Posts Tagged: ‘risk’

Bond Mutual Funds- Best For Those Who Want Low Risk Investment

November 19, 2011 Posted by admin

In these tough economic times it is hard for you to trust a particular type of investment. Luckily, mutual bonds offer some sort of shelter during these times and give you a chance to still make money. However, it is advisable that you take your time when you are choosing the type of mutual fund that will work well for you. Investing in bonds is a good idea and this ensures constant interest payments and possible capital appreciation when the bond prices increase.

Bond mutual funds help you achieve this and much more. The middle risk investment venture that pursue strategies that are supposed to give higher returns. Investing in bonds and debt securities is less risky than stocks. They also provide the stability that many investors are looking for and since they are diversified, there is the reduced risk of default. In addition some bond mutual funds are also federal or state tax exempt. They are also more liquid than bonds since they can be bought easily and sold in smaller units. It is not easy to buy bonds and hold them since they are not as liquid as bond funds.  

There are many different types of bond funds. The government bond funds invest in debt securities that are offered by the government such as treasury bills, treasury bonds, treasury notes etc. Then there are the municipal bond funds that invest in securities issued by the state and/or local governments for doing public works like building bridges, constructing schools etc.

Some of these are exempt from federal taxes since they have the backing of the federal government. The corporate bond funds invest in debt securities of corporations. They are a bit more risky than the other two types as they are not backed by the government. Despite this, they pay out a higher income in comparison to government funds.

Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Mutual Funds and how to effectively invest your money. Mutual Funds

Article Source:http://www.articlesbase.com/investing-articles/bond-mutual-funds-best-for-those-who-want-low-risk-investment-1427273.html

WORKING CAPITAL FINANCING –BOON TO BUSINESS

November 8, 2011 Posted by admin

INTRODUCTION:

It is widely accepted that every successful business must have a strong working capital position. It is in this context; an attempt was made to explain the concept and various determinative factors influencing net current assets below:

Gross working capital refers to working capital as the total of current assets. That is to say, Gross working capital = Total current assets.
Net working capital refers to working capital as excess of current assets over current liabilities. In other words net working capital refers to current assets financed by long term funds or capital employed of the business.

 Accordingly, Net working capital = Current assets – Current liabilities

The net working capital position of the firm is an imperative contemplation, as this will determine the firm’s profitability and risk. Here the profitability refers to profits after expenses and risk refers to the probability that a firm will become technically insolvent where it will be unable to meet obligations when they become due for payment.

A finance manager has to make an appropriate financing mix, which will limit the risk and increase the profitability. Financing mix refers to the proportion of current assets financed by current liabilities and long term funds.

There are two approaches which determine the financing mix (1) Aggressive approach (2) Conservative approach.

According to aggressive approach the long term funds are used to finance only the core or fixed portion of current assets (e.g., minimum level of finished goods inventory, raw material etc) and the other portion i.e. temporary and seasonal requirements are financed by short term funds. This is of high risk and high profit financing mix.

According to conservative approach the total current assets are financed from long term sources and short term sources are used only in emergency situation i.e. when there is an unexpected cash outflow. This is of low-risk and low-profit financing mix.

As we observed two methods of financing mix, one method is of high risk high profit and other is of risk low profit. A finance manager has to trade off between these two extremes.

Operating Cycle:

As there is a time lag between sales and realization of receivables there is a need for sufficient working capital to deal with the problem which arises due to lack of immediate realization of cash against goods sold. The operating cycle is the length of time required for conversion of non-cash assets into cash. This operating cycle refers to the time taken for the conversion of cash into raw material, raw materials into work-in-progress, work-in-progress into finished goods, finished into receivables into cash and this cycle repeats.

The operating cycle length differs from firm to firm. If a firm has lengthy production process or a firm has liberal credit policy the length of operating cycle will be more. On the other hand, if a firm does not extent credit or the firm is not a manufacturing concern i.e. where cash will be converted into inventory directly then the length of operating cycle will be reduced to a greater extent.

The length of operating cycle is calculated based on the following:

  1. Raw materials storage period    (RMSP)
  2. Work in process period              (WIPP)
  3. Finished goods storage period   (FGP)
  4. Debtors collection period            (DCP)
  5. Creditors Payment Period           (CPP)

Therefore Length of operating cycle = 1+2+ 3+4-5

FACTORS INFLUENCING WORKING CAPITAL NEEDS:

A firm should have neither low nor high working capital. Low working capital involves more risk and more returns, high working capital involves less risk and less returns. Risk here refers to technical insolvency while returns refer to increased profits/earnings. The amount of working capital is determined by a wide variety of factors:

  1. Nature of Business: The working capital requirement of a firm depends on the nature of the business. For example, a firm involved in sale of services rather than manufacturing or a firm is allowing only cash sales. In the first instance, no investment is required in either raw materials or WIP or finished goods, while in the second occasion there exists no receivable as there is immediate realization of cash. Hence the requirement of working capital will be lower.

 2    Seasonality of Operations:

If the product of the firm has a seasonal demand like refrigerators, the firms need high working capital in the periods of summer, as the demand for the refrigerators is more and the firm needs low working capital in the periods of winter, as the demand for the product is low.

3.      Production Cycle:

The term production cycle refers to the time involved in the manufacture of goods. It covers the time span between the procurement of the raw materials and the completion of the manufacturing process leading to the production of goods. As funds are necessarily tied up during the production cycle, the production cycle has a bearing on the quantum of working capital.

The longer the time span of production cycle, the larger will be the funds tied up and therefore the larger the working capital needed and vice versa.

4.Production Policy:

The quantum of working capital is also determined by production policy. In case of the firms having seasonal demand of the products like refrigerators, air coolers etc. and the production policy of the firm determines the amount of working capital requirement. If the firm has production policy to carry production at a steady level to meet the peak demand, this will result in a large accumulation of finished goods (inventories) during the off-seasons and the abrupt sale during the peak season. The progressive accumulation of finished goods will naturally require an increasing amount of working capital. If the firm has production policy to produce only when there is a demand then the firm needs low working capital during the slack season and high working capital during season.

