Determine Your Risk Tolerance

6

Determine Your Risk Tolerance

from InvestmentCare.com

Another important step in getting started in the investment process is to determine your individual tolerance for risk. As an investor, it is important to understand the different levels of risk in order to select the most appropriate investment that fits your current financial condition. Although there are several different categories for determining risk tolerance, the following is a list of the three (3) most frequently used risk levels as they relate to investing:

Conservative

The conservative approach to risk is generally the least tolerant of all risk levels. Investors who have a conservative level of risk tolerance are willing to accept relatively low investment returns in return for minimal risk and volatility. Similarly, investors with conservative levels of risk tolerance tend to concentrate on investments with minimal price fluctuation and exposure to loss of investment principal.

Moderate

The moderate approach to risk tolerance focuses on average investment risk. Investors who have a moderate level of risk tolerance are willing to accept relatively average market risk and volatility for the potential of higher investment returns.

Aggressive

The aggressive approach to risk is typically the most tolerant of all risk levels. Investors who have an aggressive level of risk tolerance are willing to accept a substantial amount of market risk and volatility for the pursuit of potentially high investment returns.

Define Your Time Horizon

5

Define Your Time Horizon

from InvestmentCare.com

As an investor, establishing your individual time horizon becomes very important because it will assist you in determining how long you plan on maintaining a particular investment. Once you have decided your time horizon, you can then determine the level of risk, and the type(s) of investment products that best suit your individual needs, investment objectives, and overall financial status. In addition to these criteria, it is also important to note that time horizons often differ depending on an investor's age. For example, a young college student might have a very different time horizon than a retiree, which may be a determining factor in deciding which type of investment products each person chooses. Although there are several different categories for time horizons, the following is a list of the three (3) most frequently used time horizons as they relate to investing:

Long-Term

Long-term time horizons are generally for those investors who have a minimum of thirty years or more to invest in the market. These investors are typically young investors such as high school students, college students, and young professionals who have several years before retirement age. Although each person is different in their individual investment objectives, net worth, and financial status, investors who have long-term time horizons are able to withstand higher levels of risk, which tend to produce higher market returns over time. Because of the long-term time horizon, investors are able to focus or "weight" their portfolio with more aggressive, growth-oriented investment products for the hope of greater returns in the future.

Medium-Term

Medium-term time horizons generally apply to middle-age investors, typically in their 40's and 50's, who are of the Baby Boomer Generation. This type of investor has had several years to invest in the market and sustain a certain element of risk and corresponding market return. However, they are now faced with the decision to shift their current investment strategy to a more balanced and/or conservative approach because of the approach of retirement age. Although each individual situation is different, investors who have a medium-term time horizon may consider balancing their portfolio with an even amount of conservative, growth, and income-oriented investment products for the future.

Short-Term

Short-term time horizons generally apply to those investors who are of pre-retiree and retiree status. Because most of these investors may experience a fixed or limited income in the near future, emphasis is placed on safety and income. Although each individual situation is different, investors who have short-term time horizons are generally the least tolerant of investment risk and are more concerned with preserving their existing capital and income. Because of the short-term time horizon, investors in this category may consider concentrating or "weighting" their portfolio with conservative, income-oriented investment products for the minimization of risk and the preservation of income

Determining Your Investment Objectives

4

Determining Your Investment Objectives

from InvestmentCare.com

One of the most important steps in getting started in the investment process is to determine your personal investment objectives. As an investor, it is important to understand the different types of investment objectives in order to select the most appropriate objective that fits your individual needs. Although there are several different categories for determining investment objective, the following is a list of the four (4) most frequently used investment objectives as they relate to investing:

Safety & Preservation of Capital

One of the investment objectives with the least level of risk is Safety and Preservation of Capital. Investors who classify themselves under this type investment objective are primarily focusing on preserving their existing asset base through an emphasis on cash and cash equivalents.

