Martin Lustgarten – How Investment Banks Promote Growth of the Economy

Investment banks perform two recognized functions: trading and capital market intermediation. These functions are different and unique from those commonly carried out by commercial banks that accept deposits and provide loans. Investment banks are essential agents of capital generation and price setting. They are instrumental in coordinating the consumption of present and the future. The role of investment and commercial banks is well defined in the U.S. than other nations around the word.

The independent investment-banking sector in the United States

Glass-Steagall Act enforced by the U.S. Congress back in 1933, created a distinct legal line of operation between commercial banks and investment banks. This act restricted investment banks against accepting deposits or making loans. On the hand, commercial banks could not engage in the underwriting of securities. Fortunately, the Gramm-Leach-Bliley Act of 1999 eased these barriers.

Capital formation

In the modern mixed economies, government institutions, large corporations, and individual investors depend on investment banks to develop capital. They match individual or firms selling securities with those willing to buy. These banks earn their revenues by linking producer to savers and facilitating financial development.

Controlling interest rates

Investment banks work in close cooperation with commercial banks to assist in determining predominant market interest rates. While the rates for investment and commercial products are different, all interest rate affect each other. For instance, interest rate determines the amount of interest a saving will generate and the cost of borrowing.

Martin Lustgarten

Based in Florida, Martin Lustgarten is a brilliant entrepreneur and investment banker. Previously, he held dual citizenship for Venezuela and Australia, which helped him to access a large pool of loyal customers. He navigates the market shifts and economic recessions by investing in different sectors across the globe. Martin’s ability to study the market and predict changes has enabled him to guide his clients in investing wisely in the competitive markets.

Maintaining a diverse international portfolio is a strategy that Martin has employed for many years. Having established a professional career as an investor, Martin decided to institute his company (Lustgarten Investment Bank). Through this firm, he has delivered efficient investment banking services to retail and institutional investors.

2016 Will Be A Record Year For Hedge Fund M&A Madison Street Capital Predicts

The increased activity in transactions during the final quarter of 2015 set the momentum for 2016 to be a record year for Hedge Fund Mergers and Acquisitions, according to Madison Street Capital, an international investment banking firm that provides corporate financial advisory and valuation services and financial opinions to publicly and privately held businesses. There are a variety of structural deal mechanisms used to accommodate both buyers and sellers including traditional M&A (mergers and acquisitions), transactions structured as seed or incubator deals, and revenue-share stakes to name a few. Consolidation of the fragmented hedge fund industry is occurring through opportunistic partnerships that joins distribution with products offering. The announcement by Senior Managing Director, Karl D’Cunha, of Madison Street Capital included that 2015 was up 27% from 2014 and that institutional investors are turning to the alternative asset management sector to achieve higher returns to balance out rising liabilities.

Madison Street Capital has offices in North America, Africa and Asia and strives to provide middle market businesses in various industries with a variety of financial services to meet their unique needs. It serves businesses looking for acquisitions, seeking lending or wanting to build an exit strategy through their knowledge, experience and expertise. As a leading advisory in mergers and acquisitions with extensive relationships to match buyers and sellers and the ability to match financing and capitalization structure to each clients unique situation, Madison Street Capital is known for its high standards, integrity and professionalism. Its services include domestic and global investment banking, capitol raising, mergers and acquisitions, financial opinions, restructuring and a it s specialist advise Hedge Fund and other asset managers.

Madison Street Capital has also been awarded the 10th Annual M&A Advisor Turnaround Award which represent the best and the highest levels of performance in the distressed investing and reorganization industry in 2015. It was chosen from among over 200 participating companies and judged by industry experts. Charles Botchway, CEO of Madison Street Capital, said it was a true honor to be recognized by industry leaders for doing good work for their clients.. Founded in 1998, the M&A Advisor offers insight and intelligence on mergers and acquisition activities. The award is widely respected as a pinnacle of achievement and recognizes excellence in deal making, restructuring and financing. It has been serving for the past 17 years and honoring achievement, presenting thought leadership and facilitating connections of the world’s leading dealmaking professionals.

You can follow them on Linkedin.

