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Smart Money Moves for New Jobs

A lot of people will be searching for jobs for the new year, but there are some things that people need to consider before they make they move. There are some

smart money moves that you should consider when you are ready to start that new job.

 

One thing that you have to do is consider the rollover from your old 401K to your new job. For some people it is not as easy as it is for others. One reason has to do with the eligibility. If you are starting a new job there is a chance that you will not be eligible for the plan in the beginning. In many cases people will have to wait for a whole year. That means that you have to roll this over into an IRA for the time at hand. It is best to be aware of the time for the eligibility though because you will want to make that transition back into it as soon as possible. When you move to the new job you should maximize your matching contributions. They are essentially giving you more money when you are investing so it is wise to take advantage of it.

 

Another smart money move that you can make involves your ability to save the extra money that you are making. Many people get in jobs where the salary increases, but they find themselves in the same debt problems. They go out and get cars and new homes and then wonder why they still cannot pay their bills with a new job. That is a bad place to be in. It is much more important to save more in the beginning of the new job. You just never know how things will turn out. You may not like the job. They may not like you. All sorts of things can happen so spend wisely and save as much as possible.

 

The best thing that you can do with your time is make sure that you are paying down your debt. There are a ton of people that need help in this department. They may be tempted to make new debt, but it is wiser to minimize debt that you already have with credit cards and loans.

 

 

Federal Reserve Raises Rates

In a much predicted move today the Federal Reserve decided to increase rates by 0.25%. In the morning the market was slightly down and upon the announcement the market stocks dropped lightly further. The Fed signified that tgere would be three more increases in 2017.

 

This signals the first interest rate hike in a year since the Federal Reserve increased interest rates in December 2015 for the first time since the great recession in 2008-2009. Many market observers were predicting five or six increases to the interest rate in 2016 though only one was ultimately announced and coming in the last month exactly a year after the last interest rate hike. Market uncertainty due to Brexit, an oil glut, and weakness in China were all thought to delay the interest rate decision by the Fed.

 

An interest rate hike is likely to have several impacts on the economy at large. For one, the cost of borrowing will increase which could impact the price of homes and the desire by companies to borrow money to fund acquisitions and other significant purchases. However, since interest rates remain at comparative lows, the risk that t minor uptick in interest rates will have a significant impact on the amounts that are borrowed by companies is unlikely. Increases in the interest rate will also make the stock market a less desirable alternative for investors as interest rates on bonds will increase. Further, inflation risk decreases with an uptick in interest rates, though inflation has been rather muted even with record low interest rates, and also have an impact on the value of the U.S. dollar which has been strong in recent years compared to other currencies which have received additional financial stimulus from their respective governments.

 

The interest rate hike was widely forecast and predicted with analysts assigning a near certainty of rates being increased with this Fed meeting and are predicting additional increases early in 2017. This increase in rates comes at a time where the U.S. stock markets are nearing all-time highs and have increased over eight percent since the election of Donald Trump as U.S. president due to the promise of lower taxes and regulations that many have seen as hampering companies and in particular industries like energy, financial companies, and healthcare companies.

 

Dow Jones Approaches 20,000

The stock market advanced today with the Dow Jones Industrial Index getting within fifty points of 20,000 and reaching a new market high. Since the election on November 8 where Donald Trump was elected as President, the market has rallied over eight percent.

 

A critical decision by the Federal Reserve is on the calendar for tomorrow but a rate hike is already priced in. The market has indicated that there is a 100% chance for a rate hike tomorrow and it is believed that the Janet Yellen run Fed will increase rates by .25%. However changes in the language released with the rate hike could impact the direction and impact on the market. An increase in the Federal Rate reserve will be the second since the Great Recession of 2008 and will come at a point where the United States economy has improved well beyond other countries and the U.S. Dollar is near all time highs. Despite a rate increase the interest rates are still at comparative lows and by only raising rates once in 2016 the Federal Reserve is well beyond schedule.

 

Certain American stocks are doing particularly well; Exxon Mobil is advancing on hopes that the new administration with current CEO Rex Tillerson filling the role of Secretary of State will lower the regulatory costs of doing business, while IBM and Apple also advanced greatly. The dollar and bond rates have not moved significantly.

 

Not only has the market priced in an interest rate increase for tomorrow but there are predictions that additional rate increases are coming in 2017 with two thirds of market observers predicting a rate increase will hit within the first six months of 2017. Markets are often negatively impacted by interest rate hikes as it is believed that stocks are a more attractive increase when rates are low which stimulate growth, though this time the prolonged decade period of low interest rates have left investors in belief that interest rate increases are necessary to decrease the value of the dollar and make U.S. companies more competitive globally.

