Saturday 14 August 2010

MBA - Managerial Economics

MBA - Managerial Economics 01
54:37 - 1 year ago
MBA Course in Managerial Economics at Prince Sultan University. Lecture 1 covers introductory overview to economics - choice, economic decisions, scarcity, trade-offs, opprtunity cost, marginal analysis, efficiency, resources, utility, modeling.http://video.google.com/videoplay?docid=3236390700554076825#docid=-408690692811744650



MBA - Managerial Economics 02
30:40 - 1 year ago
Lecture 2 of MBA course in Managerial Economics at Prince Sultan University. Discusses some fallacies and myths on global issues related to the U.S dollar, US economy, gold, oil, and other important and current global economic issueshttp://video.google.com/videoplay?docid=-3712587726439038583#



MBA - Managerial Economics 03
02:31 - 1 year ago




MBA - Managerial Economics 04
33:06 - 1 year ago
Covers the first half of the first chapter of the textbook "Managerial Economics" by Maurice & Thomas.http://video.google.com/videoplay?docid=-3712587726439038583#docid=8361401330998686750














MBA - Managerial Economics 22
1:11:56 - 1 year ago
Long run cost and production. Isoquant curves. Marginal rate of technical substitution. Isocost curves. Optimal combination of inputs. Cost optimization. Expansion path. Returns to scale; economies of scale; economies of scope.http://video.google.com/videoplay?docid=-3712587726439038583#docid=6029229602533143315

Thursday 12 August 2010

Investment In Gold Seminar by Krassimir Petrov

Krassimir Petrov - Investment Analysis (part 1)
29:14 - 2 years ago




Krassimir Petrov - Investment Analysis (part 2)
28:52 - 2 years ago
Tavex Investment Gold Seminar in Stockholm April 9, 2008http://video.google.com/videoplay?docid=3227070987190450403#



Krassimir Petrov - Investment Analysis (part 3)
32:33 - 2 years ago
Tavex Investment Gold Seminar in Stockholm April 9, 2008http://video.google.com/videoplay?docid=976700141486118374#



Krassimir Petrov - Investment Analysis (part 4)
13:30 - 2 years ago
Tavex Investment Gold Seminar in Stockholm April 9, 2008http://video.google.com/videoplay?docid=1383332369012611726#

21 Evils of Inflation (Video)

http://video.google.com/videoplay?docid=-6484061137769305763&hl=en&emb=1#

21 Evils of Inflation - Prof. Krassimir Petrov
59:42 - 3 years ago
A 60 minute lecture by Prof. Krassimir Petrov at the American University in Bulgaria explaining 21 negative effects from inflation.

Exotic plays for brave investors

Tired of considering the same old investments? We look at some of the more unconventional choices.

Exotic plays for brave investors - Exotic plays for brave investors
Vietnam is 'one of the most promising countries in the world', according to one analyst
Investors who are fed up with dismal returns from traditional markets are making steps to invest in more adventurous areas. Popular funds include those that invest in Latin America, Russia, India, gold and commodities.
Rebecca O'Keeffe, at Interactive Investor, said: "Our investors continue to look for more aggressive growth opportunities."
Selftrade, the broker, said its clients were now investing more "adventurously" in gold and silver exchange-traded funds (ETFs).
So if you are in an adventurous mood and are prepared to lose the shirt off your back if it all goes pear-shaped, then check out these four areas attracting interest from seasoned investors. Wealth warning: the usual caveats of getting advice apply.

VIETNAM

Three years ago, Vietnam was one of the best-performing stock markets in the world and numerous funds were launched to provide access for foreign investors.
However, the euphoria proved short-lived and in 2008 Vietnam was hit by a double crisis. Firstly, it was forced to raise interest rates sharply to choke off a surge in inflation and this was followed by the global credit crunch, which hit exports and foreign investment. Unsurprisingly, the country's stock market fell sharply and investors suffered.
Charles Cade, an analyst at Numis, said: "There was a bounce-back during 2009, helped by a domestic economic stimulus package. However, foreign investors have been reluctant to venture back into the market and have focused their attention on China instead. In our view, though, it is time to take another look. Vietnam remains one of the most promising countries in the world."
Mr Cade sites low labour costs and a young, growing workforce, a growing entrepreneurial culture, and significant natural resources – including agriculture, timber and oil – as reasons to be bullish.
While Vietnam is not on the radar of many financial advisers, Mick Gilligan, from stockbroker Killik, is a fan. He reckons that Vietnam is like a smaller version of China in that it has a centralist government keen to embrace a capital market approach.
"The equity market is still in its early stages of maturity, but it has exciting prospects. Our favoured routes would be FTSE Vietnam ETF [db-X Tracker] for those looking for market exposure and liquidity. VinaCapital Vietnam Opportunity fund also looks interesting and it currently trades on a 40pc discount to net asset value," he said.

