Investment ideas for home makers

It is essential for women, be it working women or homemakers to keep themselves and their family financially secure. In the olden days, women generally had a habit of keeping savings in the containers in their kitchen, but today that is not going to get our savings anywhere when confronted with ever-growing inflation. It is wise to choose to invest and wiser to choose the best investment in order to keep our family and ourselves financially secure. A good Investment gives better returns than merely saving in a bank deposit or in our piggy bank and helps us to cope up with inflationary pressures.

Women and investment? Homemakers and Investments?
Not a good combination, most people would say. Definitely not, many people think homemakers make very bad investors, as they do not have knowledge about the share markets and the technical aspects of investing. Looking from a fundamental analysis point of view, they are the ones who could be good investors as they make all purchase decisions for the entire family and they are aware which company performs better for what reason. They need not have to make decisions by looking at the balance sheet of the company; they are the main consumers of most of the products around. This is a strength, which can help them analyze stocks and invest in shares and equity. They are uniquely qualified to buy and sell shares.

How does a homemaker choose appropriate investment options?
The best way to plan your investment is to know your goals. Try to take a piece of paper and write down what you would like to achieve in your life time, you might want to have a house of your own, probably a luxurious car, a world tour etc. these things that are not immediate but needs to be achieved some day. These are your long-term goals. There are a few other things that you need to achieve in another two years/ three years or more, for example higher studies, marriage, purchase a two wheeler etc., these are your short term goals, remember your short term goals keep changing as you move on in your life. Your short-term goals today are not going to be the same when you become a mother. The article discusses in detail about the investment options for homemakers at different stages of life.

Where to invest in your 20s
In your 20s, you are likely to be in your college or at your first job, so your income is definitely going to be very less. You can choose to invest them in a recurring saving deposit or bank deposits where you can earn low but regular and fixed returns. You can also choose to invest your money in mutual funds because the risk involved is lesser and you can invest very small amounts of money. Once you have started earning good money in your late 20s you can start investing your money in equities where the risk and returns are higher.

Where to invest in your 30s
In your 30s as homemakers, you might not have plenty of money to invest in, but make sure you have a term insurance for yourselves and your family. A health insurance will help keep you more secure during times of emergency. Try to cut down unwanted expenses and invest in education funds for your childrens' higher education, take up a suitable retirement plan for yourselves and your spouse. Avoid endowment plans; they carry higher charges and may not give high returns.

Avoid buying gold ornaments, they are only going to eat away your money in the form of wastage and making charges, instead, invest in gold-based funds and buy gold in the form of coins/bars.

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3 Top Ranked International ETFs Still Worth Buying - ETF ...

2013 has been a very rocky year for international investing. Emerging markets have struggled across the board, while developed markets began the year on a solid note, but lost their footing and are now facing a period of uncertainty with earnings season approaching.

This situation could definitely continue in the near term as the dollar remains strong and concerns are ever-present over the longevity of the Fed's bond buying program. These two items are making it very hard for some to risk their capital in foreign markets, as many are instead looking to keep their investment in the domestic sphere instead.

While many have likely abandoned international investments as a result of this trend, there are still plenty of good values out there. In particular, there are several top ranked ETFs which could be well-positioned to outperform in the months ahead.

That is because a trio of these ETFs have actually been able to fight through the bearish trend and still trade in positive territory for the trailing three month period. While this might not sound like much of an accomplishment, it is important to remember that in the same time frame EFA has added just 0.9% while broad emerging market funds like EEM and VWO are nearing a double digit loss for the period (see 4 ETFs on the Move After Bernanke Press Conference).

Clearly some have been able to break out of this downward channel and hold their own, suggesting that all funds haven't been sucked into the whirlpool of negative returns. So before you write off all international ETFs for the time being, consider taking a closer look at these resilient, top ranked ETFs first:

PowerShares Golden Dragon China Portfolio (PGJ)

Many China ETFs, such as the ultra-popular FXI, have been facing severe weakness lately. This is because there have been a number of poor data points for the country's economy in a number of key sectors.

However, not all China ETFs have succumbed to this weakness, as a few have managed t! o perform rather admirably. In particular, PGJ has done quite well, adding significantly over the past three months.