A Look at the Gold Coins Market and why George Soros Prediction of China’s Crisis Matters

The U.S. Money Reserve boasts to be one of the largest distributors of gold coins, silver and titanium. Philip N. Diehl is the president of the U.S. Money Reserve and an in an interview with Entrepreneur Podcast Network, he talked about all things gold coins.

Diehl on His Presidency

Diehl spoke about how being director of U.S. Mint prepared him for the job at U.S. Reserve. He explained that he already had knowledge of how the market works. He then told how he took the gold distribution network of the U.S. and expanded it to the rest of the world. People had better access to the services of the U.S. Reserve and also added an entrepreneurial factor to the agency.

Why Buy from U.S. Reserve

Most products the U.S. Reserve offers are gold, platinum, and silver coins produced by U.S. Mint. Diehl, in his interview, said that these products appeal to customers because they have the backing of the strongest economy in the world.

What sets the U.S. Reserve apart from its competitors is its brilliant customer service. The commitment that the employees have to serve customers is what makes them the best in the business. The bottom line is customer satisfaction.

According to Crunchbase, another incentive to buy gold from the U.S. Reserve is that customers know what they are getting.
People have the option of buying gold bullion or bars, but gold coins come with the guarantee of legal tender because a sovereign government’s mint is responsible for production.

Several factors have had an impact on the gold market. Diehl said the first cause was the 2008 financial crisis. He says that there was a lot of fear in the market at that time, and it impacted the price of gold.

George Soros on China

There is also the increasing value of the U.S. dollar that puts pressure on prices, especially in China. Billionaire George Soros also says that China is due for a financial crisis as its currency continues to lose value.

The Future of Gold

Diehl also took a look at the market in the next decade. He said there would be a major increase in demand and prices of gold coins. One cause of this is the political instability in major players like Brazil, India, China and Russia. According to Diehl, “We will see more of volatility in the world, meaning more turbulence.”

The dollar is also bound to go down at some point in time, and when it does, so will gold prices. A domino effect from this will be central banks buying more gold to protect their reserves against the weakening dollar. As long as the U.S. currency maintains its strength against other currencies, the demand for gold will continue to rise as it has been doing for the past 18-24 months.

A Modern Day Gold Rush Is Just Months Away

While gold is still much in play, it is still a solid hedge against inflation and deflation, as well as a perfect vehicle for monetary growth. One factor regarding growth is that most people who invest in precious metals understand the correct timing to do so. Without a proper understanding for timing the markets, any investment, including gold, will become devalued very quickly.

In many cases, people claim a substantial stake in gold or some other precious metal, only to lose substantially in the end. And the problem with their investment wasn’t in the purchasing of gold, it was in the timing. Many people purchase gold, and don’t understand the various nuances that make up rises and drops in the gold market. It goes well beyond the rudimentary understanding of the raising of stocks and bonds in relation to gold. There are many other factors that need to be considered and evaluated when purchasing gold for an investment purpose.

For instance, people are not aware that there will be a significant bear rally within the next 3 to 6 months. How is this important? Here is the simple answer in a nutshell: when this bear rally occurs, it will combine with a slowdown in the selling of gold on the general markets. Gold has been selling rapidly over the last year and a half, especially to foreign interests like China and Russia. When this heavy buying subsides, it will trigger the prices of gold to go up. During this time, over a 6 to 9 month period, the price of gold is expected to rise anywhere from 10% to 30%. Within the next year, it will not be uncommon to see gold at the price of $1100-$1300 per ounce.

So how does one get involved in becoming a part of the gold rush? One of the things that a individual must have is an expert in gold dealings. The people at US Money Reserve have an extensive amount of time with individuals looking to invest in gold. They have a number of different departments, with over 100 expert individuals giving advice in gold management, gold purchasing, appraisals and more.

The people at US Money Preserve have been in the gold acquisition business for years, and can tell a person firsthand the best options for them to continue on with their investing goals. Gold coins remain one of the best physical investments in gold that you can make, and the experts at US Money Reserve know what their customers want, and offer quality products that they can partake of.

