Being supported by 76.40 previous low, USDJPY rebounded from 76.72. The pair is now facing the resistance of the downtrend line on 4-hour chart, as long as the trend line resistance holds, another fall to re-test 76.40 support is possible. On the upside, a clear break above the trend line will indicate that the fall form 81.47 has completed at 76.72 already, then the following upward move could bring price back to 82.00-83.00 area.
The State Bank of Pakistan unexpectedly dropped its discount rate 50 basis points to 13.50% from 14.00%. The Bank said: “The key parameter in this assessment is the outlook of inflation that indicates that average inflation in FY12 is expected to remain in line with the announced target. No adjustment in the interest rate would have entailed further tightening of monetary policy in real terms, which is not warranted given the decline in private investment.” The Bank also noted: “Pakistan’s economy is currently facing three broad challenges in the shape of persistence of inflation at a high level, falling private investment and low growth, and rising total debt due to a low tax to GDP ratio.”
Spend five minutes researching most investment strategies, and you’ll run across something called “backtesting.”
Backtesting is when you look at historical data, apply your potential strategy, and see what sort of performance it would have had in the past. Basically, it’s one way to hunt for a strategy that could work without putting anything on the line.
Therein lies the problem. There’s no skin in the game. You can backtest anything and everything with no risk. That’s why you sometimes run across off-the-wall claims like the length of women’s hemlines has a bearing on winning stocks. (Don’t believe me? Read this note from Barron’s.)
Don’t get me wrong; backtesting has its place. But a lot of strategies look good on paper and in hindsight. Shouldn’t you be much more interested in the results of a test done with actual cash… and in real time?
Most retail investors can’t test like this. If the test fails, it’s their hard-earned money at stake, and many investors just can’t afford any more risk right now. Luckily, I enjoy a luxury most retail investors don’t — I have the backing of an entire company for my investment research.
And so in December of last year, I began what amounts to my biggest test to date. With $200,000 in actual cash fronted by StreetAuthority, the publisher of Dividend Opportunities, I was given the go-ahead to build a portfolio using the “Daily Paycheck” strategy.
The strategy is straightforward. I’m building a portfolio of income stocks that pays me a dividend for every day of the month. And because I want to make those dividends grow as large as possible, I’m also reinvesting every cent of the payments.
It’s a simple way to invest and many investors have heard about it before. But until now, most have only seen this sort of strategy backtested — not put in place in real life.
The good news is that while we all know being paid dividends regularly — and reinvesting those payments — is “supposed” to work, the actual results have been much more exciting than even I expected:
| “Daily Paycheck” Strategy Update | |
| Total Days Tested: | 336* |
| No. of Dividends Earned: | 176 |
| Total Amount of Dividends: | $7,527.28 |
| Current Winning Positions: | 46 (out of 51) |
| Total Return: | +10.9% |
| * Dec. 15, 2009 – Nov. 15, 2010. Test is continuing. | |
Above are the actual stats of the $200,000 real-money portfolio within my Daily Paycheck advisory, where I’m conducting the test. This isn’t backtested data or what “could” have happened. It’s actual cash and real dividend payments.
So what does this 336-day (so far) test tell us about the “Daily Paycheck” strategy? Put simply, it works, and the results should only improve with time.
You might scoff. After all, during the first year of this experiment the total return of the portfolio is roughly in line with the performance of the S&P. How can that be a winning strategy?
It’s because that performance comes with the equivalent of one hand tied behind my portfolio’s back.
Remember, this test started out with $200,000 in cash at the start. It took several months to get even the majority of that cash invested in the right dividend payers. The good news is that now I’m fully invested, and the dividends are coming in hand over fist and helping add to all my positions.
In October alone the portfolio earned — and reinvested — more than $1,090 in dividends, marking my third straight month with more than $1,000 paid.
So what can you take away from this test?
First and foremost, it proves what you’ve always heard, but perhaps took with a grain of salt. Investing in dividend-paying securities — and reinvesting those dividends — can be a very lucrative strategy. And even if you knew that, you may have thought it a strategy only for those with a focus on the extremely long-term.
But in less than a year, the dividends have ramped up to more than $1,000 a month. (Even if you had only $50,000 invest, it would still mean an extra $250 a month in your pocket, or in more shares.) That’s some serious cash.
Always searching for your next paycheck,
Amy Calistri
Chief Investment Strategist — The Daily Paycheck
P.S. — My “Daily Paycheck” test isn’t finished yet. As the cornerstone of my Daily Paycheck advisory, it’s just getting started. But I can’t take full credit — it was actually the idea of StreetAuthority’s co-founder (and my boss) Paul Tracy. He’s been following this strategy for years. In fact, he’s already earning more than $4,000 a month in dividends. To learn how you can get started on the same path, I invite you to read this memo.