Part of the reason for this outperformance is PGJ's focus on ADRs and technology firms for its exposure. This has eliminated some of the panic selling issues that we have seen in Chinese markets, while the big holdings in technology, health care and consumer discretionary have been far better choices than the rocky Chinese financial market.

Given this, a look to PGJ might not be a bad idea for international ETF investors, and especially those looking for a China allocation. The fund sees decent volume and is actually cheaper than FXI despite holding more securities in its portfolio (roughly three times more firms in the basket).

Currently PGJ has a Zacks ETF Rank #2 or Buy, suggesting that this outperformance could continue (see all the Top Ranked ETFs).

First Trust Switzerland AlphaDEX Fund (FSZ)

Europe has actually been a decent performer during the recent slump, as many of the funds targeting this region have held up rather well. In fact, several major countries, like France, Germany, and the UK, have all seen price increases in the last three months, suggesting they have avoided the worst from the recent slump.

Beyond these markets, another interesting choice is in Switzerland. The country maintains some level of currency independence—still pegged to the euro despite having its own currency, the franc—while it isn't dragged down by broader euro zone woes.

This allows the country to potentially outperform some of its counterparts, or if the euro zone continues to come back, rise as well. This has certainly been the case lately, as some Swiss ETFs have paced the broad American market during the trailing three month time frame.

One of our favorites in this regard is FSZ, an ETF from First Trust. The fund uses the AlphaDEX methodology to select stocks, so while it is a bit pricier than most, it does potentially elimin! ate the w! orst rated stocks, allowing FSZ to possibly outperform (see 3 European ETFs Holding Their Ground).

FSZ also has a Zacks ETF Rank of 2 or Buy, suggesting that their process has done quite well lately, and that more outperformance could be ahead for this fund.

iShares MSCI Malaysia Index Fund (EWM)

Many Southeast Asian markets were up to start 2013, but Malaysia, thanks to electoral uncertainty, struggled. Many thought that the ruling party was going to lose its majority, but the results were strongly in favor of the Prime Minister Najib Razak and his coalition, which won another five year term.

Thanks to this reduction of uncertainty, the Malaysia ETF soared, posting solid gains immediately following the event. And since EWM had missed much of the run up to start the year, it wasn't as hit by the recent sell-off which devastated the country's counterparts in the Philippines and Thailand.

It also helps that Malaysia has a very balanced ETF, and decent sector diversification, though financials do take up about 30% of the portfolio. However, the big technology focus of the economy, along with decent sized exports of oil products, has helped it to avoid the worst of the slowdown as well.

Plus the timing of the election couldn't have been better, and likely saved EWM from the broader regional issues this time around (read Time to Buy the Top Ranked Malaysia ETF?).

This fund also is a top performer from the Zacks ETF Rank perspective, as it has a Rank of #1 or Strong Buy, suggesting that it will continue to be a good choice in the space.

Bottom Line

Global markets have been extremely weak, as talk of Fed tapering and a strong dollar have pushed down demand for international assets. And with the specter of the Fed hanging over the market—especially with the decent U.S. economy-- this issue may be present for a bit longer.

Still, there have been several international markets which have fought through this trend and have actu! ally been! doing pretty well in this environment. These top ranked ETFs could thus be great choices for investors seeking to stay in global markets, but are looking to avoid the worst and stick with the best positioned funds out there.



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Author is long EWM

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Congress Betrays Taxpayers - Again

It just so happens I have both a "trick" and a "treat" for you today.

First, the "trick."

Wednesday the House passed a bill titled The Swaps Regulatory Improvement Act.

The trick is, it's not about improving the who-really-knows-how-many trillions of dollars swaps (derivatives) market.

Instead, the bill aims to reduce restrictions under section 716 of the Dodd-Frank Act. Section 716 requires banks to spin off risky swaps out of depository institutions to subsidiaries and affiliates.

Here's what Rep. Jeb Hensarling (R-TX), chairman of the House Financial Services Committee, said on the House floor Wednesday: "Section 716 requires financial institutions to 'push out' almost all of their derivatives business into separate entities, this not only increases transaction costs, which are ultimately paid by the consumers, it also makes our financial system less secure by forcing swap trading out of regulated institutions."