 

Other trends are also impacting stocks such as a bounce back of oil prices and stock increases in Europe and around the rest of the world. European stocks are largely influenced by stimulus programs in those countries which are now being dialed back in the US.

 

Ventas Attracts New Institutional Investors

Ventas, a real estate investment trust (REIT) that specializes in health care is attracting new institutional investor support during a period in which their stock is experiencing some headwinds that have led to a dip in the price of stock.

 

 

People s United Financial Inc has increased the size of their investment in Ventas by close to 20% now holding almost 70,000 shares of stock after purchasing about 10,000 additional shares. Their investment in Ventas is worth almost $5 million.

 

Several other large institutional investors have also increased their stake in Ventas with iAB Financial Bank increasing their stake by almost 2% and holding close to $2 million of shars in the company. Carroll Financial Associates Inc recently added almost 9% to their investment and own about $750,000 in the company.

 

Ventas has long been considered to be one of the premier health care REITs in the industry. However, the move by one of their major tenants to close some of their managed nursing facilities have led to some investors to flee the stock, despite these nursing facilities only being a fraction of their overall locations.

 

Other factors also have impacted Ventas. A new administration in the form of Donald Trump and his promised appeal of, or significant modifications to, the Affordable Care Act (Obamacare) will impact the stock in unknown ways. Further increases in the Federal Reserve interest rate will also impact Ventas’ stock price in a downward manner.

 

Despite this the company has continued to perform well with Ventas beating estimates and posting earnings of $1.09 per share with an increase of revenue of almost 5%. Further, the company has raised their dividend to $0.775 per quarter from $0.73 per quarter, for a yield of close to 5% which is considered to be high during the low interest rate period.

 

Ventas is based and focused in the United States but has significant amounts of properties in Canada and the United Kingdom. The increased attention by institutional investors who are thought to perform more detailed research and analysis than individual investors may bode well for Ventas’ future and the stock commonly has a buy or hold rating with a price target 25% higher than its current level by many market observers, though the consensus view is that of a hold.

 

 

 

Growing Your Fortune With the Experts

Business Insider has collected some tips that help people grow their wealth. Financial planners in general emphasize that objectivity and passion in your career are major factors in helping your wealth grow. If we do not like our job, it is unlikely we will put the effort into it to make it succeed. Finding the job that you love can be challenging, particularly if your particular set of strengths are not what the market strongly desires. If you can modify your market by moving overseas, or getting more training, that can help.

 

To assess what your strengths are, ask yourself the following question:

 

  1. What do I love to do so much that I do not need to get paid to do it?

Think over your day carefully. What do you love to do? What gives you enjoyment and pleasure in your hobbies? What did you want to be when you were a child? Although this might seem unrealistic, if you work in a field you love, it is far more likely you will become wealthy.

 

To assess what your market is, ask yourself the following question:

 

  1. Who strongly demands what I love to do?

 

This may require you to move, even out of your country. Figure out who your market is for your particular gifting. Many people choke their own growth by being unwilling to go on adventures to meet their actual market. They try to adapt to their local market, which does not demand their passion. This leads them into an unfulfilling and stressful career. Be flexible, and find the market of people who are eagerly interested in your particular skills, so much so that they will pay you.

 

  1. What are my competitors afraid to do to meet our special market?

 

This final question opens the door to a higher income and more opportunities. Figure out who your competitors are. If you are a savvy salesman, then they are other salespeople. If you are an amazing artist, then they are other artists. If you are a skilled mechanic, then they are other skilled mechanics. What are your competitors afraid to do to meet the need of your market? Possibilities might be move overseas, suffer, take low pay, work long hours, start their own business, risk failure, give generously, or learn a new language. Doing all these things in your particular field will make you wealthy.

 

Becoming a Wealthy Person

If you want to be wealthy, you are not alone. Most people do desire wealth. But few people become wealthy. This is patently obvious. The question, that we should all be asking is “Why?” The answer can be surmised from the majority who are not wealthy. They are eager to seek entertainment, debt, pleasure, easy, fast, luxury, talking, leadership, and irreligious values. These, while popular, do not contribute to wealth. Warren Buffett described his business philosophy as a billionaire investor once in an article with Forbes. Avoid what others love, and love what others avoid.

