Do You Pay Yourself?

The typical scenario is that you simply get your paycheck. After you recover in the shock at how little is left after taxes, you proceed to divvy it up among all your outstanding bills, intending to put whatever is left above into your savings.

But there never seems to be anything left over and your savings don’t grow.
A better plan would be to pay yourself very first. Don’t let the money get into your hands.
You may well find which you actually start to grow your savings much quicker this way.
If you work for an employer with a 401K plan, the initial point you should do is to fund it towards the max. In case you can’t afford that, at least put sufficient in to get the total matching contribution form your employer.
This investment is made just before taxes. Your investment is larger and with the employers contribution grows rapidly.

Next have a brokerage or mutual fund company debit your banking account monthly. This cash must first go into an IRA – if you have five years or more to go to retirement, make it a Roth IRA.

Next have a few dollars more be debited to go into a no-load, low cost mutual fund. The younger you’re, the more aggressive your choice of fund can be.

After that is done, then figure out how to pay your bills and living expenses. If funds is tight, cut back on your living expenses and use the extra money to pay down your debt.

Start with the lowest balance initial. Once that debt is paid, take the amount of money you had been paying on that debt and add it towards the payment for the next lowest balance debt. Continue performing this and it is possible to be totally debt free within 5 to 7 years.

Another version of this method is paying the highest interest rate debt initial. The principal could be the same, you just see a lot more progress with the initial method, although it could be more costly based on how your debt is distributed.

(Should you don’t believe me, get the premier version of Microsoft Cash or Quicken and use the “Debt Reduction” module. You may be shocked at how a lot funds you’ll save and how fast it is possible to eliminate debt this way.)

The idea is to scrimp at the expense of your current lifestyle, while leaving your savings to grow and you debt to shrink.

I know numerous of the people reading this will scream that that is an impossible plan.
But it can be quite doable with a little will power as well as the ability to delay gratification for any while.
The problem is that in case you don’t do this, your future may turn out to be really bleak.
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Will Mortgage Rates Go Up?

In the new year, many analysts work on trying to predict financial trends while current homeowners are wondering: Will mortgage rates go up this year?  This great article from msnbc.com – 7 Mortgage Trends to Expect in 2011 – helps shed some light on this question. The article claims that mortgage rates will go up througout the year:

“The Mortgage Bankers Association (MBA) anticipates that rates will rise slightly in 2011, hovering around 5 percent and increasing to about 6 percent in 2012. Holden Lewis of Bankrate wrote this past fall that economists had predicted a rise in mortgage rates by the third quarter of 2010. At the end of 2010, mortgage rates began to climb out of the 4 percent range and slightly above 5 percent.”

The article also addresses some other mortgage trends that are interesting to read. But there’s no doubt about it, mortgage rates are trending upward. If you are thinking about a mortgage refinance in 2011 your best bet is to act now before they rise any further.

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The Advantages and Disadvantages of Paying Off Your Mortgage

While buying a house is an exciting milestone and is a symbol that your rent-paying days are behind you, it also means you are taking on a large amount of mortgage debt and paying thousands of dollars in interest payments. Whether you’ve been paying on your mortgage for five years or 20, the dream of owning your home free and clear has likely popped into your head. You may have wondered how long it will take, how much money it will cost you if you keep your mortgage until its full term or if refinancing could accelerate your dream of owning your home outright.

Just like when you weighed the pros and cons of buying a house, you should also review the advantages and disadvantages of paying off your mortgage versus investing or paying down debt that has a much higher interest rate.

Here’s information to consider when determining how your mortgage fits into your financial strategy for the future.

Advantages of Paying Off Your Mortgage
Peace of mind.  Rest easy knowing that you no longer owe payments to your lender.Money won’t go out the window.  Enjoy having savings in your pocket versus shelling out additional years of interest payments toward your home.More financial flexibility. Not being tied to a mortgage provides financial independence to use income to achieve other goals and dreams.Security.  Eliminating a mortgage balance significantly reduces the risk of losing your home should job loss or unexpected health concerns consume a large portion of your savings.Reduce your dependence on Uncle Sam.  There’s no guarantee that the tax deduction for interest payments and fees won’t be eliminated over time.Save even more. It’s possible that refinancing your home at five or six percent in order to put extra money in a savings account may only yield a less-than-one-percent return.Protect against market fluctuations. The more equity you have in your home, the better.  If you have $50,000 of equity in your $200,000 home and the housing market goes south (or stays there for a while) and your value decreases to $125,000, carrying a mortgage actually puts you underwater.

Disadvantages of Paying Off Your Mortgage
Missing out on tax deductions for interest.  Typically, the primary reason that homeowners maintain their mortgage debt is to enjoy tax advantages on the interest paid.  When you pay interest on a mortgage, that interest is usually tax-deductible (consult your financial adviser for more information). Bypassing additional tax deductions.  If you paid points (one point is one percent of the loan amount) on your loan to reduce your interest rate on your home purchase, that amount is also tax deductible for that year. In addition, many closing costs, such as fees for your loan application and appraisal, may be deductible.Other assets could suffer.  If you devote all of your income to paying down your mortgage and don’t have a retirement fund or rainy day fund with ample savings, you may find yourself in a financial hole should an unexpected financially-draining event occur. Carrying debts that have higher interest rates.  It’s likely that your mortgage rate is significantly less than rates associated with your credit cards or auto loan. Why not eliminate the debt with the highest interest rates first?  If you have equity and a solid credit profile, it’s possible to consolidate those debts and eliminate payments that carry exorbitant rates and fees.Reduced portfolio of responsible bill paying. 

Properly maintaining a mortgage payment that doesn’t drain your debt-to-income ratio may lend credibility to your borrowing power and credit portfolio – having debt and making payments on time indicates fiscal responsibility.Diversification is threatened.  Paying off a home loan may not make sense if it means putting all of your eggs in one basket.  If you are on the fifth year of a 30-year note, it may make more sense to invest additional funds elsewhere so you can establish financial savings in other portfolios.Other financial goals may get derailed.  In high-cost states, where $300,000 or more is owed on a loan, it may be a long time before free and clear home ownership is possible. Consider alternating months of paying an extra mortgage payment and adding to your retirement fund versus only paying down your home loan.

When considering paying off your mortgage sooner rather than later, you must examine your financial situation and both short- and long-term goals. How long do you plan on living in your current house? What is your current rate and term on your loan? Do you carry several other debts like a car payment or student loans that you wish were off your plate? What is a more valuable goal to you, paying down high-interest rate debts like credit cards or paying toward owning your home free and clear? Bear in mind questions like these when deciding if owning your home outright is truly right for you.

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12 Personal Finance Blogs to Get You Out of Debt

If you don't think the first week of the year is a tough one, you must be from another planet.  After all the celebrating, gifting, shopping, overindulging and family gathering, you can't but experience a rude awakening once you are back to "normal".  Financial realities hit you the hardest this week, especially if you were already in debt before the holidays.

