2012年8月30日星期四
Getting Unstuck In Quicksand Financial Deals
The feeling associated with a non-performing investment is miserable, and feels like you sinking into financial quicksand. Every month, as your cash flow restricts your ability to take advantage of the current market opportunities, you feel like you are on the outside looking in. The best way out is to look for a way to reallocate your risk and create a new portfolio structure that is beneficial for today's market environment.Many asset markets in the US have climbed substantially during September and October, as many investors wanted to front run the FOMC prior to the beginning of their second bond purchasing program. Not only did the equity markets receive a boost, but credit on corporate spreads over treasury's hit a new a new low in yields. The economy in US is beginning to show some life, as the consumer is beginning to push growth forward. Manufacturing and industrial output continue to remain robust. In the last week of November, the Commerce Department reported 3rd quarter GDP up 2.5%, which was better than the 2.3% expected and the 2.0% initially reported. The FOMC expects asset prices to rise in the US, and is hoping there is a spillover effect, that lands in the pockets of consumers and investors.As manufacturing globally continues to reflect a robust demand for industrial goods, areas such as factories and warehouses, industrial real-estate and construction projects will move to the forefront. The ISM Manufacturing Survey which will be released by the ISM on Wednesday December 1st, is currently expected to show index level of 56.3, down from a 56.9 in October. Readings above 50 reflect expansion, while readings in the mid-fifties, are solid and reflect robust manufacturing growth.A second goal of the FOMC is to lower interest rates that directly affect the long end of the mortgage curve. Purchases of treasuries will hopefully lower all yields. This would create additional opportunities in the residential and commercial real-estate markets, and allow banks to begin iphone 4 mid frame to start lending against new and existing properties. The hope is that the US dollar continues to decline, especially against the Chinese Yuan, which will change the landscape of exports Nine Eagles 260A within the United States. Instead of every consumer item plastered with the words "made in China" , they could soon sport the logo, made in the USA.Finding the right partner to use financial leverage and knowhow to help you restructure or exit your current unprofitable position, is the key to a successful financial future. The train is currently still in the station, but if you continue to wait for your investment to bring you afloat out of financial quicksand, you might be treading water for a long Double Horse 9053 time.Abacus Financial philosophy is understanding how markets fluctuate and change, and have numerous solutions available for financial reconstruction of real-estate portfolios. This includes using today's low interest rates to restructure your portfolio and generate cash flow which will allow the savvy investor the opportunity to take advantage of better returns by using a better capital structure.
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