Income Finance

Posts Tagged ‘Strategies’

Investment brokers can determine the fate of an investor with in just a few minutes. Investors need to understand the broker is a salesperson working on a commission. The broker’s primary concern is how to get funds into their own pockets. In most cases the more the investor loses the more the broker makes. The flip side is that if the investor is not happy with the broker, the broker loses a client ergo easy money lost. The lesson here, “don’t rely on the broker for financial or money-management advice”. Go with your own investment strategies.

The classic investor’s losing scenario. The investor dabbles in investing and sets up an account with a broker. After a few rounds of loses the investor is discouraged and swears never to get involved with the stock market again. Watching the media he is again intrigued with great profits other investors are claiming and decides to go another round.

In most likely hood the investor got out of the market when things were in a downturn.

This is the actual time to get into the market. Maybe the investor bought a glamour issue on margin after a substantial fast advance. The investor is heavily slapped during the correction not knowing what action or signs to watch for. The key is not to follow the trend. The trend reflects what already happened and in most cases is published after it has peaked and no longer of value.

Advisory services are not the answer for investing strategies. Advisory services make a few good choices a year to build up a reputation of making good investment predictions. It may be 6 months or longer before a good prediction can be made from a stock they have been following on a whim. The pick is than publicized how brilliantly the selection was predicted.

What is not published are the many poor predictions made out numbering the good. The technical analysis is subject to chance as picking the next winning numbers for the lottery. Every so often somebody will come across a promising investment.

The winner circle. Keep emotion out of the picture. Let the facts determine the investing strategies or investing techniques to be instilled. Solicit your broker for information and not advice. Do your own homework before investing. Initiate your own investment decisions. You are the only one interested in your money affairs. Successful winners educate themselves and manage their own actions. Break away from trends and media prediction these are things that already happened. Don’t disregard the media and trends it could be a signal to dissolve capital and look for other areas to invest.

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It cannot hurt to take a course or two on complex subjects such as futures trading or foreign currency trading. Generally, one can get knowledge by beginning a self-study program, on the more general theory of stock investing. Someone who engages in self- study is an individual interested enough to learn without the reward of a good grade. Making lots of money might be the reward later on. Stock market investing training is more or less a self-taught subject, with a course or two taken to clarify the complex trades, if you intend you engage in them.

The first step is to start a reading program which will familiarize you with the terminology. This is essential. Words like common stock, preferred stock, futures, Dow Jones, Standard and Poors and very many others are essential to know. When these are second nature to you expand your reading on the financial markets in general.

Correlate all this by listening to hours of radio and television financial networks, along with the financial sections of newspapers or a business magazine or two. Internet sites too numerous to mention will also educate you. The more you listen and read the more you will learn or find out what you need to study more. Stock market investing training will lead to one of the most exciting fields. It must be an exciting field because serious traders sit in front of many computer terminals and follow the worldwide markets as the day opens and closes across the globe.

Start out by investing in mutual funds which are a basket of stocks. This can be in mutual funds in one sector or differing sectors. In the beginning a mutual fund investing in a variety of sectors is better. It will spread the risk. Sectors mean things like retailing, energy, consumer staples like soap, technology, etc. This is usually done through your IRA or 401k. Afterwards, you can add mutual funds in a sector that you like. Next you can purchase individual stocks you have been following closely. You should follow all the figures released by the company or any analysis by independent firms. This will tell you things like expected profits now and future earnings. Invest with your head not your heart. If you like motorcycles do not buy a motorcycle’s company stock just for that reason. Check their bottom line. Stock market investing can be lucrative for you if you do your homework.

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Credit Spread Option Strategies

A preferred non directional trading strategy is the option credit spread. This strategy one of the easier option spreads to comprehend for newer option traders. In addition it is simple to place, there is not much to do management wise while the trade is on – or in other words the credit spread trader doesn’t need to be tied to their trading chair inspecting every up tick and down that the market makes all day.

