Today people have opportunities to invest in real estate that has not been available for many years. With the number of foreclosed homes on the market one can often pick up a house or other real estate at a fraction of the original price. Through the years the one thing that has increased in value is property that was purchased at a low price.

With the foreclosure of so many homes and the reluctance of the banks to try to stem the tide there are opportunities for first time buyers to achieve the home of their dreams. They need, however, to be sure the purchase is within their financial budget. Many business people are making purchases for rentals and this is fine as long as a loan payment, if there is one, is not more than the rent.

There are many state, federal and county laws regarding real estate transactions. It is practically impossible for the lay person to read or understand all this legalize. For that reason it is important to consult with professionals who are well acquainted with these rules and regulations.

In dealing with a foreclosure, bid or short sale concerning real estate there are many pits to be avoided. A foreclosure might have hidden liens against the property. Property purchased on bid might have someone living in the property with a lease that can’t be broken. Having the experts determine all of this before the final purchase is essential to have a good transaction.

There are excellent opportunities on the BC real estate market today to make a good investment. Obviously, when one buys low and sells high there is a profit. The major consideration, one who makes a purchase must understand, is that things don’t happen overnight. It might take several years before the property can be sold at a profit but usually that profit is better than the stock market and, certainly, more secure.

Before even looking at any real estate a person considering making a purchase should educate themselves regarding such things as short sales, bidding sales and other prospects of this market. This will, at least, give them a basic knowledge of what it is all about. This information will be invaluable in knowing what questions to ask when the time is right.

Careful planning needs to go into the purchasing of property. Sitting down and looking at one’s income and outgo on a monthly basis will determine if there is enough money to make a mortgage payment without sacrificing other things. Owning a home requires upkeep that one does not encounter when renting so those things must be taken into consideration also when determining if one’s budget can support the purchase.

Some foreclosed and other homes, on the market today, require extensive re-modeling. The seller will usually allow a certain amount of money to cover a few of these repairs but seldom enough to cover the entire cost. If planning on using the purchase for a rental it is important to look at details such as rent collection and lawn maintenance or other things to be done to keep it in first class condition.

The winter olympics brought a lot of attention to the Kimberley real estate market and is experiencing a bit of a boom now.

The Soldier and Sailor Civil Relief Act or SSCRA was signed by President Bush on December 2003. The point for this act was to set new legislation to simplify or ease both legal and economic burdens to military personnel whether active or retired.

What is the SSCRA

SSCRA addresses the inability of military men to meet financial obligations when they are in active duty. Financial obligations to include rentals, leases, mortgages, credit card payments and other similar transactions. The SSCRA also stretches to cover the dependents of the military men in question.

SSCRA covers those under active duty, to include out on basic training exercises or assigned in the field. Often veterans miss the chance to pay their financial obligations since they are unable to do so during the line of duty. The SSCRA aims to provide legislation to these individuals so that they are given consideration regarding deadlines and payment due dates.

One area covered by SSCRA for military personnel/dependents includes leasing/renting of a property for residential purpose (not to exceed more than $1,200 a month.) Also the conditions must be met and the transaction must be first be made before the service man is enlisted into active duty.

Once on active duty, it’s becomes almost impossible for them to settle this obligation. The next course of action is for the service man to send a request of being under the protection of the SSCRA to the court when he or she receives an eviction notice. If the judge finds sufficient grounds which merits the protection from SSCRA then the court may postpone the eviction until the term of duty of the personnel expires

Advantage of SSCRA for veterans on active duty

Often military personnel on active duty will not have the ability to fulfill their financial obligations to various institutions like credit cards, banks, insurance or mortgage lenders. The SSCRA was developed to provide a form of security to these men on duty on active duty.

SSCRA will provide enough “elbow room” for military personnel to be given extended deadlines for payments, foreclosures and mortgage transactions when they are in the line of duty. Though not all veterans are given the privilege of being under the protection of the SSCRA; some criteria and requirements must be met for both the transaction and the personnel before they are granted protection.

Interest Rates and SSCRA

Members on active duty who are unable to pay mortgages and who are facing foreclosure may then invoke the protection of the SSCRA to avoid such problems. Qualified debts are those incurred prior to service men coming into the line of duty. Also, the request will only be valid if the personnel are in the line of duty when the request was made which limited them from settling the said obligation.