The good news is, consumers are becoming savvy financially and committing themselves to getting out of debt.   More than ever, resources are readily available for individuals to make the right decisions around managing debt.  Companies like Lending Club, Mint,  Perkstreet Financial, SmartyPig and CreditKarma are leading the way in providing innovative products to help you manage credit score, track budget, pay off debt and live debt free.

In addition to innovative financial products, an unprecedented amount of personal finance advice is accessible via blogs and traditional media.  In the spirit of the Shred Your Credit Card contest, the following 12 blogs stand out as extraordinary resources to help you out of debt by providing timely, relevant and useful content and tools to get you ahead of it.

We took the liberty to select 3 articles that represent the best get-out-of-debt advice from each blogger.  Enjoy:
Bible Money Matters
To Debt Snowball or Debt Avalanche, That Is The Question
A Biblical Look At Debt
Pay Off All Debt Using The Debt Snowball
Consumerism Commentary
The Correct Way to Pay Off Personal Debt: The Debt Avalanche
The 5 Worst Forms of Debt
How Debt Settlements Affect Credit History
Damon Day
Most of My Articles are about Debt Settlement – Why?
Freedom debt relief says upfront fees help consumers-I say Bullshit-What say you?
Don’t Call a Debt Settlement Company for Financial Advice, Craigslist Exposes Why
Debt Free Adventure
Help With Debt – Which Loan do I Pay First
Debt Plan – Facing Bankruptcy & Foreclosure
You Always Have Options
Debt Kid
Consumers rue their debt decisions prior to recession
Will that be cash or credit?
Bringing Debt Into a Marriage
Enemy of Debt
‘Twas the Night Before Christmas (In Debt Edition)
Defensive Measures for a Deliberate Media Attack on Personal Finances
Teaching Kids About Money
Free From Broke
Sure-Fire Tips To Renegotiating Your Credit Card Debt
Too Much Debt? 5 Steps To Pay Off Your Debt
A Goal Based Approach To Debt Management
Get Out Of Debt Guy
The Honest and Unvarnished Truth About How to Get Out of Debt
Easy Financing? Consumers, Beware!
The Best Day of the Week to Apply for a Debt Consolidation Loan

Man vs. Debt
“Debt Comes Calling” – A Fictional Short Story
Too Much Credit: A Stunning Graphic on Personal Loans & Credit Cards
Paying Off A Decade of Debt: A Reader Success Story

One Money Design
Should You Work with a Debt Settlement Company?
Get Out of Debt: Common Characteristics of Those Who are Successful
Live Debt Free – Avoid the Stress of Debt
PT Money
Tame the Beast: Legally Eliminate Credit Card Debt
A Plan to Be Debt Free
Excessive Credit Card Debt: How Much is Too Much?
The Digerati Life
The Debt Snowball from Dave Ramsey: FAQ
Get Rid Of Your Debt With These Debt Defying Strategies
Use A Debt Consolidation Calculator, See How To Erase Debt Faster

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4 Facts Options Trading Brokers Won’t Tell You

Option trading brokers may be your best friend in processing your orders, but it’s not always entirely smooth behind the scenes. Here is a brief list your option trading brokers are unlikely to tell you.

1. Broker-Assisted Isn’t Better
Outside the few products that brokers won’t sell via your online account, there isn’t much use in making a “broker-assisted” trade. Typically, broker-assisted trades cost two to three times the average cost of making a trade through your options trading broker, but only provide a few advantages.

Of course, the biggest advantage for new traders is the chance to get some advice on a trade, but is it really worth the cost? Not always. Although stockbrokers do bring some experience to the table, the particular broker you speak to may know little, if anything, about the actual stock or option in question.

Most brokers employed by discount operations are generally just there to approve purchases of irregular products, such as OTC stocks and other equities that are sometimes disabled to clients.

2. Yes, You Do Qualify for this Promotion
Promotional products abound, and it’s likely that while you’re paying your option trading brokers $9.99 per trade, someone else is paying just $6.99. The best way to find out if you’re paying too much is to give your broker a call, explain the situation about their latest promotion, and see what they can do for you. Sometimes all it takes is a call to one of the many option trading brokers to get the best commissions or a better margin rate.

3. You’re Still Paying for Charts, But Your Friend Isn’t
Investors with accounts open at option trading brokers could still be paying for benefits and tools other investors are getting for free. When you open an account, you’re entering into a contractual agreement to open an account and pay for the tools the broker offers to you.

As such, investors who opened accounts years ago may be paying for tools they no longer use. These same tools could now be offered for free. In many cases, real time quoting previously came with a monthly price tag, but competition has driven option trading brokers to give it away for free.

4. Please Trade Less – We Make More When You Do
Commission schedules can get hairy, especially considering the sheer number of products investors can trade through a standard brokerage account. With that said, your option trading brokers may be actually charging you more for less due to their pricing structure.

For instance, traders who make 90 trades or more in a quarter may get reduced commissions. However, those who make 89 are still paying just as much, but they may actually save money by making a small trade and closing it immediately to cross the 90 trade threshold.

While your option trading broker may not divulge what occurs behind the scenes, you are now savvy enough to ensure that your account is truly working in your favor.

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The Dangers of Checking: Is Your Account Crimping Your Returns?

Though we have a favorable opinion of promotional offers, reward checking, and shopping around for the best rates, one common misconception among investors and savers alike is that no-fee and interest paying checking accounts provide extra income.  In many cases, non-promotional no-fee and interest yielding checking accounts may do more harm than good.

Interest Bearing Checking
With banking fast becoming a highly-competitive industry for your saved dollars, many banks are now promoting checking accounts that pay small amounts of interest on relatively small deposits.  For example, your local bank may offer to pay as little as .10% interest on checking accounts with an average daily balance of more than $5000.  The idea of earning even some interest on your checking account is promising, but you’re best to overlook what are really just gimmicks.

Figure Your Costs
In today’s world of high-tech, electronic banking, savers have more options than ever before.  They can check their balance whenever they want, move money from savings to checking with the click of a mouse, and manage all their accounts without making a trip to the bank.  These money and time saving options are great, and they are exactly the reason it makes little sense to stuff your checking account for a minimal return.
Many interest bearing checking accounts, which require up to $5000 before they yield any return, pay less than even smaller amounts of money stored in a savings account.  In addition, since most companies now accept payment by electronic funds transfer through a savings account, having a checking account stuffed with cash makes even less sense.

Simply Put
Unless you write piles of checks each month or don’t have an easy way to transfer funds from savings to checking, it makes little sense to take advantage of these offers.  99% of people will be better served – and earn better returns – if they instead keep nearly everything in savings, choosing only to transfer money to checking when it is needed.  Sure, you’re unlikely to earn 2% per year with a savings account, but rates are soon to rise, and this money-making tactic will help you reap more out of the cash you have lying dormant in the bank.


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How to Fight Unfair Bank Charges

Millions of people across the world have been victims of unfair bank charges. But not all of them decide to fight back. Customers who were pressed upon with high charges (wrongly) by the banks have taken action and retaliated.

We often do not want to reciprocate simply because the procedures are long and time consuming. Yet, when the charges inflicted are high, it is more likely that one would want to reclaim them. If you have a similar problem, follow these simple steps and fight for your right. After all it is your money that is being ripped off.