MIDDLE EAST

These so-called frontier markets are the BRICs of the future, with burgeoning industry and a population with a thirst to better themselves through education and Western-style material acquisitions.
Sam Vecht, co-manager of BlackRock's Global Emerging Markets fund, considers Panama, Saudi Arabia and Qatar to have just as much investment potential as their better-known peers. "These countries are often ignored, but this is because of a lack of analyst and media coverage, rather than a lack of opportunities," he said.
However, before you rush to sign on the dotted line for a frontier fund, be warned. With great returns come great risks. Three years ago, New Star launched its Heart of Africa fund with the hope of making the most of the untapped potential of the likes of Zimbabwe and the Democratic Republic of Congo. Liquidity issues forced the fund to close in 2008 with investors losing 66pc of their money.
Many frontier markets are fraught with political unrest, while corporate governance, although it is improving, is another concern.
In March, Barings launched its Middle East and North Africa (MENA) fund to tap into its resource-rich economy.
But Hugo Shaw at Bestinvest, the financial adviser, issued a word of warning. "Returns may be high, but you should only invest in frontier markets if you are able to stomach a roller-coaster ride in price movements," he said.
Mr Shaw advised investors to consider investment trusts as a safer way to get exposure to frontier markets. They are better suited to less-liquid markets because the manager is not a forced seller or buyer. "Closed-ended investments, such as investment trusts, are better placed to deal with such issues, and Advance Developing Markets and Genesis Emerging Markets are two good examples," he said.

PLATINUM AND PALLADIUM

All talk of metal investing in recent months has focused on the haven and inflation hedge of gold. Yet other metals, notably platinum and palladium, are gaining interest from investors.
Two main factors drive these metals to premium prices: demand from the Asian market and their use in catalytic converters. Half of all cars need these converters, ensuring that demand remains strong.
Prices of these white metals has been falling of late, leaving analysts wondering whether a buying opportunity is around the corner. The reason for falling prices is the slowdown in the auto industry. Car sales in the US are down 11pc and plunged 25pc in Japan, while car production in China is down 6.9pc.
However, many analysts anticipate a strong resurgence in platinum and palladium prices towards the end of the year – buoyed by an anticipated recovery in sales in China.
"Prices have recovered from the 2008 trough, but by no means as far as they could rise as the wheels of the global economy begin to turn again and I think platinum has a greater upside potential than gold," said James Cook, product manager at Fidelity International.
"Long-term demand is assured by developing nations who will become the biggest new car buyers in the world, 2009 marked the sales of new cars in China outstripping those in the US. The now unstoppable drive to cleaner technology in cars means whatever size the Chinese car fleet grows to, it will need to be powered by cleaner cars with platinum a key raw material."
Adventurous investors can get exposure to platinum via an exchange-traded fund.

AGRICULTURE

Several fund groups are beginning to promote agriculture as an alternative to traditional equity funds.
One of the most notable recent launches is BlackRock's BGF World Agriculture fund, managed by Desmond Cheung and Richard Davis. The company outlines investment opportunities in the move in emerging markets farming away from pastoral to arable and a growing global population.
The sector has delivered positive returns over the past year. The average return for agriculture funds, based on £1,000 invested 12 months ago, is £1,150. The best performer is Allianz RCM Global Agricultural Trends, which has risen 20pc in the past year. The fund is almost entirely invested, having less than 1pc in cash, with the majority of the fund in North America. The fund is also invested in Singapore, Malaysia and Chile.
Meera Patel, of Hargreaves Lansdown, recommended investors do their homework when investing in agriculture, as one fund can differ very much from the next. Sarasin's AgriSar fund invests in the entire agricultural supply chain, from grain to supermarkets. This means that although you may miss out on large surges, there will be a much smoother growth.
"We would recommend Sarasin's fund to someone just looking to invest in agriculture for the first time," she said.