WHAT? Now that's tricky!

Transaction costs? Those are borne by the traders at the banks and hedge funds that trade those financial weapons of mass destruction, not "CONSUMERS." Consumers don't trade this stuff; these are not consumer products. Consumers will only pay for these weapons of mass destruction if the banks that taxpayers - the consumers of the crap banks spew out when they fail - have to bail out the banks that trade this stuff!

But it passed.

The House measure passed by a bipartisan vote of 292-122, including 70 Democrats.

The trick was neatly exposed by Rep. Maxine Waters (D-CA), the top Democrat on the banking panel. She fumed, "This legislation will effectively allow banks to undertake derivatives trading with depositors' money. If the banks lose money on this sophisticated trading, systemic risk could creep back into our financial system, once again putting the economy - and the American taxpayers - at risk."

Now that's scary.

Next, this could be a big treat for you and me... depending on how it eventually plays out...

It's about JPMorgan Chase's record $13 billion settlement, the one that's supposed to consolidate a lot of government actions against the "too big to fail" (TBTF) bank... the settlement that's now looking like it won't happen.

Here's what the hang-up is...

JPM is being sued by Deutsche Bank National Trust Co. on behalf of securitization trusts seeking as much as $10 billion in damages. The case that began in 2009 alleges that JPM is responsible for crappy MBS (mortgage-backed securities) they originated, packaged, and sold to the trusts that are represented by DBNT.

JPMorgan is saying, "That wasn't us! That crap was stuff that Washington Mutual was responsible for. We only bought WaMu because we are good Americans and their failure back when the crisis was beginning would have hurt a lot of little peeps, so get off our backs." That's just their preamble. They continue their defense by saying, "Your beef isn't with us, your beef is with the FDIC. They are responsible for WaMu's legacy liabilities."

Ten billion dollars is a lot of money.

The FDIC is saying, "Go shove off, you losers. You bought the failed bank, the largest bank to ever fail in the U.S., with its $307 billion in assets and all those branches in California and the West for $1.9 billion to get access to all their branches and customers, where you didn't have a presence. Altruism? Shove it."

JPM is saying back to the FDIC, "No, you shove it!"

So what's really going on?

John Douglas, counsel at the law firm of Davis Polk & Wardwell and a former FDIC general counsel, said in an American Banker article Thursday, "This dispute has its origins in the purchase and assumption agreement between JPM Chase and the FDIC [that was] signed in 2008, where the FDIC takes the position that JPM assumed all liabilities of WaMu, and JPM asserts it has no liability for the pre-failure errors of WaMu related to these mortgage loans."

That's the back story. Now fast forward to the $13 billion settlement.

Of the $13 billion, $5.1 billion goes to settle claims by the Federal Housing Finance Agency over mortgages securities bought by Fannie Mae and Freddie Mac. The big settlement appears to protect the FDIC in its "corporate capacity" from future JPMorgan indemnification claims. But it could leave unresolved future claims on the WaMu receivership managed by the FDIC.

In other words, if JPM settles in the big picture deal and pays the claims related to WaMu that it's saying should be paid by the FDIC, the lawyers for Deutsche Bank will argue that JPM and not the FDIC has to pay them.

The "treat" for me - and a lot of you and other peeps who aren't big JPM fans - would be if they actually settle for the $13 billion and in doing so expose themselves in the Deutsche case and remove the FDIC from harm's way. That would be a treat, not because the bank might have to pay billions more (though that's okay with me on account of the fact it further exposes them and other banks to similar lawsuits for the pain they inflicted across the globe), but because it relieves the FDIC of having to potentially pay.

Because who backs the FDIC if they run out of money? The taxpayers.

Enough said.

More from Shah: The First Thing Yellen Should Do to Save America

Why This Philip Morris Earnings Report Is Crucial

Philip Morris International (NYSE: PM  ) will release its quarterly report on Thursday, and projections suggest that it will manage to deliver decent results for investors. But shareholders don't seem convinced about Philip Morris earnings, as they've recently sent the stock down substantially from its May highs.