 5. Credit Policy:

The level of the working capital is also determined by the credit policy, as the firm’s credit policy determines the amount of receivables. If the firm has a liberal credit policy, then the firm needs high working capital and the firm needs low working capital if the company’s credit policy does not allow it to extend credit to the buyers.

6. Market Conditions:

The working capital requirements are also determined by the market conditions. In case of the high degree of competition prevailing in the market the firm has to maintain larger inventories as customers are not inclined to wait for the product. This needs higher working capital requirements. If there is good demand for the product and the competition is weak, a firm can manage with smaller inventory of finished goods, as customers can wait for the product if it is not available in the market.

Thus, a firm can manage with low inventory and will need low working capital requirements.

 7.Conditions of Supply:

The availability of raw materials and spares also determine the level of working capital. If there is ready availability of raw materials and spares, a firm can maintain minimum inventory and need less working capital. If the supply of raw materials is unpredictable, then the firm has to acquire stocks as and when they are available for ensuring continuous production.

Thus, the firm needs to maintain larger inventory average and needs larger requirementofworkingcapital.

CONCLUSION:

From the above discussion, it is made clear that the objective of financial management is to maximize the shareholders wealth. Hence, it is needed to generate sufficient profits. The profits generated depend mainly on sales volume. When the goods are being sold on credit as is the normal practice of business firms today to cope with increased competition the sale of goods cannot be converted into cash instantly because of time lag between sales and realization of cash. Further this is possible only through evolving effective working capital policy and better administration on current assets financing.

 

 

 

Dr.R.SRINIVASAN is a Post graduate in commerce and Management. He received his doctoral degree from Alagappa University in 1997. He is now Working as an ASSOCIATE PROFESSORin Post graduate and Research Department of Corporate Secretaryship at Bharathidasan Government College for Women (Autonomous), Pondicherry University, Puducherry.He currently teaches Accounting ,financial management and Research Methodology Subjects. Before Joining BGCW, he was teaching in SNR College, Coimbatore, Sindhi college, Chennai& T.S.Narayanasamy College, Chennai for eight years. He was with the industry for a short term at Salzar Electronics Pvt. Ltd, Coimbatore. He has about 20 years of teaching experience and having research experience of 15 years. His interests are in Accounting and finance, Capital Market, Quantitative Methods. He underwent the Faculty Development Programme at Indian Institute of Management Ahmedabad during 2000-01. He has presented 20 papers in national and international conferences and has published twenty papers in the areas of Finance and Human resource Management in National Journals. Co-authored a book titled, ‘Investors Protection, published by Raj Publications, New Delhi He has delivered lectures in contemporary finance topics at Pondicherry University. He is involved in consultancy projects for Godrej Saralee, Chennai in the areas of Statistical Applications. He has supervised a number of research projects in the area of corporate finance and Human Resource Management. He is the Board of examiner in corporate Secretaryship and Management for the past two decades.
.

Article Source:http://www.articlesbase.com/investing-articles/working-capital-financing-boon-to-business-1359680.html

How To Buy Mutual Funds Online

November 5, 2011 Posted by admin

If you want to make investments, you need to know as much as you can on how to buy mutual funds. Mutual funds are the way to go in order to make really good investments in your purchase.

This is because these are very easy to buy and these are also very simple to sell. Mutual funds are rich in benefits and features. You will have to do your homework on how to buy mutual funds.

You need to identify which of these can accommodate what you need and can provide you with the investment that you can get your hands on.

The first step is to get the basic steps on how to buy mutual funds. This is basically a portfolio that contains the variety of securities like bonds, certificates, and stocks.

Most of these funds have concentration or a focal point that can guide you in the kind of investment that you are venturing.

The next step if you are going to buy mutual funds is to identify your investment goals. The specific objectives eventually determine the sort of the mutual fund that is very appropriate to your needs.

If you are going to pay off for your college education or save up for your retirement, it only makes sense that you get as much profit as you can with your mutual fund.

Determine how you buy mutual funds and make it reflect in your overall portfolio. The whole investment is only the portion of your collective assets. These should then be allocated to your mutual funds in accordance to your plan.

You can determine the percentage and then just strictly stick to these. If you are going to buy mutual funds, double check whether these consist stocks which may be a risk in your investment.

After having done these, the next step on how to buy mutual funds is to evaluate your risk level. You can tailor your investments in such a way that you are less aggressive.

It is important to be averse on the market but sometimes the best thing to do is to just let it flow. You don’t need to be sleepless at night. Just make a sound decision and hope that the process you did on how to buy mutual funds is a good investment.

Finally, when you search for the mutual funds to buy then the financial magazines that you need to rate depend on the risks, performances, and the other parameters of such funds.

Discover which are the best sites to buy mutual funds online. Learn which are the best performing mutual funds at my site.

Article Source:http://www.articlesbase.com/investing-articles/how-to-buy-mutual-funds-online-1349623.html

History of Cigars

July 3, 2010 Posted by admin

Ah, the fine premium cigar. There truly is nothing to compare to the experience of a fine cigar, a glass of really good cognac, and an evening in the shade. It is a peaceful experience to say the least.

However, have you ever looked at your high-profile smoke and wondered what the events were that led to the making of it? Most true cigar aficionados have at one point or another.

The chain of events that led to the production of the cigar that you now hold in your hand is a long one, spanning back over 500 years. It all began when a brave explorer by the name of Christopher Columbus decided to throw caution to the wind and risk it all to prove that there was more to the world than everyone knew at the time. In 1492, he found success, along with a little something in the new world called tobacco.

Ironically, Luis De Torres of a Spanish Envoy to America decided to take some back to his home for personal use. After spotted lighting it, he was arrested for witchcraft and sentenced to a decade in prison.

The presence of tobacco popped up again as Cortez stumbled upon a tribe of Aztec natives that are smoking tobacco. Through Cortez, the tobacco makes its way throughout Spain. From there, the pipe-smoked substance began to grow in fame and use. By the mid 1500’s, tobacco had made its’ way all the way to France where the first seeds were planted and cultivated by a monk by the name of Andre Thevet.

From there, tobacco made its’ way to the distant lands of Portugal, Russia, Turkey, and Italy. The Portuguese, via a trade route, introduce it to the Japanese. Onward it spreads to Morocco, Egypt, and even to the Philippines. Finally, in the early 1600’s, it makes a full historical circle as documents reveal that the husband of Pocahontas, John Rolfe, brings tobacco to the state of Virginia.