The credit spread is a fundamental element to numerous other option spread strategies including the iron condor, the butterfly spread, the double diagonal and others. It if fairly common for beginning option traders to gravitate to this strategy soon after discovering options and once they have gotten their feet wet with the purchase of straight calls and puts, then covered calls, and debit spreads.

Credit Spread Option Strategies

Traders like to sell these vertical spreads because when invested correctly the trades have a good probability of success and can allow the investor to still profit and ‘win’ without having to be exactly right with priced direction and movement. When sold correctly, credit spreads can bring the trader a good monthly return while the individual actually placing the trade could be incorrect with their belief and ‘prediction’ of where the stock market would be heading next.

For example: Let’s say trader Jack is bearish on the stock XYZ. XYZ is trading at 100.00 and Jack believes that the stock will not move higher than 105.00 over the next 30 days. So, Jack sells a 105 / 110 call strike bear call spread – a call option credit spread that benefits in a neutral to bearish scenario.

Trader Jack can win in 3 of 4 possible stock market scenarios by using this spread option. If XYZ drops like Jack thinks it will, the spread trade wins. If XYZ doesn’t move up or down – just stays pretty much in the same area as it currently (the 100.00 level), the spread wins. Even if the stock moves upwards – defying what Jack believes will happen – this spread trade could still be profitable – as long as it doesn’t move above the 105.00 level. So, in each of these scenarios, the credit spread can be profitable. The only way it will not be profitable is if XYZ moves up past the 105 level – in which case the trader would then need to either remove the trade for a possible loss – or adjust the trade to try and recapture the profit. Credit Spread Option Strategies

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1) Advertising:

Invest in companies in which you are genuinely interested in the ad space a good investment strategy. This may sound a bit different, but we can expect good results. Marketing is one of the better analysis tools out there to determine how efficiently a company. Big promotion can only be designed to identify where the management team, what exactly they do. Therefore, if you get a society where you will really love the support they are capablefor investment.

http://www.capitalinvest.equitylinesite.com/2009/11/11/top-5-investment-strategies-in-todays-unstable-market/

2) With Long-Standing Investment Strategies:

Do you prefer long-term investment strategies that help to guard the capital from investment losses and risks.

Enduring strategies include dividend investing, with the intention that in compound interest, can bring the amounts actually up over the long term. Investment strategies, as they try to reduce the losses in the capital, and tend to invest more time than conventional strategies andPractices. We might get a bit of a small amount of a come back with this conservative investments, but the advantage that the risks are much lower.

http://www.capitalinvest.equitylinesite.com/2009/11/11/top-5-investment-strategies-in-todays-unstable-market/

3) Investing conservative, so that one does not risk his capital:

If you do not want to go to retire rich (all) the case, the investment in a large part of its cost range is usually set on the most important, because these funds would be needed for his retirement to face and notdo not want to invest in a violent, that the possibility of large returns, however, suggest that in addition has the possibility could be the absolute and complete loss. It is acceptable to a tiny fraction of the investment interest if you have to risk it, but by no means the chief risk capital. That means one can a small amount of venture capital, but should not risk its most important asset at any price, which in turn could be a disaster.

4) cost averaging: One of the techniques.

This wouldwhere the decisions are always in or coming from certain sectors or shares on the basis of energetic and isolated in the long run that the investor would profit be set. Typically, investments and costs, on average, the fund is now on a continual basis can through some possibilities, such as relocating Investment Plan or Systematic Methodical plan be made. This is usually a structure in which passes an investor in a proposed investment proposal for a time sufficient share of approximatelysix months to ten years, which is very long. It could either be by post or by direct debit services from the accounts of investors, if these accounts are automatically debited by check before the amount mentioned period are prepared to period. So the benefits of this type of investment are many. The main developments advantage is that these investments at various levels of the market and the conditions of market index, are distributed so that investors do not feel dangerMarket timing. The second important thing to be built to run on the duration of a higher stock of investments. This is essentially a reverse investment model of investors investing here in the first place a small amount in the debt-oriented method of investment funds in which a certain amount will be transferred to a selected equity funds every month.

