Embracing Uncertainty

If you ask investors, they will tell you one thing that they dislike. It is inexainty. Investors always fear uncertainty. In fact, they hate uncertainty. If you ask further, everyone will give different answers but the main reason why they hate uncertainty is that they do not like losing money.

That is right. Losing money is what we as investors want to avoid. However, avoiding uncertainty is not the answer. You see, life is always full of uncertainty. Therefore, taking risks is necessary in investing no matter what your background is. Tell me what kind of assets with no uncertainty at all. One common answer is placing your money in Certificate of Deposit. (CD). The proponent of this investment claims that your money will always accrue interest no matter what happens to the economy, oil price and other things affecting stock investment. But is that so?

Let me answer your question with another question. Why do different banks give you different interest rate for your CD? Sure, it is affected partly by their money supply and demand. If a bank can take in more money than it can loan, it will generally give lower interest rate. However, do you notice that larger established banks generally give lower interest rate than say, an internet CD from e-trade? The answer is uncertainty. Big banks are less likely to fall and therefore, investors are willing to accept lower return investing in their CD. On the other hand, internet banks are more uncertain to survive ten years from now. Thus, the higher interest rate. You see, when you embrace uncertainty, you will earn a higher return on your investment. How about risk? The risk here is that when you invest in small unestablished banks, it may go bankrupt and bring your money down with it. Sure, in theory, your money is protected up to $ 100,000 from FDIC. If you loan your money to a friend, he or she will always say that they will pay your money back, no matter what. But banks are not your friend. In fact, you friends who borrow money from you, can default on their payments.

That is the risk of investing in CD. While, the risk seems remote, it always exists. On the opposite side, investors who fear accidently will probably stuff their money in the mattress, approaching little or no money. This is an extreme example but as you see, getting rid of uncertainty does not look that good here.

Embrace accidently does not mean investing your money blindly. To get a higher return, you need to embrace uncertainty and be educated to minimize your risk. In our CD investment case, what should investors do? Well, for example, you can research the trustworthiness of your bank to sites such as bankrate.com. Once you are comfortable about the status of your bank, you can then invest in CD which offers higher interest rate. A little bit of your time will earn you quite a bit. This is what I called embracing uncertainty. You accept that uncertainty is part of investing but you need to be aware of the risks that you take in any kind of investment. From there, you can weigh your risk and reward and decide which the additional risk is worth investing or not.

Similar case can be applied to stock investing. It is full of uncertainty and there is no way around it. However, by being educated in the stock market, you can minimize your risk and can earn additional return in the process.

Turnaround investing validates this concept. You can choose to invest in a well-run companies with seemingly no trouble in the horizon. Or … you can choose to invest in companies with short-term trouble and wait for them to turnaround. In these two cases, investing in turnaround companies will give you greater return. This is due to the uncertainty of investing in companies with short-term trouble. As always, you have a decision to make. Life is full of choice. Would you rather invest in CD and avoid accidently altogether? Or embracing uncertainty and reap a higher return on your investment?

Automotive Industry at a Glance

The World Automobile Industry is enjoying the period of relatively strong growth and profits, yet there are many regions which are under the threat of uncertainty. Carmakers look for better economies, market conditions which are ideal to have a successful stay in the industry. The automotive industry has a few big players who have marked their presence globally and General Motors, Ford, Toyota, Honda, Volkswagen, and DC are among them. It has also been suggested that automotive industry has accelerated more, after the Globalization period, due to easy accessibility & facilities among nations and mergers between giant automakers of the world.

Moreover, the advancements in industrialization led to a rise in the growth and production of the Japanese and German markets, in particular. But in 2009, the global car and automobile sales industry experienced a cogent decline which was during the global recession, as this industry is indirectly dependent on to economic shifts in employment and spending making, it vulnerable. While demand for new and used vehicles in mature markets (e.g. Japan, Western Europe and the United States) fell during the economic recession, the industry flourished in the developing economies of Brazil, Russia, India and China. Boost in global trade has enabled the growth in world commercial distribution systems, which has also inflated the global competition amongst the automobile manufacturers. Japanese automakers in particular, have initiated innovative production methods by adapting and modifying the U.S. manufacturing model, as well as utilizing the technology to elevate production and give better competition. The World Automotive industry is dynamic and capacious, accounting for approximately one in ten jobs in developed countries.

Developing countries often resort to their local automotive sector for economic growth opportunities, maybe because of the vast linkages that the auto industry of the country, has to other sectors. China is by far the largest market for sales followed by Japan, India, Indonesia, and Australia. Sales figures of 2005 to 2013 indicate that sales for vehicles in China doubled during this period, while Indonesia and India also benefited. However, there was slump in sales during this time in Australia, New Zealand, and Japan. Interestingly, this year competition in the truck segment has become more intense, with the three big U.S. automakers striving for supremacy in both performance and fuel economy. The Japanese aren’t giving up, either, with both Toyota and Nissan launching new pickups in 2015.