By the early 1600’s, Cuba has built a solid name for fine tobacco growth and becomes the major supplier for the majority of the known world.

In the mid 1700’s, the infamous Catherine the great creates the cigar band as a concept. It seems that Catherine would smoke cigars so often that her fingers would take on a brownish colored stain. Therefore, to avoid this, she had a band designed so she could hold her cigars without the irritating stain.

From there, it is only a matter of time until the major brands began to establish themselves. Cohiba, H. Upmann, Partagas, El Rey del Mundo, Sancho Pancza, Romeo y Julieta, Hoyo de Monterrey, Montecristo and the rest of the premium cigars that you and I enjoy today become very notable over the next century.

That brings us to the here and now. Today, we can sit back and enjoy our fine cigars knowing that they have a history that dates all the way back to Christopher Columbus. So when you enjoy that next high-profile smoke, blow a plume and say, “Here’s to you Chris!”.

Denis is the author and webmaster for CigarInspector.com, your source for cigar reviews and cigar ratings.

Buying Cigars from Cuba

July 3, 2010 Posted by admin

Every cigar aficionado knows that the very best cigars come from Cuba.  Unfortunately, buying the best can often be a risky proposition.  But many cigar enthusiasts are willing to take the risk to get a taste of the very best.  If you’re wondering just how one would get their hands on a box of Cubans, read on.  Because of the relationship between the United States and Cuba, know that there are a lot of people looking to take advantage of cigar aficionados.  Purchasing Cuban cigars should be done with great caution in order to avoid getting duped.  

First, know that importing cigars from Cuba is considered illegal.  The United States placed economic sanctions on the Cuban government in 1963.  Ever since then, Cuban cigars have become the holy grail of cigar enthusiasts.  There is, however, one loophole: visitors to Cuba who return from a sanctioned and licensed visit are allowed to bring back cigars.  However, visitors are not able to bring back more than $100 worth of cigars, and they must be intended for personal use, and not for resale.  

Any other ways of obtaining Cuban cigars is considered illegal.  It is in fact illegal to buy, sell or trade Cuban cigars in the United States.  Fines for illegal trading, buying or selling of Cuban cigars may face up to $55,000 in civil fines.  This type of fine, however, is quite rare.  The more likely scenario is that you’ll have your cigars confiscated.  

When purchasing a box of Cuban cigars, be prepared to fork over quite a bit of your cash.  Prices can range from about $150 to $500 or more.  If you’re offered a box below these prices, chances are it may not be the real thing.  Most Internet businesses that sell purportedly genuine Cuban cigars tend to be imitations.  Always avoid shops or retailers that offer “discounted” Cuban cigars.  

How to get your hands on the real thing?  The easiest way to get a box of authentic Cuban cigars is to head north to Canada.  Buy them in Canada and repackage them so that they are not in their original Cuba packaging.  Remove the rings and place the cigars in a different box.  Customs agents tend to not inspect cigars carefully, and it is generally not considered a serious offense to bring Cuban cigars into the United States.  In fact, many clerks at tobacco shops will even offer to repackage Cuban cigars for you.

Health Food Scams

June 24, 2010 Posted by admin

Recent infomercials for various health food and supplement “miracles in a bottle” brings to mind the old fable of King Jack, the ruler of Anesthesia:

Content with the state of affairs throughout Anesthesia, but sensing the need to be more in touch with his constituents, King Jack appointed members of his staff to seek out the knowledge from the greatest minds in the kingdom. Upon their return they presented the king with several volumes worth of information. Delighted with the response, yet perplexed with the amount of data collected, King Jack responded with a request to condense the information into a single volume.
After an initial assessment of the condensed version, the king then petitioned to have the information expressed in a single phrase consisting of five words or less. The advisors to the king deliberated for several days and returned with their consensus on the single phrase which best represented the wisdom of the intellects throughout Anesthesia; “THERE AIN’T NO FREE LUNCH.”

It is a “free lunch mentality”, as proclaimed through various marketing channels, that offers physical and mental nirvana through indulgence in commercially available brews, nutriceuticals and medicinal concoctions without legitamite regard for the fundamental principle of pharmocology. Surely if these products have any viable active ingredients, there are certain to be potential complications associated with intoxication or contraindications. Intuitively, a red flag should go up in our heads every time we are confronted with a product that will most certainly have some known and unknown physiological effects. That which is construed as truly pure, or natural is certainly the antithesis of the movement that advocates the mass consumption of food extracts or concentrates held together with binders, suspended in questionable diluents, or encased in synthetically derived gel caps.

Public scepticism over contemporary therapeutic medicine has been a contributing factor to the evolution of a billion dollar health quakery industry. Proponents of the health food culture support what they refer to as a “natural” approach to health and vitality through the use various pills, powders, and potions. Among these products are everything from megadoses of vitamins and minerals to nostrums such as bee pollen, ginseng root, dired algae, and a range of homeopathic products.

These medicinal potions are promoted as having generalized curative or restorative powers for everything from the common cold, chronic fatigue, and sexual disfunction to cancer, heart disease, diabetes, and other assorted chronic diseases. Beyond the question of efficacy, the consumption of such products may indeed preclude the use of scientifically substantiated medical protocol. Promoted with the cooperation of newspapers, magazines, book publishers, multilevel marketing schemes and franchised retail outlets, these concoctions are unregulated and readily dispensed without provisions for gender, individual physiology, or guidance concerning contraindications or toxicity.

Product promotions are based on a distorted logic that attempts to extrapolate a correlation between an outside piece of scientific data, and a health food product. Independent third party testing of some supplements suggest an absence of a viable quality control program as witnessed through product inconsistencies, impurities, degradation, and bacterial contamination.

The Health Food Industry Free Ride

The Dietary Supplement Health and Education Act (DSHEA) of 1994 classifies herbs – and concentrates, extracts, and constituents of herbs – as “dietary supplements” and shelters such products from drug and food-additive regulations. The act transferred the burden of proof of safety from supplement manufacturers to the FDA. This act provides the loophole by which the marketers of dietary supplements can make exaggerated health claims for everything from Bermuda grass clippings to mountain lion urine, and it would be up to the FDA to prove the product unsafe.