Get your bank statements
Most of us are not updated with our bank statement figures. But the Data Protection Act entitles everyone with the right to get this information from your bank. Visit your local branch and ask for your statements.

Open a new bank account
It is wise to open a new bank account once to decide to reclaim unfair charges from your bank. This is because some banks close customer accounts after paying out compensation. If you have an existing overdraft facility, it should not be too much of a problem to get a new agreement with another bank.

Calculate the total charge
After you have collected your entire bank statements from your bank go through them and calculate the total charge. Note down the charged amount, date and time as it may be useful for future correspondence with the bank. Remember that precision is very important when it comes to dealing with the law.

Write to the Bank
Now when you have the figures (of the amount charged) with you, it is time to write to the bank mentioning about the unfair charges.Ask for compensation on the basis of your letter.

Give a reminder
If the bank does not respond within 14 days of your writing to them, write to them once again, reminding them about your concerns. This time warn the bank that you would take court action they do not respond. You can even write about this hassle in different magazines and people forums so that other customers are made aware of such situations.

Take help of court
If your bank does not respond even after your second letter, file for a court judgement. Go to the court and find out the procedure in order to reclaim your money.

The procedure of the bank acknowledging your request takes around 14 days after you register your concern. It might happen that the bank does not even acknowledge your request, implying that you have to directly claim through court asking for compensation for the entire amount.

The best way to stop banks swindling with your money is to avoid penalty charges. Do not miss payments, live debt free ; do not go to banks which are known for harassing customers. A conscious effort can drive you to fight for your rights.



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Canadian Real Estate Explains Chinese Boom

Canada maintains no reserve ratio for banks;China requires a whopping 18.5%.
Wen Jiabao, the Chinese Premier, may have the economic quote of the year. After China’s central bank declared that it would raise the benchmark overnight interest rate by a quarter point, he commented, that “inflation expectations are more dire than inflation itself,” noting that while inflation is a concern, so too are investor expectations.

Thus far, in the non-emerging markets, it has been the fear of inflation – and not inflation itself – that is sending prices higher. In the emerging markets, at least in China, higher benchmark rates are intended to be a solution to ever rising prices in Chinese real estate. Some contend that this real estate market is indicative of a bubble, and that just like the United States, higher real estate will eventually lead to a pop.

Why the Chinese Market Won’t Pop?
To showcase this point, one country often forgotten in the world of investment will have to make a guest appearance. Canada, which may as well be an extension of the United States, neither suffered a massive real estate bubble, nor did it see any real decline in prices, even as its largest trading partner, the United States, crippled to a bursting bubble.

So what do the 2000 Canadian rise in home prices have to do with a 2010 rise in Chinese real estate prices? Not that much, but they do share a number of similarities.

Learning from Canada vs. the United States
At the height of the US real estate market, one out of four new loans was made to sub-prime borrowers. In Canada, that number hovered around 5 percent. In China, loans for property are difficult to obtain, even by the most creditworthy, and the closest China ever came to “sub-prime crisis” may have been US Treasury default fears following the Fannie and Freddie bailouts with unlimited lines of credit.

At the height of the US real estate bubble, the United States was shedding capital at roughly $50 billion per month in a growing trade deficit, while Canada enjoyed a positive trade balance all the way up to 2008. China has trade surpluses of roughly $200 billion per year, every year.

Canada maintains no reserve ratio for banks, while the US required 10% and China requires a whopping 18.5%, all the while hot money knows no difference between either China nor Canada. Both countries saw massive new foreign investment (Canada’s oil trusts and China’s consumer sector), and each country throughout its bubble had a zero or negative real interest rate policy. As for deleveraging, Chinese speculation is almost entirely in cash, where the United States, and even Canada, had at least some of their real estate runs due mostly to lending growth.

The Long Run
Is real estate a strong, pro-growth investment? No. Real estate is a boring, slowly rewarding, investment that is usually found in consumption, rather than production economies. However, with rates as low as they are, and inflation pushing higher, real estate is an attractive investment.

On the other hand, higher rates means borrowed money will have to find somewhere else to go. If this money finds itself in the stock markets, watch out. There isn’t a ceiling high enough to hold that explosion.


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Why You Should Expect Improved Profit Margins on Rebound

An often overlooked benefit of a recession is that it becomes far cheaper to borrow than ever before.  In moving forward, this presents an opportunity for corporations to bring today’s low rates into the future.  Remember, though bonds may rise and fall in cost with time, the original price – or the price at which investors were willing to buy debt from corporations – stays the same.

Moving On
Companies with huge debt loads are obviously looking into a dramatic refinancing effort.  At no time in history are corporations better positioned to borrow at rates most often reserved for triple A rated nations.  By issuing debt now at 4-5%, they will continue to pay 4-5% forever, regardless of how high rates go in the future.

This feature of the debt market is often overlooked by investors because the returns investors receive for investing can go up or down in the short term, though the rate stays standard by the maturity date.  We suspect that this recession will be no different.  As rates rise, investors will worry, even though today’s low rates were already locked in.

Look at the Issues
Companies are on track to issue more debt in 2010 than they have since 2006, when rates were just slightly higher than they were today.  For companies with a high return on equity and thick profit margins, the eventual recovery will be even better than for larger firms with thinner ROE figures.

Of course, this requires the proper utilization of cheap cash, but with rates as low as 4% for AAA rated debt, it should be obvious that virtually every corporation will be able to churn a profit on such inexpensive money.


Cashing In
Investors will obviously have to wait for any eventually recovery, which as history suggests will happen.  Now it’s just a matter of when.  The recovery may not be so far off, however, as Americans have started building their cash reserves by pushing the American savings rate above zero and refinancing debt at historically low prices.  Even on the consumer side, today’s low rates are being extended as far out as 30 years in the future through home mortgages.  When bank accounts are satisfied, be sure to know the American consumer will be out to shop again!


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Mortgage Refinance Interest Rates - Clear Your Doubts Regarding Mortgage Refinance Interest Rates

Applying for a loan and later on continuing to pay the monthly installments on time is a big responsibility that cannot be avoided and during the term of loan if the interest rates drop then it cause huge loss and thus to overcome this mortgage refinance interest rates are there where a new loan can be taken on lower interest rate which can be continued and the installments can be continued to be paid as initially. This also gives a lot of space to make some amount of savings which becomes difficult if there is a loan taken. Thus, mortgage refinance interest rates should be tracked on a regular basis to check the high and low of the interest rates. If the rates are high then it should bring joy to you as the loan is taken on a lesser rate and if the rates drop then there is the option to apply for a new loan.

However some of the basic features of mortgage refinance interest rates should be reviewed thoroughly and briefly discussed with the lender. Generally, the refinance rates are comparatively lower or cheaper, compared to the present interest being paid on the current loan and hence it is a profitable venture to apply for these types of refinancing plans. In a way, a refinancing refreshes or renews the loan scheme that is presently taken and helps to reframe into a new loan with more added features, advantage and affordable mortgage refinance interest rates.


