This article is a guest post from Mr Jason Holmes. Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like Credit Score The Quintessential Therapy for a Happy Pocket, Take Creditors and Collection Agencies to Small Claims Court and My Story- From Depression To a Smile.

Enjoy the article by Jason Holmes below.

Can investors gain from the economic market in 2010?

The world financial crisis started to show its effects in the middle of 2007 and into 2008. The entire world economy was in depression. Stock markets have crashed and large financial institutions have either collapsed or have been bought out around the entire world. The housing market has also suffered, leading to several foreclosures and evictions.

The financial crisis affected the livelihoods of almost everyone in this inter-connected world. Millions of people lost their jobs leading to increase in unemployment rate and debt problems. The number of debt consolidation companies sprang up in this period. The governments of the wealthiest countries such as USA have had to come up with relief packages to bail out their financial systems.

Causes of world financial crisis

Various factors lead to global financial crisis such as collapse of the US sub-prime mortgage market, growth of the housing bubble, easy credit conditions, predatory lending, increased debt load, incorrect pricing of risk, boom and collapse of the shadow banking system, financial complexity, and commodity bubble.

Can investors gain from current financial market?

It may seem absurd, but investors can gain from current economical market in various ways. Although most investors are too wary to invest in stock market nowadays yet they forget that stock market is likely to recover even if it takes longer than expected. This is the right time to take advantage of the attractive prices and fearful environment. They need to find out about the blue chip companies from internet. The value of the shares of good companies normally appreciates after some time.

The safest way to reap profits will be to invest in gold. The price of gold has increased dramatically in past few years. On 15th June, 2010, gold price reached $1225, 00. It is predicted that by the end of June 2010, gold price will reach $1500 mark. One can also reap profits through currency investments. Currency trading can be done with little cash. Therefore, debtors can invest in currency market and utilize the profits in paying the fees charged by the debt consolidation companies.

Economic recovery

The global economy is now emerging from the financial crisis and GDP growth rates are improving. The unemployment rate has slowed down. The US government is taking necessary steps to prevent people from filing bankruptcy. They have started sponsoring debt consolidation companies so as to reduce bankruptcy rate. It is expected that the problems in the US housing market will be over within a year. Finally, the global GDP, which dropped by 2.2% in 2009, is expected to increase by 2.7% in 2010 and 3.2% in 2011.

To read more personal finance and money related articles, visit Penny Sense.

Can investors gain from the economic market in 2010?

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It’s been months that people are speculating the shape of the financial recovery all around the world. Some believe that we are now on an uptrend and that the recovery is a V-shaped one while others are hoarding their cash and not willing to invest just yet because they feel that the market is going through a W-shape recovery.

So which of these V or W recoveries are you rooting for? As the market rallies as we speak and you’re not yet in the market, you’re probably hoping that the W-shape recovery comes true, huh? But if you’re convinced that it’s not a W-shape recovery and have missed the boat on being at the bottom of the market, would you step up now and dump your money in the market?

An interesting article came up today by i Capital on investor sentiments and the way they think the market will go. Read it here.

So where are you keeping your money these days if not in the market? FDs? Under your pillows?

To read more personal finance and money related articles, visit Penny Sense.

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I read this piece of news about the launch of a premium petrol called RON97 this September that will cost RM2 per litre and a regular petrol called RON95 that will cost RM1.75 per litre. In view of this, the current cheapest choice of petrol, RON92 will be taken off the market.

Does this mean a rise in petrol price come 1st of September? I don’t know for sure because the news article seems to be only talking about the new premium petrol and how consumers can opt for the new choiced petrol of RON95 if they do not want to pay for the premium one.

I actually don’t know what RONs I’m using because I don’t pay enough attention when I use the pumps at the petrol kiosks. I only know that I should reach for the pump that’s green in colour. So what RON is that?

Are other people as confused as me as to whether this new range petrol to be launched in the market is indirectly a petrol price hike?

To read more personal finance and money related articles, visit Penny Sense.

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This week’s The Edge has an interesting article about how some ailing multinational corporations (MNCs) in  Malaysia are looking at disposing their operations as exit strategies due to the slow down in businesses.

Some of these MNCs include Dell, Western Digital and Flextronics. These companies have made known in recent months that they will be laying off employees as the businesses are scaling down.

In view of these companies seeking to vacate their sites, many local Malaysian companies are finding it a great opportunity to buy up the plants and operations at a steal. Some deals are reported to be quoted at a nominal price of RM1, with the condition that the buyers will have to take the deal in lock stock and barrel along with machineries and employees.

It seems a good opportunity indeed for companies that are able to expand and meet their business needs with these cheap buys. It’s also a winning situation for the MNCs as a means to avoid coming to terms with the heavy costs of retrenchment.

Let’s see what will come of these deals and who emerges the bigger winner of it all. Can you imagine buying an entire manufacturing plant with people who are ready to operate the run the business for just RM1? What a bargain it is!

To read more personal finance and money related articles, visit Penny Sense.

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Imagine you have some cash in hand at the moment, and there are 2 options for you to use the money wisely to generate more income. These two options are:

1) Put it into an investment (buy a share, invest in gold, buy unit trust funds, buy property, etc)

2) Start a small part time business

Which would you rather do, assuming that the small part time business can be a joint venture with someone where you just need to pump in the money rather than to run the business yourself?

Do click on the poll below and let’s see what majority of us have to say about our preferred way to put that money to work for us.

To read more personal finance and money related articles, visit Penny Sense.

Would you invest your cash or start a business?

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