If qualified, the service member needs to send a letter to the lender/bank requesting that their interest rate be capped to 6% according to the provision stated in SSCRA. Also, they may should send a photocopy of the military order to the lender as proof that they are on military duty as stated in their letter of request. the process can take up to 3 months to complete.

Foreclosures and the SSCRA

The SSCRA also helps cover the military personnel under the obligation of a mortgage, trust deed or security of property for any financial obligation. The SSCRA simply states that the personnel are valid for protection under the SSCRA if the obligation and the property were done prior to their military service.

The provision states that prohibition of foreclosure or sale of mortgage property without the presence of the borrower, the military personnel in this case, whether in a judicial or a non-judicial foreclosure. It is also stated in the SSCRA that maturity dates and deadlines will be given an extension when the military personnel is in active duty until they are released from their given designation.

Even if the maturity date or the date of foreclosure is extended due to the military personnel’s inability to pay, the court will try to achieve a compromise agreement from both parties requiring the mortgage lender to pay at least half of the amount due while the mortgage holder extends the deadline or put a stay on the foreclosure or sale of the property.

Doc Schmyz has done real estate deals all over the US and Mexico. He built a free website shares Real estate investing information for all over the US. Find real estate information by state

Capitalization or cap refers to the combined value of all the share of a company’s stocks. The division between large cap, mid cap and small cap are often blurry and not sharp. When you start looking for good stocks, you often come across these terms like large cap, mid cap, small cap, growth and value. Let’s discuss these terms for a moment.

Mid caps are companies with $1 to $5 Billion in capitalization and small caps are companies with $250 million to $1 Billion in capitalization. Anything below $250 million can be considered as micro cap. However the following divisions are generally accepted: Large caps are companies with over $5 Billion in capitalization.

Perhaps the most important ratio is the Price to Earnings Ratio (P/E). Now the most important term that you come across is growth stocks and value stocks. How do you determine this is a growth stock or a value stock? Suppose, company ABC stock is presently selling for $50. Now suppose that last year company ABC earned $5 for every share of the stock outstanding. This means stock ABC P/E ratio is 50/5=10. So the higher the P/E ratio, the more investors are willing to pay for the stock. What is the P/E ratio? The P/E ratio divides the price of the stock by the earnings per share.

Now the higher the P/E ratio, the more growth the company is supposed to have. So it can be either the company is growing real fast of the investor have high hopes of its growth. Now these hopes can be realistic or foolish, you never know! Now, if you follow financial news than you must know that the large growth companies always grab the headlines. But do the growth stocks really make best investment? The lower the P/E ratio, the more value the company has. Low P/E ratio companies are not considered to be the movers and shakers in the market.

The lower the P/E ratio, the more value the company has. Low P/E ratio companies are not considered to be the movers and shakers in the market. Now, if you follow financial news than you must know that the large growth companies always grab the headlines. But do the growth stocks really make best investment? According to Fama and French, two famous researchers who did ground breaking research on stocks, over the last 77 years, large growth stocks have only seen 9.9% annualized rate of return as compared to 11.5% for the large value stocks.

The most probable cause seems to be their immense popularity. Since most of the headlines are captures by high growth companies, investors seem to think that they are the best investments. Now intuitively you might have thought that growth stocks are better. What can be the reason for their lower performance over the years?

Let’s go back to the IPO of Google. Think about Google, how its stock price shot up within a matter of weeks after it hit the market. Weeks after that it began to cool off. In 2007, Google stock was selling something around $500. So large growth stocks tend to get overpriced before you are able to buy them!

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Every investor wants stock prices in his/her portfolio to go up. What would make a stock rise so much? The whole point of investing in stocks is to choose one that has the greatest chance of a rising share value. Don’t we all look for a stock that we could buy for $10 and later on sell for $300 per share? Well, how can we proceed to accomplish such a feat?

So if the company does well, its stock will go up in price and if the company does poorly its stock will go down in price. Buying a stock is essentially buying a small piece of the company and its future potential for growth and profits.

