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Hypo Venture Capital Seizing Opportunities in Tough Economic Times

Hypo Venture Capital Seizing Opportunities in Tough Economic Times

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Published by HypoVen
Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

Many of us have concerns about staying on track in these uncertain economic times. Mounting layoffs, plunging home values and declining stock prices all have a way of generating fear and uncertainty.
"Even though things look bad sometimes, you need to remain focused on opportunities," says Andrew Bradley, HVC’s chief investment officer. "We like to say there's opportunity in every market."
Today's investors face unprecedented challenges
2009 got off to a rough start, with the economy and financial markets still reeling from last year's credit market meltdown and resulting financial crisis. The markets traded down in a painful, correlated fashion, while economic activity plunged.
But since the end of the first quarter, signs of improvement have emerged. The equity market has enjoyed a meaningful rally since mid-March, led by the financial and consumer discretionary sectors. There is still have a long way to go before things get considerably better and before the economic picture brightens considerably but overall the worst may be behind us.
The housing market remains a major thorn in the side of economic growth. Part of the problem is too much supply relative to demand. We are starting to see housing prices fall to the point where buyers are attracted into the market and transactions are occurring.
These imbalances go beyond housing to a worldwide perspective. For example, the United States consumes too much and saves too little, whereas developed and emerging Asian countries save too much and consume too little. We should see the impact of these imbalances play out in the coming months, as countries around the world tackle the mounting challenges.
A return to growth is on the horizon
We believe economic growth may resume in the fourth quarter of 2009. That doesn't necessarily mean things are going to rocket up in the markets, but it means we're setting the stage for better times ahead.
The federal government's stimulus package along with the Federal Reserve’s extraordinary expansion of its balance sheet will begin to show results.
Although the amount of federal stimulus is record-breaking, it's been necessary to combat the significant deflationary pressures triggered by the financial crisis. Once deflation takes hold, it's extremely difficult to counteract. In an environment in which consumers and businesses expect prices to fall, they begin to defer consumption, believing they will be able to make their purchases at a cheaper price down the road. Therefore, the government is doing everything it can to ward off deflation, even as it risks promoting inflation.
Opportunity is within your reach
As troubling as recent market events have been, it's important not to get consumed by the daily ups and downs. Instead, focus on factors that promote long-term financial success.
These factors are most evident when examining the philosophy and practices of those who have achieved financial comfort — people who possess the ability to tackle any tough financial situation and the insight to capitalize on opportunity. Author and TV commentator Jean Chatzky calls this phenomenon "the difference." "Whatever the economy, these are the people who have the skills and attributes necessary to move into lasting financial comfort and wealth."
What makes a financial difference
Recent research on American attitudes toward money and personal finances found that financially successful people exhibit several common factors, including happiness/optimism, resilience, connectedness and habitual saving.
These are the people who know the differen
Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

Many of us have concerns about staying on track in these uncertain economic times. Mounting layoffs, plunging home values and declining stock prices all have a way of generating fear and uncertainty.
"Even though things look bad sometimes, you need to remain focused on opportunities," says Andrew Bradley, HVC’s chief investment officer. "We like to say there's opportunity in every market."
Today's investors face unprecedented challenges
2009 got off to a rough start, with the economy and financial markets still reeling from last year's credit market meltdown and resulting financial crisis. The markets traded down in a painful, correlated fashion, while economic activity plunged.
But since the end of the first quarter, signs of improvement have emerged. The equity market has enjoyed a meaningful rally since mid-March, led by the financial and consumer discretionary sectors. There is still have a long way to go before things get considerably better and before the economic picture brightens considerably but overall the worst may be behind us.
The housing market remains a major thorn in the side of economic growth. Part of the problem is too much supply relative to demand. We are starting to see housing prices fall to the point where buyers are attracted into the market and transactions are occurring.
These imbalances go beyond housing to a worldwide perspective. For example, the United States consumes too much and saves too little, whereas developed and emerging Asian countries save too much and consume too little. We should see the impact of these imbalances play out in the coming months, as countries around the world tackle the mounting challenges.
A return to growth is on the horizon
We believe economic growth may resume in the fourth quarter of 2009. That doesn't necessarily mean things are going to rocket up in the markets, but it means we're setting the stage for better times ahead.
The federal government's stimulus package along with the Federal Reserve’s extraordinary expansion of its balance sheet will begin to show results.
Although the amount of federal stimulus is record-breaking, it's been necessary to combat the significant deflationary pressures triggered by the financial crisis. Once deflation takes hold, it's extremely difficult to counteract. In an environment in which consumers and businesses expect prices to fall, they begin to defer consumption, believing they will be able to make their purchases at a cheaper price down the road. Therefore, the government is doing everything it can to ward off deflation, even as it risks promoting inflation.
Opportunity is within your reach
As troubling as recent market events have been, it's important not to get consumed by the daily ups and downs. Instead, focus on factors that promote long-term financial success.
These factors are most evident when examining the philosophy and practices of those who have achieved financial comfort — people who possess the ability to tackle any tough financial situation and the insight to capitalize on opportunity. Author and TV commentator Jean Chatzky calls this phenomenon "the difference." "Whatever the economy, these are the people who have the skills and attributes necessary to move into lasting financial comfort and wealth."
What makes a financial difference
Recent research on American attitudes toward money and personal finances found that financially successful people exhibit several common factors, including happiness/optimism, resilience, connectedness and habitual saving.
These are the people who know the differen