Examples of investment products under this objective would include:

• Cash

• Savings Accounts

• Savings Bonds

• Money Market Funds (MMFs)

• Certificates of Deposit (CDs)

• Treasury Securities

Income

The second type of investment objective, which has a slightly higher risk level than Safety and Preservation of Capital, is the Income objective. Investors who choose this particular investment objective primarily focus on the continued receipt and steady stream of income.

Examples of investment products under this objective would include:

• Variable Annuities

• Government Bonds

• Municipal Bonds

• Real Estate

Growth

The third type of investment objective, which is less conservative and more risk-oriented than the preceding two objectives, is the Growth objective. Investors who classify themselves under this objective primarily focus on generating capital appreciation.

Examples of investment products under this objective would include:

• Blue Chips Growth Stocks

• Aggressive Growth Mutual Funds

• Convertible Bonds

Speculation

The fourth type of investment objective, which is considered the least conservative and riskiest of all objectives, is Speculation. Investors who focus on speculative investments primarily concentrate on extremely aggressive investment products that assume high market risks for potentially high returns.

Examples of investment products under this objective would include:

• Options

• Commodities

• Penny Stocks

• Some Internet Related Stocks

• Junk Bonds

• Junk Mutual Funds

• Index Futures

• Private Placements



Establishing Your Investment Goals

3

Establishing Your Investment Goals

from InvestmentCare.com

In order to establish your investment goals, you must first decide what you want to accomplish by investing in any one of the various types of investment products. Although each investor has a different set of investment goals, depending on their financial status, age, marital status, investment objectives, time horizon, and risk tolerance, it is the investment goal that determines the investor’s overall focus. The following is a list of some of the more common investment goals:

• Saving for retirement

• Building an investment portfolio

• Building a cash reserve for emergencies

• Paying for a child’s education

• Paying off student loans

• Purchasing a car

• Purchasing a house

• Saving for a Vacation

Determining Your Net Worth

2

Determining Your Net Worth

from InvestmentCare.com

Before you make any type of investment, it is important to first determine your net worth, which can become the basis for many other decisions that you may encounter during the investment making process. Your net worth is important because it will help determine which types of investments are most suitable for your individual needs, and what level of risk and time horizon may be most suitable for your current financial situation. To calculate your net worth, you may use the following guideline and calculation provided below:

The following is a list and classification of Assets when calculating your net worth:

Cash in Bank Accounts

• Checking Accounts

• Savings Accounts

• Money Market Accounts

Cash Equivalents

• Annuities

• Life Insurance (cash value)

Investment Products

• Market Value of Stocks

• Market Value of Bonds

• Market Value of Mutual Funds, etc.

Real Estate

• Market Value of Residence less mortgage debt

Property

• Automobile(s)

• Furniture

• Jewelry, collectibles, etc.

• • Other misc. equipment of value

Retirement Accounts

• Market Value of IRA

• Market Value of 401(k) Plan

• Market Value of SEP, KEOGH, etc.

The following is a list and classification of Liabilities when calculating your net worth:

Total Revolving Credit

• Credit Card debt

• Lines of Credit

Household Liabilities

• Monthly Mortgage/Rent payment

• 1st Mortgage balance

• 2nd or other Mortgage on Residence

• Outstanding Property Taxes

Other Misc. Liabilities

• Total Balance on Student Loans

• Child Support Payments, etc.

Total Installment Loans

• Automobile Loans

• Personal Loans

• Other Monthly Payment Loans

 

Ten Responsibilities of Investors

Establishing A Solid Plan

The single most essential part of getting started in the investment process is to establish a solid investment plan. However, before you begin to establish a plan, you should read and understand the Ten Responsibilities of Investors listed below. Once you understand your role as an investor, you can now start to establish an investment plan. In other words, before you make any investment, you should evaluate your overall financial situation, formulate a sound investment strategy through goals and objectives, and set out to achieve those goals through periodic and consistent monitoring of your investment progress. To begin this process, it is important to first determine your overall financial situation through a determination of your individual net worth.

