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Investing in Biometrics Technology – The Wave of the Future

The term biometrics literally means life measurement. Leaps in science have made biometrics a rapidly growing field since the start of the twentieth century, and those leaps and bounds have only catapulted biometrics technology in the twenty-first. Investing in biometric technology now could mean taking advantage of something that is sure to sweep the future by storm. Biometrics is currently being developed to analyze voice behaviors, signature dynamics, and fingertip patterns. The genetic makeup of DNA is analyzed with biometric technology as are retinal scans, facial recognition, and even finding patterns in human veins.

Investing in biometrics is an attractive venture because global concerns have made it necessary to implement better security in airports, border crossings, federal buildings, sea ports, and major cities. Even the United States CIA established a venture capital fund in biometrics called In-Q-Tel. Airports all over the world are using the most advanced technologies to enhance or replace existing surveillance systems to better monitor passenger activity and potential terrorist threat. Even closer to home, camera installations at stop lights are causing significant reductions in intersection violations, cutting down on car accidents and reducing the chance of fatalities.

What’s more, the global demand for surveillance technology alone is only expected to increase. This doesn’t even take into consideration the amazing use of facial and voice recognition technologies which are slated to play an important role in the future. Already in Europe, national ID cards and biometric passports are being seriously considered. Smart cards are already in widespread use, having integrated circuits that allow the cards to contain memory, providing stronger security than cards without the technology. Smart cards will most likely replace traditional credit cards as the technology is perfected and continuously improved upon.

With so much of the future riding on biometric technology, investors are jumping on board. Before taking the plunge, however, do some careful research. Is it affordable to invest in biometrics? The fact is that biometrics investments are affordable, but they do require a more expensive investment initially than other investments. Does the technology violate any individual’s privacy rights? If the answer is yes, it’s probably not a good idea to invest. Will the technology work for all users in all climates? Some biometrics technology like fingerprint authentication may not work in colder climates, and even advanced age can be a factor in the effectiveness of the technology. Consider all options and stay on top of current develops when considering biometric investments.

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Investing in Agriculture – A Move Toward Organic Products

Investors are too often concerned with the here and now—which trends are currently doing well and which sectors have historically proven to reap the most rewards. What savvy investors do, however, is look to the future, even if it means seeming to take a step back. Investing in agriculture seems like something from the Great Depression-era when investment banks were foreclosing on homes and farms right and left. It certainly doesn’t seem like and investment opportunity of the future. Or does it?

By the year 2050 the worldwide population will reach 9 billion people. That’s a lot of mouths to feed. Even with small farmers being put out of business by agricultural mega corporations, investing in agriculture today may mean a greater future tomorrow. It’s been said that owning a piece of land is the single most important investment anyone can make, and this is certainly true during any financial crisis. With grain consumption on the rise, grain inventories have fallen to their lowest levels, which means that grain production will need to happen somewhere soon. Biofuels are also driving up agriculture demand. Ethanol is one biofuel that takes massive amounts of corn to produce, so some investors are taking advantage not only of the agriculture sector, but the alternative energies sector as well.

Food prices reached their highest levels in history by 2011, meaning that more agriculture will be needed to keep up with demands and keep costs low. This lack of supply facing an overwhelming demand means that agricultural companies will seek to make crops more readily available by creating better technology in both farm equipment and pesticides. On the flip side, organically-grown food is in demand more than ever. As much as 70% of Americans buy organic food in one form or another on occasion, with 25% buying it each week, so investing in organic food companies is a smart move this early in the organic game.

Not only is investing in organic food companies a smart move financially, it can also be rewarding both environmentally and socially. Consider this the early stages of a food revolution that has the potential to change the way we as Americans eat. Demand for organic products will only continue to rise as mega giants that produce pesticides and genetically modified seeds will be on the decline. The long-term potential in agriculture is staggering, so research all options carefully to decide which part you want to play.

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Individual Retirement Accounts – The Four IRA Types

Individual retirement accounts, or IRAs, refer to an assortment of retirement plans in the United States. As a blanket term, the IRA may refer to traditional IRAs, Roth IRAs, SEP IRAs, or SIMPLE IRAs. The traditional IRA is the most basic account. This is a tax-deferred savings account in which taxes are only paid upon making withdrawals during retirement. All of the interest, capital gains, and dividends are compounded annually without being subjected to taxes, which means that your individual retirement account will grow much faster than any type of taxable account. They come in two forms: nondeductible and deductible, the latter of which is arguably the better deal because all IRA contributions are tax-deductible, meaning that you get a tax refund.