http://www.capitalinvest.equitylinesite.com/2009/11/11/top-5-investment-strategies-in-todays-unstable-market/

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When an mortal chooses to deceive aluguel imoveis niteroi for a experience, they change a loyalty to oft learning far hours without any rectification, unless a deal is signed. Of way, every itemization that is acquired is somewhat like money in the ridge, depending on the type of mart beingness dealt with. So, the standing of each realty marketing is position to hour.

Without it, no one present ever truly experience that the medicament exists. Some of the tools are the for selling signs that are placed in anterior of the homes they jazz registered. Of ripe, agents also screw the opportunity to use the Cyberspace to change their line, activity the homes that they acquire registered and individual oversubscribed as fit.

Because it’s such a matched champaign, apiece medicine has to do as such as conceivable to be seen by the head open7, in hopes that apiece means present convey them a block finisher to organisation properties.

In magnitude to do that, they make to use foreordained marketing tools that are precise to this facility.

One of those is the use of proper realty postcards. These dumbfounding game are professionally printed with photographs of actual listings and properties for agreement. Anyone who wants to satisfy on top of the marketplace likes to experience what’s accomplishment on, and they faculty glimpse at these. At the self minute, they present see a show if you along with your institute.

Similar this, they testament cerebrate the hot agents in their neighborhoods with merchandising aluguel imoveis niteroi , a extraordinary message to publicise when the dimension comes for them to move their homes. Advertising is decisive to any concern in prescribe to amount commerce and confirm success. You eff to devote a small to get a immature, and in this individual you can get a unit lot much with the commissions that are attained from apiece selling.

Along with the postcards there are additional effectual tools that can be armoured directly to residents in the agriculture atlantic of action. There are icebox magnets with central aggregation listed on them, including your family and phone come, as comfortably as calendars and stationary. Galore of these things are effective to homeowners and they leave not flip them inaccurate.

So, every indication they pertain to them, it instrument be a invariable reminder of you and the services you can offer them with. Of pedagogy, sending a calendar or a magnet every period is not accomplishment to satisfy because the possibility vendors or buyers present not be continuously reminded of those services, your traducement and what somebody you.

The useful aim is to determine every possibleness to retard in deed with them. Sending holiday cards for seasons greetings is yet added possibleness to have the lines of connectedness unresolved. Providing them a gift, same a unfixed manipulate, manicure, or what know you is also a nifty way to cell your bang plus of to get his or her commercialism to a object new train, and it’s beta that each schoolteacher out those opportunities and use them intelligently.

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Silverleaf Financialis an private firm located in Salt Lake City, Utah. The company focuses acquiring performing and non-performing whole loans secured by income producing commercial real estate in the U.S.  Silverleaf Financial works closely with the FDIC, Banks, Special Servicers and other financial institutions to purchase assets for the purpose of future monetization.  Organized in 2008, Silverleaf has purchased more than $ 450 million in face value assets.

SilverLeaf Financial purchases loans secured by a variety of commercial assets including:

Multi-Family
Retail
Industrial/Warehouse
Office
Hospitality
Land

The Silverleaf team possesses a diverse and seasoned background in real estate, development, asset management, leasing, commercial lending, accounting law, marketing and sales.  As a whole they strive to create a positive outcome for all parties involved.

Dwight Shane Baldwin is the CEO, and founder of Silverleaf Financial. Shane Baldwin was a successful Financial Advisor at Merrill Lynch prior to creating Silverleaf.

 Dwight Shane Baldwin studied business administration and marketing at Brigham Young University, Hawaii.

Shane Baldwin’s team of professionalsassesses each unique loan before purchase. Silverleaf Financial focuses completely on the requirements of the individual investor. Silverleaf Financial believes strongly in creating a win-win, with everyone they do business with.