1

Ten Responsibilities of Investors  

from InvestmentCare.com

The following is a list of tens responsibilities that investors have to their financial representative and brokerage firm. 

1All investors must understand and accept the fact that there are risks of monetary loss associated with every investment.

2Investors are responsible for reading all sales literature, prospectuses, offering memorandum, and disclosure information before making an investment.

 3Investors are responsible for reading all contracts and agreements entered into regarding their investment accounts. This includes, but is not limited to, new account agreements, margin agreements, options agreements, and subscription agreements. The investor is responsible for reading, understanding and agreeing to the terms of any agreement that is signed.

4Investors are responsible for reviewing their trade confirmations, portfolio and account statements on a regular basis to ensure the accuracy of the transactions and to monitor the activity in the account.

5Investors are responsible for providing accurate information regarding their financial status, investment objectives, and risk tolerance in order to ensure that the broker can provide appropriate advice and recommendations.

 6Investors are responsible for notifying their investment professional when there is a significant change in their financial status, investment objectives, and risk tolerance.

7Investors should carefully consider the validity and source of all research, investment advice and sales literature

8Investors should have the available cash or margin buying power to pay for transactions by settlement date or to cover any margin calls. Investors also have the responsibility to understand all of the rules and regulations regarding margin accounts.

 9Investors have the responsibility to promptly bring all problems, questions and disputes to their investment professional.

 10Investors using electronic or online trading systems assume the risks and responsibilities associated with their trading activity

انخفاض تصنيف الولايات المتحدة ماذا يعني ؟وماذا بعد؟

انخفاض تصنيف الولايات المتحدة ماذا يعني ؟وماذا بعد؟

انخفض التصنيف الائتماني للولايات المتحدة الأمريكية من AAA إلي AA

وقبل الحديث عن مدلول ذلك يجب أن نذكر ترتيب التصنيف الائتماني وهي بالترتيب من الأعلي للأدني كالتالي:

1- AAA

2- AA

3- A

4-BAA

5-BA

6-BB

.....

............

.............

فأعلي تصنيف وهو AAA ويعني أعلي تصنيف ان فلوسك مضمونة جدا وبالتالي فإن الفائدة المعطاه علي هذه القروض تكون قليلة جداً إذ تتناسب الفائدة تناسب طرديا مع المخاطر كلما زادت المخاطر زادت الفائدة

الولايات المتحدة الامريكية عندها مشاكل في الديون أصلا إذ تعتبر أكبر دولة مدينة

الحكومات عندما يقابلها عجز في الموازنة فإنها تلجأ إلي حل من ثلاث حلول وهي :

1- قروض خارجية

2- قروض داخلية

3- طباعة النقود.

وكانت الولايات المتحدة كلما حل دين تستدين لتسدد ذلك الدين عن طريق سندات الخزانة الأمريكية وفي 2 من أغسطس قابلتهم مشكلة وهي أنهم وصلوا للسقف المحدد من قبل الكونجرس لإستدانة الحكومة وهذا أدي إلي لغط كبير بين الحزبين الديمقراطي والجمهوري وأخيرا رفعت أمريكا سقف الدين


ما معني ذلك ؟

معناه أنها ستقترض لتسدد تاني

مع إنخفاض التصنيف الإئتماني من المفترض أن تزداد الفائدة علي هذه القروض مما سيوسع الفجوة الموجودة أصلا بين الدخل والمصاريف هذا أولا

ثانيا : إن سمعة الولايات المتحدة الأمريكية - الاقتصادية - هي كل ما بقي لها اليوم وهي مايبقيها في موقعها فمع إنخفاض تلك السمعة فإنها ستأخذ في الانهيار الدراماتيكي