Now why does the stock goes up and down with the performance of the company. Actually the real force behind the stock rise and fall is the market place. The marketplace is in fact buyers and sellers, individuals and organizations that want to buy stocks or sell them.

Any place where buying and selling takes place can be considered This buying and selling of stocks can only take place in exchanges like the New York Stock Exchange and over the counter markets like NASDAQ. If there are more buyers of the stock, its value will go up and if there are more sellers in the market, the stock price goes down.

Now it doesn’t mean that if the company does well and is showing good profits and earnings, its stock price will go up. Sometimes you will find that the company does well and is posting good quarterly earnings but still its stock price goes down. What’s the reason behind this?

In reality the price of stock depends on the investor’s expectations. The price of a stock goes down because there are more sellers than buyers. So why is it so? The stock price does not go up or down just based on the company’s present performance. Stock price goes up and down because of what the buyers and sellers expect will happen with the company in the near future.

However, the performance of the stock and the performance of the company over the long term have a logical relationship. In the short term, the behavior of the stock price is irrational and it can behave in crazy and illogical ways.

The bottom line is don’t worry about the short term gyrations of the stock price. Focus on finding companies that are strong, well positioned in the right industries and have solid fundamentals like a good management, good product, good service, growing industry, rising sales, increasing profits and so on. Picking a stock doesn’t happen in a vacuum. Understanding the company’s industry and the overall economic environment is critical to stock picking process. Sometimes the industry and the economy matters more than the company.

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A mutual fund is a fund managed by an investment professional on behalf of the fund investors. Now, mutual funds by law are constrained to follow conservative trading methods. Mutual funds cannot engage themselves in such sophisticated and risky trading techniques like arbitrage trades, long short strategies and distressed asset investing.

There are many different mutual funds like stock funds, bond funds, currency funds and even country specific mutual funds. But there are a number of mutual funds that specialize in investing in commodities or commodity related products.

These commodity mutual funds use different investment strategies. Some of these commodity mutual funds invest in derivates based on commodities such as futures contracts and options based on futures contracts traded on the major exchanges in New York, Chicago and so on.

Other commodity mutual funds may invest in companies that process these raw commodities such as energy companies and mining companies. So how can you invest in these commodity mutual funds? After doing your research on these commodity mutual funds, you can select one that you consider to fit your investment objectives, simply write a check and purchase the shares of that commodity mutual fund either through your broker or directly through the fund providers.

Now I said, after doing your research. The first step in your research should be to compile a list of questions like what is the fund’s investment objective, what securities does the fund invest in, who manages the fund, what kind of strategy does the fund uses, what type of people invest in this fund, what are the risks involved in investing in this fund, what is the funds track record, what is the funds fees and expenses and so on.

Now the two main commodity mutual funds are the PIMCO Commodity Real Return Strategy Fund and the Oppenhiemer Real Asset Fund. Now PIMCO Commodity Real Return Strategy Fund (PCRAX) is the largest commodity mutual fund in the market with $12 Billion of assets under its management. PCRAX tries to mimic the performance of Dow Jones-AIG Commodity Index by investing directly in commodity linked instruments like futures contracts, forwards contracts and options on futures. Once you have your list of questions, see if the fund prospectus answers these questions satisfactorily. The good thing is that most of the mutual funds send their fund prospectus free!

Now as always Morningstar website is a very good resource for doing your research on commodity mutual funds. It can give you a lot of information about these commodity mutual funds such as the latest news, updates, load charges, expense ratios and other useful key data. Morningstar also have got a five star rating system that can be really helpful to you in picking the best commodity mutual fund.

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Many people are not aware that commodities as an asset class has a lot of potential especially in the 21st century. It is being predicted that the 21st century belongs to the commodities. If you are interested in investing in commodities than you can invest in a commodity mutual fund!

Just buy the shares of the commodity mutual fund and let its NAV appreciate before you can sell for a capital gain. This is the simplest way for you to get involved in investing in commodities as the mutual fund portfolio management will be done by a professional manager and you have to do nothing.

Now, you must have heard about the Exchange Traded Funds (ETFs). ETFs are really hot investments these days. ETFs started off some three decades back but became highly popular as investment vehicles in such a short time.