India is the seventh largest producer of automobiles globally with almost an average production of 17.5 million vehicles with the auto industry’s contribution amounting to 7% of the total GDP. It has been estimated that, by 2020 the country will witness the sale of more than 6 million vehicles annually. India is expected to be the fourth largest automotive market by volume in the world where, two-wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last seven years and tractor sales are expected to grow at CAGR of 8-9%, in next five years, making India a potential market for the International Brands. As 100% Foreign Direct Investment is allowed in this Sector, India is expected to have a speedy expansion, to, soon to become the largest automobile Industry. While India is second largest manufacturer of two- wheelers and largest of motorcycles, it is also estimated to become the 3rd largest automobile market in the world by 2016 and will account for more than 5% of global vehicle sales. As large number of products are available to consumers across various segments, providing a large variety of vehicles of all the types, manufacturers aim towards customer satisfaction and loyalty.

Following the FDI policy, entry of a number of foreign players with reduced overall product lifecycle and quicker product launches have become a regular occurrence in the automotive industry of the country. Indian auto market is seen as the potential market which can dominate the Global auto industry in coming years. Moreover, giant dealers and manufacturers are inclining towards the country because of ease of financial norms as well as an environment so conducive to support in their projects.

With Narendra Modi’s Make in India Campaign, the automotive industry is expected to witness quite a few changes, where 800 Cr have been allocated in the Budget to promote the Energy and Hybrid Vehicles manufacturing. This move is expected to cut down the prices making these electric and hybrid vehicles cheaper and more eco-friendly. It is also expected that this move will curb down the carbon dioxide emissions to 1.5% till 2020. This program will subsidize the purchase of new hybrid and electric cars, as well as other vehicle types. It specifies incentives of up to 29,000 rupees for scooters and motorcycles, and up to 138,000 rupees for cars. Three-wheeled vehicles, light commercial vehicles, and buses will also be eligible for incentives of varying amounts as well.

The used cars sector in India has emerged as one of the major industries due to its easy accessibility and lower rate of interests. But growth in used car sales are lower than new car sales as people still prefer to purchase new cars as opposed to buying used ones. A big reason of this could be the fact that there is a reduced supply of used cars, and high prices of these used cars are pushing the consumers to opt for the low priced new cars. But despite of lower growth compared to new cars segment, used car industry has been showing a fast and steady growth. According to the industry analysts, the sales of used cars are expected to boost up in the next few years.

Till last decade, consumers were involved in unorganised sector of Used Vehicles industry, there were no organised players to assist the consumers in buying of used vehicles, and about 60% of used vehicle sales were customer to customer where there is a trust factor. The remaining sales were managed by the local dealers. But then in 2001, Maruti came with the first company of selling used cars in 2001- Maruti True Value. Despite the automobile industry witnessed slow sales numbers in the last few quarters, the used or pre-owned car segment is growing fast, and is likely to accelerate in future. In fact in the last fiscal year, more used cars were transacted, 10% more than the new ones, according to the assessment by Maruti Suzuki India Ltd. and Honda Siel Car India Ltd. With the organised players stepping in, the used cars market has benefited from fair deals, warranties, better retail network, credibility, transparency, easy availability of finances. These have all made buying a used car easy. Organised used car showrooms provide the platform to the prospective consumers to choose cars from various brands and segments. Car makers have realized the potential of used car market and are making conscious decisions to operate in the pre-owned car sector also. Besides exhibiting multiple brands, the branded used car retailers, also offer one-stop shop for all inquiries and grievances. All the major Car dealers have now established their pre-owned car segment retail showrooms, Maruti True Value, Ford Assured, Hyundai Advantage and Toyota U Trust are some of the major used car dealers.

Constant decline in fuel prices and better financial policies in the past year are the factors that are being expected to be the reasons for the number of new buyers to be increased in the market, which declined in 2013-14. But during this period, one segment that benefited from this decline was the used vehicle market, with increased awareness, financial reforms and organized firms. Most of these used cars buyers are younger people who prefer buying Pre-owned cars which come at lower prices and they get a good bargain for the same. Indian used vehicle market which is still, almost quarter of new vehicle market is growing at a rapid pace. The Pre-owned car sector is expected to grow by 15-18% in coming years.

Also with the rising in number of organized players have boosted the amount of confidence people are putting in buying a pre-owned car. These players not only offer a good line up of used cars but also offer finance & extensive vehicle check facility for 100% customer satisfaction.