Natural Food Better than Processed Food?

The term ‘natural’ has become a catch-word for numerous consumable products ranging from beer to cough remedies.

If you check the tobacco isle in your local grocery store, you will notice some brands of cigars and cigarettes labeled as using “All Natural Tobacco.” In general, a “natural” product is promoted as having an inherent goodness beyond that of its processed counterpart. Theoretically, food that incurs alteration as part of an established food processing protocol is diminished of its vital factors.

The proposition that natural foods are superior to their processed foods is short sighted and void of scientific objectivity. If we define “natural” as that produced solely by nature, not altered, treated, or disguised, then we must renounce years scientific developments in food processing technology that have provided an abundant and wholesome food supply.

* Microbiology as a science, has advanced the technology for the understanding of food-borne bacteria. Microbacterial diseases in unprocessed liquid food products such as milk and fruit juices, have been dramatically reduced, and in some cases eliminated through pasteurization. Due to numerous disease outbreaks, attributable to the consumption of unpasteurized fruit juices, the Food and Drug Administration has mandated the presence of the following warning statement for unpasteurized products:

WARNING: This product has not been pasteurized and, therefore, may contain harmful bacteria that can cause serious illness in children, the elderly, and persons with weakened immune systems.
Food allergy is a serious condition where the body’s immune system reacts to a certain component, usually a protein. The reactions can range from a mild discomfort to a more serious and life-threatening reaction known as anaphylaxis. The process of food oil refining removes the protein which would trigger such reaction, thereby eliminating the inherent dangers of touted natural or cold pressed oils.

Patulin is a toxic and potentially carcinogenic (cancer causing agent) mycotoxin found in apples at varying levels of concentration. In a study designed to compare organic and conventional apple juice, samples of each were purchased and analyzed to determine the concentrations of patulin. The conventional apple juice had patulin ranging from 250 micrograms per liter up to 4,000 micrograms per liter. The organic apple juice had patulin at rates up to 45,000 micrograms per liter. This study suggests that apple processing and concentration of patulin are inversely correlated.

In the final analysis, the accepted definition of what constitutes a natural food may lie somewhere between two opposing extremes of the conservative “mulch munching” devotee foraging for wild edibles, and the more liberal “ballpark frank, junk food junky.”

Toxic By Nature

The natural foods industry has grown largely because of the erroneous notion that naturally occurring substances makes them safer as drugs or medicines than their processed counterparts. A quantitative analytical scrutiny of that which nature has provided reveals the presence of numerous natural toxins:

Ricin, an extremely toxic lectin found in legumes and fatal to humans, was used as an insecticide at one time. Fortunately, heat destroys the toxicity of lectins.
Chick peas and vetch contain lathyrogens which can potentially cause a crippling paralysis of the lower limbs and may result in death.
Protease inhibitors are widely distributed throughout the plant kingdom, particularly in the Leguminosae and, to a lesser extent, in cereal grains and tubers.
Potatoes contain numerous natural poisons, including solanine, a narcotic-like substance. Solanine is known to cause neurologic and/or gastrointestinal problems. Solanine can build up to toxic levels when potatoes are exposed to sunlight during storage.
Cassava, lima beans, and the seeds of some fruits–apricots and peaches for example, are members of a group called cyanogens, precursors to the deadly poison cyanide. As a point of interest, laetrile is a cyanogen that was mistakenly represented as a cancer cure. While laetrile was effective in killing the cancer cells, it did so only at a concentration lethal to patient.
Broccoli, brussel sprouts, cabbage, cauliflower, mustard greens, radishes, and turnips all contain small amounts of goitrogens (glucosinolates), that can enlarge the thryroid gland and aggravate thyroid problems. Goitrogens are estimated to contribute approximately 4% to the worldwide incidence of goiters in humans.
The most potent natural toxins responsible for human health risks are the mycotoxins. These are toxic metabolites produced by fungi infesting foodstuffs, especially cereals and nuts. Mycotoxins are known to have caused ergotism “St. Anthony’s Fire,”
To avoid poisoning, eat all foods in moderation, choose a variety of foods, and avoid fad diets that advocate single food consumption concept.

Toxicity Through Concentration

Any substance in food may have a degree of toxicity whether naturally occurring or deliberately added. The problem with eating a food concentrate is that it maximizes the amount of a particular hazardous substance. Once again we are faced with the “more is better” mentality. Can an extract from food be more healthful than the food itself? Let us consider fruit juice. A glass of orange juice contains about one tenth as much fiber as an orange and twice the calories. The effects of the juice on the human body are as straight forward as physiology 101.

Fruit juices drive blood sugar levels too high. The rise in sugar calls out extra insulin, which in turns stimulates the appetite. This mechanism is especially bad news for diabetics and for people trying to lose weight. Juice is good food, but it isn’t medicine, and certainly is not better than the whole fruit. Ounce for ounce, orange juice has about as much vitamin C as an orange. The fruit itself contains more of some nutrients, and especially more fiber and photochemical.

The Omega-3 Craze

Derived from eating fish, omega-3s may reduce blood clotting, reduce triglycerides, and make the heart less susceptible rhythm abnormalities. In addition, research has demonstrated that fish oil may help relieve inflammatory symptoms of auto-immune diseases such as rheumatoid arthritis or psoriasis.

Fish oil capsules however, come with potential adverse effects, including an excessive reduction in the ability of blood to clot, increasing the risk of hemorrhagic stroke. The capsule form may also raise cholesterol levels in some individuals. Further more, as pesticide resides concentrate in animal’s fat, fish oil capsules serve as a potential source of concentrated pesticides.

Vitamin Toxicity

Vitamins are categorized as fat-soluble and water soluble. The fat soluble vitamins—A, D, E, and K—generally occur together in the fats and oils of foods. These vitamins are stored in the liver and fatty tissues until the body needs them. It is the capacity to be stored that allows for a potential toxic buildup of fat-soluble vitamins. 25,000 IU daily of vitamin A may cause liver damage or lead to anemia and gout – a form arthritis. The best way to ensure a safe vitamin A intake is to steer clear of supplements and instead to eat foods to obtain it.
Vitamin D is the most potentially toxic of all vitamins. People who take supplements containing vitamin D may easily overdose, not aware that their tissues are building up stockpiles of the vitamin. Overdose of D leads t loss of appetite, nausea, vomiting, diarrhea and serious disorders involving the calcium content of the blood and the distribution of the calcium ion throughout the body.