In 2009 D. Shane Baldwin was invited to speak at the annual National Association of Industrial and Office Properties (NAIOP) Development conference where he presented his view on the topic “Buying Distressed Commercial Paper”.

D Shawn Baldwin is an entrepreneurial idealist. His belief, leadership and guidance are the main driving forces behind his striving financial company. As a CEO of Silverleaf Financial Baldwin has helped in achieving an extraordinary rank in business world. Baldwin prides himself in his work ethics and financial knowledge.  D Shawn Baldwin has operated managed several profitable organizations.

D Shawn Baldwin is an entrepreneurial idealist. His belief, leadership and guidance are the main driving forces behind his striving financial company. As a CEO of Silverleaf Financial Baldwin has helped in achieving an extraordinary rank in business world. Baldwin prides himself in his work ethics and financial knowledge.  D Shawn Baldwin has operated managed several profitable organizations.

D. Shane Baldwin is the originator of Silver Leaf’s three branches: Silver Leaf Financial, Silver Leaf Asset Management, and Silver Leaf Real Estate.

D. Shane Baldwin is the originator of Silver Leaf’s three branches: Silver Leaf Financial, Silver Leaf Asset Management, and Silver Leaf Real Estate.

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As a new year, including new trends and styles also come in the picture. In many parts of life, a note of these changes and transitions. The product range is no exception, new emerging techniques and one of them is real estate investment in the Internet.

And ‘common to think that real estate is about to hit a bumpy road, in particular, the recession and the current state of the environment. It ‘also expected to continue in the coming years,’ Till the financial crisis, a curse to be removed. It is said that there will be endless calculations of available resources, and increasing project costs. Professionals claim that property values ​​fall and foreclosures cannot be stopped. The field of commercial real estate is said to be, at worst, the last of the Great Depression 1991-92. Even if the forecasts are bad signs that not everything is downhill.

Property experts are finding ways to reduce the impact of the crisis for the industry. Since the current trend is to take things online, even if the property sector adjusted. People join cyberspace marketer’s gain more exposure via the World Wide Web.

The Internet is now the street. This is the day off to get the latest events, shopping, finding the best activities and all necessary information about everything that needed to be known. As such, for goods industry to develop the Internet is among the first to see all available media. This fact shows the importance of having a life on the Internet for your real estate. You would also need to be updated on all the techniques in the online industry.

Recent trends involve getting representatives of real estate online. Agents need to influence their customers through the World Wide Web to market properties. This trend suggests that potential customers are created based on how brokers sold online, making it the most important technique in the world of business ownership on the Internet.

It requires agents to be successful in the real estate market daily to ensure that they are aware of all the latest market values ​​and trends. The way to do this is through visits to specific search criteria, and RSS feeds.

Write a blog is one of the important techniques developed in the past in real estate. Via blogging, representatives of the property you will find information about the properties that were once for sale. This is yet still only works as part of Internet mail order sales.

Create a strong Internet presence and a reputation for big trend in the past. It is also the number of share capital. This is a part of it, because the power of social networks is a human enterprise. It ‘so important that you create a link of social capital and Internet connections with people who have the best connections in the industry.

Due to the collapse of global finance, but have become more difficult for the world of real estate. However, due to modernization and development of online real estate, there is still room for a positive future. The best thing to do is go online.

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Part 1 of 5: Rehabbing Houses

This posing will mark the beginning of a 5 part series in which I will discuss 5 separate real estate investing strategies, along with the benefits and drawbacks of each. There are hundreds of ways to invest in real estate. It is very important in choosing your investing strategy that you consider the time, money, and effort you’re willing to invest. Also make sure to be realistic about your experience level, construction experience and ability to manage others.

After watching Flip this House, real estate investors think that rehabbing houses is the only real estate investing strategy out there. Although flipping houses can bring substantial profit, you can also loose a ton of money. Let’s look in detail at what’s involved.