ثالثا: أري أن المشكلة ليست في الدين وسقفه ولكن المشكلة في الاعتراف بأنها في خطر والعمل علي حل هذه المشاكل حلول جذرية وعملية وفق خطط زمنية محددة ودقيقة وعدم وجود هذا الاعتراف سيجعلها تنزلق نحو الهاوية يعجبني جدا فكرة فيلم THE COMPANY MEN وهي فكرة علي أمريكا أن تأخذ بها عمليا ، ففي الفيلم يواجه أحد أبطال الفيلم وهو بن أفليك التسريح من العمل فيجد نفسه بعد ما كان يركب السيارة الفيراري ويقطن في قصر مشيد لأنه مدير التسويق لشركة كبري وحاصل علي ماجستير إدارة الاعمال وفجأة يجد نفسه في الشارع فيبيع السيارة ويترك القصر ويعيش مع والده في بيته ثم يبحث عن عمل فلا يجد عمل فتعرض عليه زوجته ان يعمل مع أخيها نجار وفعلا يبدأ عمله كنجار مع أخوها اللي هو كيفن كوستر ولكنه طبعا يصبح نجار مبتدأ وبالتالي يعاني في تلك المهنة وفي هذه الاثناء يتم تسريح مديره هو الآخر من العمل وهو أحد مؤسسي الشركة ولكنه يقرر أن يجمع الفريق القديم ليبدأ من جديد فيعود بن أفليك مع باقي فريق العمل ليبدأوا من جديد


الفيلم رائع جدا وهو فيلم أمريكي وأظنه انتاج 2010

ولن تنجو أمريكا من هذه الأزمة الطاحنة إلا بأن تتخلي عن عنجهيتها وتعترف بأنها تأخرت خطوة وعليها أن تبدأ من جديد وهذا مالا أراه حادثا

فما زال الأخ أوباما ينكر أنهم في مشكلة ويقول أن المشكلة سياسية وليست اقتصادية بل المشكلة سياسية واقتصادية واخلاقية واجتماعية و و ....

ده حالتهم طين

ناهيك عن الربيع العربي اللي سينتقل عاجلا إن شاء الله إليهم ليحاكموا الرؤساء السابقين علي قرارات كان من شأنها هذا الدين المدقع

رابعا: اسلوب الحياة الامريكي وجزء كبير من الفلسفة الامريكية بحاجة إلي تغيير حتي تستطيع الولايات المتحدة أن تتجاوز تلك الأزمة وهذا نفسه سيحتاج إلي وقت وخلال هذا ستفقد أمريكا وضعها السابق وستظهر كيانات جديدة أود أن استشهد هنا بمقالة لإمرسون يقول فيها :" إن روح راديكاليتنا الأمريكية مدمرة وغير هادفة فهي غير محبة ، وليست لديها أهداف قدسية وبعيدة المدي إنما تنبع تدميريتها من الكراهية والأنانية ، في الجانب الآخر نجد أن الحزب المحافظ جبان ويكتفي بموقع المدافع عن الملكية فهو لا يحمي حقا ولا يتطلع إلي صالح حقيق ولا يفضح جريمة ولا يقترح سياسة كريمة ولا يبني ولا يكتب ولا يرعي الفنون ولا يحرر العبيد ولا يصاحب الفقير أو الهندي أو المهاجر وليس للعالم أن يتوقع من الحزبين في حالة وصولوهما للسلطة شيئاً لصالح العلم أو الفن أو الانسانية".

خامسا: الاسواق الامريكية كانت فنيا في نهاية ترند صاعد وعاملة أشكال إنعكاسية مؤكدة ولكنها قبل ميعاد سقف الدين وعلي عكس المتوقع صعدت الاسواق الامريكة وهذا يعني بمفاهيم التحليل الفني فخ (TRAP ) وبعد الاعلان عن رفع السقف تهاوت وهو الطبيعي قبل الصعود الفخي الاخير

والآن هي في حالة تصحيح - ولكنها أخذت الاتجاه الهبوطي - وهذا واضح جدا فنيا ويمكننا نرفع تشارتات عديدة بذلك