Macro Trading and Interest Rate Cycles

By Dagny Taggart

Trading any and everything macro traders look for asset classes that have sufficient liquidity and then trade them when they can find a great risk to reward opportunity. They will trade stocks, bonds, currencies, and commodities when they think that they have an edge.

One of the classic asset classes for the macro trader is that of fixed income. There have been several academic studies that show that when interest rates are rising or declining macro traders earn abnormal returns. In practice the same phenomenon has been observed. This is not a random thing as there are several reasons why this is the case.

Why does this happen? Well if you look at how interest rates change you will see that the typical trend goes like this up, up, up, up, up, flat, flat, flat, down, down, down, down. And not like this up, down, up, down, etc.

Central banks such as the Fed or the ECB rarely raise rates at one meeting and then lower them at the next. Instead they typically will raise, raise, raise, raise, hold, hold, hold, lower, lower, lower, etc. They move rates gradually because they are driving the equivalent of an aircraft carrier and not a jet ski, in other words they are trying to steer an entire economy and not a one man shop. Entire economies take time to move, and this is where a large part of the macro traders edge comes in.

By watching the moves of central banks and the economy traders can better forecast what is likely to happen. By not trying to pick the exact tops and bottoms macro traders can more safely generate their returns. Sometimes the central bank will only lower rates a few times before embarking on a new tightening cycle but typically these trends lasts months and months if not years and years which helps to generate even higher returns.

These opportunities are available in several markets since interest rates, also known as the cost of money, effect all asset classes. You can find abnormal profits in stocks, bonds, commodities, and currencies depending on what is happening with interest rates.

Another great trade is when you go long a higher yielding currency and short a low yielder in order to earn the carry. If you pay strict attention to the action of the central banks you can make good money in the carry trade. But the granddaddy of interest rate trades is to simply go long bonds in an easing cycle and go short in a tightening cycle.

If you want to trade using global macro then start learning about how interest rates effect different asset classes and how to read the notes of central banks. In recent years they have been giving increasing transparency which makes it easier to decide what you as an investor must do. - 23196

About the Author:

If you need actionable trading ideas then check out The Macro Trader It is a weekly global macro investing advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

10 Tips To Buying Investment Beach Property

By Hubert Miles

To get a leg up in the real estate investment world, you have to be proactive. To find bargain beach properties, you need to be actively searching for investment beach properties. Here are ten ways that will help you be a more active investor in beach properties.

1. Network. Talk to as many people as possible about your business. Let everyone you know that you buy beach properties. Offer referral fees for leads that result in the purchase of a beach property.

2. Go online. Do an internet search for the type of beach property you are searching for. Just type in the name of the city, the price range, and other factors that match your criteria to see what is available in the market.

3. Drive through your target neighborhoods. May owners will put up a "For Sale By Owner" rather than pay for a newspaper ad every week. You'll see more beach properties using this method.

4. Locate beach properties that have been abandoned. This is a pretty clear sign that the owner can't or just doesn't want to care for the beach property any more.

5. Find old "For Rent" ads. Call if they are a few weeks old. Landlords are often ready to sell, especially if the haven't yet rented the units out.

6. Call the banks. Obtain a list of pre-foreclosure and foreclosed beach properties. Visit the beach property and make an offer. If you buy before they list it with a real estate agent it saves them from paying a commission.

7. Offer someone a finder's fee. There are people that always seem to hear about the good deals. Have such people coming to you.

8. Eviction notices. Does your local paper print eviction notices in the paper? Is this information available at the courthouse? The owners of these homes may be motivated to sell.

9. Old FSBO ads. If you call on two-month-old "For sale By Owner" ads, and they haven't sold, they may be ready to deal. Owners often give up the effort, but still would love to sell. Help them out!

10. Use the local news paper. By placing an ad in the paper the you are looking to buy beach properties, you may generate some calls from people who have become extremely motivated sellers. - 23196

About the Author:

Hubert Miles is the founder of Waterfront Houses USA, an internet advertising service that offers Beach Property For Sale available in the US and Canada. Learn more about Beach Properties For Sale in your area.

You Can Claim Grant Money If You Live In The USA

By John Holden

If one is looking for some government agencies that provide funds for fulfilling particular objectives in specific field, no doubt, enough time, effort and research work is needed. Here, the intenders have been provided with all important points that will definitely guide in the way to find an appropriate government grant agency. There are number of problems that may come across when finding sufficient funds for instigating new business profile. One should keep in mind that these government grants are awarded always for non profit commercial firms and the services which are advantageous to the rest of the community.

Finding government grants

US government website contains the catalog of all government grants to be issued in particular year, thus interested people can get acquainted with latest grants from there. Furthermore, it also aids the individuals in searching for an apposite agent electronically and applying for different competitive grant opportunities from various other federal grant organizations. The official website lists all kinds of grants along with government agencies that award grants in different fields. CFDA can also prove an efficient way to get familiar with different categories of government funds and assistance. Moreover, it also facilitates the individuals to make use of some highly effective searching methods like keyword searching to find suitable grant easily. However, once the required grant is found, it is vital to make certain that whether one is qualified for a particular grant or not.

There are some government grants that are not available for the whole year. Thus, one should keep a watch when these grants are announced by the government or organization and should apply accordingly. If an organization sanctions some fund for grant, the same is enlisted in a register which is called Federal Register. This federal register is also made available in print form on daily basis. Through this register one can keep oneself updated with the latest announcements. Moreover, one can also gather information regarding latest funding which is being made by government agencies through the websites.

Often, people are awarded government funds particularly as financial support for getting higher education and for scientific research works. However, there are also some government organizations that provide grants so as to fulfill various purposes.

