INVESTMENT IN CAPITAL MARKET GROWS

In the current era of globalization, where economic barriers fade, shift the flow of funds from the surplus to the deficit will be more rapid and unimpeded. Capital market as the investment of fund flows from the excess wealth (surplus) to the cash-strapped (deficit) to act as financial intermediaries. Investors here is a party in relation to the financial surplus.
Who are the parties this surplus? In relation to the investment and use of funds, investors can be divided. First, is that domestic investors are investors who come from the country that make up the portfolio of assets in domestic capital markets. Both are foreign investors, ie investors who have some funds from abroad that make up a portfolio of assets in a number of different countries.
Foreign investment coming to other countries actually have a classic motif that includes, motive raw materials or natural resources, find new markets and minimize costs. From classical motifs are sometimes investors have other motives are motives to develop the technology. Investors are channeling their funds to other countries usually only carry one motive but can be due to several motives as well.
There are at least four ways investors can enter a country: Distressed asset investment, strategic investment, direct investment and portfolio investment. Distressed asset investment is an investment made to acquire ownership or purchase of debt of a company in financial difficulty. Second, the general strategic investment by foreign investors to acquire a company that has a wide enough market share and are in the business segment and location factors that support the company's expansion strategy investors. Third namely direct investment (direct investment) usually takes place in less developed sectors, such as technology-laden construction or development in the automotive sector, usually the company. Fourth is the investment portfolio is invested in bonds and stocks in the capital market.
Portfolio investment is what has been the concern of many practitioners in the field of capital markets. Why is that? Because this type of investor is the fastest moving exposures in a country if there is turmoil (political, economic, exchange rate) which is interpreted as uncertainty. They also are investors who have the most extensive selection compared to the above three types of investors. So that if certain events occur both at the macro, sekoral or government regulations, investors are more vulnerable and sensitive to the reflection on that information. The value of foreign investment in or out, practically will also affect the overall market due to the large volume of transactions.
The role of foreign capital in the country's development has long been discussed by experts in economic development. Broadly speaking, according Chereney and Carter firstly, external funding (foreign capital) can be exploited by emerging country as a base to accelerate investment and economic growth. Second, increased economic growth needs to be followed by changes in the structure of production and trade. Third, foreign capital can play an important role in the mobilization of funds and structural transformation. Fourth, the need for foreign capital to be dropped as soon as the structural changes actually happen (although foreign capital is more productive in the next period).

Earthquake rattles Canada, Tsunami Warning in Hawaii

WASHINGTON, KOMPAS.com - An earthquake measuring 7.7 magnitude shook the west coast of Canada, on Sunday (10/28/2012). The Pacific Tsunami Warning Center (PTWC), warned that the quake triggered a tsunami that led to one of the U.S. states, Hawaii.

"The tsunami could cause damage along coastlines and islands in Hawaii," said the announcement of the PTWC.

The tsunami is expected to reach Hawaii at around 10.28pm local time (08:28 GMT or 15:28 pm GMT).

The announcement came after a magnitude 7.7 rocked the Queen Charlotte Islands off Canada's west coast Sunday, at 03:04 GMT.

USGS said the epicenter was located at 139 km south of the town of Masset.

Laos Log WTO

Vietiane, (AFP). After working for 15 years, Laos on Friday (26/10) officially became a member of the World Trade Organization (WTO) is the 158.
All of the ten ASEAN member countries have now become members of the WTO. Chinese Ambassador to Laos Bu Jianguo and senior China expert Xu Ningning ASEAN family appreciates it.

China had played a role in the process of Laos in the WTO membership. Talking about the meaning of the entry of Laos in the WTO, Chinese Ambassador Bu Jianguo said,

"The entry of Laos in the WTO beneficial to Laos to participate in the process of economic globalization, attracting foreign investment, encouraging foreign trade, in order to promote reform and opening up, accelerate economic and social development, and achieve development targets formulated the 9th Congress of the Lao People's Revolutionary Party . Meanwhile, Laos in the WTO membership will also be driving the region and the world economy, contributing to realize the ASEAN economic integration. "

Senior expert of China to ASEAN business, Xu Ningning also appreciate the positive sense coalescence Laos to the WTO.