Cases of vitamin E toxicity are rare, and high doses taken over a short period seem to have no adverse effects. People that take anticoagulant medication risk uncontrollable bleeding when they take large doses of vitamin E.

Vitamin K toxicity can result when supplements of a synthetic version of vitamin K are given, especially to infants or pregnant women. Toxicity induces breakage of the red blood cells and release of their pigment which colors the skin yellow. Vitamin K toxicity also causes brain damage. Because the vitamin K contained in supplements can easily reach toxic levels, it is available as a single vitamin only by prescription.

The water-soluble vitamins–B vitamins and vitamin C– are easily absorbed by the body and just as easily excreted in the urine. Foods never deliver toxic doses of the water-soluble vitamins, but the large doses concentrated in some vitamin supplements can reach toxic levels. Women who exceeded 2 grams of vitamin B6 daily (a touted cure for the symptoms of PMS), were reported to have experienced numb feet, accompanied by lost sensation in their hands, and an inability to work.

Since the first report of vitamin B6 toxicity, researchers have seen toxicity symptoms in more than 100 women who took vitamin B6 for more than five years. The potential toxicity of vitamin B6 is yet another reason why people should not self diagnose and self-prescribe vitamins for their own illnesses.

Among his contributions to science, Linus Pauling, is credited for research on the beneficial effects of vitamin C. Since Dr. Pauling first published his book claiming that large doses of vitamin C will prevent or cure colds, many studies have been conducted that have refuted this claim. Currently there is no objective scientific study that supports the notion that a cold can be prevented or cured by taking this vitamin. Large doses taken during a cold however may ease some of the symptoms because vitamin C serves as a mild antihistamine.

Toxic levels of vitamin C can produce diarrhea, cause nutritional imbalances, deprive tissues of oxygen, interfere with the action of vitamin E, and may produce kidney stones. Vitamin C supplementation at any dosage is dangerous for people with an overload of iron in the blood. Vitamin C increases iron absorption from the intestine and releases iron from storage.

Medicinal Herbs

At least 25% of the medicines prescribed by physicians in this country today are based on active ingredients in plants. It is the recognition of the life giving properties of botanicals that has had such a strong influence on the environmental initiative for rain forest preservation. To reiterate an earlier statement, a herbal or botanical product that contains useful constituents is likely to have some harmful ones as well. A few of the more noteworthy for their toxicity are as follows:

Belladonna
Any part of the deadly nightshade plant; a fatal poison.
Chaparral
This herbal product is made from ground leaves of the creosol bush. It has been found to cause acute toxic hepatitis.

Comfrey
Contains cancer-causing chemicals

Echinacea
Has not been proven effective in preventing disease and is not recommended for long-term use, since the practice may actually depress the immune system.

Ginkgo biloba
An extract of a tree of the same name, claimed to enhance mental alertness, but not proved to be effective or safe.

Ginseng
A plant containing chemicals that have stimulant drug effects. Ginseng abuse syndrome is a group of symptoms associated with the overuse of ginseng, including high blood pressure, insomnia, nervousness, confusion, and depression.

Hemlock
Any part of the hemlock plant, which causes severe pain, convulsions, and death within 15 minutes.

Horse chestnut leaf
Has been associated once with hepatitis.

Kombucha
Proclaimed as a treatment for everything from AIDS to cancer but lacking scientific evidence and FDA approval. Also known as Manchurian tea, mushroom tea, or Kargasok tea.

Sassafras
Root bark from the sassafras tree, once used in beverages but now banned as an ingredient in foods or beverages because it contains cancer-causing chemicals.

Sweet clover
Source of coumarin.

Blue-Green Algae
Spirulina, a blue-green algae is said to be a rich source of protein and vitamins, effective at treating such conditions as obesity, alcoholism, herpes, diabetes, arthritis and cancer. While the plant does contain 65 to 70% protein, white fish is a less expensive alternative at 97% protein. Chicken and beef come in at 75 to 80% protein.

Numerous investigations into the nutrient value of spirulina show that the high vitamin B12 content is attributed to contamination with insect or animal fecal matter. These results are not unexpected as spirulina is extracted from open lakes and ponds with little washing prior to being dried. In addition, some strains of spirulina have toxins that can cause nausea, diarrhea and throat infections.

Cancer Fraud

Unsound products for prevention and cure of cancer comprise a large segment of today’s medical fraud. When people hear of exciting research reports that hint at cancer prevention, they want to apply the findings right away. One very popular supplement marketing ploy involves the claim that the medical establishment has suppressed information on their particular medicinal concoction. The strong desire for control over cancer makes consumers vulnerable to those who would victimize them for profit. Just a few of the more blatantly fraudulently promoted products include beta-carotene, phytochemcials, kombucha, laetrile and vitamin megadose.

* Beta-carotene. While research has established a correlation between between diets rich in beta-carotene and a reduced cancer risk, an exact mechanism by which beta-carotene might prevent cancer has not been established. Though there is no conclusive evidence that beta-carotene has any effect on cancer, the supplements are still being sold as anticancer agents.

* Phytochemicals. As a relatively new isolate, phytochemical interactions with body systems are not fully understood. Some appear to act as weak carcinogens. Others mimic steroid hormones.

* Kombucha. Promoted as a cancer preventer, arthritis reliever, and baldness cure, this tea is derived from yeast and bacteria. A report in a recent medical journal told of two women who drank an extra strong brew and had to be rushed to the emergency room with a life threatening acid condition of the blood. One woman died, the other woman was resuscitated following cardiac arrest. The Center for Disease Control has asked physicians to be on the lookout for serious side effects in their patients who make and drink kombucha.

