Gold Recorded its Biggest One-Day Gain in Nine Years

Is this the start of a new bull market in gold?

The price of gold soared 9 per cent in one session to end the Wednesday trading session at $US850.50 an ounce. This percentage gain was the most in one session since September of 1999.

BGF Equities analyst Warwick Grigor said, “A large move in gold overnight is a signal that times are changing. It is not an intra-market movement — it is more fundamental.” He also said, “This could be the start of a new bull market in gold.”

But why has the price of gold being going down in the last few weeks? One reason is that hedge funds have been getting rid of their gold to raise cash to pay brokers who had lent them money to make investments. However, this was slightly offset by the Fannie Mae/Freddie Mac bailout that actually pushed gold prices up.

Analysts think the price of gold will continue to rise in the next few months. What do you think and why?

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AIG´s $1 Trillion Bankruptcy Would Be World´s Largest Ever

The Fed Comes to the Rescue Again!!

AIG's troubles, similar to its Wall Street peers, stem from guarantees it wrote on mortgage-linked derivatives that have left it with a total of $18 billion in losses over the past three quarters as well as its stock price having fallen more than 91% so far this year.

As of yesterday, the Fed has agreed to loan AIG some $85 billion for a 79.9% stake in the company. Whew! Now that’s what I call a rescue! Get those printing presses running! They say that the loan will be repaid with the sale of AIG assets and not with taxpayers dollars. I don’t agree with this. I tend to think that the taxpayers will just continue to pay for the greed and mismanagement of assets that these companies have been running on for years.

Any thoughts on this?

Source: http://www.reuters.com/article/marketsNews/idINHKG1540020080916?rpc=64

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Want to Save Money in Taxes This Year?

Tax Deductions That May Surprise You

This post on savingtoinvest.com I passed on to friends as there were some items in there that I was unaware of. Particularly being able to deduct my mortgage insurance premium. I just purchased a house and got an FHA loan so my mortgage insurance is through the roof! Its good to know that I can deduct this. Also, deducting start-up costs for a business is something that a lot people tend to overlook, particularly when they are so wrapped up in getting their businesses going.

A lot of CPAs will not go out of their way to suggest creative deductions, they will just do what you tell them to do. This is why its good to know all of these types of tax loopholes when getting all of your tax stuff ready to hand in to your accountant at the end of the year, or whenever you do your taxes. By the way, one of the biggest tax loopholes of the rich that I had no idea about is called ‘Cost Segregation.’ I did a post about it last month on this blog. Here’s a link to it if you’d like to know more: http://thinktankinvesting.com/how-do-companies-like-trump-realty-and-wal-mart-save-millions-of-dollars-on-taxes/

Any other tax deductions that you’d like to enlighten us about? Please share!

Source: http://www.savingtoinvest.com/2008/09/real-tax-deductions-that-may-surprise.html

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Bad Business Decision For Apple?

Apple Extends Exclusive Agreement With AT & T

I found this article on localtechwire.com and decided to blog on it because I have been thinking a little about this. I have been wondering why Apple would choose to go exclusive with one carrier in the first place. Any thoughts on why Apple would make this business move given the high demand for the phones? From the article came a few thoughts I agree with (see below).

"If Apple made the iPhone available for AT&T, T-Mobile, and Verizon users, can you imagine the selling frenzy? The company would be at the center of one of the most monumental days in the history of technology. If the iPhone 3G can sell this well on one carrier, I can't imagine how well it would sell on the top three."

”While I don’t think Apple has little faith in its product, I do think this is a poor decision. The iPhone has a chance to become not only the dominant smartphone for the coming years, but also the first real powerhouse in mobile computing. By limiting the device to one carrier, it limits its potential to reach such goals.”

Any other thoughts on this?

Article Source: http://localtechwire.com/business/local_tech_wire/venture/story/3322365/

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6 Deadly Investing Mistakes

6 Deadly Investing Mistakes

Comments on article by William Lynott found at bankrate.com

Source: http://www.bankrate.com/brm/news/investing/20080822_6_investing_mistakes_a1.asp

Given that this article is coming from Bankrate.com I take a lot of things in there with a grain of salt. “Bill, I want you to create a piece called 6 deadly investment mistakes…yea yea, I’m likin’ the sound of that..”

Its definitely skewed like so many things on the Internet, including blog posts but it drew me in nonetheless.

Under mistake #1, I completely agree with Bill here but I always get a laugh from comments like that from Lisa Feathergill. She sounds like a typical stockbroker, "Remember, you haven't lost money until you actually sell the security. I know a guy who followed this advice and watched his million dollars in stock turn into zero dollars in a very short amount of time. Ouch!!