Xu said, "To build the ASEAN economic entities in 2015, ASEAN integration and internal economic cooperation is entering a new phase. For Laos who is a member of ASEAN, it is a strong endorsement. Process of ASEAN economic integration has encouraged openness to the outside world Laos , as well as providing assistance to Laos to minimize the economic progress with other ASEAN countries. for Laos, the WTO is a vehicle to commercialize developments in a broader scope. "

Al Qaeda Denies Relationship Recovery Egypt & Israel

CAIRO - Al Qaeda leader Ayman al-Zawahiri urged Egyptians to reproduce revolution. Zawahiri also invites all residents to protest the Egyptian and Israeli rapprochement.

Back Zawahiri appeared in a video posted on the forum Mujahideen. Zawahiri criticized the Egyptian government led by the Muslim Brotherhood faction. He said the Egyptian government is currently comprised of corrupt officials.

Egyptian President Mohamed Mursi became the target of criticism Zawahiri. Mursi is considered as the president without authority. Zawahiri questioned the Mursi in Palestine and policy issues related to Egypt's war on terror.

"All people want to see the government of Egypt that is free from the influence of the United States (U.S.), as well as Palestinian victory over Israel. Battle is not over, this battle has just begun," Zawahiri said, as quoted by AFP on Saturday (10/27/2012) .

'Egypt revolution must continue and Muslims have to sacrifice to get what they should get, that is, a glory and honor for Egypt, "he said.

In the video, Zawahiri criticized U.S. President Barack Obama and calling Obama a liar. According to Zawahiri, a black president that was lost in the Iraq War, Afghanistan and North Africa.

"Obama is a professional liar, Obama had to admit, he and his colleagues stand in the defeat. Osama bin Laden and other Mujahedeen, win, regardless of whether it liked it or not," he added. [Aulia Akbar]

25% of Spanish Residents Living Without Work

Madrid - The crisis in Europe still remains a significant record of rising unemployment in many countries affected by the crisis. For example, Spain and Greece as 'race' recorded an increase in the number of unemployed in Europe.

Quoted by AFP on Friday (10/26/2012), according to official data Matador State statistics agency, the unemployment in Spain through a number of 25.02% in the third quarter of 2012, up from the previous month which is only 24.63%. The country is still experiencing a deep economic recession.

Recorded at the end of September 2012, there are 5,778,100 people in Spain are unemployed. The number is increasing by 85,000 people compared to the previous quarter.

For comparison, the percentage of unemployment in Greece is also growing. The unemployment rate in the land of the Gods was increased significantly to reach 25.1% in July 2012, while in the same month last year still reached 17.8%.

Noted there are more than 1.2 million unemployed people in Greece in July this year. This number increased to 378 000 people compared to the position in July last year.

source : detik.com

analysis of economic, environmental, social

Every effort is being run course will provide both positive and negative. Positive and negative impacts of this will be felt by all parties, both employers themselves and the community around the existing environment.Suppose an entrepreneur wants to build a garage and caat Kenteng car located between settlements. Obviously they run businesses will provide both positive and negative.
The following will describe an analysis of the economic, social, and environment in an EIA report:
A. Economic and Social Aspects

    The Economics
The positive impact of the economic aspects of the community:

    Can improve the economic environment through: reducing unemployment in the surrounding communities recently increasing.
    Dig, set up and use of natural resources through the economy: with the Cat Car Workshop Kenteng and the community can take advantage of existing facilities.
    Government to boost the economy through: with the Kenteng and Car Paint Repair can help governments to improve economic growth in areas that have not been sufficiently developed.