* Laetile. Laetrile is registered with the U.S. Patent Office for the treatment of “disorders of intestinal fermentation.” This compound is chemically related to amygdalin, a substance found naturally in the pits of apricots and various other fruits. Since fruit seeds are natural sources of cyanogens, good number of patients treated with laetrile developed signs of cyanide toxicity. The Laetrile following started with a pharmacist-physician who developed one concoction after another for the treatment of serious diseases, especially cancer. It continued with his son, a self-imagined scientist, who spent many years in college but failed to earn any graduate degree. A man who earned his fortune from gun-running and a catholic newspaper columnist promoted it as a persecuted drug that cured cancer. After it was dubbed “vitamin B-17,” an army of health food devotees promoted Laetril, along with vitamins and diet, as nature’s answer to cancer.

* Vitamins. There is not a single responsible study demonstrating that large doses of any vitamin or mineral have ever prevented cancer in a human. The American Cancer Society recommends that the diet include in its variety some foods rich in Vitamins A and C, but it specifically does not advocate supplements, let alone megadoses.

As long as there remain crippling and fatal diseases, there will undoubtedly be individuals eager to offer “alternatives” to scientific treatment and large numbers of desperate individuals willing to purchase them.

How To Tell The Facts From The Myths

You know your being scammed when you see…

1) Anecdotes and testimonials to support claims. Assuming the testimonial has any authenticity, how can anyone tell if a cure or remission is specifically due to cause and effect, or if it is due the placebo effect, coincidence, or spontaneous improvement.

2) Illegitimate credentials and degrees, or credentials outside their professed area of expertise. The late Carlton Fredericsk had a Ph.D. and was referred to as Dr. Fredericks in his radio nutrition shows. His Ph.D. however was not in a health science but in the field of radio communications.

3) Natural vitamins are preferable to synthetic ones. The human body does not distinguish between the so-called natural vitamins and the their synthetic counterpart. In either case the chemical composition is the same. To reiterate an opening statement, and without going into laborious data, the synthetic vitamin is more likely to be manufactured under stricter quality control, and hence offers a more consistent product.

4)The persecution complex. A great many supplement and/or methodology promotion will incorporate a statement about a greedy, closed medical establishment that shuns his or her products from fear of competition.

5) The false contention that most diseases and symptoms are due to a faulty diet and can be treated with proper nutrition. No amount of any kind of nutritional supplementation can change a genetic predisposition to develop disease. No amount of supplementation can reverse the role of excessive intense, intermittent sun exposure resulting in melanoma. Aside from deficiency diseases such as ricketts, beri beri, or scurvy, there is little legitimate evidence that most diseases and symptoms have any significant relation to diet.

6) Food processing or storage is claimed to destroy foods’ nutritional quality. It is erroneous to make such an all encompassing statement concerning processed foods. Milk is processed to the extent that it is pasteurized. Foods processed with vitamins C and E preserve food quality by preventing oxidation.

7) Fructose is preferable to other forms of sugar. The delusion that fructose is an acceptable form of sugar is quite prevalent in many nutritional circles. Nearly all simple sugars are metabolized quickly and disrupt insulin levels which contributes to most chronic illness. Do not be mislead. Avoid fructose just like you would table sugar as they both cause similar problems. Do not be fooled by products that claim to contain “all natural” sweeteners. Added ingredients like brown sugar, raw sugar, fruit sugar, honey or maple syrup are treated no differently from table sugar once they enter the bloodstream.

8) Practitioners who use computerized questionnaires to diagnose nutritional deficiencies. Nutritional deficiencies are diagnosed by appropriate medical tests and examination, not by computers. Any computer used for this purpose is likely to be programmed to recommend supplements for virtually everyone.

9) Outrageous claims are couched in pseuscientific terms or jargon. Some examples from actual magazine ads:

- Subjects who used _________experienced an extraordinary 3860% greater total fat loss than subject who used a placebo.

- ______ is better than any ephedrine based fat burner with its precise combination of pharmaceutical pure 1R,2S Norephedrine HCI, Yohimbine HCI, and Caffeine. The incredibly potent 1F, 2S Norephedrine HCI has been shown in vertebrate studies to be the most thermogenic ephedrine type alkaloid. In one study, only amphetamine itself was more potent!

- A new breakthrough scientific discovery has uncovered the unique substrate activity that controls the key “genetic-marker” shown to regulate muscle growth and fat loss. Now think of the possibilities in new muscle growth. Imagine being able to supply your body with the very substrates that trigger muscle growth, fat loss, and even immune system enhancement. Pseudoscience provides easy answers, dodges skeptical scrutiny making us victims of credulity. Practitioners of pseudoscience purport to use scientific methodology, while in fact they are faithless to its nature.

Tze Khit is one of the directors and also a personal trainer from Personal Trainers Singapore (http://www.pt.com.sg), the LARGEST & most POPULAR personal training company in Singapore.

Purchasing Discount Cigars

June 12, 2010 Posted by admin

Cigars are available in a wide range of prices with a great variety in terms of qualities. While the most discerning cigar fanatic can purchase cigar brands that cost upwards of several hundred dollars for just a small pack, he may also choose from a range of discount cigars that promise a really pleasing smoking experience. In fact, many people do not know that some of the high quality brands of cigars can be purchased at steeply reduced prices; only if one is ready to do a little search around. Discount cigars constitute a substantial portion of the multi-billion dollar cigar industry in North America, making the cigars accessible to smokers belonging to all income levels.

One of the widely accepted methods of purchasing discounted cigars is via the Internet. Even a simple search for ‘discount cigars’ is bound to produce hundreds of results with lots of low-priced cigar brands to choose from. There are many prominent discount cigar merchants also that offer low-priced cigars, lighters and humidors. Some popular sites are perfect for any cigar lover looking for quality tobacco and cigar products at reduced prices. Some of the most liked brands of premium cigars are made available at highly discounted prices. These brands feature several different types of cigars having varying tastes. Even though, they are available at discounted prices, they do not compromise on quality, and those types of cigars are widely purchased and smoked by smoking enthusiasts all over the world.

The key way to avail of real savings in discount cigars is by buying them in bulk. Often, when an individual opt to buy a large assortment of tobacco cigars at one go, major discounts are provided. Cigar bundles are a popular choice among smokers who yearn for a variety of cigar choices or sheer quantity for purposes of gifting them to friends and relatives. Although a few of the well known brands of cigars are always expensive, discount cigar sellers can make cigars and cigar products affordable for people belonging to all income groups.