Now the good thing about investing in ETFs is that they give you the diversification benefits of a mutual fund with very low fees something like 0.7% as compared to 2-4% of the mutual fund. Driven by the growing demand of commodities by the investors many financial institutions are now offering Commodity ETFs.

So unlike a mutual fund whose net asset value is calculated at the end of the day and the shares of mutual fund cannot be traded during the day, you can go both long or short on ETFs all the time. Something you cannot do with a mutual fund! ETFs have the added benefit of being able to trade like stocks giving you the powerful combination of diversification and liquidity.

This diversification plus liquidity benefit makes an ETF a better investment tool as compared to the mutual fund and the stocks. Now, you can find thousands of ETFs in the market on different market sectors, stock indexes, currencies, commodities and so on.

The Deutsche Bank Commodity Index Tracking Fund is listed on AMEX and tracks the Deutsche Bank Liquid Commodity Index. This index is based on a basket of six commodities: light sweet crude oil, heating oil, gold, aluminum, corn and wheat. The first Commodity ETF in US was launched by Deutsche Bank in the start of 2006.

Now, every month a new ETF gets launched. There are a number of Commodity ETFs that track individual commodities like crude oil, gold and silver. Do your research on Commodity ETFs, you may find a good investment. This ETF invests directly in the commodity futures contract. Now one of the downsides of investing in this Commodity ETFs is that it can be fairly volatile as it is based on commodity futures contracts that get rolled monthly. Another downside to this Commodity ETF is that it is based on a basket of six commodities only.

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Many analysts are of the opinion that commodity investing maybe the best investments in the early part of the 21st century. Take the name of oil, oil is the most heavily traded commodity in the world right now. Gold is another commodity that is reaching record price levels. Gold prices for the first time have breached the unheard of $1000 per ounce barrier. Investing in commodities may be the something that investors thought of boring and dull only a few decades back but not anymore now. If you are interested in investing in companies that are involved in the production, transformation and distribution of commodities, than one of the best ways to do so is through investing in the Master Limited Partnership (MLP).

MLPs are public entities that trade on public exchanges. An MLP issues shares that trade on an exchange just like a company stocks that trades on an exchange. You can invest in an MLP by buying its shares on an exchange. The shares that an MLP issues are called Units and the investors who own them are known as Unit Holders.

Right now there are not many MLPs in the market. You will only find 3-4 dozen MLPs listed in the different stock exchanges. When you invest in an MLP, you are essentially investing in public partnership. There are tax advantages to investing in MLP. Unlike regular corporations, an MLP is only taxed once. Now most of the MLPs trade on the New York Stock Exchange. A few MLPs also trade on the NASDAQ and the AMEX. Tax exemption on MLPs gives them certain benefits that other companies in the same industry lack. There is a tax exemption on MLPs. You must be curious how this tax advantage works out. Because of

Suppose you invest $1 in the stocks of a regular corporation and you are in the 35% tax bracket. Corporate tax is 30% of it’s before tax income. This means that for each dollar that you invest you need to get at least $1/ (1-0.35) =$1.54 just in order to breakeven. So the corporation will have to generate $1.54/ (1-0.3) =$2.2 for each dollar that you invest in order to return you $1 after tax profit. Since an MLP has got the tax exempt status it will only have to generate only $1.54 for each dollar that you invest in it.

Since an MLP has got the tax exempt status it will only have to generate only $1.54 for each dollar that you invest in it. Suppose you invest $1 in the stocks of a regular corporation and you are in the 35% tax bracket. Corporate tax is 30% of its before tax income. This means that for each dollar that you invest you need to get at least $1/ (1-0.35) =$1.54 just in order to breakeven. So the corporation will have to generate $1.54/ (1-0.3) =$2.2 for each dollar that you invest in order to return you $1 after tax profit. In most cases, the majority of these GPs in MLPs are other corporate entities setup with the specific purpose of running an MLP. This tax advantage gives an MLP competitive advantage as compared to other corporations when competing for assets. This means a huge advantage for an MLP. Now an MLP is run by a General Partner (GP).

However, most GPs do a good job of running the MLP as it is in their financial interests. Now you must know as a limited partner in an MLP, you have limited voting rights. This means when you invest in an MLP, you are giving away the keys of ownership to the GP. This means you are out of the decision making in an MLP.

