Quarterly results of most of the companies in the US seem to be quite fascinating. However, shrinking economic numbers of the nation is still a concern. All major indicators are pointing towards an economy that’s falling apart. Here are some of the reasons why we might face another recession soon: Economists expected rise in US orders of durable goods by 1%. However, it fell by 1% in June. Apart from volatile transportation goods’ figures, overall shipments fell by over 1.3%. The quantity of inventories lying in warehouses is increasing, which indicates goods are being manufactured but not purchased by consumers. Chinese industrial output fell by more than 2.8% last month, major reason being weakening global economic conditions. According to the data revealed by Economic Cycle Research Institute (ECRI), the weekly indicator index fell significantly, reaching as low as -10.5.  [...]

Choosing your career at the age of 20 is certainly a difficult task. Let alone the world economics, you haven’t even discovered yourself completely. Besides, you would make an exciting career if your personal choices are in sync with market demand. I selected finance simply because I love number, I like talking to people, and the earning potential is high. This was, however, 15 years ago, and things have changed considerably since then. Let us have a look at few most promising sectors that will dominate the market in coming 10 years. Phone Technology As of now, this is the fastest growing market, and demand for phones is increasing by leaps and bounds. In years to come, the world will need more technicians produce, troubleshoot, and manage this technology. This sector is highly depended on communication, which is also a promising sector in itself. Certified Financial Planner Most  [...]

It’s seems that problems for BP are far from over. Apart from loss caused due to wastage of oil, clean up costs, and compensation for the disaster, it now has to pay fine to the US government for violating the Clean Water Act. The US government has decided to charge $300 per barrel spilled into the water. The fine is a bit on the higher side simply because the Justice Department feels BP was negligent in causing the disaster. However, no one has an accurate idea of how much oil has spilled into the water. Initially, when the oil started leaking, The Coast Guard said it was 1,000 barrels per day. Now the count is somewhere between 35,000 and 60,000 barrels per day. Let us, for a while, say it was 60,000 barrels per day. Consequently, BP would have to pay over $18 billion as fine to the US government. This is after deducting the 800,000 barrels of oil captured by BP. The fine  [...]

Economists are debating on whether our not the US will experience a double-dip recession. The prediction, however, may prove to be a bit optimistic. Most said we are on the path of recovery. However, falling unemployment rates, decreased consumer spending, dropping house rates, and unstable global cues are, unfortunately, not signs of recovery. Some economists, who have realized the graveness of this situation, have termed it as ‘Lost Decade’, which means a prolonged period of weak growth. An economist and professor at Cal State University Channel Islands, Sung Won Sohn, predict the probability of having a lost decade is much higher than a double dip recession. According to him, major engines that push growth of an economy like consumer spending, housing, and exports, are all down. For the next few years, our country might not even grow at 3%. However, if something like Lost  [...]

Many economists claim we are on the path on recovery, and the GDP will soon be high. The unemployment rate, however, is not dropping a bit. If it would have been recovery, most companies should have started hiring, at least the ones who were downsized. But the daunting trend seems to continue. Wells Fargo is about to cut 3,800 jobs and close down 638 stores in the financial division; the company announced on Wednesday. In fact, if this happens, the company may close down its consumer finance division, which offered non-prime loans to homebuyers. They will downsize around 2,800 employees in next couple of months, and the other 1,000 jobs would be cut within next 12 months. The need for separate financial division was eliminated when the company merged with Wachovia in 2008. However, they aren't doing too well since they have had their own division. The President of Well Fargo Financial,  [...]

Commodity market is an inflation indicator of an economy, as it shows the price index of commodities. Hence, if you are planning to invest to hedge yourself against inflation, you must consider investing in this market. Commodity market can sometimes be quite volatile, but so can be the stock market. The idea is to diversify you investment in varied products, and into the ones not similar to your existing investment. You must expand your portfolio and allocate funds to various asset classes to minimize risk and get decent returns. The Market The commodity market comprises of 48 markets from all over the globe, and trades around 96 commodities. People can trade anything from gold, silver, coal to spices, stell and orange juice. One of the biggest commodities market in the US can be found in Chicago. Size of the market may be small. But Chicago Mercantile Exchange (CME) trades in big volume  [...]

For the ones with minimum knowledge about gadgets, price difference between normal PC's and Mac's is certainly infuriating. And it definitely is a debatable issue when you learn that an Apple macbook costs around $600 more than a Dell notebook with very similar specifications, especially when you are on a budget. It wasn't any different with me. When my $700 Dell Inspiron gave up after 6 years of usage, I wasn't really sure whether I should buy a Mac this time. However, I ended up buying an expensive MacBook Pro, and realized why it's costlier than others in the market. Brand Emergence Apple, with its high-tech gadgets and minimum advertising, have created a reputation that represents elegance, technical evolution, and simplicity. People started becoming aware about this remarkable brand when they experienced the audio quality, ease of functionality, and sleek looks of iPod, that  [...]

Investing money in fluctuating products like stocks and currency today is quite risky. Hence, most investors have switched to high-interest savings accounts, checking accounts, and Certificate of Deposits, which are comparatively safer. The returns, however, are not so high. They are low, in fact (below 2%). Interest rates are low, and they aren't expected to rise until the economy improves. And the banks are not at fault. ING is not trying to rip you off. Ally Bank doesn't detest you. So, Why Are The Rates Low? The rates are low because the government doesn't want you to save money into the bank. They want you to put money into the stock market, and boost it a bit, which will eventually help the economy. Where Do I Put My Money? Where Can I Get High-Interest Rates? That's a good question. Let's have a look at some of the options we have. High Interest Checking Accounts Although  [...]

Most personal finance blogs would advise you to start investing today, which is certainly the best piece of advice in most cases. However, your investment decisions must be based on other factors including your personal goals, current financial status, and so on. You cannot start investing simply because your broker informed 'buy this, it's a good stock', or 'market is not at it's peak, this is probably the best time to invest', or 'This stock will certainly skyrocket'. Before we believe in all these things and start investing, STOP! Have you gone through your financial plans? Would this action help you to reach your goals sooner? Instead of asking a financial consultant you must ask few questions to yourself. 'Should I invest in this stock, or should I repay my loans first?' This may be not the right time to invest, let's us discuss why. You Don't Have Adequate Knowledge About  [...]

For most of us, especially Americans, saving even 10% of our income seems to be an impossible task. This doesn't mean we don't try. We try hard, but there are many forces working against out his goal. These forces are inflation, job loss, not enough opportunities, unpredicted circumstances, and so on. Saving is a difficult task because we are addicted to spending more than we earn by using other's credit. There are few of us who work hard, save, and invest, and build a fortune that many of us simply dream about. But as soon as we reach a secure stage, we are often asked to enjoy what we have accumulated. Many are told to act nobly or altruistic by giving away money as charity, while many others are simply asked to keep building the fortune. What is it that we want to do with our money? Why do we want to save money? We strive hard, and give up our desires today and save more, simply  [...]