The Costs of Top Three U.S. Imports

It's almost impossible to ignore the fluctuating prices of oil and many capital goods in the U.S.. The markets can be unpredictable. For the world's largest import based economy with a gross domestic product of around $15684 billion, inflation stands as an everyday hurdle. So, what are the costs for being the world's largest importer?




Import Values:

As the top import of the U.S., crude oil and other industrial products account for about 30% of import costs in the economy. The U.S. pays around $36000 million annually for crude oil alone. Capital goods such as automotive vehicles and parts including engines take another 24%.

Then, Consumer goods such as food products account for another 12% of import costs. Many food products consumed in the U.S. come from Mexico, one of the main exporters to the U.S..


Gross Domestic Product:

With a gross domestic product as large as the annual total for the United States, national income and output must remain stable. An indicator of the sum of the value of imports added at every stage of production in all industries, the GDP for the U.S. aids in the forecasting of market activity.

The market controls prices. The economy guarantees the distribution of goods and services.


Issues:

Is it reasonable to expect a decline in imports and GDP in the future? What are the effects of a decline? Who will be the next largest importer?








                                                                    SOURCES:
                                      -http://www.tradingeconomics.com/united-states/imports
                                      -http://www.bls.gov/news.release/pdf/ximpim.pdf

                                                                    KEYWORDS:
                                                imports; capital goods; gross domestic product

Investing Ideas: Three Picks from the Nasdaq Index

You might be entertaining doubts about the stability of the U.S. economy after hearing about the government lockout. Some of the largest market sectors continue to slow down as we approach the beginning of a new business year. Expect a sudden pickup.





Thriving Industries:

In spite of the lockout, some industries stand out as top earners on the Nasdaq index. Especially, the mini-Computer and Wireless equipment industries have a steady grip on the respective market sectors.

Steady gains keep both industries moving forward. The holidays should push customers into the shopping mode as computer or wireless owners look to upgrade. An investor studying the index should notice several companies from the mini-Computer and Wireless industry in the Top 100 stocks on the index.


The Picks:

For under $50 a share, an investor would be able to purchase stock in the suggested stock picks. After comparing price-to-earnings and market capitalization information for the stocks listed below, I suggest investors consider:

• Hewlet Packard
• Best Buy
• Arc Wireless

Although the companies are not always the biggest gainers, your investment would remain safe in these companies. The numbers never lie. The brands are familiar.

Tips:

Complete research on individual companies by visiting the Nasdaq.com official website. Compare historical data on the suggested industries to determine the best time to buy.






                                                        

                                                                 SOURCES:
                                    -http://www.nasdaq.com/markets/barchart-sectors.aspx
                                    -http://www.bloomberg.com/quote/CCMP:IND

                                                                 KEYWORDS:
                                                market sectors; index; industry
               

Exploring 3 Types of Prime Rates

Whether you are investing in a treasury note or securing a mortgage loan, finding the best prime rate for you should be a top priority. It's simple. A 20 minute online search along with info from a bank official will help you choose the best prime rate for your purpose. So, what's the difference in the rates?



Comparing Prime Rates:

To begin comparing prime rates a borrower should understand the rates that are available on the market. Primarily, there are three main rates available:

• Wall Street Journal
• Federal Discount Rate
• Federal Funds Rate

Of the three rates, the Federal Funds Rate carries the most significance. It influences interest rates and the economy. The Federal Funds Rate ensures the costs associated with overnight lending and determines returns of bank deposit products, your money market and regular savings accounts, etc.  Still, both the Federal Discount Rate and the Federal Funds Rate affect the quoted Wall Street Journal Rate in the long run.                



On Treasury Notes:

So, there really is a link to the prime rates on mortgages and interest bearing treasury notes. Long-term treasury notes that exceed a maturity of more than two years yield returns based on the Federal Funds rate.

Comparing the rates, you will notice that the interest does not fluctuate often. Predictability encourages investors to purchase longer term notes.




Issues:

If you are interested in knowing more specific formulas for determing yields on treasury notes or borrowing costs of mortgages, you should speak to a bank official. Mention the Federal Funds rate for more information.








                                                                     SOURCES:
                                -http://www.bankrate.com/rates/interest-rates/prime-rate.aspx
                                -http://www.treasury.gov/

                                                                       KEYWORDS:
                                                     prime rates; treasury notes; mortgages

Notes from A Fundamental Analysis of the Euro and Dollar Exchange

When it comes to deciding on a better move in a currency exchange, predicting the direction of the market becomes important. Especially, completing a fundamental analysis of the U.S. markets to determine the value of the Euro and Dollar exchange gives traders an advantage. It pays.





Determinants of Price Movement:

Often times predicting the price movement of markets like the New York Stock Exchange or Dow Jones, includes focusing in on central bank policy from the Fed, socieal pressures like unemployment, or even natural disasters as was the case during Hurrican Katrina. Deciding to make big moves after relevant economic releases clears the path for greater expectations in a trade.

A "fundamental" trader would use a forecast of the U.S. GDP to determine if he or she should invest more during a given business cycle. Charts and graphs would provide more informed suggestions on which quarter to use.


Ending the Year:

Considering the best time to enter or exit a currency exchange stays as important as deciding which exchange will be best. For instance, some traders decide not to participate in end-of-the year trading when the holidays influence the markets.

But some choose to use the last quarter as a guide. They should focus on market capitalization if they want to get the most out of an end-of-the year trade. Studying to find the best exit point and setting a reasonable limit will also help.


Tips:


Remember the goal of a fundamental analysis is to only "predict" the conditions surrounding an exchange. You want to determine why a certain currency behaves under the conditions. You don't want to assign an actual monetary value on a trade.






                                                                  SOURCES:
                                            -http://www.forex.com/intro-fundamental.html
                                            -http://www.forex.com/latest-forex-research.html

                                                                   KEYWORDS:
                                              fundamental; central bank policy; price movement