1. Technology, the tech as lowered its production lately since consumers are not going for more second hand product, we spoke to a technology market analyst and he told us that they are slowing production so that they can cover production cost without suffering too much lost until the market pick up again.
2. Input price., imputing the price is based on wages price, in a example of an automobile section, an input price will be the reduction in the wage paid to autoworkers lowers production cost and increase supply.
3. Price of related goods, for us to really understand the market function, we don't only look at one particular product, we look at all related product as they tend to affect each other, example if truck prices fall, the supply of cars will rise or vise versa.
Factors affecting the market supply Cost
Thursday, June 10, 2010Has the market turned more national ?
Most of us investors are now focusing on Stock price more, so much that we distrust in the market, investors are expressing lack of faith in the market, many analyst are saying otherwise but the fact is you see investors running to types of companies with solid balance sheets. Surprisingly some folks think BP is a buy, even with the Oil leak problem. BP's borrowing plan is now large as they hope to recover from the Oil leak damage, but there is no sign that BP will file bankrupt even though many outsider think the Oil company BP will not survive the next two year. What is your take on this topic?
Financial Reform Bill
Financial Reform Bill , it is crunch time now because financial regulatory will not have much influence on the market because of what is going on in the market world wide, it may not even affect the last hour of trading.
Stock lost early Gain
Wednesday, June 9, 2010The Dow is down,
The NASDAQ lost points
It look like everything was wrong today, Intel corp has been down graded, the tech field has been a type of stock that are usually down when the stock market is down and usually up when the stock market is up, we will what happen with the market tomorrow.
What is money
What is money? If you are thinking that you know about money, chances are you have no idea, although by definition money is the means of payment in the form of currency and check used to buy things. You will think the meaning of money stops here, right? Well it doesn’t, leaning about money is well suggested to every human being on earth. The value of money and the risk behind it when mishandled is the importance of the knowledge everyone must possess about money.
Some of us were born into lots of money, most of us have to labor hard to earn it, and at the same time some of us are born into debt system. When everyone trust any form of payment as money in a form of payment for bills, goods and debt, it is then that trades are executed. Before currency existed, it used to be goods exchange to trade, it was called a bargain; this means when someone has a apple and the other person has an orange they would swap orange for apple that was how transactions were usually executed in the past, they will trade but not trade with money, they use the system goods for goods arrangement. Later when money came into existence money became middle man between a seller and a buyer.
Money Control
The government deals with the control of the money trough the national central bank. The government use the central bank to monitor the market so they know exactly what amount of money to print out for the nation, when money is not regulated it causes hyperinflation, in which prices increases progressively. Hyperinflation affects the market in sense that people tend to store good by spending their money quickly to avoid price hike and this usually cause the money to lose its value, and that is why some currency are has more value than the other. Example will be china currency yen has more value than pounds and so on.
Trading the Globe
The Fifa world cup 2010 game that will take place in South Africa will be the fact behind the motion to invest in South Africa stock. All the 32 countries participating in the main event are below
Soccer in South Africa
Group A Group B Group C Group D Group E Group F Group G Group H
FRA ARG ALG AUS CMR ITA BRA CHI
MEX GRE ENG GER DEN NZL CIV HON
RSA KOR SVN GHA JPN PAR PRK ESP
URU NGA USA SRB NED SVK POR SUI
With over 32 countries pouring into South Africa, which will bring about 400,000 people all over the world into South Africa and according to cnbc an estimate of $ 52 billion is expected to be spent in South Africa in only 30 days. It is very possible to imagine how this will impact the south Africa economy, this will be a huge stimulus boost for the South African market which was believed to be suffering already. The commodities and stock for the world cup are currently low, dividends are expected to be high, report earning will be attainable and now is a great time to invest in world cup stock in South Africa.
In the preparation for the world cup South Africa build 10 stadiums worth $2.2 billion, many road infrastructure for $9.1 billion dollars. Currently South Africa is in the top 10 percent of platinum manufactured. South African stock iShares Trust (Barclays Global could increase dividends, EZA is currently trading at $52.64 and it is up +0.46 points for the day. Again it is time to invest in South African stock, invest the globe will be reward from the stock of the South Africa. join us at http://investingport.com/ for more
Market Economy
Monday, June 7, 2010Market Economy is a type of market where individuals and private firms make the main decision about the market supply and demands. It does not mean that the government has no significant influence on market economy type of market, it is basically based on the fact that individuals and private firms makes the majority decisions. The production firms provide the market with good within a reasonable price range and the individuals who make the purchases determines how they want to spend their money on the market there for both sided of the production firms and the individual purchaser have the ability to influence the market with their decisions. Therefore the price, highest profit, least costly yield of the market is produced by the private firms. Labor and property ownership are regulated by the individuals.
Scarcity
Scarcity is bad for the market; most market’s economy is suffering from scarcity in various ways that keep the stock market un safe to invest in. Scarcity is a situation where goods or product needed are not available as needed. There are many types of scarcity some are; food scarcity, money, clothes, crude Oil, water and so on. Sometimes scarcity of goods may be life treating, for example a country suffering from electricity or food scarcity, this are life based survival product, some people need electricity to stay on life support while some need food to stay healthy. We can see scarcity from different point of views, as long as it is needed and it is not available, it is considered scarce or it is only available in small quantity is also considered scarce. A situation like this may affect the market in terms of product prices, it usually leads increase in prices of a product and it as a result affect the consumer’s spending that also affect the stock market down the line.
Efficiency
Efficiency is the most effective way to use the society’s resources in satisfying the people’s want and needs. A well functioning government will make sure they keep up with their market’s want and needs, they will consider the rate of demands towards supplies, so that way they do not over supply the market as these may leads to price variation and this could be unhealthy for the population and may leads to government corruption.
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