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Archive for the Stock Markets Category

Spread Betting in Financial Markets

There is a great deal of volatility in world financial markets and we read about specualtors who are able to make money whether markets go up or down. Spread betting is one way of potentially doing so.

Spread betting is a cost effective way of trading. Just like share trading you can speculate on stocks and shares but because there are no brokers there are no Brokers Fees and no Commissions. If you are a UK resident there is currently no Income Tax or Capital Gains Tax on Spread Betting returns.

In market terms spread betting companies quote two figures for an index which is known as the spread. They quote a high and a low value and the investors either sells at the low price, or buys at the high price. If the index rises and you buy high then you sell out and at the close of business at a profit relative to how right you were. Spread betting may be on financial markets, foreign exchange or commodities such as gold or oil.

Risk Warning - Spread betting carries a high level of risk to your capital and you may lose more than your initial investment. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seek financial advice where necessary and make sure spread betting meets your investment objectives.

Financial Spreads offer spread bets on the FTSE 100, Crude Oil, Gold and a wide range of UK and international shares.

Financial Spreads is a trading name of London Capital Group Ltd which is authorised & regulated by the Financial Services Authority (FSA). Registered address: is 4th Floor, 12 Appold Street, London EC2A 2AW.

For more about Spread Betting and Contracts for Difference see moneyjungle.net

Investing in Volatile Stock Markets

There will always be risks involved in investing in stocks and shares especially for the small investor at a time when stock markets are as volatile as at this time.

It is important to invest in a spread of stocks across sectors, the temptation for a small investor is to select just a small number of shares but this carries high risk.

It is usually advisable for the small investor to instead go for collective investments like investment trusts or unit trusts selecting funds in sectors you expect to do well.

The Moneyjungle Invest section includes information to help you select the collective investment that is best for you. We always advise anyone looking to invest to undertake thorough research and to seek independent financial advice as appropriate.

Macro Macro Man!

Last week the markets saw a lot of whirling and twirling but as predicted, no decisive move as yet. For those of you who like to top and tail the indices you were in seventh heaven! Those of you who bought Wall Street to rise 100 ticks on Wednesday, when it was down over 50 with 40 minutes to go must be taking delivery of your flash red Lamborghinis about now. You FX boffins were also grinning with glee as the currency pairs were all over the shop.

The markets are stuck in a tug of war - the micro economic picture is rosy, while the macro looks glummer than the NatWest three right now. In the States, the market has been buoyed by healthy profits at frivolous firms like Nokia, Starbucks and Disney. Over here, serious companies like Royal Bank of Scotland, BA and Anglo American mining have led the charge.

But the credit crunch is like an egg stain on your jeans - you can lick it, but it just won’t go away. US mortgage firm Accredited Home Lenders has got the colley-wobbles and Germany lender IKB Deutsche Industriebank has to be propped up by their Government. But the impact is being felt much further a field. An estimated $43 billion of bond and loan offerings have been suspended in the past two weeks. And it gets worse.

UK insolvencies last quarter were up 4.2% on the same period last year. US unemployment rose to the highest level since the start of the year and their consumer and housing data look worrying. UK house prices rose only 0.7% in July - the fourth month where prices rose less than 1%. House repossessions are on the rise too. Just as well UK interest rates remained at 5.75% last week.

Regardless of the bigger picture, individual companies seem to be doing just fine at the moment. Two notes of caution though - one, US consumers need to keep spending to keep their economy out of recession. Tuesday’s consumer credit data at 8pm may well shift the market as it gives a clue to future US consumer spending patterns.

Two, the exposure of banks to the debt squeeze isn’t completely clear and a banking crisis is seriously bad news. The complexity of new debt instruments means any problems may take a while to unwind. But with banks like HSBC and RBS reporting good returns perhaps this is the best time for them to feel the squeeze.

So while the wider economic indicators look a bit iffy, firms are getting on with the business of making money. Do the markets need to get a grip? Get on with the business of making money… visit Choice Odds and claim your free bet worth up to £50!

Global Markets

Many observers have been warning for some time that the global markets boom could not be sustained.

It is yet to be seen whether yesterdays fall represent a short term reaction to rising interest rates or whether the bubble is about to burst. This should be a real concern not only to those investing in stocks and shares but to anyone with a pension fund or life insurance policy.

For more about investing in stocks and shares and other markets see moneyjungle.net.

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