Many investors have gravitated to Philip Morris in the belief that by doing all of its business overseas, it won't ever have to worry about cigarette warnings and other regulatory measures that its U.S. peers face. But increasingly, it's becoming evident that other countries are looking for ways to control tobacco in the same way the U.S. does. Let's take an early look at what's been happening with Philip Morris over the past quarter and what we're likely to see in its quarterly report.

Stats on Philip Morris

Analyst EPS Estimate	$1.41
Change From Year-Ago EPS	3.7%
Revenue Estimate	$8.19 billion
Change From Year-Ago Revenue	0.9%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

Will Philip Morris earnings go up in smoke this quarter?
Analysts have cut back on their earnings calls about Philip Morris lately, cutting their June-quarter estimates by $0.08 per share and their full-year 2013 consensus by double that amount. The stock has also reflected that uncertainty, falling 5% since early April.

Ever since its spinoff from Altria (NYSE: MO  ) , Philip Morris has benefited from higher growth prospects from its international sales. At the same time that Altria, Lorillard, and (NYSE: LO  ) other U.S. tobacco companies have struggled to keep their revenues moving higher, the argument is that other countries with less regulation offer better environments to foster sales growth for Philip Morris. That's true to an extent, although the edge that Philip Morris has had over its peers has narrowed considerably in recent years and is slated to continue to shrink in the future.

But Philip Morris has its own challenges to face. Last quarter, the company reported considerable underground cigarette trading in areas of southeastern Asia that cut into its overall sales volumes. Moreover, although the U.K. government delayed a decision on a potential ban on putting branding images on cigarette packs, the company nevertheless faces increased regulatory threats. The U.K. said that it wanted to see the effects of a similar measure in Australia before moving forward, suggesting that if the measure proves successful, Philip Morris could see it come up in other countries around the world. The European Union also imposed a ban on menthol cigarettes recently, upping the pressure on tobacco companies generally.

The other area where Philip Morris earnings could take a hit is in currency impacts. With all of its revenue coming from overseas, Philip Morris suffers when the dollar is strong, as adverse currency exchange rates can produce a substantial hit to its bottom line. Currency impacts tend to even out over time, but not being prepared for short-term fluctuations can result in a nasty surprise for unaware investors.

When Philip Morris reports earnings, be sure to watch the status of ongoing regulatory activity around the world, especially Australia. If results are starting to get hurt due to labeling regulation, it could be just the first step toward similar regulations elsewhere -- and that could pull the stock further downward in the quarters to come.

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Click here to add Philip Morris to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

1 Analyst Gets Bullish on Apple

Raymond James analyst Tavis McCourt seemed slightly fed up. Sentiment for Apple (NASDAQ: AAPL  ) stock is "horrible, in the institutional investor community, and ultimately we view this as feedstock for outperformance," he said. Upgrading his rating from outperform to strong buy, McCourt reiterated his $600 price target for the stock on Monday. Could McCourt be right? After all, $600 is a pretty hefty premium to today's prices.

What's next in mobile computing?
McCourt calls it phase two: When the growth of smartphone and tablet markets begins to subside, and smartphone chipsets and ecosystems start invading televisions and automobiles, and gaining "uses not currently thought of for computing devices." With the help of its vertical integration, McCourt believes that the Cupertino-based tech giant is positioned to take a large share of industry profits as it enters the second phase of the "mobile computing revolution." 

Valuation matters
All of this sounds great, but aren't there plenty of other companies positioned to benefit from this second phase, too? Vertically integrated or not, $600 is a lofty target.

McCourt's $600 price target isn't a random bullish target. In fact, it's not too far from the average analyst target of about $539. McCourt is simply being objective. The stock is cheap, he argues. He sees the Street's negative sentiment toward Apple as a good thing -- poor expectations are mostly already priced into the stock. In order for the stock to take a major hit, he explains, "trends at Apple would have to erode meaningfully." 

Just how cheap is Apple?
Using a reverse discounted cash flow valuation, and a 10% discount rate, the growth rate assumed by the market for Apple's free cash flow going forward is just 1.4%. In other words, at today's price for Apple's shares, the market expects competition and eroding margins to prevent the business from growing even at the historical rate of inflation.