The week in monetary policy saw 8 central banks announcing interest rate decisions. Of those that changed rates were: India +50bps to 8.00%, Nigeria +75bps to 8.75%, and Colombia +25bps to 4.50%. Meanwhile those that held monetary policy interest rates unchanged were: Israel 3.25%, Hungary 6.00%, New Zealand 2.50%, Kenya 6.25%, and the Philippines 4.50%. Other than interest rates, the Philippines raised its required reserve ratio by 100 basis points to 21%, and Turkey dropped its required reserve ratios by 100-200bps to add extra liquidity to the market.
In terms of themes, the week was very much dominated by emerging market central bank activity. India surprised the market by raising rates more than expected in response to a persistent inflation threat against the backdrop of still relatively strong economic growth. Indeed the message was that emerging markets are still facing elevated price levels and inflationary impulse, and many of them are still recording relatively high rates of growth, particularly as compared to developed markets.
A selection of key quotes from the monetary policy statements and media releases are listed below:
Looking to the central bank calendar, next week is set to be dominated by developed market or advanced economy central bank activity (note, the US also meets early in the following week). So it will be an interesting week in terms of how these banks react to whatever happens with the US debt situation…
Source: www.CentralBankNews.info
Article source: http://www.centralbanknews.info/2011/07/monetary-policy-week-in-review-30-july.html
By China Research and Intelligence
www.shcri.com – “After more than 30 years of development, China has become a large ship repair country. After the reform and opening up, ship repair enterprises in Liaoning, Tianjin, Shandong, Jiangsu, Zhejiang, Fujian and Guangdong, etc are being expanded and strengthened continuously. The regional competition of Chinese ship repair industry concentrates in three regions – the Bohai Bay Rim centering on Dalian, Yangtze River Delta centering on Zhoushan and the Pearl River Delta centering on Guangzhou. Influenced by the financial crisis, Chinese ship repair industry sustained depression in 2009. Specifically, the volume of ships for repair was raised, while the repair business of single ship suffered drastic decline with substantial price reduction. The average plate renewing price was reduced from 2,800-2,900 USD/ton at the end of September 2008 to 1,000 USD/ton or even 900 USD/ton, approaching the record low. This is mainly because many enterprises competed for orders by low price. In 2009, the market scale of Chinese ship repair industry was about CNY 57 billion, dropping by about 5% YOY. It is forecast that Chinese ship repair industry will recover in 2010.
In recent years, the construction of repair docks in China is sped up and great achievements have been made. The reserving volume of Chinese repair docks also acquires a higher ranking in the world. By the end of 2008, the reserving volume of 50,000-ton and above repair dock in China reached 59 with a capacity of near 8.39 million tons. The repair volume of major ship repair enterprises came to about 5,310, roughly 100 million DWT. The repair volume of foreign ships exceeded 1,784 with a total weight of 81.84 million DWT.
The world ship repair center has been transferred to the region represented by China and has taken shape preliminarily, providing the opportunity for the development of Chinese ship repair industry. The advantages of Chinese ship repair industry in cost, geography and economic development will long exist. The modernized development of Chinese industry is in the primary stage at present. The labor-intensive advantage will be replaced gradually by technology and capital intensive advantages. The transition period, which is about 10-20 years, will be the golden age of Chinese repair industry. An enormous amount of international and domestic investment will be attracted to this industry.
Through this report, readers can acquire more information:
-Status quo of development of Chinese ship repair industry
-Factors affecting the development of Chinese ship repair industry
-Competition on Chinese ship repair market
-Major enterprises in Chinese ship repair industry and their operation
-Influence of international financial crisis on Chinese ship repair industry
-Prediction on development tendency of Chinese ship repair industry
-Investment opportunities in Chinese ship repair industry
Following persons are recommended to buy this report:
-Ship manufacturers
-Ship maintenance & repair enterprises
-Transportation enterprises
-Ship owners
-Investors concerning the ship maintenance & repair industry
-Research institutes concerning the ship maintenance & repair industry
-Others concerning the ship maintenance & repair industry
”
To get more details, please go to http://www.shcri.com/reportdetail.asp?id=460
source: http://www.shcri.com
China Research and Intelligence
The Central Bank of Colombia lifted its benchmark monetary policy interest rate by 25 basis points to 4.50% from 4.25% previously. The Bank said (translated): “Since March, the average measures of core inflation has been a slight upward trend in June and reached a level close to the midpoint of the target range (3% + / – 1 percentage point). Inflation expectations at various horizons are also within that range.” and also noted “The increase in the rate of intervention aims to maintain inflation within the target range this year and next and help prevent future financial imbalances that threaten the sustained growth of the economy.”