Tips on investing in hedge funds

Citadel LLC, a hedge fund company that is owned by Kenneth Griffin is continuing to perform splendidly in the industry. The company’s major hedge funds earned almost 18 percent net of costs in 2014. Kenneth Griffin, who started do business in the 1980s in his dorm room while in Harvard University, and established Citadel in 1990 with an estimate of 4 million us dollars. Mr. Griffin has managed to rebuild his hedge fund company that almost collapsed in the time of financial catastrophe and currently manages 26 billion US dollars.

Hedge fund investments appear to be a seasonal venture; one month they are tremendously popular and the next they turn out to be an origin of noxious contempt. In several ways, hedge funds have been thrown in the dark for wealth they accumulate, especially for their management panel as well as their exploitative ways when it comes to the marketplace.

Investors are required to meet the least amount net worth obligation and also having a moderately advanced level of investment understanding to make investments in a hedge fund. This is to indicate that these forms of investment are set aside nearly mainly for the stylish investors. The investors should also be wealthy, knowledgeable and have the ability to deal rationally with the difficulties that come along with these kinds of investment.

On the other hand, hedge fund investment policies are not kept exclusively for sophisticated and qualified investors. In reality, some the strategies that hedge fund utilize can be used by regular retail investors also; however when these hefty management costs that as assisted in making hedge funds so prosperous. Below are some tactics that you can employ in your frequent portfolio to benefit from the market the same way the hedge fund do.

Options

Several funds manage to create above-average profits and returns for their portfolio by the use of derivatives, and stock alternatives are among the types of derivatives that are accessible to nearly all investors. Script covered call options permit for a little income into a portfolio, always at raised rates. For investors intending to leverage their portfolios sincerely, a straight option policy can assist to make incredible gains as well.

Exchange traded funds

Using the exchange trade funds to benefit from bear markets or to increase leverage to your portfolio by beta-based exchange traded funds is a general policy that ordinary investors use currently. On top of that, exchange traded funds can have an influence on minimizing risks as well.

Quant trading

The thought of using mathematical principles to do business is not something that is kept for quant-based funds. This is almost similar to using the technological analysis to make trade verdicts. Thus, an ordinary investor can put into practice a quant trading mold through specific technical analysis sifting.

Even though these three alternatives are not comprehensive, they illustrate that ordinary investors with the time and the knowledge of the way markets perform can put into practice the same policies as a hedge fund. Putting together these strategies can generate even more returns, however, bear in mind that it as well means taking some risks.

Investing in Brazil For Portfolio Growth

In the modern world, people have become aware of the need to make sure that they have a nest egg that can grow and meet their needs as they age. Whereas previous generations may have turned to family members for help as they faced age related issues, today people are realizing they must do all they can to save money for this task. Today’s generation knows that a good investment portfolio of diversified stocks and bonds can help them accomplish many of the things they want from life including the best possible retirement when they decide the time is ready to retire. 

Savings must be accumulated and managed as well. Someone who is able to do both is someone who will enjoy a high rate of return on their investments and watch as their savings continue to grow for many decades. Creating a diversified portfolio can take time. This is why people consider investing in places that can help them develop such a portfolio. One such place is Brazil. Brazilain markets are hotter than ever. Many developments have helped make investing in Brazil safer and more likely to do well than ever before. 

Those who are going to invest in this region of the world will find it easier when they have a guide to the area. Zeca Oliveira is a skilled Brazilian businessman who knows all aspects of Brazilian finance and understands how investing here can help people experience the kind of growth they want and expect. Under his leadership, many investors have been happy to find that the market here can be an ideal place to invest. They have also found that Oliveira brings many insights into the region that allow them to make long term plans and consider investing in all aspects of the market. 

Investing in Brazil is also highly useful for those who wish to be involved in both the marketplace and other potential investment such as real estate. An investment in the Brazilian market and the real estate market can often lead to a highly satisfactory rate of return on one’s basic capital. Doing so can help the investor realize gains that allow them to earn income and at the same time reduce their taxes in many ways. Those who do so will find that the Brazilians are also happy to have such investments and welcome infusions of foreign capital in their nation.