The Automotive Industry is an important part of every economy as it is interrelated to growth of sectors of the economy. India as one of the progressing economy is resolving towards making its automobile industry more and more successful ultimately, linking it to overall development. With the Make in India Campaign and promotion of eco- friendly vehicles, India is expected to soon to become largest automobile industry globally. Used vehicle industry is expected huge gains with more and more people resolving to it along with the growth in the new car market. With more resources for the buyers and sellers, the automotive industry is expected to flourish meritoriously in coming future ultimately taking the country forward.

Digital TV Technical Aspects – Important Tips to Know

Without you are living in a cave, you have heard about the wonder called the HDTV, right? But do you know other aspects that make this technology awesome? If not, this article will prove helpful.

As you may already know, in order to view HDTV broadcasts you are going to have to upgrade your television at some expense. The standard television aspect ratio used to be 4: 3, but HDTV aspect ratio now works in region of 16: 9. Sure, adding a new aspect ratio could make for some confusion if your current display is capable of more than one ratio.

That is not a bad thing either, since all you need to do is just switch your television to the right ratio; But let's face it, the future is coming upon you, and in the next couple of years, SDTV would not even exist anymore. Even what is known as HDTV today will soon give way to something better – I'm pretty certain you have seen some Star Trek on TV or on the big screen.

It's only a question of time before you are going to have to trade in your flat screen system for something newer and better, but why wait until then if you can do it already. Aspect by Hitachi 51 HDTV Display 51m 200 sure sounds like a nice idea if you are looking for soft landing. Not only does it fit into your living room today, but its aesthetic design also allows it to be able to blend into tomorrow. Read it out loud and let the words and figures roll on your tongue for a moment, will you: aspect by Hitachi 51 widescreen HDTV display.

You have got to hand it to them – not only do they know how to design them for long life and incredible performance, but also for sleek attractiveness, and with names that make you feel like you just stepped out of an Obi-Wan and Anakin Skywalker continuum. How does it feel? Come to think of it, you can relive the entire Star Wars experience live and in living HDTV color once you, then some! What in the world could you be waiting for?

All About Your 3G Internet Service

In the technology circle, there is much hue and cry about 3G internet services. It is a known fact to everyone that 3G stands for “3rd Generation”, but very few are aware of this technology from its core. Basically, it’s an initiative taken by the International Telecommunication Union to create a global wireless standard for mobile internet access. However, it requires a minimum mobile internet access speed which is comparable to DSL (Digital Subscriber Line) internet speed. To meet the technology standards, there needs to be high-volume voice services.

Unlike its predecessor 2G (2nd Generation) technology, which was evolved around voice applications including talking, call-waiting and voicemail, 3G technology emphasizes on internet and multimedia based applications that facilitate web browsing, music downloads, video conferencing etc. However, to access 3G network, your device need to support an information transfer rate of at least 200 Kbit/s. With the increased demand for high-speed internet services, the popularity of 3G is also surmounting. The technology has multiple benefits to offer, some of which are discussed below:

High-speed Internet on the Go: Before the advent of this technology, it was almost a dream to get access to high-speed internet on the go. Modern developments in mobile technology coupled with 3G has created great opportunities for users to surf internet at a blazing fast speed, even while they are travelling.

Reaches Remotest Corners: It’s easy to find 3G access at places where wired connectivity is difficult to install. This helps minimize the gap in internet access in rural areas or areas with limited connectivity. The speed sometime exceeds the speed of dial-up internet services.

Affordability: 3G standards benefited the rural people to a great extent. While it’s expensive to set up wired connections at homes, the wireless internet costs less and offer better speed to the users. With the development of this telecommunication technology, users can now get high-speed connectivity even on their mobile devices.

Multimedia Usage: Both corporate and personal consumers benefit from the service as it facilitates the use of diverse multimedia applications and enhances the wireless internet experience. It enables real-time video conferencing, music download at a faster speed, uploading and downloading files at a speed that equals to wired broadband services.

Stay Entertainment: Internet offers multiple ways to keep the users entertained. For lightning fast internet speed and seamless network availability, users can enjoy online gaming, listen to their favorite music or watch movies online with their 3G internet connection.

Though, 3G internet technology is getting momentum both in urban and rural areas, there are still some places where this technology is not as effective as metropolitan cities like New York and San Diego. While telecommunication experts are hopeful to enhance the reach of both 3G and 4G (4th Generation) networks and make the services more affordable for the users, the increased traffic and the usage of mobile devices are the two main issues of concern for the tech experts. Moreover, to sustain a balance in the environment, there needs to take more precautions, as wireless rays often cause harmful radiation, which have adverse impact on the environment.