    Social Aspects
Positive ImpactThe positive impact of social aspects for society in general is the availability of facilities and infrastructure that are needed:

    Demographic changes over the unemployment rate, which in the course of business creation requires employers of labor which can be drawn from the local community.
    Cultural changes that may impact on the change in public attitudes, that the public will get an overview of entrepreneurship.
Negative ImpactThe negative impact of social aspects for society in general are air pollution from smoke production machine that would be bad for local communities, among others interfere with public health.
B. Environmental AspectsEnvironment is one aspect that should be considered further before determining a business. This is done solely so that an employer can determine the impact of positive and negative impacts that will arise from the work done.
Positive ImpactEmployment opportunities for the growing communities in which it can reduce the level of unemployment, especially in the community.Negative Impact

    Can improve people's lives, although not significantly so.
    Air pollution which may interfere with the health of the community.
    Noise pollution from production machines.
    Can interfere with the surrounding community.

Eurozone Business Decline Sharply

Markit: Eurozone Business Decline Sharply
Brussels, (AFP). Private sector business activity eurozone slumped in October, falling at fastest rate since June 2009 into a low level for the past 40 months, according to a survey indicated on Wednesday (24/10).
Composite Purchasing Managers Index (PMI), a survey of 5,000 business eurozone compiled by research firm Markit, fell to 45.8 points in October from 46.1 in September.

The index is a leading indicator, and the data below 50 indicates a contraction in business activity, with the euro zone down to a bad start during the fourth quarter, as the debt crisis continues to undermine growth and jobs.

Preliminary data indicated PMI shows sector institutions 46.2 points in October, up from 46.1 in September, while the manufacturing sector fell sharply to 45.3 from 46.1 points.

Markit said activity declined continuously since September 2011 with the exception of a marginal rise in January.

U.S. T-Notes 5Y Down; Dow Jones Weakens

U.S. intraday movement 5Y T-Notes on this evening (25/10, 16:19 GMT) tracked down in the bond market. Opened at 123.97 in early trading (00:00 GMT). Bond futures have been down about -17 pips or about -0.14% and the rolling seemed to be in the range of 123.80.

The performance of stock trading in the U.S. market showed negative growth where stock index Dow Jones Industrial Average today observed worsen around -0.19% at 13052.32, and the S & P 500 Index which fell down about -0.12% at 1406.99.

Negative developments occurred in the index of leading shares on the NASDAQ Composite Index today tracked down about -0.01% at 2980.18.Analis Vibiz Research of Vibiz Consulting suggests that the normal range of movement today is expected to have a support level at around 123.82 and resistance level in the range of 124.09.

Meanwhile, the National Association of Realtors reported to the public that the U.S. housing sector has increased performance in September. Fundamental indicators Pending Home Sales m / m which grew approximately 0.3% of the value in the previous period is -2.6%. The increase showed a worse performance than the estimated number of economists, who expect to be up to 2.3%.

Stages of Financial Planning Process

There are several steps to be followed in conducting effective financial planning.

1. Checking the current financial situation
   Start by examining current financial situation with great attention to income, savings, living expenses, and debt. Remember the adage "great pegs than the pole" This often happens in modern society anywhere in the world, especially the middle class youth.You will need a lot of accurate information about investments in particular emerging today, the new policies in the insurance world. benefit pension plans and information on how to apply the tax rules can affect any programs or investment product.
2. Set life goals and financial
   The purpose of life and the specific financial planning is very important in a financial. Extremely diverse financial goals, financial goals could be like how we spend all our income or start planning to save and invest for the sake of financial stability in the future. client's goals should be based on the conditions of work, values ​​and their current financial condition.
   By setting financial goals, you determine how much risk to be in the face. consider how best to integrate information risk is based on personal experience and others that can be found in the source of financial planning. Short-term goals are things that can be achieved within one year, such as saving for a vacation or plan a small scale debt. Medium-term goals ranging from 2-5 years. temporary, long-term goals can be achieved within a period of 5 years or more. eg preparing pension funds for children's education in college, purchase a villa for a vacation.
   
   [continued ...]