To keep you updated about the changes in the mortgage refinance interest rates make sure to read the daily newspapers and journals along with all this some access to the Internet as companies give away there free quotes online for buyers to refer and thus whenever the rates slash you can definitely make use of the opportunity. But make sure that the calculation of the interest rates along with other fees and charges are calculated accordingly so that you do not end up paying more as compared to the previous loan. Thus, benefit from all sides should be checked and thoroughly studied so that no complications arise in later part of the loan period.

The main idea behind mortgage refinance interest rates is that the loan taken from a different lender who charges a high rate of interest is being paid back by applying a new loan with a lesser rate of interest so as to cut down on the expenses of the interest rates because interest is the excess amount that is being paid apart from the principal amount, thus you should make sure to keep the mortgage refinance interest rates as low as possible. The changes in the mortgage refinance interest rates depends on the inflation and deflation the way the economy performs and hence nothing can be predicted, you just need to keep your eyes and ears open to know when the interest rates fall and gives you a scope to save.

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125% Refinance Home Loans For Home Improvements

If you need to get finance for home improvements but your current mortgage has still a high balance, you need not worry. It is possible to obtain a refinance home loan with up to 125% funding value and use the extra money for financing your home improvement project without having to resort to other expensive sources of funds.

This cash-out refinance loans that can reach up to 125% of the market value of the property are made available due to the especially competitive circumstances that rule the current loan market. Thus, a good timing suggests that you need to make use of this situation and seize the benefits from the equity on your home by refinancing and getting extra cash with advantageous terms.

Cash Out Refinance Home Loans
A cash out refinance home loan is a loan that is awarded for a higher amount than your current outstanding mortgage and thus, only part of the money is used for repaying your current debt. The remaining loan amount can be used for any purpose but in this case, it must be used to finance a home improvement project. This last fact will be controlled by the bank or financial institution.

The concept is simple: If you have a mortgage loan of $60,000 and your property's market value is $100,000. You can easily request a cash-out refinance home loan for $80,000 and use the remaining $20,000 for financing your home improvement project.

Moreover, even if you request a higher loan amount, if the market conditions have changed positively or your credit and financial situation have improved, you could obtain a refinance home loan with a lower interest rate and better loan conditions and save thousands of dollars worth of interests over the whole life of the loan.

125% Financing And Home Improvements
Usually, there is an 85% limit as to the amount of money you can request through a home loan, especially if you have bad credit. Occasionally you can obtain 100% financing for loans made for first time home buyers or for those with a very good credit history. However, lately, lenders are offering further financing. You may wonder how more than 100% financing is possible:
The answer to that question is rather simple. Since the money borrowed will be used for home improvements, the lender is counting on an increase in the market value of the property used as collateral that can compensate the surplus. Besides, even if the raise in the market price of the property doesn't compensate for the difference, within a short period of time and due to the continuous monthly payments, the mortgage balance would get below 100%.

Bear in mind though, that the money must be used for financing home improvements and most banks and financial institutions will check any home improvement project you may have so as to make sure that you are not faking the purpose. You may be required to present documentation prepared by an architect or another professional and other backing up documentation in order to confirm that the money will be actually used for what you claim it will be used.

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When Are Home Improvement Loans Necessary?

Some homeowners find it necessary to apply for home improvement loans because they may lack the necessary budget or don't have enough savings to finance their home improvement project. Even a secured personal loan may serve as a source of home improvement loans.

In the US, it is possible to get home improvement loans either for projects that you hired a contractor for, or for do-it-yourself projects. Some lenders stipulate that their company will be responsible for releasing the checks representing the amount to be paid to the home improvement supplies company or to the contractor. For do-it-yourself projects, the lender may send the check to the home improvement supplies company instead of giving you the money outright.

If you prefer getting a lump sum, you might apply for a home equity loan which means your home will be assessed by the lender for the amount of equity it presently has and the corresponding value of the loan you (and your home) qualify for. A home equity loan is advantageous because the payments are stretched out over a longer pay period. $50,000 loans to remodel your home fall under this category - meaning, you will be granted a loan of $50,000 if the lender believes your home has at least that much in home equity left in it. This is a good strategy to pursue if you want to make your home increase in value for the long term, because the loan allows you to make necessary repairs and upgrades of your home. In effect, you can command a better price for your home later on.

If you are trying to get a federal grant, you may want to examine the Title 1 loan offered by the Federal Housing Administration under the Home Mortgage Insurance Division of the Office of Housing of the HUD. Although the HUD does not itself offer home improvement loans, the Federal Housing Administration may help you find a lender who will lend to you (provided the lender is accredited with the HUD.)

Some cities in the US offer a city rehabilitation loan program to homeowners in the low-income wage bracket so that they can undertake home improvement necessary to keep their residence livable. These loans require repayment at low interest rates, though. Check with your city government regarding how long it takes to apply for the loan, and the particulars about how it works. You should also inquire about who gets approved for such loans and where to apply.

Regardless of what loan you get, you may have to get acquainted as well with the process of finding an approved contractor. Some contractors operate without accreditation, since not all homeowners are so particular about who they hire. The advantage with hiring an accredited contractor is that the contractor is required to adhere to certain standards in the way he runs his business, which gives you more peace of mind, knowing that you can always file a complaint against the contractor and his company if he doesn't do the job right.

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Fixed Mortgage Interest Rates - Be Sure of Getting a Great Deal by Opting For Fixed Mortgage Interest Rates

Well begun is half done, is a very famous saying that is apt in every walk of life. In fact, if you follow it diligently, you can save yourself from many threats and you can even resolve several problems. This can happen only if you plan out everything that you do. Preparation helps you go a long way in achieving your goals. Be it your normal routine tasks or when planning a major event, the importance of to-do lists and planners is known to one and all. After all management is a subject that has widespread application and an art that grows with better planning. Thus, when applied to your finances, this science can produce such results that shall leave you astonished and may be at times speechless. Fixed mortgage interest rates leave you speechless as well! They provide you with stable figures that you can manage without any stress.

Managing your finances well is not everybody's cup of tea, but, with help and constant effort, you too can become a good manager. Take for instance, the case of working out an advance. Based on your financial needs and circumstances, what may be good for you may leave another in a position beyond restoration.

Therefore, do consider all the various offers in town before you close the deal. While working the same, check out all the various categories of interest rates and see what suits you best. In situations when the interest rates are at an all time low in the industry, you should try to get your loan worked out at fixed mortgage interest rates. The advantage of this is that you shall be able to enjoy the same rate of interest throughout the entire duration of the mortgage period. Thus, even when the interest rates rise during the amortization period, it does not increase your cost of finance as you have kept yourself secure from the market fluctuations by opting for fixed mortgage interest rates.

For those who are wondering as to what fixed mortgage interest rates are, they are the rates of interest charged on a mortgage loan, that remain unchanged over the entire length of the pay back term. In other words, the interest rate charged is fixed irrespective of the interest rates prevalent in the industry then. So, if you manage to clinch a deal at fixed mortgage interest rates and where the rates are really at rock bottom levels, then you are lucky enough to grab a fortune.