An MLP is obligated to distribute all available cash back to its unit holders on a quarterly basis, so you will be getting a quarterly income from your units. Secondly as the MLP expands and grows overtime, its units may give you capital gain as well. Investing in MLP units can give you quarterly cash flows as well as appreciation of the unit price. However, always do your due diligence when you want to invest in an MLP.

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Trading would be almost impossible without charts and technical analysis. Trading is all about anticipating and predicating rather than forecasting. Technical analysis is the best tool a trader can have. A picture is worth more than a thousand words.

The most important thing that you should in a market is its primary trend. Primary trend is the direction of the market that offers the least resistance forward making money. When you follow a primary trend in a bull market you look for strong stocks and in a bear market you look for stocks showing weaknesses. Knowing the primary trend and trading in its direction increases your chances of making money. So how do you find the primary trend and what tools you need to determine the primary trend? You use the following tools to determine the primary trend:

Trendlines: Knowing how to draw and use trendlines gives you an excellent start on any trade. To correctly draw a rising trendline on the chart, start with the lowest low on the chart and connect it to the lowest low preceding the highest high in the chart without bothering about the prices between the two points. Similarly to draw the down trendline, draw a line connecting the highest high on the chart to the highest high preceding the lowest low of the chart without passing through the prices between the two prices.

Moving Averages: Support level is the price where the prices stop falling and the buyers step in overcoming the selling pressure. A break in the support level is an indication that more weakness may be ahead. Moving averages are sues to smooth out the market’s trend over a given period of time and serve as an important support and resistance levels.

Resistance level is the price where prices stop rising and the sellers overcome the buying pressure. A break above the resistance level is an indication that the market is going strong.

Oscillators: Oscillators are graphic depictions of points derived from the mathematical formulas that are plotted below the price charts. Knowing these mathematical formulas is not important as a trader. What is more important to know is the fact that oscillators produce useful mathematical data that can help you tell whether the market is overbought or oversold and whether the momentum of the primary trend in the market is still strong or there is a potential change in the primary trend ahead? Two important oscillators that you should be familiar with are RSI and MACD.

Bollinger Bands: Bollinger bands are calculated by plotting points one or more standard deviations above and below the 20-day moving average. However, you can calculate Bollinger Bands with any moving average. Bollinger bands are also known as volatility bands or envelopes. Bollinger bands give you visual evidence when the market has travelled too far in any one direction.

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Crude oil trades around the world. Crude oil is one of the most heavily traded commodities in the world. Every day perhaps billions of dollars worth of crude oil gets traded. New York Mercantile Exchange (NYMEX) is considered to be the hub of crude oil trading in the world.

Every day perhaps billions of dollars worth of crude oil gets traded. You must be thinking that crude oil contracts get traded between the oil producing countries like Saudi Arabia, Russia, Nigeria and so on with non oil countries. Now to your surprise, New York Mercantile Exchange (NYMEX) is considered to be the hub of crude oil trading in the world. You should be aware of the power of crude oil in the global economy. Crude oil trades around the world. Crude oil is one of the most heavily traded commodities in the world.

At NYMEX, crude oil futures contracts based on Dubai Crude Oil, Brent North Sea Crude Oil, differential between the light sweet crude oil and the four domestic grades of crude oil as well as oil options are traded.

At NYMEX, you can trade crude oil futures contracts based on Dubai Crude Oil, Brent North Sea Crude Oil, differential between the light sweet crude oil and the four domestic grades of crude oil and a few more. Oil options are also traded on NYMEX. Now Dubai Crude Oil Futures contract is very popular. So, NYMEX offers you a host of futures as well as options contracts based on crude oil.

The NYMEX contract for the light sweet crude is the most liquid of all the crude oil contracts. A standard crude oil contract is based on 1,000 barrels of crude oil that will be delivered to Cushing Oklahoma if not settled in cash before the expiry of the contract. The E-mini crude oil contract trades on the Chicago Mercantile Exchange (CME) GLOBEX platform and is cleared at NYMEX. It is based on 500 barrels of crude oil. Now as a retail trader, you can trade the E-Mini crude oil contract. If you have been dabbling into futures trading than you must know that futures trading is risky and can easily wipe out the capital in your trading account in a matter of minutes. So what to do? One and easy option is to stay away from the crude oil futures trading. The more difficult option is to first learn futures trading do some paper trading and only then venture into this difficult proposition. Read the whole article, I will give you a very good solution at the end.