To add some context, it's useful to compare Apple with another megacap cash cow: McDonald's (NYSE: MCD  ) . Ironically, Apple and McDonalds share some common characteristics as stocks. Like Apple, McDonald's growth seems to be slowing. In the company's first quarter, global comparable sales decreased 1% from the year-ago quarter. Revenue increased just 1%. Furthermore, the stock's dividend yield just barely tops Apple's; both are close to 3%. 

As far as valuation goes, however, Apple and McDonald's are as different as night and day.

Valuation Metric

Apple

McDonald's

Free cash flow growth rate assumed by the market	1.4%	17.4%
Price/free cash flow	8.9	25.5
Price/forward earnings	9	15.6

Why is McDonald's stock so much more expensive than Apple's? Chances are it's because the market is confident in McDonald's cash flow going forward. Apple, on the other hand, may leave investors nervous. Investors are asking tough questions: Can the company sustain its meteoric levels of free cash flow? How much further will the company's margins continue to fall?

But is Apple truly deserving of a valuation so inferior to McDonald's? The company's conservative valuation levels the playing field, making the stock's risk/reward profile a convincing value proposition. The market's serious concerns are arguably already priced into the stock.

The price for Apple stock is awfully cheap. Does this mean the stock is going to immediately appreciate? No. But if there is an undervalued company in the S&P 500 that looks likely to earn investors solid returns over the long haul, Apple definitely fits the bill.

With expectations for Apple stock so low, the market has seemed to largely forget about Apple's history of cranking out revolutionary products... and then creatively destroying them with something better. Does this mean Apple can never pull it off again? Or is Apple still capable of disrupting markets? Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

Universal Display Has Its Eye on the Skies

If playing an integral role in millions of smartphone displays and (soon) big-screen TVs weren't enough, the folks at Universal Display (NASDAQ: OLED  ) have fixed their eyes on aircraft interiors around the world.

On Monday, Universal Display announced (link opens PDF) that it has been awarded a $225,000 Small Business Innovation Researce Phase I grant from the U.S. Department of Energy, through which it "will partner with and subcontract IDD Aerospace/Zodiac Lighting Solutions to evaluate and demonstrate the potential for energy-efficient and cost-effective white OLED lighting panels for aircraft interiors."

I suppose UDC couldn't have found a better partner. IDD Aerospace, for its part, describes itself as "a global leader in the development and supply of state of the art lighting solutions for the aerospace industry," creating "modern and sophisticated lighting solutions that take into account human factors from the comfort of the cabin to the complexity and criticality of flight deck instrumentation." 

The release goes on to highlight the fact that solid-state OLED lighting panels sport a number of advantages over their fluorescent and incandescent counterparts, including "energy savings, reduced fuel consumption and carbon emissions, and minimal space requirements."

That said, both UDC and its licensed customers have long remained hard at work continuously improving both the efficiency and utility of OLED lighting solutions, with those lighting-centric customers most notably including electronics giants like Philips (NYSE: PHG  )  and their respective Lumiblade series, design extraordinaire Acuity Brands (NYSE: AYI  ) , and LG Chem, which reportedly plans to begin mass-producing the flexible OLED lighting panels shown in the video below, as soon as September:

Even so, keep in mind this is still an early phase SBIR program and OLED lighting remains in the very early stages of development. As a result, investors should continue to temper their expectations with regard to just how quickly OLED lighting can be introduced to and accepted by the mass market.

After all, UDC and its customers still need to solve remaining technical hurdles for OLED lighting including efficiency improvements, encapsulation techniques, manufacturing costs, and infrastructure for mass production. After that, OLED lighting will still face significant headwinds (in the short term, anyway) unseating traditional LED-based lighting solutions from companies like Cree (NASDAQ: CREE  ) , which is currently enjoying its status as the heir apparent for replacing incandescent and fluorescent lights as they're inevitably phased out.

Now that doesn't mean investors should wait to buy shares of Universal Display until OLED light panels hit your local hardware store. To the contrary, just last week I explained why both Universal Display's current dominant position in mobile and the imminent arrival of large-screen OLED TVs was more than enough to entice me to buy more shares for my personal portfolio.

In the end, then, OLED lighting should serve as yet another reminder of Universal Display's immense potential down the road -- and yet another reason to be excited to own shares of Universal Display over the long term.

More expert advice from The Motley Fool
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