Getting government grants

Getting government grants is not any easy task as there is huge competition and for coming out as successful, one needs to provide a written proposal that evidently remarks that one's goals set forth a budget and plan for activities. Also, now-a-days, various fraud organizations are there that claim to grant free money merely by "writing a letter", so one needs to well aware of them.

These government grants are free in a way that a person does not have to reimburse the amount. The only thing which one should provide is proper evidence of periodic progress, financial reports as well as program evolution to the government.

So, for the individuals who believe in themselves and want to acquire well qualified for a specific category of grant, it is the right time to do more research work or establish contact with a professional to aid in complete procedure of getting loan. - 23196

About the Author:

To read more about US grants, check out Gov Grants Direct. Also, check out the Gov Grants Direct reviews now!

Improving Your Property Management Capabilities

By Layla Vanderbilt

Property management can be difficult at times. Many new managers only think that it's accepting payments from tenants every month and fulfilling maintenance reports. However managers learn that there?s much more to property management then this. A good portion of the manager's job revolves around having extremely good bookkeeping skills as well as knowing how to make financial status reports. Of course then managers also have to keep up with rent payments, late payments, and evictions as well. Most managers need an assistant to help them keep up with all of the work that they must do. To help make a manager's life easier they can use property management software.

Property management software comes in many different types and forms. Some software has different features from other software however all of the basic functions are the same. All property management software has the basic functions that are required by managers such as the ability to track rent payments and open apartments. Managers can use the software to enter detailed information about the units that are available for rent. If a guest comes in asking about a specific apartment the manager can print off all of the specifications of the apartments that the guest is looking at. The software has unlimited storage space so that you can store everything that you wish about the apartments including dimensions.

Another popular function of the software is that it will keep track of rent payments. It also acts like a calculator and can total any fields that you want it to. This makes it easy to see the total amount of maintenance expenses. You can also view late payments made by renters as well as delinquent accounts. If you need to print off the information you can do that as well. This information also becomes very useful if you need proof of lack of payment for an eviction.

You can also use the software to create various reports that you will need throughout the year. If you have a tenant that is getting evicted you can print out his or her rent history along with the rental agreement. You can also create and print forms such as balance sheets that you will need for tax season. All of these forms can be created instantly rather than having to hand produce them or type them up separately.

Property management software has come a long way in revolutionizing the way the reality industry works. It allows for managers to have less hassles with paper and for all the information to be safe on a database that?s accessible from any computer with the internet. The software also allows for one person to be able to the job of many people. This means that a manager doesn't require an assistant which can save a lot in monthly costs. Also you won?t have to worry about losing paperwork or it getting destroyed in the event of a fire. Property management software is almost a must for any manager in today?s world. It works for managers that manage 10 properties or just 1. - 23196

About the Author:

Layla Vanderbilt is the webmaster for a leading property management solution review website which connects people with the leading property management tools.

What is Market Sentiment (Part III)?

By Ahmad Hassam

Economic growth of countries can also have a big impact on the overall currency market sentiment besides the interest rates. United States is the largest economy in the world. US economy is the key factor in determining the global currency market sentiment. US economic growth figures affect the major currency pairs like EUR/USD, GBP/USD, CHF/USD and JPY/USD.

A strong economic expansion coupled with a healthy labor market tends to boost consumer spending in the country. Good economic growth helps in selling the stuff produced by the local companies and businesses.

A country with a strong economy is in a better position to attract foreign investors. But this economic performance should be consistent and not erratic. With consistent economic growth spread over a decade, foreign investors become interested. Foreign investment flowing into the country increases the demand for that currency. This increased demand for that currency causes it to appreciate against other currencies.

Some of the most important indicators of a country economic growth are: 1) Gross Domestic Product, 2) The unemployment rate and 3) The trade balance. Lets discuss these three economic indicators.

GDP: GDP measures the total good and services that are produced in a particular country in a one year. A healthy GDP growth rate figure usually adds a bullish sentiment to the currency of that country especially if it exceeds the market expectations. Always remember the markets tend to react more to surprises. The reaction can be positive or negative depending on the surprise. Actually we will be usually talking about the GDP growth rate whether the economy is expanding or contracting.

Unemployment Rate: A low unemployment rate is considered to be a positive for the countrys economy and its currency. A low unemployment rate means almost all the consumers have jobs and they are willing to spend more. The more the consumer spends, the more the companies and businesses in the country sell. This generates more output and further expands the economy. The unemployment rate data reports the state of the labor market in the country. The opposite is true for a high unemployment rate. High unemployment means the economy is in recession and many people are without jobs just like the present. Under such conditions, consumer spending decreases. Companies and businesses start laying off more workers and in extreme case go bankrupt when they cant sell their stuff in the markets.

Trade Balance: If a country exports more than it imports, the trade balance is in surplus. If the imports are more than the exports, the country will end up with a trade deficit. This is another widely watched economic indicator in fundamental analysis. Trade deficits are not good. Current account deficit must be balanced by the capital account surplus otherwise a balance of payment problem will ensue.

For example, if US import more from Europe, USD will have to be sold in order to buy Euros to pay for those imports. This will result in the depreciation of USD relative to the Euro and other currencies. The opposite is true in case of a trade surplus. USD will strengthen relative to Euro.

Geopolitical risk is also very important. It refers to the risk of a countrys foreign or domestic policy affecting domestic social and political stability in another country or the region. Geopolitical risk can cause the currency of a country to move up or down relative to other currencies in short as well as long term. - 23196

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Get Good Forex Training. Learn Forex Trading!