Fund charges: low-cost funds outperform high-cost rivals – every time

Fund charges: low-cost funds outperform high-cost rivals – every time
New research from America supports Telegraph's disclosures of excessive charges paid by investors in funds.

If there's anything in the whole world of fund investing that you can take to the bank, it's that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds.
Expense ratios are strong predictors of performance. In every asset class over every time period, the cheapest quintile (the 20pc of funds with the lowest charges) produced higher total returns than the most expensive quintile.
For example, the cheapest quintile from 2005 in American equities returned an annualised 3.35pc, versus 2.02pc for the most expensive quintile over the ensuing five years.
The gap was similar in other categories such as bonds, where cheap funds returned 5.11pc versus 3.82pc for pricey funds. That same relationship held up dependably in the other time periods we measured. For 2008, the cheapest quintile of balanced funds lost 0.04pc over the next two years, while the most expensive shed 1.13pc.
The gap was also impressive as measured by the success ratio because high-cost funds are much more likely to have poor performance and be liquidated or merged away.
For the 2005 group, we found that 48pc of US equity funds in the cheapest quintile survived and outperformed versus 24pc in the priciest quintile. Put another way, funds in the cheapest quintile of US equity were twice as likely to succeed as those in the priciest quintile.
It was a similar story in other categories, although in munis [municipal bonds, a popular US investment] the advantage was greater than 6 to 1. The same basic relationship held up for the other years we looked at. Although I think of expense advantages as taking a long time to compound to your advantage, even the 2008 group saw low-cost funds with nearly a 2 to 1 success advantage.
Given that performance edge, you won't be surprised to hear that low-cost funds also produced better risk- and load-adjusted performance as measured by the star rating.
For example, the 2005 group enjoyed a subsequent 3.23 average star rating, compared with 2.66 for the priciest quintile in domestic equity. The edge grew in bonds to 3.34 versus 2.3. The edge held up for predicting three-year ratings for the 2006 and 2007 groups.
Investors should make expense ratios a primary test in fund selection. They are still the most dependable predictor of performance. Start by focusing on funds in the cheapest or two cheapest quintiles, and you'll be on the path to success

UK: It's good news that house prices are falling

Low interest rates are the key for first-time buyers and struggling home-owners, says Tracy Corrigan.

Falling prices will be good for the economy
Falling prices will be good for the economy Photo: Alamy
Oh dear, oh dear – house prices are falling again. According to a survey of chartered surveyors, the housing market weakened in July for the first time in a year, and Lloyds HBOS now expects prices to be flat this year.
But is this really such bad news? First of all, the recent weakness follows a surprisingly strong recovery in the second half of last year. As the RICS housing market survey noted, last year's firmer prices were the result, at least in part, of a dearth of supply. When prices improved and the hated Home Information Packs were scrapped by the new Government, more sellers put their properties up for sale… and, lo and behold, prices weakened a bit. Such ebbs and flows are typical of the erratic and seasonal UK property market, which is why it doesn't make sense to worry too much about these short-term movements.
And in fact, if one looks beyond the monthly gyrations, what surprises me about the housing market is not how far it has fallen, but how well it has held up, following the financial crisis. According to Halifax data, house prices dropped 23 per cent from their peak in August 2007 to the recent trough in April 2009, but following last year's second-half recovery, are now just 16 per cent below what were widely acknowledged to be ludicrously inflated levels.
Furthermore, this necessary correction in house prices has been achieved without the pain of widespread arrears and defaults suffered in the 1990s. That is because, thanks to low interest rates, most borrowers have been able to continue to service the interest on their mortgages and even to pay down their debt. It is true that, compared with the bank rate of 0.5 per cent, mortgage rates don't look particularly cheap these days, due to the expanding margins charged by banks. Nevertheless, mortgage rates are low by historical standards, allowing most borrowers to hang on, even in shakier areas of the market such as buy-to-let.
But, some economists warn, the weakness in the housing market is a worrying symptom that confidence in the economy is faltering. Well, up to a point. It is true that people are nervous about taking on new or bigger mortgages at a time when the economy remains weak and their jobs may not be secure. But I can't seem to persuade myself that this is a bad thing. Of course, it would be better all round if the economic future looked dazzling, but since it doesn't, surely it's a rather good sign that consumers are no longer rushing to borrow money they may not be able to repay. This was, after all, one of the root causes of the current economic malaise.
The Bank of England's Inflation Report today is expected to show that the economic outlook remains grim. This means that even if there are mounting inflationary pressures, they are likely to be short-lived. But if the continuing weakness of the economy stops any concerted property market rally in its tracks, it also makes it much less likely that interest rates will rise sharply any time soon, despite worries about inflation; and continuing low interest rates are vital to forestall a sharp downturn in house prices.
There may, then, be a period of flat or slightly weaker house prices. This is surely preferable to a sharp rally. Since the credit crunch, banks have tightened their mortgage-lending criteria, mainly by requiring bigger deposits and cracking down on self-certification mortgages. The Government is imposing tighter rules in these areas to prevent a return to previous patterns of behaviour once recent lessons are forgotten. If, in these circumstances, house prices were to rise significantly, it would become even more difficult for first-time buyers to enter the market. Inevitably, that would mean, in due course, that the new bubble would burst.
In fact, mortgage affordability has already improved as a result of lower prices. Repayments as a percentage of earnings fell to 30 per cent in the second quarter of this year, down from 48 per cent in August 2007, but still some way from 25 per cent at the end of the last decade.
It is to be hoped that the UK property market will become more stable, but if this doesn't happen, the next best thing is to pretend that it has. Unless you are in the uncomfortable position of being a first-time buyer or a forced seller, price fluctuations really don't matter all that much. In the long-term, prices tend to go up, because Britons like to own their own homes and we live in a small island with tight building restrictions.
Neither the current Government's plans to shift planning powers to local communities nor any other policy change is likely to alter this state of affairs fundamentally. I bought my first property just before the peak of the housing market in 1988, yet it is undoubtedly the best financial decision I ever made. When I sold it 12 years later, it had more than doubled in value. The value of the house I now own – and love – has fallen quite a bit in the past couple of years, I imagine, but since I'm planning to live in it for at least another 20, this doesn't worry me either.
The problem with the British housing market is not that we all aspire to own property. That is perfectly sensible. The problem is that we sometimes forget why we want to own our own homes

