Global Mining Investing $69.95, 2 Volume e-Book Set. Buy here.
Author, Andrew Sheldon

Global Mining Investing is a reference eBook to teach investors how to think and act as investors with a underlying theme of managing risk. The book touches on a huge amount of content which heavily relies on knowledge that can only be obtained through experience...The text was engaging, as I knew the valuable outcome was to be a better thinker and investor.

While some books (such as Coulson’s An Insider’s Guide to the Mining Sector) focus on one particular commodity this book (Global Mining Investing) attempts (and does well) to cover all types of mining and commodities.

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Saturday, September 20, 2008

The financial crisis has been resolved - everyone will pay

Markets rallied on Friday in the USA as George Bush unveiled plans for a $US 1 trillion bail out of the financial sector. This is no exaggeration because basically the Fed will be forced to cover the losses or exposure of most financial institutions. The reason for this is that the investment banks have counter-party exposure to other investment banks. The bigger problem is that its not just banks. AIG is one of the largest insurance group in the world. It was involved in derivatives trading. This is not surprising. The problem is that exposure is not spread around as they say, its anywhere and everywhere, and its just hard to know where exactly the risk is. Of course it lies with the taxpayer. It always lies with the taxpayer. Those CEOs who made billions playing the market for all they could get to keep their realised gains, including all those options pay-outs. The taxpayer and smaller passive investors just get screwed. That is the redistributive model of our time. The money flows to the banks, the power goes to the politicians, and negotiations between those two 'counterparties' ensure that the major political parties get financed, and the CEOs get to keep their payout, and I can bet you they will be spared prosecution.
The Fed has effectively stepped in as the lender of last resort at least to all the US financial intermediaries. I'm unsure what will happen in the case of British and European central banks, though a similar position can be expected for the financial institutions they manage. The problem is mostly in the USA one would think, but really its not because derivatives are needed by all groups. So what will be the cost? Bush has said it will be $US 1 trillion. The reality is that it could be far more.
The question is - What now? Do banks stop engage in derivatives trading? Does the Fed retain its position as the funder or insurer of last resort? Who knows? Its fair to say that the political system gains a great deal from this system, and so they are likely to fight to save it. Are we going to see a return to a gold standard? Its safe to say no politician is going to voluntarily liquidate these derivative contracts which have added so much liquidity to the market. I would suggest the only thing that would result in a gold standard would be a politician who supported it. Otherwise the issue is too technical for voters to campaign against. A soluition is unlikely to get voter support because its a 'conceptual' problem. The only thing that could change this travesty is a voter revolt. If voters take to the streets to campaign that they are not going to pay taxes to support the banking system, you can bet that would cause problems because it would result in banks again questioning the central banks ability to deliver.
Without a voter backlash, the world will continue under the current system, but it will need to live with higher inflation, higher taxation and subdued earnings. You might wonder how probable is the possibility of a taxpayer strike. I would suggest that its not probable unless there is a financial crisis which would place the burden on taxpayers. Currently there is no great burden on taxpayers. Inflation is another factor that could insight political upheaval. The threat is greatest in the USA because US citizens are actually not obliged to file income tax returns in the USA, but they do. In fact the US courts have occasionally recognised this illegality in the law, but on occasion they have chosen to breach the U.S. Constitution. Breaching the Constitution is considered good sport these days by politicians wanting to retain power. President Roosevelt was the first evil monger in the 1910s. But all politicians to my knowledge seem to celebrate the existence of the welfare state, and thus the system of government that finances it. Ron Paul is the only (Republican) presidential candidate who rejects the current paper money standard.
Andrew Sheldon
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Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
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Investment Strategy

If you are investing for the long term, you still need an investment strategy. Dont be fooled by the rhetoric of fund managers. The reason they advise you to 'buy & hold' is because they dont want to compete with you in sell-offs. Markets and industrial sectors are cyclical, so they demand trading to get the best returns. Fund managers actually cant hope to match the performance of small investors (if you are half good) because they have to manage huge amounts of funds and charge you a fee besides.
MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.

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The NZ property market is shaping up as one of the most attractive property investment markets for the next few years. High yielding property and the collapse of the NZD make NZ the perfect counter-cyclical investment if you buy right! In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

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