Roth IRAs are great because they allow all money in the account to grow and compound free from taxation. The Roth is funded with after-tax money, so you already pay the taxes on the funds up front before putting it into the retirement account. Paying taxes now with the Roth IRA means that you won’t pay taxes in retirement when you go to withdraw the funds. The Roth also comes with more built-in flexibility than traditional IRAs because you can withdraw contributions without penalty for qualifying reasons, or once you reach the age of 59 and a half.

SEP IRAs are for small business owners or self-employed individuals who want a type of traditional IRA. All contributions to the IRA are tax-deductible and the money will not be taxed until retirement, just like a traditional IRA. SEP IRAs also come with a higher contribution limit than traditional or Roth IRAs. This means that individuals can contribute as much as 25% of their income up to $49,000 a year.

SIMPLE IRA stands for Savings Incentive Match Plan for Employees and is also a traditional type of IRA specifically for small business owners and the self-employed. Like traditional IRAs, contributions are tax-deductible and will grow tax deferred until retirement. Whereas the SEP IRA doesn’t allow employees to make contributions, the SIMPLE IRA does. A SIMPLE IRA requires employers to make contributions on the behalf of the employees, essentially becoming an employer-matched retirement fund. It’s also cheaper to run than traditional, Roth, or SEP IRAs and is great for small business owners who want to bring in highly-qualified employees by offering attractive retirement benefits. Research all IRA employment and income restrictions carefully to see which IRA works best for you.

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Bear Markets – Understanding the Term

Beginning investors will undoubtedly come across plenty of terms with which they are not familiar. A “bear market” is probably one of them. Bear markets exist when the market condition sees falling securities prices, investment pessimism, and subsequent losses. While there isn’t a precise number to measure or define such a market, taking a 20% downturn in market indexes like the Dow Jones Industrial Average is said to be the beginning of a bear market. Unlike a correction, this is not a short-term trend that will readjust itself in a couple of months, and entry points are at levels from which most investors would shy away.

On the opposite end of the spectrum is the bull market, which is a term to indicate when stock prices have gone up for a long period of time. This is also indicative of a certain company, sector, or industry going up. Bear markets are the opposite. A prolonged instance occurred in the 1970s when the stock market went down for more than a decade. Since this scares investors away from investing, it only perpetuates the downturned market, making it difficult to turn around.

This type of market will affect any investments you currently have, since they will begin to drop in price. This isn’t necessarily a bad thing if you don’t intend on selling your stock right away. In most cases, when left alone for prolonged periods of time, investments will right themselves when the market takes its spiral turn upward again. Other types of investors, like real estate investors, can even take advantage of a downturned market. This is also the time to buy into stocks that were once too high to afford, but look at companies that are going to do well a couple of decades down the road.

A good way to gauge this is to determine if the products or services offered will still be in use by the majority of people in twenty to thirty years. Load up on falling stocks while you have the opportunity to take advantage of the bear market, because history has proven that the prices will return to the levels at which they were before the downturn. Because of this, you could end up making quite a hefty profit from this kind of market if you play your cards right. Try not to fight this kind of market and sit tight until your investments work themselves out again.

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Forex – Trading Currency

The foreign stock exchange, abbreviated to Forex, is a worldwide currency market on which foreign currencies are traded very much like stocks on the stock exchange. In essence, it’s the stage where one currency is traded for another in an effort of trading lower value currencies to higher value ones, thus making an investment. Anywhere you go in the world, you must exchange your current dollars for the currency of whatever country you find yourself in. If you trade US dollars for Euros, you’re given the US equivalent of those Euros at the current exchange rates. Sometimes it may be more, other times less.

Because of the constant currency fluctuation, there is currency risk involved. This is the risk that comes from exchanging one form of money for another. Even so, the foreign stock exchange is bigger than any other market, even the stock market, and it sees daily trades of $2,000 billion. Rather than there being a physical, central location where the currencies are trading, Forex takes place electronically. This is also known as over the counter (OTC). Over the counter transactions take place between all of the worldwide traders from computer networks, and investors can conveniently invest online from their homes as well as receive vital support from seasoned advisors and traders.

The foreign stock exchange sees massively large traders which include governments, central banks, currency speculators, retail investors, corporations, and other financial institutions. There is a daily monetary exchange rate known as foreign exchange fixing, and this is a daily rate set by each country’s national bank to better evaluate the currency’s behavior. This foreign exchange fixing rate is what is used by traders to indicate trends. Speculation alone can help stabilize a currency, and as much as 90% of the transactions are purely speculative. This means that the person or corporation trading the currency will not accept it when all is said and done, but is only speculating as to how the currency will act.

