isn't a pre requisite. We have an abundance of people in our surroundings, those who may not possess some college degree but their knowledge is incomparable and unbeatable. They can teach through such outsourcing organizations as ratings at such places are developed through the remarks given by the students who have been taught by the tutor and not on their academic qualifications. Therefore, making it a golden opportunity for people with knowledge. Knowledge as agreed has no boundaries. Similarly is tutoring. It is not restricted to regular subjects like mathematics, science, history, geography etc but very interesting subjects like aromatherapy; gardening, auras etc are also included in it.

Thus if you term yourself well versed in any subject of life, you have qualified to become an online tutor. The amount you get paid depends on the number of students you get who are interested in that particular specialization of yours. So Best of Luck with Your Quest! No one is useless in God's world.

Author by Keith Londrie

sb
January 06, 2008

After a hectic end to 2007, what better way to start the new year than unwinding on a beach in the Caribbean with magazine Travel + Leisure coming up with a list of its 10 top Caribbean islands.(Reuters Life!)

1. St. John - Best for Unspoiled Nature

The least populated and least developed of the U.S. Virgin Islands sits just east of St. Thomas. Two-thirds of St. John is protected from development as part of the Virgin Islands National Park - the legacy of Laurance Rockefeller, who donated the first 5,000 acres to the federal government in 1956.

2. Virgin Gorda - Best for Peace and Quiet

The easternmost of the British Virgin Islands, scrubby Virgin Gorda is at once laid-back and empty; like St. John, much of the island is protected parkland. It isn't especially easy to reach - you'll have to take a puddle-jumper or ferry.

3. Harbour Island - Best for Shopping

One of the oldest settlements in the Bahamas, this 3.5-mile-long spit is a five-minute water taxi ride from North Eleuthera. Colorful cottages line the harbor; beyond them are palatial houses owned by monied locals and the fashion crowd that "discovered" the island's pink beaches in the 1980s.

4. Saba - Best for Adventure

A five-square-mile dormant volcano with a thin, winding road, Dutch-controlled Saba is one of the best-preserved islands in the Caribbean. Despite the fact that it is virtually sand-free, the abundant wildlife, 14 easy hiking trails, rain forest, and protected reefs lure thrill-seekers and nature lovers. Since it's only a short flight or ferry from St. Martin, ideal for day-trippers.

5. Nevis - Best for an authentic Caribbean experience

This island has a flat coastline that soars up to the rain forest enshrouded 3,200-foot Mount Nevis. It feels intimate, in part because it's tiny (population 11,000), but also because development has been controlled with no high-rise hotels.

6. Anguilla - Best for Beaches

Almost in the shadow of nearby St. Martin, with St. Bart's visible on clear days, Anguilla is flat and sandy and remains relatively undeveloped compared with its neighbors but it's still home to some of the most luxurious resorts and villas.

7. Bermuda - Best for Golf

The British Crown colony sits in the middle of the Atlantic, some 645 miles off the Eastern seaboard, at roughly the same latitude as Savannah, Georgia. Just two hours from York and Boston, it's an easy quick-break destination.

8. Grenadines - Best for Sailing

More than 30 tiny isles (most uninhabited) stretch out like an unfurled sail for 45 miles in the southeastern Caribbean. Each has its own distinct flavor from Mustique where the rich, and famous hide out to the quiet fishing island of Bequia to Mayreau with only one road and electricity since 2003.

9. St. Bart's - Best for the Scene

Glamorous, star-studded and ultra-exclusive, St. Bart's manages to keep the masses away, despite the fact that it's just 15 miles (a 10-minute flight) from touristy St. Martin.

10. Vieques - Best for Relaxation

When the U.S. Navy closed its base on Vieques, northeast of Puerto Rico, the cognoscenti predicted that this tranquil getaway would emerge as the next St. Bart's. Significant upgrades are in the works but it's still rustic and relaxed.

sb
January 06, 2008

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St. Kitts and Nevis are located in the Eastern Caribbean, roughtly 1,200 miles from Miami and about an hour by plane from Puerto Rico and the U.S. Virgin Islands. Today’s population of about 45,000 are mostly descendants of Africans brought to the islands to work sugar and tobacco crops. On September 19, 1983 St. Kitts and Nevis gained independence from Britain, but the two-island nation remains a member of the Commonwealth. The islands retain many British traditions – cricket is a favourite pastine and cars drive on the lefthand side of the road.

St. Kitts aand Nevis are two islands but one paradise. People come to enjoy the islands’ warm beaches and cool forests, quaint towns and authentic architecture and its many tranquil, private pleasures.

A two-mile strait – six minutes by air or 45 minutes by ferry boat, separates the two islands. St. Kitts, the larger, has the more varied terrain – volcanic peaks covered with lush green forets, can plains, and the aris southeast peninsula which is ringed with coves of black, mink-brown and white sand. Nevis is distinguished by its large volcanic central peak surrounded by green hills with tropical gardens, secluded lodgings, and picturesque manor houses, all edged with lovely beaches.

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