On the other hand, everyone knows that it is risky to smoke cigars and cigarettes, but only a very few know about the dangerous effects of smoking a cigar. Smoking tobacco cigars on a daily basis is proved to be dangerous for your health. Studies have revealed that cigar smoking cause cancers of the lungs, oral cavity and oesophagus in human beings. More recent studies state that pancreas cancer is also caused, in rare instances, by cigar use. The chances of contracting heart and lung diseases will get increased as you enjoy cigars by inhaling the tobacco smoke. The smoker is at an increased risk of contracting oral cancer compared to a nonsmoker. The deleterious effects of regular cigar smoking are well documented and are well known. Another thing is that it is more addictive when compared to cigarettes. It does not matter at all the way in which tobacco cigars are smoked. As long as there is nicotine in these cigars, it is sure to produce addictive effects.

The author is an SEO copy writer and internet marketing specialist. To know more about Classic electronic cigarette and Dummy cigarettes visit epuffer.eu

Cigar Smoke and the Dangers of Being Exposed to it

June 3, 2010 Posted by admin

Every one has heard of the risks associated with passive smoking. A lot of people ask whether the dangers of inhaling send hand cigar smoke are as great, or even greater.

Unfortunately it seems that being around the second hand smoke from a lit cigar is just carries as much danger or even more danger then that from regular cigarette smoke.

Second hand smoke given out by lit tobacco products is classes as environmental smoke from tobacco. Environmental smoke relates to all the second-hand smoke given out from lit tobacco products, including cigarettes and cigars. Research tells is that this environmental smoke contains many of the same type of chemicals and irritants that smokers inhale on a daily basis.

All types of environmental smoke from tobacco contain, ammonia, nicotine, carbon monoxide and hydrogen cyanide, they may also contain varying amounts of benzene hydrocarbons, nitrosamines and vinyl chlorine which are all recognized as carcinogens. Due to the fact that as a rule cigars are usually considerably larger than standard cigarettes they actually release greater amounts of second hand smoke than cigarettes. Due to these facts being around second hand smoke from cigars can be a greater risk to health then inhaling second hand cigarette smoke.

Even considering that cigarettes and cigars both release similar types of environment tobacco smoke, there are in fact some key differences between both types. These key differences are due to the vastly different methods used during the manufacture of Cigarettes and Cigars.

The process of manufacturing cigars includes a long process of aging and fermentation of the tobacco leaves. During this manufacturing process, large quantities of carcinogens are made. When a cigar has been aged and fermented it is packed into a nonporous wrapper which is designed to slow the burning process of the cigar. The Fermentation and manufacturing process both add to the levels of carcinogens released into the smoke of a lit cigar.

Once a cigar is lit, to combination of carcinogens produced during the manufacturing process are released. The non-porous wrapper around the cigar also adds to an unclean burn that contains an elevated level of carcinogens.

Yet another reason for cigars producing larger amounts of carcinogens is their length and girth. To put it simply cigars are larger than cigarettes and their greater size means they emit a greater volume of smoking contain toxins, irritants and carcinogens. On top of this, and to make matters worse, cigars are designed to be smoked more slowly than cigarettes and people who smoke cigars are encouraged to “enjoy the relaxing experience” and take their time. This leads to a longer smoking time, and of course much more smoke is produced. For health reasons therefore it is advisable to avoid places where cigars are being smoked and if you personally do smoke cigars try to do so in an area which is well ventilated.

Jackie is the owner of

www.smokinghelper.com
a website which aims to provide help, information,

tips and advice to people who are trying to stop smoking and beat

nicotine addiction.

Stop smoking today and change your life forever!

Managing Investment Risk

December 30, 2009 Posted by admin

Smart investing includes risk management; however, most people focus on how much money they can make without paying attention to strategically analyzing risk.  It is important for an investor to fully understand the concept of risk before embarking on an investment plan and to implement certain safeguards to ensure their success rate is increased.

In investment terms, risk is associated with the end of period value of the investment and the primary concern for any investor is a reduction in value of the original sum invested.  There is no way of completely eliminating financial risk, even with the placement of assets in a bank account, therefore, a strategic investment plan should incorporate risk reduction techniques that have proven to create a greater opportunity of coming out ahead.

The most frequent techniques for reducing risk in investment are diversification, dollar cost averaging and time, and in order to better understand these areas we will expand upon their meaning and how they can be implemented.

Diversification

Diversification in finance mixes a wide variety of investments within a portfolio and can include investing in different markets, regions or countries.  Diversification is a frequent practice of investment managers to reduce risk without substantial reduction in returns.

Diversification reduces risk because markets do not always move in tandem and many financial instruments will react differently to market conditions.  A balanced portfolio will be less volatile than one that is concentrated on a single asset and can include the following strategies:

1)      Spread the portfolio among multiple investment vehicles.

2)      Vary the risk in securities.

3)      Vary by industry or geographical location.

4)      Vary the investment managers and the strategies used by those managers.

Dollar Cost Averaging

It is an investor’s dream to be able to enter the market at its bottom but nobody can really tell when a market has ever reached this point.  In reality, we will often see people get caught at the top of the market instead of buying low and selling high.

Dollar cost averaging is a timing strategy of investing equal dollar amounts regularly and periodically over specific time periods and is a technique that prevents investors from putting all their money in the market at the inappropriate time. 

Time as a Risk Moderator

Time not only works for investors through the power of compounding but also helps to dampen the risk of investments.  If we look at most major markets, we will see that the stock market will usually follow an upward trend with interim fluctuations.  By focusing strategies on a long term basis, many of these fluctuations can be leveled in comparison to the overall performance as recoveries happen and markets will often surpass a previous high.  It is worth noting that there is no specific formula for time as a risk moderator and indefinite waiting periods could be considered when implementing.

For any investor, the primary step in the formulation of a successful strategy should be the setting of an investment objective.  Although “to make money” may be a fair representation of your goal, it does not focus on the strategic process that needs to take place in order to achieve what we have originally set out to do.  The investment objective must be realistic and specific and should take into account the risk tolerance, personal needs and circumstance and any constraints that the investor may have.