With such a bombardment of information, and so much more than sends an individual down the never-ending rabbit hole, the foreign exchange is quite discouraging for new investors. Because of this, tutorials are highly recommended before making that first currency trade. It’s also easier to start out trading major currency pairs that include the euro and US dollar, the British pound and the US dollar, or the Japanese yen and the US dollar.

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Liquidity – Market Liquidity

In terms of economics, finance, and investing, liquidity may refer to a few things.  Basically, however, it is nothing more than a measurement of the degree to which buying a security is possible without affecting its value.  Higher levels of liquidity likely lead more frequent trading, for example.  Unlike other financial terms and principles, in this case there’s no set formula that determines the actual value.  Several different formulas can be applied and could create an accurate look at it, but these will vary depending upon a wide range of different factors.  It may also refer to the ease with which an asset can be turned into cash.

Cold, hard cash is the most liquid asset available since it can be traded and exchanged on an almost constant basis without affecting its value – other factors may change its overall valuation, but the amount of money exchanged won’t usually be a factor.  Assets with high liquidity are usually very simple to sell quickly, and buying or selling them wont’ really have an impact on their overall value.  An illiquid asset, on the other hand, is usually not as saleable and will often be more difficult to unload.  There are a few good examples of both of these types of assets.

Illiquid assets include very large amounts of stock.  Since liquidity is a measurement of being able to sell without changing value, and since selling very large amounts of stock could change the value of said stock, this example is highly illiquid.  On the other hand, most small amounts of stock in nearly all companies carry a good deal of liquidity with them since they can be sold without affecting the value in any discernible way.  The biggest influencers on these formulas are often market makers themselves or speculators, although a wide range of other variables could influence it.

Obviously, your long and short term trading goals will be greatly affected by market liquidity.  That’s why it is so important to factor this attribute into any trade.  Plenty of different ratios exist that can be applied to your stocks to help you get a better idea of liquidity and to figure out just what the right decision to make is.  It’s always important to understand everything that you can about your investments, and this is certainly one of the best examples.  It isn’t hard to understand, but it could have a profound impact on your future trades.

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Investing in the USA – Ways to Do It

There are plenty of different ways to invest your money, and finding an investment that will reward you financially and help you feel good about where you put your money can be difficult.  That’s why investing in the USA is one of the best options out there for investors today.  There are several different ways that you can go about investing in the USA, and doing so will often help you boost your overall portfolio value and give you that sense of personal satisfaction that other investments will lack.  You’re investing in your country, and helping not only your own finances but also helping the various components that can strengthen our nation.

The most obvious way that you can go about investing in the USA is through the tried and true method of buying government bonds.  Buying savings bonds or treasury bonds is a simple way to add some security to your portfolio.  You’ll be able to choose long term or short term bonds, and while they don’t have the same chance of high returns they do provide very stable and secure investment opportunities.  They may not pay as much back, but they don’t have the same level of risk most investments carry either.  These are a good, safe way that you can start investing in the USA.

Another option for investing in the USA is to invest in American companies.  There are so many different businesses of all different sizes, and investing in the USA can be as simple as buying shares in those groups.  From major corporations trading on the NYSE to smaller businesses on the pink sheets, plenty of choices exist.  Even farm based investing can help strengthen the backbone of the American economy while giving you some serious financial rewards.  American made is making a comeback, and your investments can help it along.

Finally, investing in the USA is also possible by investing in real estate.  There has never been a better time to buy property of any kind, and whether you buy undeveloped commercial real estate, a few foreclosed upon homes, or an apartment complex, real estate is still a great place to put your money and it can pay you back in numerous different ways.  If you feel that investing in the USA is right for you, there are plenty of different options to choose from.  Finding the best one for you is usually easier than you think.

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Investing in the Pharmaceutical Industry – Still a Smart Bet?

The pharmaceutical industry has been legendary for its huge profits and gains, and it actually gets a bad rap from many consumers for just that reason.  But among investors, recent years have actually shown a slight decline in investing in the pharmaceutical industry.  Stock prices have actually dipped sharply due to a number of issues including things like patent expirations on so-called ‘blockbuster’ drugs, scandals, lawsuits, the rise of generic competition, and much more.  However, despite the fact that it isn’t quite the powerhouse of investing that it once was, investing in the pharmaceutical industry is still worthwhile for a number of different reasons.

One of the key reasons that investing in the pharmaceutical industry may be worth your consideration is simply that most companies have shifted their focus in response to the changing times.  Rather than trying to create the next blockbuster drug to rake in billions, they’ve started to formulate more sustainable long term strategies for success.  For instance, many pharmaceutical companies are now focusing their development efforts on creating niche drugs that benefit small target groups and deliver real benefits to them.  This helps them avoid spending too much money researching a drug only to have patents expire a few years later and lose out on the resulting funds.