Like everything else, fixed mortgage interest rates also have their own share of drawbacks. God forbid, if you get hold of an agreement wherein, the fixed mortgage interest rates offered is higher than the ones throughout the loan period, then you shall curse yourself for not having availed of plans with variable rates. Remember, once you make the commitment with the fixed mortgage interest rates, you have to stick with them until you square off the debt or refinance.

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UK Financials Ltd Announced Online Home Loans - Dream Home with the help of a loan!

Making the most out of home loans getting a home loan seems a difficult task if you are in the list of people with bad credit history. If you are tired of rejected Home loan applications because of your bad credit then you need to seriously think about Home loans specially prepared for people with poor credit.

The time period for repaying the amount of the secure Home loans is ranging from three to thirty years. The amount which can be attained through the loan differs from five thousand pounds to at least seventy five thousand pounds. At the same time, if the annual income of the respective borrower is more and has a decent credit history, the value of the amount for the secured home loan can also increase.

Now with most of the borrowers fall in the bad credit range, the lenders also have started offering loans to people with bad credit. You need not travel a lot or visit too many centers to get this loan. You can sit at your home or office and log on to the net and get as much information as you want regarding this loan. You need to search for Home loans bad credit on your computer and you are rewarded with a lot many lenders. They also offer online quotes which you can ask for. On getting these quotes you should make a comparison of all the quotes for interest rates, repayment periods and other such factors and make a note of the one most suitable to you.

Home Loan Finders have hundreds of brokers and lenders competing for your business, once you submit your enquiry the broker with the lowest rate will get you home loan best designed for you and will contact you directly.

These loans can easily be attained through financial institutions, high street banks, private lenders or even the easiest online medium of financial assistance. Online mode helps the borrower to avail these loans faster.
The process of availing the secured Home loans with the online money lenders is easy and fast. Once you fill in the details in the application form, you may be asked to send in the documents related to your asset as well. Once you fax them, it hardly takes any time to assess the value of the Home. Once the asset is valuated, you are informed about the amount you can get as loan against the loan. This does not take more than 36 hours.
After approval, you get a call to discuss the repayment terms. Upon a common agreement of the repayment term, you get the cash transferred to your checking account within one hour. The entire process takes no longer than 36 hours. This is why the schemes are known as fast home loans. Not only does these schemes serve the purpose of offering loans to people who cannot place collateral, the process is so fast that you do not have to wait for long.

Ravi Mihsra can tell you how to look better, live better and breathe better by giving you tips to improve your finances. His ideas can help you rejuvenate your money. To find Cheap homeowner loans, Home secured loans UK, Bad credit homeowner loan , Homeowner personal loans visit www.ukfinancialsltd.co.uk

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Bad Credit Home Loans Explained

A "bad credit home loan" is a loan that one can get despite having a bad credit rating. Many lenders offer a bad credit home loan knowing fully that their loan is secure, since it is taken on mortgage of your home.
A bad credit home loan is an instrument of opportunity for those who have bad credit rating and would like drop out of their debt and start on the road to good credit building. By availing of a bad credit home loan you can lower your monthly payments by consolidating all your debts and also
enjoy a lower interest rate on the current debt.

The consolidation and paying off your current debts by availing of a bad credit home loan is a major step towards credit repair. Moreover, if you can keep up the payments on your second home loan for about six months to a year, you will see a remarkable change in your credit score.

Most popular options available on bad credit home loans are cash out mortgage refinance and home equity loans. Both options allow you to cash in on the equity already paid into your home mortgage and use it to get yourself out of debt. It's best to deal with a mortgage company online to avoid bank associate's talk around and skepticism. Its also easier to compare various offers form different lenders to make sure you are not being cheated. Please keep in mind the following while filling up forms for online mortgage:

• Make sure you read the articles on online mortgage at the bad credit home loan lender's websites. By this you can educate yourself on various types of financing and be informed and up to date on fees and current lending rates
• While applying for online quotes, do not opt for a generic estimate which is based on you monthly income and bills, fill out detailed information whereupon you can get a real accurate quote.
• Try and get to the total bad credit home loan cost i.e. including the closing fees, application fees, any other charges, interest charged, amortization and loan fees etc.
• After applying, do not forget to keep all records received from the lender and follow up with weekly phone calls to make sure things are moving on time.
• After completion of bad credit home loan, plan to refinance in about three years, by which you should be back in good credit, if you have kept up regular repayments. This will help in reducing your short time debt and maximize your future credit rating.

Use your bad credit home loan to the maximum advantage to get your credit rating back in line. This will help you plan a secure future for you and your family.

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Directbuy Offers Guidelines for Selecting Your Home Improvement Projects

Perhaps it's the innate pioneer spirit in all of us to build and mend our own home. Or maybe it's watching one too many 'Extreme Makeover' shows and thinking, 'that seemed simple enough.'  DirectBuy,  the leading members-only showroom and home design center, offers some helpful suggestions for deciding when to take on a home improvement project'or just leave it to the pros.

'To steal a line from Shakespeare, to thine own self be true,' said Sara Shragal, of DirectBuy. 'What that means is you have to be able to honestly assess your abilities, your temperament, your schedule and your standards. Are you able to do a job nearly as well as a professional? Can you accept that fact, from an aesthetic point of view? If you're satisfied with your answers, then you have to get the tools and materials you need to do the job.'

Perhaps the most challenging part of deciding whether or not to take on home improvement project is determining your skill level. If you're painting a room, it doesn't require a lot of skill and for materials you essentially need a brush or roller, bucket and some rags. Installing hardwoodflooring is another story. You'll probably need to have a power saw, sanders and nailers on hand and know how to competently use them.

Here are some basic guidelines or questions you need to ask before trying a home improvement project:
        Do you have the skill set needed to take on the project? BE HONEST!
        Do you have the tools needed for the project? If the project requires an expensive tool that you may never use again, you may want to rethink doing it yourself.
        Do you have the installation instructions and, most importantly, do you understand them?
If you answered 'yes' to those questions, you then need to make a further personal assessment on how the project will affect your life, both while undertaking the project and afterwards. For example:
        Do you have the time and patience to undertake this project? Guesstimate the time you think the project should take and then double it. If you can live with that, go forward.
        How will the project affect your family? Will you be done in a matter of hours, or will your family have to move around your project?
        Finally, what are your aesthetic standards? Can you live with 'good enough,' or do you want perfection?

The last thing you want to do is take on a home improvement project and then have to call in a professional because you didn't like the results.

If you answered affirmatively to the above questions, DirectBuy can help you get the materials and tools you need for any do-it-yourself project'e.g. nailers, sanders, painting supplies, flooring, tiling, and more'all at prices direct from the manufacturers and their authorized suppliers. DirectBuy also employs product specialists and designers, so if a project is a bit out of your skill level or you don't have the time, you have professionals at your service who can get the job done.