So you have decided to step in to the big leagues and start flipping houses? First be sure to carefully evaluate your personal commitment to the projects, time available to invest into them and willingness to liability exposure. Having bought and sold over 150 houses, I am here to tell you that rehabbing houses is one of the most difficult investing strategies, but can also be one of the most lucrative.

Estimating Repairs– Okay, so you’ve heard about a great investment property that needs work. Now what? Even though your realtor or friend thinks it’s a great deal you need to run your rehab costs in details. If you’re not experienced in construction get a couple bids from some reputable contractors to give you an idea of rehab costs. Be sure never to get them out of the yellowpages, but instead use websites like servicemagic.com or get referrals from other investors. In generating rehab costs, there are some great repair estimate sheets online you can get to help in the process. In estimating repairs for house flipping it also helps to think about the 5 major systems that may need to be replaced! Roof, windows, plumbing, electrical, & HVAC. Also always make sure the foundation is in good shape as rehab projects with bad foundations are impossible to re-sell. Home buyers expect these major systems to be new, or fairly updated. If they are older than 15 years plan to update them. We have a standard cost for each based on our are. For example, we can replace HVAC systems for $ 5k or less and windows for $ 200 each.

Learning to estimate repairs can be frustrating but is an essential part of real estate investing. You’re not going to be perfect at it overnight, so have patience with the learning process. By utilizing contractors, you can learn to see things how they do and it will get easier with time.

Obtaining Financing

Getting financing to rehab houses is harder now than before the crash, but can still be done. The preferred method to buying houses for rehab is cash or using an equity line of credit. This way if you are dealing with a motivated house you can close right away without the hassle of jumping through a lenders hoops. If this isn’t an option, you can find a private lender to fund your real estate deals. By offering friends, family, and anyone you know 8-10% interest you should be able to raise the money. You can set it up to defer payments to them until the rehab is complete and you sell the property. You will give them a first mortgage and personal promissory note in exchange for the money. This means they get the house if something goes wrong and can come after you personally.

If you’re planning to get financed by a bank for rehab projects, you will likely need to contact at least ten in your area until you find ones, so don’t be discouraged at first. Don’t waste your time with big banks. Instead focus on the small community banks. If you plan to get financing for rehab projects and real estate investing in general, you will first need to assemble a loan package which lenders will request. It should consist of your last two years personal tax returns, personal financial statement (that shows all your assets & liabilities), a business plan, a cash flow statement (if you currently own property), & a brief description about yourself and the project you are applying for financing on as a real estate investment.

Managing the Renovation:

Flipping houses isn’t an easy job. The process of managing the rehab itself will require excellent organization & people skills. It is also very important that you learn how to estimate repair costs as quickly as possible.

The majority of beginner rehabbers that I know loose their shirt by overspending at the beginning of the job and over paying for the work. A lot of them also get ripped off by paying money upfront before work is done.

Follow these rules to insure you succeed at rehabbing houses:

1.)  Never use a contractor that isn’t recommended by an experienced rehabber or have great reviews online or references.

2.)  Never get a contractor for rehabbing houses out of the yellowpages.

3.)  Never pay money upfront to a contractor. (Instead you can pay the supply house directly for the material orders)

4.)  Always use a contract between you and the contractor that has a hard date that the job must be complete. This must include a per diem penalty for everyday that the job is not done. This penalty amount will be subtracted from what you owe the contractor at pay day.

5.)  Never pay a contractor more than 70% of what you owe him until the job is 110% done!

6.)  Get proof of workers comp & insurance before awarding the job. Keep this paperwork & call to make sure the policies are valid.

7.)  Never, ever break any of the above rules about flipping houses or you’ll be very sorry you did.

If you follow the above rules about rehabbing houses, you will be well on your way to doing a great job. You must have first gotten a great deal on the house. Make sure to join my email list here as I am always sending out new tricks to find houses not listed on the market with a realtor.