A barrel of oil contains 42 US gallons. Crude oil is traded in US dollars per barrel. In other words, the price of crude oil is quoted in US dollars per barrel. Now trading at NYMEX can be through open outcry during the regular treading hours as well as electronic web based trading after hours.

You can visit the website of NYMEX and read a more about the crude oil trading that takes place at that exchange. Now trading crude oil futures contracts require you to be in tune with the market sentiment. Trends in crude oil market don’t develop suddenly and they don’t reverse suddenly. This is something good for you as a crude oil futures trader.

When a trend in the crude oil market develops, it may last for a few months to a year. It all depends on the global supply and demand situation of the crude oil. If you can spot a trend in the crude oil market in its early stage and ride it till its reversal, you can make a good profit. Now, just keep this in mind that crude oil prices are highly susceptible to global geopolitical situation and react violently to any political global uncertainty.

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One thing should be clear to you. Energy markets will be a major focal point in the global financial makers and the global economy for many years to come. The key to understanding energy trading is to understand oil, natural gas, gasoline and heating oil futures. Again crude oil prices have started rising. The recent price of crude oil was quoted as $ 80 per barrel. It is being predicted that the price will soon reach the $ 100 per barrel mark. Analysts are of the opinion that this price might reach as high as $ 200 per barrel. In any case, with the end of global recession, the demand for crude oil will again rise making the oil prices go sky high as the supply cannot keep up with the rising demand.

NYMEX trades futures and options contracts for crude oil, natural gas, heating oil, gasoline, coal, electricity and propane. NYMEX is also home to trading in metals. Trading in energy futures is centralized at the New York Mercantile Exchange (NYMEX), the world’s largest physical commodity futures exchange.

For smaller traders NYMEX offers e-mini contracts for oil and natural gas that also trades on the GLOBEX network of the Chicago Mercantile Exchange (CME). Trading in NYMEX is conducted in two divisions: 1) The NYMEX Division and 2) The COMEX Division.

Sometimes the rise in oil prices leads to the increase in interest rates through the bond market and the actions of central banks and the other times the opposite happens. Rise in oil prices if often inflationary. As a trader, you should know this fact that oil price rise often tends to slow down the economy and lower retail sales as well as consumer confidence with lower traffic on the highways.

High oil prices are considered to be inflationary and tend to slow down the economy. Low oil prices are always considered good for the economy. As a trader, you should know this fact that oil price rise often tends to slow down the economy and lower retail sales as well as consumer confidence with lower traffic on the highways. Sometimes the rise in oil prices leads to the increase in interest rates through the bond market and the actions of central banks and the other times the opposite happens. Rise in oil prices if often inflationary. Now all these effects have a time lag factor built in them. If the crude oil prices increase or jump suddenly like that in’73, it takes time for the increased oil prices to start affecting the other factors in the economy.

Some people consider the Peak Oil idea as controversial but this concept is increasingly plausible given the state of the global oil industry. Oil production in countries like Venezuela, Iran and Nigeria has peaked and is going down. Non OPEC sources of oil like North Sea and Mexico are also showing sign of declining production. There has been no major oil well discovery for the last few decades.

Oil production in countries like Venezuela, Iran and Nigeria has peaked and is going down. Non OPEC sources of oil like North Sea and Mexico are also showing sign of declining production. There has been no major oil well discovery for the last few decades. Some people consider the Peak Oil idea as controversial but this concept is increasingly plausible given the state of the global oil industry.

Now you should keep these facts in the background of your mind as a trader. In any case, most of the experts now agree that in the next 10-20 years, the oil production will peak and after that it will start declining. 1) Demand fluctuates but supply of oil is finite. 2) The world runs on oil and any threat to the supply of oil often leads to rising prices. As an oil trader your primary goal is to consider the effects of events on the supply of oil and correlate this effect with your charts.

Mr. Ahmad Hassam is a Harvard University Graduate. Trade Dow Futures . Learn Commodity Trading !

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