 

What are the people around you avoiding? Constructive criticism, saving, suffering, hard, slow, poverty, listening, serving, and religious values. These are all things that a wise investor considers in the journey to wealth. If you do what the majority is refusing to do, you will find less competition. There will be more opportunities for those who are eagerly pursuing the harder path.

 

Warren Buffett profits from buying when others are selling. Why? The prices are low, and the only direction the market can go is up, when it is low. He sells when the market is high, and others are buying. Why? The market is inflated, and the only direction the market can go is down. Seeing this should be logically easy, but sadly for most, it is not. They insist on buying when they should be selling, and selling when they should be buying. And so, they remain in the debt enslaved poverty that their ancestors before them were in.

 

If you want to begin positive changes on the path to wealth, it is necessary to take the hard and unpopular road. Make an analysis of what those around you are eager to do. Avoid those things like poison, because if you do them, you will face a lot of competition in the market. Figure out the opposite behaviors to what those around you are doing. Be eager to do those things, because there is far less competition. The ideal is to buy what others are avoiding, and then sell what others are desperately craving. This is how you become a wealthy person. The secret to a great business is a function that converts something very unpopular (that is what you buy) into something that is very popular (that is what you sell).

 

 

 

Apple Ventures into Fund and Startup Investing Again

Apple has had to deal with a host of ups and downs in 2016, but the legendary computer and technology company shows no signs of slowing down its agenda for 2017. Apple has recently made news over speculation the company will direct $1 billion towards a massive tech fund run by Softbank. This comes on the heels of the CEO of Softbank announcing $50 billion would be invested in the United States market.

 

Apple has not yet agreed to put money into the soon-to-be-massive fund, but indicators show the company is definitely seriously discussing investing in the fund seriously. Apple had lost some money over the past year due to the troubles with the Apple Watch, one of the least appreciated releases ardent Apple consumers have been exposed to. Bugs and glitches galore sunk the Apple watch in the market. Losses definitely mounted as a result. A successful investment in the new fund would provide a great assist to Apple since the company could recoup money through a reliable return.

 

The return on investment from the fund could end up being a long term hedge. A mere 4% return on investment would yield $40 million in a single year. Over ten years, minus compounded interest, the figure would be $400 million. All this assumes the fund would yield a positive return. No guarantees exist on how the fund will do, but Apple is surely hoping for the best.

 

Apple is not new to the concept of investing outside of its own direct business ventures. Apple has consistently put money into startups. Buying into a startup could lead to purchasing outright controlling interest in the company once the startup takes off. The infusion of Apple investment capital definitely assists into a startup can do a lot to improve the new venture’s chances for success.

 

Startups often burn through cash during the early stages. Investment funds and support from a giant such as Apple can put a struggling startup on firm footing. Apple also knows it can expand its own vital holdings once a startup takes off and is a success.

 

The potential Softbank deal shows Apple is always on the move looking to increase its value at every turn. If the deal goes through, then Apple becomes part of another major player in the tech world.

CCMP Capital: Successful In Private Equities Thanks To Stephen P Murray

CCMP Capital is a New York based private equity firm that has formed partnerships with investors through foundations, pension funds, insurance, and other private funds on Fortune. The firm has raised investor capital over the years, including a $3.6 billion offering it received back in 2014, and it has made many strategic buyouts over the years. Companies it has bought out include Quizno’s Subs, Jethro Cash & Carry, The Hillman Group, and Medquest Associates. CCMP’s goal is to grow various industries through supplying capital to companies they see as potentially strengthening their industry sectors. CCMP Capital was formerly owned by JP Morgan bank, and much of their portfolio was built under the leadership of Stephen P Murray.

Stephen Murray was an investor who became an expert in strategic buyouts. He grew up in Manhattan and studied economics and finance as a young man, getting his degrees from Boston College and Columbia University. Stephen Murray’s dedication to finding target company investments helped him move up the ranks quickly at Chemical Bank, the investment bank he would spend most of his career working for. He became the vice president of the leveraged buyout division in 1990, and then CEO about 10 years later. Chemical Bank was bought out by Chase in 1996, in which the leveraged buyout division started acting more like a separate company as Chase Chemical Partners. JP Morgan made the final takeover of the bank in the year 2000, and the company changed its name to JP Morgan Partners.