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Interview with Boris Schlossberg: “Risk control is EVERYTHING”

Today, we bring you an interview with Boris Schlossberg, director of currency research at GFT Forex, co-founder of BK Forex Advisors, and co-contributor to FX360. He is also a weekly contributor to CNBC’s Squawk Box and a regular commentator for Bloomberg radio and television. His daily currency research is widely quoted and appears in numerous newspapers worldwide. He is the author of Technical Analysis of the Currency Market (2006) and Millionaire Traders (2007). Below, Mr. Schlossberg shares his thoughts on risk management, leverage, currency wars, and other assorted topics.

Forex Blog: Can you briefly explain your approach to analyzing the forex markets. Do you prefer technical or fundamental analysis, or a combination of both?

I am primarily a fundamentally driven trader but I use price action to inform my trades as well, Specifically I focus on price action around the 00 levels to see if there is support/resistance there.

Forex Blog: How is your experiment to ignore real-time P&L going? Have you found that it has confirmed your belief in the Heisenberg principle and led to increased success in trading?

I have not had much of a chance to pursue that yet given the holidays, but I think just writing about the phenomena helped me to feel less pressured about the intra-day swing in my P&L.

Forex Blog: I was intrigued by your assertion that over the long-term, the tortoise may beat the hare in forex trading. What are the practical implications of this notion? Do you think it supports using fundamental analysis and adopting a more long-term approach to trading?

No the key is that risk control is EVERYTHING. As long as you can contain your losses, if you hang around the market long enough you will be able to catch positive swings regardless of whether you trade fundamentally or technically.

Forex Blog: When the Euro rallied in the beginning of the summer, a number of forex commentators (myself included) declared a paradigm shift, whereby investors would stop worrying about risk and instead focus on the fundamentals. Ultimately, this shift never materialized, and the Euro appears to have resumed its decline. What is your assessment of the Euro’s recent performance, and what can we expect for the immediate future?

Everybody hates the euro and there are certainly many reasons to do so, but I think that China will no allow the EZ to fracture and if that’s the case then euro may have a chance to bounce in 2011. My favorite way to play that is long EURGBP.

Forex Blog: You blogged recently about an encounter with an aspiring forex trader, in which you advised him to “There is only one way [to succeed in forex trading]. You open an account and just trade.” That being said, are there any practical tips that you can offer to novice forex traders?

There is no substitute for experience. They say you need 10,000 hours of practice to master a skill and I think that’s a fair metric to use.

Forex Blog:  It has been said that the Fed is caught in a lose-lose situation, whereby its QE2 will fail and the US economy will drift back into recession or it will succeed in invigorating the economy and stoking inflation. Do you share this interpretation?

No. There is deflation in US – not inflation. The Fed is doing is the only thing it can and so far it appears to have helped the economy.

Forex Blog: I agree with your assessment that high levels of dangerous leverage (~50:1) are a recipe for disaster. Do you support the recent regulatory changes that effectively cap the maximum amount of leverage on forex trades? Is there a general level of leverage that you think is acceptable, or is it specific to each trade?

Yes I agree with regulation. I myself trade with 3:1 leverage and never exceed 10:1.

Forex Blog: As you pointed out, “The Psychology of Round Numbers” is a phenomenon that is observable on all aspects of life in which numbers are involved. As far as forex is concerned, have you observed that round numbers are almost always a source of either support or resistance? How can traders predict whether a currency pair will stop at a given (round number) level or surge through?

If we could predict that with certainty we would never have to work again . That having been said I watch those levels very carefully and I see them at play every single day both as magnets for stop runs and as targets for turn trades against the trend.

Forex Blog: A discussion of the major themes in forex markets wouldn’t be complete without mentioning the ongoing currency wars. First of all, do you think that the label “currency war” is fair? Do you think that most countries’ Central Banks will continue to intervene on behalf of their respective currencies, and do you think they will succeed in  preventing them from rising further?

I think intervention is much more ingrained in Asia where export driven economies depend on low exchange rates. In the long run its a horrible strategy because it will inevitably lead to anti-competitive behavior. (Look how well Germany, Switzerland and Netherlands perform despite high exchange rates).

Forex Blog: What is your advice for (forex) investors that want to beat the market during these uncertain times?

Focus on one strategy that you are comfortable with and refine it continuously.

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IPOs Raise Questions about the Future of Retail Forex

It has been said before, but now I think it’s official: retail forex has entered the mainstream. In the month of December, two retail forex brokerages – Forex Capital Markets (FXCM) and Gain Capital Holdings (GCAP) – went public on the New York stock exchange. Combined with some juicy information revealed in their regulatory filings, I think this event raises some interesting questions about the future of forex.

Some background: both FXCM and Gain Capital operate trading platforms and news/analysis websites (DailyFX.com and Forex.com, respectively). FXCM has a current market capitalization of $850 million, compared to $250 million for Gain Capital. The former earned net income of $98 million last year on revenue of $339 million, and it has 135,000 active clients. The latter earned $36 million net income on $188 million revenue, and its client base totals 52,000. (For the sake of comparison, consider that ETrade has more  than $4 million and its ttm revenues exceeded $2.5 Billion).

If you do some simple arithmetic, you will discover that revenue per account is substantially higher for forex brokers than for stock brokers: $2,500/account for  FXCM versus $100-200 that I’ve been told is standard for retail stock brokers. Of course, some of that disparity is natural, given that the average forex account-holder trades at a higher frequency and higher volume than the average stock investor, who apparently only makes one round-trip trade per month, on average. However, the bulk of that discrepancy is probably due to a lack of transparency/competition.

Although information on average account size was not released, it nonetheless stands to reason that a significant portion of forex account-holder equity is being “transferred” to brokers every year. (Interestingly, FXCM loses money on the majority of its accounts.  Accounts worth more than $10K – which presumably do the most trading – generate the most revenue, and yet more than half of them are still unprofitable for FXCM).

I think this raises some serious questions about transparency in forex commissions. While other brokers make money from the bid/ask spread (which also suffers from a lack of transparency) and by taking offsetting positions, FXCM boasts that it “makes an identical amount of money in the form of pip markups (which are really commissions) regardless of whether the customer made or lost money on the account.” Basically, FXCM matches up buyers/sellers with banks and financial institutions, and takes a cut for facilitating the transaction. While this is somewhat less opaque than filling orders directly for customers, the fact that it doesn’t disclose its commissions should be cause for concern. For the sake of comparison, consider that when you buy/sell stock, the commission that you pay the broker is clearly disclosed.

Someone recently asked me if trading commissions (i.e. spreads) in forex were fair/stable, and in the context of this data, I think it shows that there are is still room for commissions to fall. As the number of retail forex traders grows, you would expect spreads to tighten further, and profit/account to decline from the current level of $700+ per year.

Since both FXCM and Gain Capital are now public companies, they will be subject to increased scrutiny and regulatory oversight, and will henceforth be required to make frequent disclosures. If Oanda and other top-tier brokers accede to competitive pressures and also go public, the result should be increased transparency for the industry and better pricing for traders. In short, daily volume figures ($4 Trillion/day) notwithstanding, retail forex trading still has a ways to go before it can really be compared to retail stock trading.
IPOs Raise Questions about the Future of Retail Forex

It has been said before, but now I think it’s official: retail forex has entered the mainstream. In the month of December, two retail forex brokerages – Forex Capital Markets (FXCM) and Gain Capital Holdings (GCAP) – went public on the New York stock exchange. Combined with some juicy information revealed in their regulatory filings, I think this raises interesting questions about the future of forex.