TIME VALUE OF MONEY

TIME VALUE OF MONEY

Against the greatness of the value of money over time. Albert Einstein once said that as "a genius and the best invention of the century". As well as time, money can only be used in a different occasions simultaneously. That's why we need really - really made ​​the right choice among several options financial goals. You need to consider the value of money over time, the intention is to increase the amount of money due to the amount of interest generated. At present, saving and investing will be a greater benefit in the future in comparison with spending

SIMPLE INTEREST
simple interest is the excess of the amount of money you borrow or invest. Simple interest calculation is composed of three parts, namely the amount of money, the amount of interest charged, and time.
Where a simple interest calculation formula, is
INTEREST = AMOUNT * AMOUNT RATE * TIME
the amount of interest determined in the year to calculate the percentage for  should change 12% to 0.12 or 12/100. and, for the calculation of time you must also change a decimal or fraction. For example, three months of the year is calculated to be 0.25. what if time is needed 2.5 years? You can count to 2.5

FUTURE VALUE
future value is the value at which the amount of money will grow if it receives interest within a certain time. Calculation process is also called  compound interest or compound interest.

FUTURE VALUE ANNUITY
Future value of an annuity is a savings mas financial resources will be undertaken on a regular basis to produce the desired amount of funds
The calculation of the future value of an annuity will provide different results if you do the investment at the beginning or end of the year.

PRESENT VALUE
present value is the value today of a sum of money that will be received in the future.

PRESENT VALUE ANNUITY
annuity present value is the value today of a payment of certain funds performed regularly over time. In other words, the amount that you have a tube with a certain interest rate for a certain sum of money regularly in a certain period of time.
The calculation of the present value of the annuity will also give different results if you do the investment at the beginning or end of the month.

Opportunity Cost and the Time Value of Money

Opportunity Cost and the Time Value of Money

Have you ever noticed when making a decision of some options, meaning you can set aside other options? In any financial decision, you give up something to get the option that you think is better. For example, the decision to reduce spending in order to invest in order to meet your future needs.
         The decision that you take into account everything can be considered as an opportunity cost or opportunity cost. The opportunity cost is the opportunity cost can be divided into personal, financial and opportunity costs.

Personal Opportunity Costs
It is important in the private opportunity cost is the time that you use to carry out an activity you can not use for other activities. When you use it for study, work, or shopping you can not use for other activities. Allocation of time in daily life should be used to meet your needs, to achieve the goals you want to accomplish and create a personal satisfaction for you
     Private opportunity cost is not less important, namely health. Irregular eating patterns, often staying up late or do not like exercising will make you sick, and raised the cost of treatment and you can not do activities that are useful. Personal opportunity costs that require the attention of the personnel, skills, and knowledge.

Financial Opportunity Cost
Most of the decisions you make in life must have been related to finance. In financial decisions, the main thing to consider is the time value of money or the value of money over time, that can be interpreted simply means increasing the amount of money due to the amount of interest you earn
   Your decision to invest in debt or have to see the value of money over time charges. Credit card debt with interest rate of 3 percent per month or 36 percent a year, it would be better if the interest rate is the result of investments you make. Investments you make the investment instruments that give flowers or anything in return different results, will also give different results at the end of the investment period. Thus, ownership of investment products to achieve financial goals is an important thing you should do.


 

"Credit card debt with interest rate of 3 percent per month or 36 percent a year, it would be better if the flower is the result of an investment that you do"

Matters affecting the financial planning [Economic factors]

Economic factors
  Economic conditions continue to change also affects financial planning. forces of supply and demand have an important role in the formation of prices of goods needs. The inflation rate is high enough to make you have to adjust spending each year, as well as with the increase in wages or earned income.
  Bank that serves as the controller of monetary instruments having a bank certificate to be a reference to the interest rates on loans and deposits for banks. Real sector gets credit disbursement from the bank will adjust the price of its products in accordance with the amount of loans granted by the bank. You as a consumer end alias buyer indirectly impacted by the amount of lending rates.
  Making financial decisions, both for individuals and families, is strongly influenced by economic factors, such as inflation, per capita income, and interest rates. Let's discuss a little more detail the terms and the effect on your finances.