Will writers taking thousands from customers, Panorama claims

Will writers taking thousands from customers, Panorama claims
Popular will-writing services are unfairly taking thousands of pounds from customers and their loved ones, a BBC investigation has claimed.


The firms claim they are cheaper and more straightforward than solicitors at creating a last will and testament, and are said to account for 10 per cent of the market.
But a Panorama documentary says in some cases their fees quickly escalate from hundreds to thousands of pounds in hidden fees and charges, while the supposed beneficiaries of wills can be left with nothing.
The problem is made worse by the fact that will-writers are not regulated as strictly as traditional law firms or financial services companies, which used to help people write wills.
Fergus Ewing, a Member of the Scottish Parliament who is bringing in protection north of the border, told the programme: “The public have a right to be protected, in Scotland they will be.
“Anyone who is charging a fee for writing a will must be regulated. They must have appropriate qualifications, they must have proper indemnity in place. At present none of this protection exists.
"I hope that justice will be done for people – throughout Britain, ideally – in protection against crooks, cowboys and con men."
The programme, broadcast on Monday night on BBC One, interviewed one woman who was left a large sum by a friend but who never received a penny because of fraud by the will-writing firm involved.
Mary Neenan, a single mother from Birmingham, said: "To have something like that £35,000-£40,000 would have been a life-changing amount of money for the three of us."
She went to police and last month David Nash and Nicholas Butcher, two men behind the firm, Lincoln-based Willmakers of Distinction, were each jailed for three-and-a-half years for stealing more than £400,000 from estates they were administering.
Neil Hollingsworth, of the Economic Crimes Unit of Lincolnshire Police, said: “A lot of the times, probably 90 per cent of those cases, the beneficiaries didn't know they were beneficiaries and so they weren't asking questions. I guess they probably thought they'd got the perfect crime."
However financial experts also warn that some banks are wrongly claiming that they must be added as joint or sole executors when writing customers’ wills, which can reduce the value of their legacies substantially.
James Daley, of Which? Money, told BBC Radio 4’s Today programme: “What that means is when you die they’re then able to take as much as 4 per cent of your estate in fees, which ends up adding up to tens of thousands of pounds.
“It’s quite a complex area. It’s the kind of thing most people have to do once in their lives. You’re really in the hands of the advisers, it’s really important that they give you the right advice.
“If somebody tells you that you need to have that firm written in to your will you take their word for it and you might not realise you’re then going to pay for that. This is a widespread issue, it’s a real problem out there.”
Pauline Platt, a Probate Lawyer at SAS Daniels LLP, said: "I've seen an increase in the companies who offer will writing 'services' and the shocking financial pitfalls that have faced some unwary consumers. It can be immensely costly to undo, and can leave a family in disarray after the loved one has died – which is usually only when issues come to light.
“If clients use a solicitor in the first instance, not only can they offer the correct legal advice taking into account the client's domestic and financial situation, but they can also advise on other services such as the creation of trusts, transfer of assets and powers of attorney.”