By Ruhi
With the cost of living increasing rapidly due to various factors such as inflation etc., people are leaving no stone unturned to earn more and more income. And one of the fastest ways of increasing your earnings is by trading in Indian stock markets. Such profits are a result of volatility in the various stock exchanges, the main ones in India being National Stock Exchange, or NSE, and Bombay Stock Exchange, or BSE.
However, people vying to make easy and fast money sometimes ignore the chances of suffering heavy losses that can be a result of making impulsive decisions. Hence, all the trading and investment decisions should be made based on well-researched information. Such information can be acquired in the form of intraday tips and calls, among other options. The intraday tips on NSE and BSE are the most preferred tips in the Indian stock market.
The top intraday tips for NSE are generally related to most recent developments happening in the share market or affecting share market. Novice traders and investors should understand and look out for proper guidance from an expert and experienced resource. There are many online stock tips providers offering extremely relevant and useful tips including Nifty Tips, option tips, intraday calls, nifty calls, NSE tips, etc.
A person can easily find many stock tips providers on the internet and compare their research, quality of services and brokerages. However, these calls and tips can also be offered through emails and SMSs so that you can instantaneously act upon them and grab the opportunity of high returns on the investment.
But prior to the selection of a stock tip provider, you should look into various factors including their commissions and other charges, their services and the quality, consistency, number of satisfied clients, etc. Since these services are offered online, they tend to be rendered on a 24×7 basis. With these services as well as informed decisions, your investment portfolio is bound to be strengthened.
Other than that, a number of frauds, scams and scandals surface every now and then in the share markets, depending on the market drift and liquidity. So an investor should be very cautious as well as vigilant before trading in these stock and share related markets. Hence, it is advised to the novice investors and traders and beginners in the stock market to carry out their transactions according to the guidelines given by your stock broker professionals and experts.
July 29 (Bloomberg) — Michael Englund, chief economist at Action Economics LLC, talks about U.S. economic growth. Gross domestic product rose at a 1.3 percent annual rate following a 0.4 percent gain in the prior quarter that was less than previously estimated, Commerce Department figures showed today in Washington. Englund speaks with Betty Liu on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)
July 29 (Bloomberg) — Krishna Memani, director of fixed income at OppenheimerFunds Inc., talks about the impact of a U.S. debt default on equity and Treasury markets. Memani speaks with Deirdre Bolton and Adam Johnson on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)
I think it’s the most boring business I’ve ever researched. That’s what you want if you’re looking for a stock to hold no matter what.
It pays dividends like clockwork. They’ve increased for 39 years straight — that goes back to when Nixon was in office. That even includes increases during the Great Recession. In the last ten years the quarterly dividend has risen 154%.
Earnings growth isn’t going to blow you away. This company isn’t going to invent the next iPod. The CEO isn’t going to be a rockstar in the business world. In other words, don’t expect a lot of flash from this company that was founded in 1872.
But expect plenty of substance.
Paper company Kimberly-Clark (NYSE: KMB) was the first company to put toilet tissue on a roll. It invented the “disposable handkerchief” — or what we know as the iconic Kleenex. And it was the first paper company to advertise its brands on national television. Today it’s the company behind Huggies, Kotex, and Depends.
Like I said, boring stuff. But that’s the sort of company that does well over time, especially if things get rocky.
Right now we’re seeing $100-plus oil, worries about the Middle East, concerns about an overheated market, and the continuous angst about government deficits. That’s a lot of worry. You might sleep better owning KMB.
You see, not only is it one of the most steady dividend payers around, but the shares hold up well in down markets. Take a look at the stock versus the S&P 500 in the recent bear market…
Right now the shares are yielding about 4.5%. Normally I don’t get too excited over that sort of yield. But this isn’t an ordinary investment.
You don’t buy this stock with the plan to sell it after a month, six months, or even a year. It’s the sort of holding you want to buy and forget about, no matter the market. Just let it pay you quarter after quarter.
And while nothing in investing is ever guaranteed, over time those dividends are likely increase, just like they have for the past four decades. At the very least, they’ll add up handsomely.
Every share bought just five years ago has paid out $11.65 since, providing a 20% gain on dividends alone. That may not be something to brag about at cocktail parties, but in the bipolar market of the past five years, that steady return… and dividend… is something to covet.
Always searching for your next paycheck,
Amy Calistri
Chief Investment Strategist — The Daily Paycheck
P.S. – I hold shares of KMB in my real-money Daily Paycheck portfolio. The strategy is working like a dream. As of now, I’m earning between $1,100 and $1,700 each month. To learn more about the strategy, read this memo.
Disclosure: StreetAuthority, LLC owns shares of KMB