Inflation
  When interpreted in a simple, inflation is rising prices and services. Inflation effect on the decline in the value of the money we hold, as happened in the 70's that a certain sum of money you are able to have a motorcycle. Compare with current conditions, with the same money, you can only buy motorcycle tires with decent quality.
  For those of you who have a steady income each year without any increases, high inflation can erode the ability of money to spend. Usually many companies measure employee salary increases adjusted for inflation, it may be called by the rate of inflation, this can be referred to as cost Of Living Adjustment (COLA)
 Inflation is also a risk that is not visible to people that like to put the money in a vault rather than in investment instruments. Value for money will decline to spend the same goods in the next year. Inflation happens when averaged averaged since the 80s could reach 10 percent-a relatively high inflation could also be caused by stretching of development in various sectors. For those of you who are planning for the child's education fund, multiply two times the rate of inflation to increase in the cost of education is needed .

Income capita
  Income capita is used to measure the value of all goods and services produced by a national economy as well as to measure the economic health of a country widely. capita income is reported as a real form of economic growth .

  Simply put, capita income would show the average revenue per productive citizens (working age) based on macro-economic indicators. Rising capita income could reflect that more specific country or society, better off than the people of other countries.

 

Interest rate
The interest rate is the biggest factor that will be taken into consideration in making financial decisions, be it debt or investment decisions. For example, Housing Loan, Car Loan, as well as other business credit. The selection of the type of instruments used affect the returns received
    Interest rates affect your financial planning, the calculation of the future needs of diverse. Of course, also need tools such as the right investment instruments to help you with the aim of fulfilling the financial goals you want.

Cycle of life

 Understanding the personal lifecycle
Age 20 years

•  try to save 5 to 10 percent of gross income.
•  have an emergency fund of six months of the monthly fee.
•  start a credit history, it can be from a credit card, credit history is very important to do, especially in  developed countries like America.
•  purchase or repair homes. investing for growth not to long.
•  make pension savings.
• have adequate insurance.
•  making a will.

Age 30 years

• budget and expenses should be scrutinized more carefully.
•  include a broader tax planning
•  raise funds for savings / investment retirement
•  saving for children's education funds
•  start retirement planning
•  re-evaluate insurance needs
• will change according to the change in family status.

Age 40 Years

•  continued to provide funding for the education of children, it could be to finish college.
•  add personal savings.
•  continue with the add investment funds for retirement.
•  monitor the tax consequences on investment.
•  investment for the long term.
•  reviewing insurance requirements because the kids are out of the house.
•  reviewing homeowner's insurance.
•  legacy planning more seriously by using wills, transferring ownership of the property by way of gift, grant or even start making trusts.
  

Matters affecting the financial planning [ factor value of life ]

Factors personal life values ​​and life cycle
spend patterns among you who are still in their 20s and you are aged 50-'s certainly different. Personal factors, the number of dependents in the family, and lifestyle affect the way you spend your money and how to invest.
Habits in society have also changed, now many people think to be able to meet household needs. Values ​​of life that you apply to the family also affects the way your financial plan. In other words, the principle in life you can rely on to invest in products that conform to the trust. 
cycle of life
financial plan will change depending on the age and condition of some stage or stages in the life cycle of your personal financial planning, are as follows

1. unmarried adults. Planning focuses on having appropriate insurance savings and wealth accumulation, education for career development.
2. Newly married young couple. Planning involves calculations about when couples want to have children for larger families need more home course requires certain conditions to be able to get a home loan [mortgage]. the need for health insurance and life insurance will increase a wills and inheritance planning is essential and should be owned.
3. Planning new parents are more likely to prepare for the child's needs and providing education fund.
4. The parents were recently divorced one of the former couple's [usually the father] has the obligation to pay alimony to his ex-wife lives [alimony] and his son [child support] financial needs will increase as [the father's side] should provide for two families [new family if there is a liability to be divorced and even husbands and wives both work new family living expenses will continue to increase.
5.  Parents with children who are more mature. Estate planning will get the attention of the more important. Insurance program better and quite possibly needed better invested surplus funds. retired early to start planning
6.  children have moved out of the house. Parents may want to consider moving to a smaller residence or a place closer to the child. Planned retirement planning should be more serious.
7.  Entering future retirees. It is important to review the [revieu] insurance and annuity programs. Retirees will need income to make ends meet and other personal needs during retirement, such as travel or sightseeing.