I agree with Mistake #3 that savvy investors make more money during downturns in the economy, however I’m having trouble with his stock pushing again. In my humble opinion, unless you are lucky, stocks wont’ make you rich Bill. Any comments on this?

I wholeheartedly agree with Mistake #6, Abandoning your investment strategy. Bill’s right. Whatever you decide to invest in, stocks, bonds, real estate, gold or silver…stick to the plan.

I think the worst thing any investor can do is react to the whims of the media about the investment environment, from wherever you are looking. Bill wrote, and I agree, “If the headlines are full of it and everyone else is doing it, you're probably too late.”

Does anyone have any other comments or thoughts on these 6 deadly investing mistakes? I’d love to hear from you. Read more!

Why Proper Estate Planning Is So Important

I Already Have a Will, What Else Do I Need?

Many people are proud to say they have a Will already set up, but why is this not sufficient for estate planning?

Contrary to what most people believe, a Will doesn’t avoid probate, in fact, it guarantees probate. A Will must be verified by the probate court before it can be enforced. Another problem with a Will is that it can only go into effect after you die. But what if you become physically or mentally incapacitated?

What is probate? Probate is a court process required when you die to assure debts are paid and assets are distributed according to your Will. Assets are frozen during this process, and in California it can take from 6 months to 2 years! If you own property in more than one state, there may be a probate in each state. You must also pay probate fees to an attorney/executor in the amount of 5% of the gross value of your estate! Another problem with going into probate is that, during the probate period, the public is able to see what you owned and who your creditors were etc.

A Living Trust is similar to a Will in that it includes the instructions for what you want to happen with your assets when you die. But unlike a Will, a Living Trust avoids probate at death, and also prevents the court from controlling assets at incapacity. A trust simply transfers assets from your name to the name of your trust, which you control. The trust then owns your assets and you designate a back up trustee to handle your trust (according to your instructions). Upon your death, since your assets are “owned” by the Trust, there is nothing to probate.

Here are a few of the advantages of using the Living Trust over the Will:

    * Avoids probate at death

    * Avoids multiple probates if you own property in more than one state

    * Prevents court control of assets at incapacity

    * Provides maximum privacy

    * Allows quick distribution of assets

    *Assets can remain in Trust until beneficiaries reach the age(s) you want them to inherit

    * Can reduce or eliminate estate taxes

    * Can be changed or cancelled at any time

    * Difficult to contest

    *Can protect dependents with special needs

But one question I have is: what if I’m single with no children? Would it still be better for me to use a Revocable Living Trust instead of a Will?

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Oil: How low can it go?

Oil: How low can it go?

Article found on CNN Money

With the little bit of relief that we’ve all experienced at the pump, it is easy for people to lose sight of the fact that six months ago we all would have thought that $3.75 was high. (at about $108 a barrel, the price of oil is around 50% higher than it was a year ago). Referring to this recent CNN Money article, although the article is extremely pessimistic, I do agree with the Resler’s insight about the proliferating effects of the higher prices on the consumer mindset, “even if they (oil prices) continue to fall, consumers may be wary for the next few months.”

Any thoughts or comments on this?

http://money.cnn.com/2008/09/03/markets/thebuzz/index.htm?postversion=2008090311 Read more!

Make a Comeback in a Stalled Job Search

Source http://lifehacker.com/5043382/make-a-comeback-in-a-stalled-job-search

Most business people are completely out of tune with this new phenomena of social media and really…how many business executives have time to regularly post on blogs or create a Facebook profile? Although its obvious to see how a blog in conjunction with a good resume is a must for tech professional on the job search, I also think that a blog is a good addition to a business executive’s job search. A blog is a great snapshot of a business executive’s projects, business ventures, and other accomplishments and interests. But who has time to create a mind blowing resume, much less a mind blowing blog? I found a professional blogger who created a blog for me relatively inexpensively and so far it has been an excellent accompaniment to my resume. But…I don’t know if it would actually help, “make a comeback in a stalled job search,” as the post on lifehacker.com indicates. If you are serious about a blog, use a professional blogger (person who blogs !) that has experience creating blogs. Particularly if you are considering a blog or forum for your business, there is a ton of research and traffic driving stuff that goes into it so leave it to pro bloggers.

Posted by Corey Read more!

Why Generation Y is broke

http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WhyGenerationYIsBroke.aspx


This article on MSN Money really caught my eye. The article said that “…some 85% of those aged 25 and older hold a high school diploma, and 27% have a college degree, and is of course, the most technologically sophisticated to date…”

But this same generation has zero financial literacy. Most twenty-somethings can barely manage their own personal finances much less knowing what a balance sheet and/or income statement is. And with the introduction of so many new financial products, young people are even more doomed in this new financial landscape. Should financial literacy be taught in schools so that we don’t raise another generation on debt? Any comments? Read more!