Some background: both FXCM and Gain Capital operate trading platforms and news/analysis websites (DailyFX.com and Forex.com, respectively). FXCM has a current market capitalization of $850 million, compared to $250 million for Gain Capital. The former earned net income of $98 million last year on revenue of $339 million, and it has 135,000 active clients. The latter earned $36 million net income on $188 million revenue, and its client base totals 52,000. (For the sake of comparison, consider that ETrade has more  than $4 million and its ttm revenues exceeded $2.5 Billion).

If you do some simple arithmetic, you quickly discover that revenue per account is substantially higher for forex brokers than for stock brokers: $2,500 in the case of FXCM compared to $100-200 that I’ve been told is standard for retail stock brokers. Of course, some of that is to be expected, given that the average forex account-holder trades at a higher frequency and higher volume than stock investors, which apparently only make one round-trip trade per month, on average. While information on average account size was
not released, it nonetheless stands to reason that a significant portion of forex account-holder equity is being “transferred” to brokers every year. (Interestingly, FXCM loses money on the majority of its accounts.  Accounts worth more than $10K – which presumably do the most trading – generate the most revenue, and yet more than half of them are still unprofitable for FXCM).

I think this raises some serious questions about transparency in forex commissions. While other brokers make money from the bid/ask spread (which also suffers from a lack of transparency) and by taking offsetting positions, “FXCM makes an identical amount of money in the form of pip markups (which are really commissions) regardless of whether the customer made or lost money on the account.” Basically, FXCM matches up buyers/sellers with banks and financial institutions, and takes a cut for facilitating the transaction. While this is somewhat less opaque than filling orders directly for customers, the fact that it doesn’t disclose its commissions should be cause for concern. For the sake of comparison, consider that when you buy/sell stock, the commission that you pay the broker is clearly disclosed.

Someone recently asked me if trading commissions (i.e. spreads) in forex were fair/stable, and in the context of this data, I think it shows that there are is still room for commissions to fall further. As the number of retail forex traders grows, you would expect spreads to tighten further, and profit/account to decline from the current level of $700+ per year.

Since both FXCM and Gain Capital are now public companies, they will be subject to increased scrutiny and regulatory oversight, and will henceforth be required to make frequent disclosures. If Oanda and other top-tier brokers accede to competitive pressures and also go public, the result should be increased transparency for the industry. As of yet, I think that daily volume figures ($4 Trillion/day) notwithstanding, retail forex trading still has a ways to go before it can really be compared to retail stock trading.IPOs Raise Questions about the Future of Retail Forex

It has been said before, but now I think it’s official: retail forex has entered the mainstream. In the month of December, two retail forex brokerages – Forex Capital Markets (FXCM) and Gain Capital Holdings (GCAP) – went public on the New York stock exchange. Combined with some juicy information revealed in their regulatory filings, I think this raises interesting questions about the future of forex.

Some background: both FXCM and Gain Capital operate trading platforms and news/analysis websites (DailyFX.com and Forex.com, respectively). FXCM has a current market capitalization of $850 million, compared to $250 million for Gain Capital. The former earned net income of $98 million last year on revenue of $339 million, and it has 135,000 active clients. The latter earned $36 million net income on $188 million revenue, and its client base totals 52,000. (For the sake of comparison, consider that ETrade has more  than $4 million and its ttm revenues exceeded $2.5 Billion).

If you do some simple arithmetic, you quickly discover that revenue per account is substantially higher for forex brokers than for stock brokers: $2,500 in the case of FXCM compared to $100-200 that I’ve been told is standard for retail stock brokers. Of course, some of that is to be expected, given that the average forex account-holder trades at a higher frequency and higher volume than stock investors, which apparently only make one round-trip trade per month, on average. While information on average account size was
not released, it nonetheless stands to reason that a significant portion of forex account-holder equity is being “transferred” to brokers every year. (Interestingly, FXCM loses money on the majority of its accounts.  Accounts worth more than $10K – which presumably do the most trading – generate the most revenue, and yet more than half of them are still unprofitable for FXCM).

I think this raises some serious questions about transparency in forex commissions. While other brokers make money from the bid/ask spread (which also suffers from a lack of transparency) and by taking offsetting positions, “FXCM makes an identical amount of money in the form of pip markups (which are really commissions) regardless of whether the customer made or lost money on the account.” Basically, FXCM matches up buyers/sellers with banks and financial institutions, and takes a cut for facilitating the transaction. While this is somewhat less opaque than filling orders directly for customers, the fact that it doesn’t disclose its commissions should be cause for concern. For the sake of comparison, consider that when you buy/sell stock, the commission that you pay the broker is clearly disclosed.

Someone recently asked me if trading commissions (i.e. spreads) in forex were fair/stable, and in the context of this data, I think it shows that there are is still room for commissions to fall further. As the number of retail forex traders grows, you would expect spreads to tighten further, and profit/account to decline from the current level of $700+ per year.

Since both FXCM and Gain Capital are now public companies, they will be subject to increased scrutiny and regulatory oversight, and will henceforth be required to make frequent disclosures. If Oanda and other top-tier brokers accede to competitive pressures and also go public, the result should be increased transparency for the industry. As of yet, I think that daily volume figures ($4 Trillion/day) notwithstanding, retail forex trading still has a ways to go before it can really be compared to retail stock trading.

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S&P Equity Issues Semiconductor Predictions for 2011

S&P Equity Research semiconductor and semiconductor equipment analysts Clyde Montevirgen and Angelo Zino have issued their 2011 forecasts for the industry.

"The year 2010 is expected to close strong for the semiconductor and semiconductor equipment industries, as sales growth for both are forecasted to reach decade highs," said Mr. Montevirgen. "Consequently, we anticipate that most chip and equipment companies will experience multi-year high margins and exceptional earnings increases."  Added Mr. Zino, "While we think there is still some room to grow, we project more modest advances ahead."

Below, they list their forecasts for these industries for 2011.

