US Finance World

Stocks have been sailing swiftly this year, but many investors missed the boat by clinging to defensive positions set in the depths of the downturn.

Are ETFs better than funds?

Rather than spending it regretting lost opportunity, though, now is the time to make sure your portfolio is ready for 2010. That will likely mean putting money in places that already have enjoyed tremendous returns. Sure, many experts caution that the global economy is anemic at best and that top-performing markets have come too far, too fast. Maybe these sprinters are due for a breather, but you can’t ignore them.

“Don’t be afraid of a weak recovery; that’s not going to be a shock to anyone,” said Alec Young, an equity market strategist at Standard & Poor’s. “Don’t be afraid of a weak consumer. Things that everyone’s talking about don’t move markets.”

Here are five places to consider putting your money now to set you up for a happy new year:

1.

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Many consumers associate interest only loans with the downfall of the real estate industry but its far from true. Interest only loans in their true form were not part of the option arm or “choose a payment” loans offered to many consumers during the housing boom. Sure, these loans had an “interest only” payment option attached to them but it was certainly almost always higher than the minimum payment due on the monthly statement and in true form, most consumers simply pay minimum payments in life.

Historically interest only mortgage loans were available only through financial firms interested in providing attractive alternative mortgage programs for the wealthy.

For example – a wealthy investor who wanted to purchase a home could opt to pay principal or use that money to earn greater returns elsewhere. Having an interest only payment option provided greater liquidity as the payment was lower and that investor could now use the “principal” funds to try and achieve greater returns elsewhere. The catch was

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The U.S economy has turned into a recession increasing the amount of jobless claims and homeless rates.

As a result folks are falling behind on their mortgage payments resulting in home foreclosure. People who are not able to pay their debts are on the brink of losing their homes. To overcome this problem, President Barack Obama has come up with a loan modification program.

The loan modification plan works by reducing homeowners mortgage payments and providing the homeowners the opportunity to reduce excessive late fees and balance accrual.

How it works?

1. about the interest rate

The loans that will undergo modification will be allotted a significantly reduced interest rate. The modified interest rates can fall between 2-6% depending on the customers hardship and ability to prove financial difficulty due to their mortgage.

2. Loan principal reduction

Principal reduction is used to lower the balance thus resulting in lower payments. Read more…

When in need of an agency to handle debt consolidation, the obvious resource to turn to is the Internet for a search. However, after searching through the Internet, you may be confused as to which financial help agency to choose from. There are so many choices and it can be difficult to choose from among so many available.

There are several factors that will help you figure out how to pick from each of the consolidation companies. If you pick wisely, you can get the help you need. Keeping the tips in mind will help you avoid any scams or problems.

First, a good debt consolidation agency will not ask you to give up any money without telling you their services and showing you an exact plan of action that they will undertake for you. They will also be honest and very up front about the things they will do. A good agency will make the task of consolidation so much simpler, which is the benefit that you will be receiving.

Second, you could check for recommendations and testimonials on a website.

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Rightly or wrongly, the 30 stocks in the Dow Jones industrials ($INDU) define the U.S. stock market for millions of people. Lots of funds, 401k’s and individual retirement accounts rise and fall based on what the index does.

What numbers tell the most about the economy

So here’s a scary thought: Only a handful of the 30 companies in the Dow are worth buying right now, and more than a third should be dumped immediately.

Take Bank of America (BAC, news, msgs). Despite $20 billion in bailout funds and a $118 billion backstop on loan losses, the company still managed to lose $2 billion in the third quarter. The government has guaranteed it won’t go broke, but it’s hardly an economic leader.

Or consider General Electric (GE, news, msgs). Profit dropped 44% in the third quarter, and the company recently announced plans to lay off an additional 3,000 workers.

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