It is recommended that every potential investor carries out a financial needs analysis.  Many companies are available to help with this and provide the direction and equipment needed to carry out a proper analysis and most should carry this important service out free of charge.  It is also vital that any company that assists a potential investor with their strategy should describe these risk reduction techniques in greater detail and explain the ways in which they can be incorporated into an investment plan.

For a free financial needs analysis and comparison of the market, contact Alliance Insurance Services on 2891 8915 or visit www.alliancegroup.com.hk

 

 

 

Alliance Insurance Services is an independent broker providing services for health insurance, life insurance, savings and investments.

Article Source:http://www.articlesbase.com/investing-articles/managing-investment-risk-1644023.html

Portfolio Risk Management

December 23, 2009 Posted by admin

One of the most basic tenets of portfolio risk management is, do not lose money. Understanding the risk, you are assuming and how you intend to mitigate this risk is what separates successful investors from those that never make any money.

There are several types of portfolio investing risk. Knowing the risk is the first step to making better investing decisions.

Macro Risk Categories

In a macro sense, there are two types of risk. Systematic risk, also known as market risk is the risk associated with the overall market. An example is the overall trend of the stock market dictates a substantial part of the total return. In this case, owning stocks from different sectors does not diversify away the systematic risk of the market.

You can mitigate systematic risks by hedging your positions with non-correlated assets (much harder to do than most think) or employ good stop management techniques to preserve your capital. While stops are not part of the Modern Portfolio Theory, they have their use and should be part of your overall strategy.

Changes in interest rates, recessions, and major catastrophes are examples of systematic risk as they affect the entire market.

Unsystematic risk, also known as specific risk or diversifiable risk is the risk inherent in each investment. Investors can offset specific risk with proper diversification.

For example, if you place all your money in a biotechnology company that has just received news that the FDA will not approve a new drug, you have encountered unsystematic or specific risk. This news would cause the share price to fall precipitously.

Had you owned shares of several biotechnology companies or better yet companies in other industries, you would have reduced your risk.

On Jim Cramer’s “Mad Money” program, he has a segment titled “Are you diversified?” People call in and give him five stocks they own in various industries. He opines whether there is sufficient diversification in the portfolio. All he is doing is suggesting how to hedge unsystematic risk. Systematic or market risk will remain in the portfolios.

Index Funds

The popular S&P 500 index funds are subject to market risk while diversifying away much of the specific risk of owning a specific stock or sector. $10,000 invested into an S&P 500 index fund on January 4, 2000 would be worth $9,373.09 as of November 30, 2009. This is the affect systematic or market risk had on this investor’s portfolio. The diversification of holding the broad S&P 500 did not keep you from losing money. Rather you felt the sting of owning the market, while employing appropriate hedge techniques would reduce or all but eliminate the affect of the losses in owning the market.

Core assets

When examining a complete portfolio it is imperative to consider fully the important factors that comprise your core investable core assets. Dr. David Swensen, the Nobel Price winner in economics, has identified three characteristics of core assets that should be part of your evaluation to help reduce systematic or market risk.

 

  • Use assets to hedge the market risk of other assets. For example, real estate is a good hedge against the ravages of inflation, while bonds offer protection from a financial crisis. By recognizing these inherent characteristics of your core assets, you can hedge some of the market risk inherent in an investing portfolio.
  • There should be fundamentally based market returns from the asset class. If you are depending only on active management of the asset class, you are increasing the risk of losses by not being investing in the market.
  • Rely on liquid markets where there is a ready market to buy and sell your core asset. Assets that cannot be immediately priced and sold, are subject to sudden and deep losses. Liquid markets give you the opportunity to employ stop loss techniques should the market turn against you as in a recession.

Your stock portfolio is part of your total asset valuation that includes savings for emergencies, real estate, bonds, and possibly precious metals. By taking this broad perspective, you have a better chance to employ overall hedges that are non-correlated to address market risk.

Asset Correlation

In Modern Portfolio Theory, the most efficient method is to create an optimal mix of asset classes that generate the highest return to risk ratio.

By owning assets that do not correlation with each other, you can reduce the risk in your portfolio. In a general sense, stocks and bonds tend to have a negative correlation. When stocks perform well, bonds do not and when bonds perform well, stocks do not.

Market sectors have various levels of correlation. Owning sectors that are not correlated highly help to reduce your risk. For example, stocks are closely correlated to their sector. In this case is better for the investor to own the sector rather than the individual. Owning the sector helps to achieve some diversification, reducing specific risk of stock ownership.

By owning asset classes that are not highly correlated, you can reduce your risk. The primary asset classes to consider are:

  • Common assets of bonds, equities, real estate and cash
  • Geographies including the United States, European Union, the United Kingdom, Japan, China, India, Brazil and Latin America, rest of Asia, the Middle East.
  • Bond types such as Treasuries, corporate, short-term or long-term
  • Major currencies including the US Dollar, the British Pound, the Euro, the Japanese Yen
  • Industry sectors.

When you blend asset classes that have a low correlation to each other, you are lowering the risk in your portfolio. Many investors fail to incorporate this thinking when they build their portfolios. Using the R-Squared factor, a correlation of 1 indicates the asset classes are perfectly correlated. A correlation coefficient of zero indicates there is no correlation in the performance of the asset classes.

For example, the S&P 500 and the Russell 2000 have a near perfect correlation of 0.97. Where as the average correlation among S&P sectors is 0.32.

Asset allocation is the most essential factor in building a high performing portfolio. Paying attention to the risk of each asset class allows you to create a portfolio that can beat the market in good times as well as bad.

Principle: Hans E. Wagner, CEO of Trading Online Markets LLC and Peregrine Advisors LLC
I began investing in high school and have remained active in the markets. A graduate of the US Air Force Academy with an MBA majoring in Finance from the University of Colorado, I continued to invest throughout my career in the US Air Force, Bank of America, Coopers & Lybrand, and working for Ross Perot before retiring at 55. During that time I have gained a very good understanding of what works and what doesn’t. I hope to impart that knowledge to others, so they can achieve financial independence as well.

Article Source:http://www.articlesbase.com/investing-articles/portfolio-risk-management-1619316.html