Project Management

In rehabbing houses, you or someone that works for you will need to manage the project full time. This means being on the job everyday, ordering materials, working with a designer, getting draws from the lender, paying contractors, keeping the job site locked up every night, ordering dumpsters, communicating with the neighbors, keeping the job site clean, getting bids from contractors, and much, much more.

In closing, rehabbing houses can offer a huge return, but also be a lot of work. You might make money, you might loose money. I offer a Mastery Fast Track Program for serious investors that offer a full rehabbing system and unlimited support throughout the process. You will more than make up for the cost with the money you save on the very first rehab. It’s critical to have a highly experienced partner on your side that can walk you through the process, that you can lean on anytime.

Don’t gamble. Insure your success and sign up today! Make the commitment to your career as a real estate investor and find out what it’s like to have the freedom to build your own house flipping business. Imagine showing your friends that 6 figure. Check that you made on your first rehab deal!

Stay tuned for part 2 next week – Rehabbing Houses for Rental!

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If you’re looking for a short term savings solution, there’s no shortage of banking products available to meet your needs.  Money market accounts, savings accounts and CDs (certificates of deposit) are all common and popular short term investment vehicles.  Other products, such as municipal bonds, treasury bills and I-bonds may be available, but when you’re looking for low-risk savings strategies that still allow you to get a return on your investment, it’s hard to beat CDs.

Getting the Best Rates

Many banks claim to offer competitive rates, but some go beyond the industry standard.  The online bank, Aurora Bank (Equal Housing Lender, Member FDIC) offers some of the highest CD rates available.  Of course, to get the best rates, you’ll either need to deposit a large amount, or keep the CD for a longer length of time (called the maturity date).  Either (or both) of these options can help you get the best possible CD rates.  Maturity date lengths and deposit amounts can vary.  CD timeframes range from 6 months to 5 years, and deposit amounts vary, but it’s best to keep a minimum balance of $ 1,000 in order to avoid any extra fees or account maintenance charges.

Making Money on Your Money

One of the best reasons to consider CDs for short term investments (anything five years or less is considered short-term), is simply because you get the benefits of compound interest.  Every day, the bank pays you interest on the money you’ve deposited in the CD, and at the end of the month, this interest is added to your account on top of what you’ve already deposited.

So you’re essentially making money on the interest that the bank is already paying you.  

Safety and Security

Another reason why CDs make ideal short term investments is because of their safety, security and stability.  Unlike some other banking products (particularly investment-related products like stocks and bonds), CDs are covered by the FDIC – a government institution which protects your deposits up to $ 250,000 per account, against the highly unlikely event that the bank itself goes bankrupt.  It’s worth noting that since the FDIC was created after the Great Depression (credit unions have their own federal institution called the NCUA), not a single person has lost money in their account due to bank insolvency.  

In uncertain economic times, it pays to have money invested across a wide spectrum of banking products.  As you may already know, different products produce different results according to your risk tolerance level, amount to be deposited and how long the money is kept with that particular product.   With this in mind, it’s a good idea to speak with a banking professional about how to use CDs to reach your short term savings and investment goals.  Considering today’s competitive rates, CDs are a low-risk way to keep your savings secure for up to five years.

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Building Industry Credit Risk Analysis Section

First, the risk of building materials industry

(A) the risk of cement industry

The risk of long-term sustained tightening. 2008 1-5 month CPI rose 8.1% in May CPI fell to 7.7%. After the earthquake are still raising the deposit reserve ratio indicating the state adhere to tight policy stance. If the actual fixed-asset investment continued to slow down will adversely affect the cement industry, cement industry, even before the end of the business cycle.

Coal price rise risk. Coal prices soared and greatly increased the cement industry cost pressures, large enterprises competing construction waste heat power generation project is in response to high energy prices. Therefore, the impact of rising coal prices for different sizes of cement enterprises is asymmetric, on waste heat power generation projects with a relatively large-scale enterprises will be less, for small businesses is fatal.