Disciplined investment plan can deliver the goods

Disciplined investment plan can deliver the goods

Aashish Deshpande, 33, lives with his wife Gauri and their four-year-old daughter in Mumbai. The family’s gross annual income works out to Rs 40 lakh, while monthly household expenses amount to Rs 35,000, not including medical and recreational spends.

In addition, their home loan repayment entails an outgo of Rs 53,700 per month. Their investments primarily comprise equity assets and gold. Both are currently looking to buy life insurance cover. Their medium-term goal is to buy a bigger house in 2013.

The couple also wants to save for their daughter’s education. On the retirement front, Mr Deshpande wishes to move out of the city by the time he turns 45 and get into farming or set up a motel, besides saving enough to maintain the current lifestyle and fund annual vacations.

Basic financial planning

The family’s non-discretionary expenditure is close to `1,07,000 per month.

To provide for a four-six month emergency fund (for any sudden loss of income), they need to have approximately `5,00,000 in liquid funds.

Hence, an additional amount of `2,50,000 through the SIP route in a liquid fund needs to be arranged over five months.

Considering his outstanding loans, spouse’s income stream and goals for their daughter, a pure term cover of approximately `1 crore for the next 20 years should be a good start.

A health cover of at least `2 lakh for the family is also recommended.

Investment planning

If they were to follow a disciplined investment style, the family has a huge wealth-creating potential. For the young family, we would suggest an asset allocation of 70:30 in equity:debt.

His daughter is about to start higher school. In all probability, the fee amount has not been provided for in the budget. If he were to allocate Rs 1 lakh per year towards education, the amount should be adjusted against the monthly surplus of `1 lakh.

Not considering the recommended emergency fund, the family runs a monthly surplus of nearly `1 lakh. Besides the two equity SIPs of `10,000, we suggest that they invest up to `65,000 per month into equity assets.

An additional investment of up to `12,000 per month is recommended into debt products. For example, long-term debt funds, public provident fund (PPF), small savings schemes or bank FDs, which fetch a tax-effective return of 6% or more.

Daughter's education

Assuming that they would need `25 lakh when she turns 18, the couple needs to create a corpus of `56 lakh (inflation-adjusted) over the next 14 years.

Since it is a long-term goal, we would suggest allocating equity SIP of `18,000 towards this goal for the next 14 years. At a tax-effective rate of 9% annually, this should yield around `60 lakh then.

Besides, the PPF account (assuming investments of `70,000 per annum) should yield `20 lakh then

Annual vacation spend

Since this is an annual expense, we assume that the same is not invested and the money could be put into a liquid fund or even a low-risk monthly income plan to optimise earnings from the yearly float of about `1 lakh, which will be created towards this goal.

Bigger house: Based on current calculations and assuming same rates for the property, there would be a requirement of around `1.05 crore for the new house.

A 10-year loan at an interest rate of 9.75% would mean an EMI outgo of `1,37,000 per annum.

Since Mr Deshpande’s ultimate aim is to shift out of the city, it does not make sense to stress incomes for next 10 years.


Early retirement

The couple wishes to retire at the age of 45. Based on current cash flows and considering a 5% pa incremental savings over the next 12 years, they should be able to create an equity corpus of `2.32 crore.

The EPF should fetch `67.3 lakh in the 12th year (@6.5%p.a. CAGR). Hence, gross available retirement corpus is roughly `3 crore.

Calculation: Assuming that their living expenses (along with medical needs) amount to `42,000 per month, he would need to create a corpus of `2.5 crore (assuming that the corpus amount is invested in a basket of products that would earn a return of 9% annually). Hence, the retirement corpus gap will be NIL.

Conclusion: Careful investment planning should help the couple reach all their financial goals.

(Prerana Salaskar-Apte, certified financial planner, is a partner with financial planning firm, The Tipping Point)

http://economictimes.indiatimes.com/quickiearticleshow/6290306.cms