Overseas markets are also becoming a primary focus of most pharmaceutical companies, and investing in the pharmaceutical industry will benefit you tremendously if you take the time to investigate whether or not the company you’re thinking of investing in is looking overseas – particularly to Asia, where a massive market for medications has arisen and provides much larger growth opportunities than exist elsewhere.  If you spot a company that’s shifting its focus to Asia, they’re probably well worth investing your money into since a large financial return is highly likely as a result of their globalization.

Timing, patience, and research are vital for successful investing in the pharmaceutical industry.  That’s mainly due to the fact that it can take several years for a new drug to pass FDA approval and reach the market.  You may need to make an initial investment and wait for some time to see a real return on it, and you’ll need to have confidence in your initial investment to ensure that you don’t sell before the real return has presented itself.  In closing, investing in the pharmaceutical industry has always offered rewards to investors.  That hasn’t changed, but the nature of the industry has certainly shifted somewhat.

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Investing in the Internet and E-Commerce – An Overview

Technology has changed virtually every aspect of our lives, and that runs the gamut from how we communicate to how we shop.  While the dot-com bubble burst years ago, many investors are still somewhat tentative about dipping their toes into the digital world and investing in the internet and E-commerce.  But while investing in the internet and E-commerce certainly isn’t’ without its risks, that’s true of any investment opportunity and if you take the time to find out more about what digital technology can do for you you’ll likely be surprised at just what it is capable of.  Here’s a closer look at just what it entails and why it’s worth considering.

There are several ways to go about investing in the internet and E-commerce.  The first is to buy shares of the various companies that do business online.  This could include companies that serve as online stores as well as those that offer services like web design over the internet.  Even social media companies may go public, and buying shares into these platforms could be huge investments.  Take a quick look at all the various businesses operating online and you’ll likely see that there’s no shortage of options, so be sure to take the time to research each one before you go about investing in the internet and E-commerce.

Another option when investing in the internet and E-commerce is to invest in the companies and organizations that actually facilitate the transfer of funds and money.  There are several different startups right now that are rising up to challenge various online transaction specialists, so be sure that you investigate them if you hope to get in early on a rising star in the online world.  You can even investigate companies that run servers or provide online storage services.  The possibilities are practically limitless when investing in the internet and E-commerce.

While there are too many options for investing in the internet and E-commerce to list here, it’s also worth reviewing the basic reasons that doing so makes so much sense.  More and more consumers are starting to rely on the internet to do business, and that goes beyond just online shopping.  Many people today actually telecommute to work, handling their work via the internet.  This increase in people using the internet to work means that there will be even more opportunities for investing in the internet and E-commerce.  Look into the options and you’ll find plenty of reasons to do so.

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Investing in Small Business – Helping out the Little Guy

America was founded on opportunity.  Today’s global corporations almost all started off as a small business, from Apple to Pepsi.  If you’re trying to find a good opportunity for your investing dollars, consider investing in small business.  There are numerous reasons to do so, and taking a look at why you should and just how it can help is a good idea that no investor should ignore.  Here’s a quick look at the basics behind why investing in small business is a great call and how to do it with relative security and safety.  Once you know the basics, you’ll likely decide it’s the right call to make.

The obvious reason that investing in small business makes a good bit of sense is simply that doing so could bring you serious financial rewards.  Buying shares of a small business while it’s growing and the shares are fairly cheap can pay off big if the company itself grows and expands.  Imagine the return on investments that early investors in companies like Google made, and you’ll get an idea of what this could mean.  Of course, not all companies succeed, so it’s vital that you learn all you can about a company in order to find one that actually stands a good chance of success.

Investing in small business is also rewarding in that you’ll know you’re helping make a dream come true.  Of course, not everyone will care about this and you certainly shouldn’t invest just because it makes you feel good, but when you find the right company and invest in it you’ll be able to reap financial rewards and personal ones as well.  You may be able to get a huge return on your investment in your portfolio and even take pride in the fact that you chose a great company to back with your bucks.

As mentioned above, investing in small business requires a good bit of research.  Most small businesses don’t qualify for listing on the major stock exchanges and will instead be traded on the pink sheets.  These are riskier investments that carry larger rewards, so be sure that you take the time needed to really find out as much as you possibly can about a company before you invest in them.  Failing to do so could cost you big.  As long as you do your research, investing in small business is a worthwhile consideration that could pay off substantially.

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