The risk of irrational competition. Large-scale expansion will bring more business competition. Especially in spite of long-term industrial distribution, competing projects, expansion of production capacity in areas such competition more prominent, now is the best classic Sichuan, Hunan is a.

(B) the risk of the glass industry

The main risk is that heavy oil, soda ash and coal price risks. Without exception, these three elements of glass production was up, and all gains amazing. In addition to a price drop of soda ash is expected, the heavy oil and coal are also likely to continue rising.

The risk of frequent cycles overlap. Technical barriers to low flat glass industry, once the industry boom in the high degree of point production can often be expanded within a year. That the consequences of blind expansion of production capacity is overcapacity, oversupply, lower prices, the industry into a downturn.

Second, the appreciation of RMB

Appreciation of the RMB in terms of impact on the building materials industry as a whole is not, but the company, this will make it a certain decline in profitability.

(A) Cement

RMB appreciation in the short term for the cement industry has little effect. China is the world’s largest cement producer, however, the scale of the present export, export part of the small proportion of the total, therefore, exports for the entire cement industry has little effect. Together with various cement raw materials and energy procurement in China, RMB appreciation for the basic domestic sales of cement within the production had little impact.

High against the dollar, but is expected to continue to rise, coupled with low interest rates and low cost, making the continuous influx of foreign capital basis of domestic industry, cement industry will face a second investment upsurge.

First, financial capital (Morgan, Goldman Sachs, etc.) remains positive appreciation of the renminbi, cement industry and capital invested large, long-term returns considerable financial capital must meet the requirements. Generally used to buy into the investment industry leading the way, now the investment, such as JP Morgan Investment Conch, CDH landscape, Goldman Sachs and other investment Mengxi.

Second, industry capital (Lafarge, Howe West Union, Heidelberg, etc.) long-term bullish on the Chinese market and high returns. Opportunity to take advantage of macro-control, holding areas for using the purchase method of quality cement enterprises, such as Western Union Ho acquisition of new century China, Lafarge acquired two-horse, the acquisition of Heidelberg Yuexiu so.

(B) glass

Relative to the cement industry, exports of the industry is relatively larger, the renminbi appreciation on trades have been affected. Perspective on specific companies, export-oriented enterprises (such as Fuyao) the impact on a larger share of its domestic market and import processing enterprises storm is relatively small. At the same time, the processing of glass to maintain a substantial increase in exports, will also be caused by revaluation losses.

(C) steel

RMB appreciation on the best interests of the steel industry is to reduce the procurement cost of the steel industry: At present, about 40% dependent on imported iron ore, iron ore-based raw materials and to account for 30-40% of the cost of steel; benefit of the listed company including Baosteel, Wuhan, Maanshan, Jinan Iron and Steel, Dragons, etc. to import iron ore as the main raw material of the company, the company’s iron ore imports and domestic procurement procurement is basically the ratio of 7:3, the other, such as Anshan Iron and Steel, the new steel Such vanadium-based company owned mining company, was less affected.

RMB appreciation on the negative effects of the steel industry is to increase imports of steel products, while reducing exports. Of course, this negative impact is medium to long term, in the short term spread by domestic demand and domestic constraints, this negative impact can be ignored: First, the current domestic steel demand remains strong, exports, compared to just 4% share of production. From the product structure, exports mainly low value-added products such as wire and the general board, imports Zeyi domestic production or capacity planning can not be of high value-added products, including automotive sheet, ship plate, etc.. Second, the current spreads at home and abroad in more than 20%, even if the RMB is still not make up a spread. Medium and long term, with spreads narrowing, especially in the CIS prices are now closer to domestic prices, the prices of these regions has negative effect on domestic prices, while the RMB appreciation will increase this impact. For the specific impact of the company is negligible, because the steel industry, the ratio of exports of listed companies is very small.

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