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Published by: HypoVen on Mar 01, 2011
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Hypo Venture Capital Seizing Opportunities in Tough Economic TimesHere at Hypo Venture Capital we are committed to offering our clients access tothe latest and broadest range of financial services and products on the market.We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all yourfinancial needs.Many of us have concerns about staying on track in these uncertain economic times. Mounting layoffs, plunging home values and declining stock prices all have away of generating fear and uncertainty."Even though things look bad sometimes, you need to remain focused on opportunities," says Andrew Bradley, HVCâ

s chief investment officer. "We like to say there's opportunity in every market."Today's investors face unprecedented challenges2009 got off to a rough start, with the economy and financial markets still reeling from last year's credit market meltdown and resulting financial crisis. Themarkets traded down in a painful, correlated fashion, while economic activity plunged.But since the end of the first quarter, signs of improvement have emerged. The equity market has enjoyed a meaningful rally since mid-March, led by the financial and consumer discretionary sectors. There is still have a long way to go before things get considerably better and before the economic picture brightens considerably but overall the worst may be behind us.The housing market remains a major thorn in the side of economic growth. Part ofthe problem is too much supply relative to demand. We are starting to see housing prices fall to the point where buyers are attracted into the market and transactions are occurring.These imbalances go beyond housing to a worldwide perspective. For example, theUnited States consumes too much and saves too little, whereas developed and emerging Asian countries save too much and consume too little. We should see the impact of these imbalances play out in the coming months, as countries around the world tackle the mounting challenges.A return to growth is on the horizonWe believe economic growth may resume in the fourth quarter of 2009. That doesn't necessarily mean things are going to rocket up in the markets, but it means we're setting the stage for better times ahead.The federal government's stimulus package along with the Federal Reserveâ

s extraordinary expansion of its balance sheet will begin to show results.Although the amount of federal stimulus is record-breaking, it's been necessaryto combat the significant deflationary pressures triggered by the financial crisis. Once deflation takes hold, it's extremely difficult to counteract. In an environment in which consumers and businesses expect prices to fall, they begin todefer consumption, believing they will be able to make their purchases at a cheaper price down the road. Therefore, the government is doing everything it can toward off deflation, even as it risks promoting inflation.Opportunity is within your reachAs troubling as recent market events have been, it's important not to get consumed by the daily ups and downs. Instead, focus on factors that promote long-termfinancial success.These factors are most evident when examining the philosophy and practices of those who have achieved financial comfort â

people who possess the ability to tackle any tough financial situation and the insight to capitalize on opportunity. Author and TV commentator Jean Chatzky calls this phenomenon "the difference." "Whatever the economy, these are the people who have the skills and attributes necessary to move into lasting financial comfort and wealth."What makes a financial differenceRecent research on American attitudes toward money and personal finances found that financially successful people exhibit several common factors, including happ
 
iness/optimism, resilience, connectedness and habitual saving.These are the people who know the difference.How you can stay on trackBased on the characteristics and experiences of financially successful Americans, there are several actions and strategies to help people stay on track, focus on saving and protect loved ones during good and bad economic times.People who have goals for the short, medium and long term, research has shown, actually achieved their goals more often than people who don't plan. "Why? Because when youâ

re running a race, it helps to know where you're going.Consider rebalancing your portfolioAs far as investment strategies go, in today's environment, consider rebalancingyour portfolio with an emphasis on the bond market. The bond market â

particularlyinvestment-grade bonds and high-yield credit â

is very attractive versus its historical pricing.Build savings and cash reservesAs for savings, if you have a job and a steady income stream right now, you needto be saving, because you don't know when the tide may turn. For women, savingis even more important. A woman still earns on average only 80 cents for every dollar that a man earns, and they possibly take breaks from the workforce to carefor children and older parents, which means that when they get to retirement, their account balances are substantially smaller. Plus, women generally need their retirement accounts to last longer because they live an average of seven yearslonger than men.Building cash reserves is essential, too. In 'normal' times, you should have about six months of emergency expenses set aside in cash, given times are more difficult, and especially if you're two to three years away from retirement, we think you should have up to two years of expenses set aside in cash.Have a solid protection planProtection planning doesn't end with cash reserves. It's also critical to have awill naming guardians for minor children, a health care proxy (someone to makeyour health care decisions if you are unable), a living will and a durable powerof attorney for finances.Everyone should also have life insurance â

especially those who have dependents â

as wl as disability income insurance, homeowners or renters insurance, and personalliability insurance. Why? So that a disaster, a big one or a small one, can't come along and take everything you've built away from you.It's also important to protect against taxation, with strategies designed to generate tax advantages for your financial future.Avoid common investment mistakesStaying on track also means avoiding some common investment mistakes. For example, it's critical to not focus on one or two investments, but to stay diversifiedinstead. And people should also resist the urge to raid a retirement account when changing jobs because the tax implications could be significant, potentiallyderailing a long-term strategy.Another common mistake, is attempting to time the markets. People don't know howto time markets. Professional investors have a hard time timing markets, so youcan't possibly succeed by trying to figure out the right time to get into the market and the right time to get out. It's highly likely youâ

re going to miss a significant day in the market. And, as we all know, if you miss the 50 best trading days over a multiple-year period, you cut your returns by as much as one-third. Instead, we suggests implementing a dollar-cost-averaging strategy to remain committed to the market and maintain a long-term investment plan.Work with a financial advisorFinally, we cannot stress the importance of getting help. Not only do people whowork with advisors reach their goals more often than those who do not, but having one in your circle provides the direction, help, motivation and support thatwe can all use at times like this.The markets will continue to be extraordinarily volatile, offering you opportunities to get into the market or monetize trades work with your financial advisor

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