We forecast that semiconductor industry sales will rise 7% in 2011. Considering recent forecasts from S&P Economics, research from industry and trade groups, and our bottom-up analysis of sales trends for the companies in our coverage universe, we see increasing unit shipments for key end-markets, such as computers, smartphones, and communications. We note these account for a large percentage of the semiconductor industry's demand. We expect industry sales to rise to nearly $320 billion in 2011 from an anticipated $299 billion in 2010. For 2011, semiconductor equipment sales growth should slow; we estimate that sales will rise less than 10%, after our projection for industry revenues to increase more than two-fold for 2010. Although the industry is experiencing a sharp rebound in sales this year, following an extended period of under-investing by semiconductor manufacturers, we forecast that growth will slow going forward, as companies digest recent capital expenditure purchases. We expect most demand for semiconductor equipment to come from more advanced technology nodes, as well as from larger memory customers and foundries looking to expand capacity. We project that capacity purchases will be driven by flash memory manufacturers, such as Toshiba and Samsung, given our expectation for stronger demand and tight supply in this sub-industry. We anticipate robust unit shipments for smartphones and tablets to be a major catalyst for these manufacturers, which should keep customer profitability at high levels. Unlike Dynamic Random Access
Memory (DRAM), which relies heavily on PC demand, the flash memory market depends on a number of different applications and looks to us to be in better shape than DRAM on a comparative basis. The flash memory industry has emerging technologies, such as solid-state drives (SSDs), which should drive new demand. We see DRAM segment sales declining in 2011, following our projection for a more than doubling in capital spending in 2010. We believe the biggest growth catalyst for the DRAM segment in 2010 has been the transition from DDR2 (double data rate) technology to DDR3 (both DDR2 and DDR3 are types of DRAM chips that are found in personal computers). DDR3 technology is the successor to DDR2 and offers advantages such as lower operating temperatures, greater speed, and reduced power consumption. Now that DDR3 has become mainstream, we do not see any major catalyst boosting segment spending in 2011. We forecast that the Asia-Pacific region will make up 55% of semiconductor sales by the end of 2011. We see more semiconductor companies trying to make cost structures more variable by outsourcing manufacturing to third-party foundries. Leading Taiwanese foundries, such as Taiwan Semiconductor manufacturing (TSM 12 ***), have invested heavily in sub 40-nanometer manufacturing processes, which we believe will attract chip companies that do not have the capital to invest in such high-end manufacturing technology. Also assuming softer sales growth and less favorable tax incentives in Europe, as austerity measures continue, we see Asia continuing to gain global share. We expect the semiconductor industry's plant utilization rate to be around 90% by the end of 2011. We think the capacity utilization rate will fall from the current mid-90% range to the mid-to-high 80% range early in 2011, as chipmakers allow excessive inventory in the supply chain to digest. Although we see increasing capacity from recent capital expenditures, we believe that seasonal strength and a rebound in end-market demand in the second half will help keep plants busy through the fourth quarter of 2011. We forecast that the semiconductor industry's gross margin will widen modestly throughout 2011. Considering our view that chipmakers will start the new year by burning off excessive inventory, we expect first-quarter gross margins in the low-50% range, given lower plant utilization rates. However, we think orders will return to more seasonal patterns starting in the second quarter, and we expect margins to expand to the mid-50% area by the end of the year. We see semiconductor equipment manufacturers moving further into higher-growth, adjacent industries, namely solar, given our view that the semi conductor equipment industry is in the midst of a long-term secular decline. We believe pursuing new growth avenues makes sense given the similar processes and technology used within both industries. In addition, the solar industry has higher growth opportunities versus the more mature semiconductor industry, in our view. We believe companies, both small and large, will be looking to enter the solar arena, whether organically or through merger and acquisition activity. We expect Advanced Energy Industries (AEIS 14 *****) and Varian Semiconductor Equipment Associates (VSEA 37 ****) to be major beneficiaries of this trend because of their high investment in R&D within this arena. We think the semiconductor equipment back-end industry (packaging and automatic test equipment) will experience pressure to consolidate, given the segment's lower growth rates, high fixed costs, and lower profitability relative to other areas of the supply chain. We believe further consolidation of test equipment companies would facilitate cost savings through economies of scale and drive more effective factory utilization. We think Intel (INTC 21 ****) will finally gain some traction in the handset and tablet markets. With Intel's proposed acquisition of Infineon's wireless business unit (expected in early 2011), we see Intel instantly becoming a formidable competitor in the baseband segment of the handset market. We think Intel will successfully be able to cross-sell its Atom processor with the baseband chips, and we expect even more progress once it creates a single chip solution that integrates both functions. Additionally, we believe that Atom will find some success in the lower-end segment of the tablet market.

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This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you nor is it considered to be investment advice. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.

This material is based upon information that we consider to be reliable, but neither S&P nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. With respect to reports issued to clients in German and in the case of inconsistencies between the English and German version of a report, the English version prevails. Neither S&P nor its affiliates guarantee the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Neither S&P nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.

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The Economy Remains the Main Concern Around the World, Shaping 2011 New Year's Resolutions

The economy remains the number one priority on the global stage.  More than half of participants in a new global survey by Survey Sampling International (SSI) cite "improving the economy" as the most important issue to tackle in 2011.  Members of SSI's online research panels in 8 countries chose the economy as their top concern from a list of 8 issues, including reforming healthcare, preserving the environment, preventing terrorism, reforming education, monitoring the food industry, improving relations with other countries and preparing for natural disasters.  Respondents from Japan (71%) and the US (70%) are most focused on today's economic challenges.

Germany is the only country where respondents do not see the economy as the primary issue for their government to address.  More than a quarter of German respondents say that "reforming healthcare" should be the government's chief concern.  Australian respondents also are worried about healthcare, splitting their votes fairly evenly between the economy (34 %) and healthcare (31%).

SSI's findings are based on an Internet study of 4,000+ adults on its online panels.  Countries covered include the US, UK, Germany, France, Japan, Australia, China, and Singapore.  SSI offers extensive worldwide reach to support survey research through SSI Dynamix™, its dynamic sampling platform that links to its proprietary online panels, as well as Web sites, social media, affiliate partnerships and more.

Economic Worries Shape New Year's Resolutions
Survey participants' economic fears are reflected in their New Year's resolutions.  "Improving financial situation" is among the top-two resolutions globally.  Around the world, 40% of respondents are resolving to improve their financial situations in 2011.  The sole exception is Japan, where only a quarter of panelists are focusing their resolutions on financial issues.

Although the economy is on almost everyone's mind, it is not the only concern driving New Year's resolutions.  In the US, UK, Germany, France and Australia, "losing weight" is as likely to be the top resolution as "improving financial situation."  "Developing a healthy habit" and "getting organized" also are top choices for New Year's resolutions around the globe.

People Remain Optimistic Despite Economic Concerns
Although economic worries linger, people across the globe are optimistic when looking forward to 2011.  More than twice as many respondents expect to be "much or somewhat better off" next year than those who anticipate being "much or somewhat worse off."

Chinese and Singaporean respondents are most optimistic about their prospects, with 77% and 65% of respondents respectively believing their financial pictures will improve in 2011.  In contrast, France and Japan have the highest levels of pessimism, with 29% and 32% respectively expecting declines in their financial situations and less than a quarter anticipating improvement.  UK respondents are evenly split between economic optimists (29%) and pessimists (32%).

Less than Half of Respondents in Many Countries Plan on Making Major Purchases
Although there is general optimism in most countries, respondents still are not ready to plan for major purchases.  Less than half of the respondents in the US (43%), Germany (43%), France (47%), UK (48%) and Japan (48%) say that they will buy a computer, flat screen TV, car, boat or home in 2011.
The picture is far brighter in China, where 85% of respondents plan a major purchase in 2011 and Singapore, where 73% are looking forward to buying big ticket items.  The financial optimism among respondents in these countries appears to be translating into purchase plans, perhaps due to the perceived need for technology items, such as laptops.

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