Murray helped JP Morgan Partners raise a large $5.4 billion offering in 2002, one of the largest during his stint there, and the company started making major buyouts in the retail, health, and energy sectors. Murray also saw a chance to make the firm a major competitor in the pharmaceutical industry when Stephen Murray outbid several other firms for Warner Chilcott. However, several of JP Morgan’s clients were unhappy with this purchase and as a result, JP Morgan Partners had to cut all ties to the bank. This would benefit both Murray’s company and JP Morgan in the years to come.

After splitting from JP Morgan, Murray changed the name of the firm to CCMP, an abbreviated form of all the banks that had owned it. CCMP Capital would make several more buyouts in the coming years, and receive two more rounds of investor capital in 2007 and 2014. Stephen Murray started having health problems in late 2014, leading him to resign as CEO in February of 2015. One month later he passed away. Greg Brenneman is now the CEO but spoke very highly of Murray as a leader and friend.

Hedge Fund Investors Add $6.3 Billion In New Assets To The Industry

The recent news that several hedge funds are closing hasn’t stopped investors from pumping money into assets in August 2016. More than $6.3 billion in assets were added to the industry in August 2016 bringing the total assets under management to more than $3 trillion, according to finalternatives.com. The year-to-date total is -$51.8 billion, but the spike in August is a good sign for the industry, according to the eVestment Hedge Asset Flows Report. The new money that was added in August wasn’t earmarked for any one segment of the industry, but commodity funds seem to be the favorite for investors at this point. More than $2.7 billion was put in commodity funds in August.

Managed future funds are another segment of the hedge fund industry that is receiving more investment money. More than $4.7 billion was dumped into future funds in August, and that brings the 2016 total to $20.31 billion. Macro strategies are not doing very well in 2016, however. Macro strategies lost more than $3.4 billion in August, and that is the ninth straight month for that investment segment to feel the weight of redemptions. Multi-strategy hedge funds did better in August, but redemptions ruled in June and July. But inflows picked up in August. Emerging market strategies have been taking a beating in 2016 all year, and August wasn’t any better.

More than $2.6 billion has been redeemed from emerging markets in 2016, and that trend will continue thanks to China. Funds focused on China lost $33.1 million in August, and that is the lightest redemption so far in 2016. Brazil-focused funds have outperformed expectations in 2016 in spite of the political upheaval, but investors are still nervous about Brazil, and they want to reduce their exposure in that market.

The outflows in the hedge fund industry in June and July were almost as bad as the outflows that occurred during the financial crisis in 2008. Investors are still nervous thanks to a weak 2015 performance and the threat that Donald Trump may be the new president. Clinton is the choice of the hedge fund industry. If Hillary wins, the hedge fund industry will bounce back, but if Trump wins the redemptions that will take place will be unprecedented, according to some investors. Investments in emerging markets like Mexico, India, and China along with other Asian countries will suffer the most.

Midas Legacy Provides a Golden Chance to Achieve Success

Though it sounds like a title, the Midas Legacy is actually a company which help potential investors with money management and entrepreneurs handle their business.

However, where the Midas Legacy separates itself from other monetary advisory groups is that it tries to focus on lifestyle and good living as the whole product instead of merely zeroing in on monetary wealth and finances.

The company’s was wide range of clientele ranging from individual investors to environmentalists. Each client has a different need, but the Midas Legacy has a focus for most such needs whether it is lifestyle, real estate, business, or investment. Members of the company include authors, market analysts, nutritionists, and even millionaire businessmen.

Based in Winter Garden, Fla., the Midas Legacy company is also about community and giving back to others. Whether it is supporting research at the St. Jude Children’s Hospital, donating to the Wounded Warrior Project, providing assistance to the Salvation Army, or helping out the sheriff’s office and aiding in the prevention of animal cruelty, the Midas Legacy has a long list of causes the company supports and contribute to.

The Midas Legacy is about its own Midas code which teaches clients and customers about what he or she should do or shouldn’t do. The code is really about learning the appropriate marketing and lifestyle choices geared toward helping you succeed. Affiliate marketing, utilizing keywords, is an efficient way to generate income online and the Midas code teaches what you need to know.

There is no hidden agenda within the company. There is no scam involved with it. Instead, the company is legitimate and highly supportive. This isn’t a multi-level marketing scheme with trickle-down economics toward the original recruiters. Instead, each individual is in charge on his or her own.

Whether the goal is to become as wealthy as possible, to enjoy a better and healthier lifestyle, or to retire at an early age, the Midas Legacy provides an opportunity to do all of the above. Its members can work from home and engage in proven business practices to help achieve their own personal goals out of life.

All it takes is a willingness to seize such an opportunity.