Social networks not only are revalued in stock (up to 377% percent in the last year), but also help predict the vagaries of stock market, according to some studies. In this context, it is easy to see why over 80% of financial adviser believes that over the next five years, social networks help to attracting customers and also enhance the relationship with them. Currently, between 15% and 20% of the investment is captured through social network.

Behind this trend, in the words of Marc Garrigasait, president of Koala Capital SICAV, the transparency that social networks provide the financial world. “If you are transparent, investors will appreciate what this means more empathy and more benefits,” he says.

Over 70% of financial advisors are registered in any of the social networks, especially Facebook, LinkedIn, and Twitter Unience, according to a survey on the use of social networks by EFPA Spain (European Association of Advisers and Financial Planners -Heritage). The vast majority believe that social media are very useful for several reasons: because they represent an efficient channel of communication, constitute a direct and easy communication, are a good tool to keep abreast of new trends, and consider marketing tool  and online advertising.

The asset allocation formula is often used incorrectly in an effort to impose a tool of speculative investment in a strategy that has no real merit on their own, eg reinstatement of an annual portfolio, market adjustments and changes in a mutual fund. The asset allocation formula itself is sacred, and if constructed properly, should never be altered due to market conditions and equity income. Changes in personal circumstances, objectives and goals of the investor are the only concerns that should modify the asset allocation process.

Here are some ways to asset allocation:

(1) All decisions involved in asset allocation based on the basic costs of the guarantees involved. The current stock market can be higher or lower, but does not really matter. (more…)

Start early and take advantage of compound interest.

There is always a “good” reason not to invest, but in reality there is a even better reason to start investing immediately. In fact, starting sooner rather than later is one of the best investment decisions you can make. The reason? So you can capitalize on the interest of compounder. The problem is that compound interest goes against the doubters. Most of us studied in school compound interest, so we know how it works. But it is not until you start looking at practical examples that you realize how powerful it can be.

Use the market moves in your favor.

Dollar cost averaging – a way to weather market fluctuations and low is a technique called dollar cost averaging, typically used in managed funds. With dollar cost averaging, you do not have to focus on where stock prices or interest rates are in charge. You simply invest a fixed amount of money on a regular basis. a dollar cost averaging is an investment technique that can help turn the odds in your favor. The idea is that you buy fewer units than the market is bullish and more units when it is down – automatically. (more…)

Before the race out for the rest of Investing Basics, there are some points to consider carefully before proceeding. These are common mistakes many people make when considering what to do with investment.

1. Do nothing. There is no guarantee that the market will rise the first day, month or even year to invest in it. But there is a guarantee: do nothing not to ensure a comfortable retirement.

2. Beginning later. The postponement of his career is the second investment of not investing at all in the list of sins of investment. You already know that the earlier you start the better you are. (Take another look at the example compounds we turned up.) If you’re already past those formative twenties (do not look a day over 32 for us), we rewrite the first stumbling block that says “Do not start now.” (more…)

What benefits will you gain by buying stock or ownership of a company?

1. The first, if the company had a profit, then usually you get a stock of profits called dividends. Take for example, if the per stock dividend you receive $ 100 per stock, and then by 3000 the stock you have, the total dividends you get is $ 300,000. Of course, the standard amount of dividends varies from one company to another company. But the principle is more or less the same. The more stock you have, the greater the dividend you can if that company profits. (more…)