$1 Trillion Student Loan Debt Widens Us Wealth Gap

He explained: I needed a bit of extra money. My bank refused to extend my overdraft and I didnt want to go to my parents so I ended up using a short-term loan firm. It was just a disaster. The reason Smart-Pig.com is different he says is because it cares about the people it lends money to. As well as running a series of competitions with monetary prizes, a main feature of the company is the 10-day grace period it offers to those whose official payments are delayed. He said: I was slapped with lots of extra fees when I missed my repayment I really could have done with 10 days to resolve that hiccup without incurring a charge. Despite graduating in law, 24-year-old Shreiffs entrepreneurial flare was evident from an early age when he picked up trinkets from markets on family holidays to Morocco and sold them online for a profit on his return. He said: It was a little hobby and a lot of fun but it really set the business side of me going. Now two years old, Smart-Pig is going from strength to strength. <br>Source: <a href='http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546&#039; >http://www.coventrytelegraph.net/news/coventry-news/smart-pigcom-start-up-student-loans-company-6923546</a&gt;

The $1.1 trillionin student loan debt has become a real burden on the economy, contributing to the yawning chasm of U.S. wealth disparity, and dwarfing most other types of debt. For the year between the last quarter of 2012 and the end of 2013, student loan debt grew more than any other. This worries just about everyone with the young people actually shouldering the debt fretting the most. More debt = less wealth They have good reason to worry about the future. <br>Source: <a href='http://www.fool.com/investing/general/2014/04/05/the-11-trillion-student-debt-burden-is-paralyzing.aspx&#039; >http://www.fool.com/investing/general/2014/04/05/the-11-trillion-student-debt-burden-is-paralyzing.aspx</a&gt;

If you graduate with a B.A. or doctorate and you get the same job at the same place, you make the same amount of money, said William Elliott III, director of the Assets and Education Initiative at the University of Kansas. But that money will actually mean less to you in the sense of accumulating assets in the long term. Graduates who can immediately begin building equity in housing or stocks and bonds get more time to see their investments grow, while indebted graduates spend years paying principal and interest on loans. The standard student loan repayment schedule is 10 years but can be much longer. The median 2009 net worth for a household without outstanding student debt was $117,700, nearly three times the $42,800 worth in a household with outstanding student debt, according to a report co-written by Elliott last November. About 40 percent of households led by someone 35 or younger have student loan debt, a 2012 Pew Research Center analysis of government data found. <br>Source: <a href='http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/&#039; >http://www.alaskajournal.com/Alaska-Journal-of-Commerce/April-Issue-1-2014-1/1-trillion-student-loan-debt-widens-US-wealth-gap/</a&gt;

<img src='http://www.chooseterm.com/wp-content/uploads/2013/05/student-loan-hate.jpg&#039; />

3 Dumb Student Loan Myths That Can Bankrupt Smart Borrowers – Forbes

And its been estimated that roughly 50% of borrowers can qualify for some type of student loan forgiveness program. You just have to look. The most common student loan forgiveness programs are students who pursue the following careers: The Military Volunteer Work Medical Workers If youre considering entering these fields, see what programs you could qualify for. Even partial student loan forgiveness is free money. Myth #2: The Government Isnt Flexible With Student Loan Payments So, your six months of deferment are up on your student loan, and you get your first bill. You look at it and think, How am I ever going to repay this? But you dont realize there are other options available. <br>Source: <a href='http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/&#039; >http://www.forbes.com/sites/robertfarrington/2014/04/04/3-dumb-student-loan-myths-that-can-bankrupt-smart-borrowers/</a&gt;

Our View: homepage Student loan debt harms futures

We also asked Deborah Fox, head of Fox College Funding in San Diego, to provide insight and advice. If you have more questions about paying for college, send them to walter.hamilton@latimes.com or leave them in the comments section below. Question: My 17-year-old daughter will be applying to colleges at the end of the current semester. Since I'm 67 years old, I am concerned about being able to afford sending her to the college of her choice. Since my income is fairly high right now, I'm concerned that she won't qualify for financial aid, and a scholarship is long shot. What would be the best way for me to ensure that her education is paid for? <br>Source: <a href='http://www.latimes.com/business/money/la-fi-mo-student-loans-financial-aid-college-20140401,0,5531215.story&#039; >http://www.latimes.com/business/money/la-fi-mo-student-loans-financial-aid-college-20140401,0,5531215.story</a&gt;

Q&A on paying for college: Financial aid, loans, FAFSA confusion – latimes.com

We want those who have student debt to pay off the loans. To forgive the debt is not an ethical solution. But this is a national crisis that is harming the ability of the young to start saving early in their lives. Pensions are mostly a thing of the past. It's critical that young Americans save and enjoy the benefits of compounded interest. <br>Source: <a href='http://www.standard.net/stories/2014/04/03/our-view-student-loan-debt-harms-futures&#039; >http://www.standard.net/stories/2014/04/03/our-view-student-loan-debt-harms-futures</a&gt;


‘great Time To Buy’ This Solar Stock: Top Chartist

GM stock is in the gutter. Time to buy?

Worth points out that the stock has lost 35 percent http://www.todayhotstocks.com twice beforefrom May 2013 to June 2013, and from the beginning of November to the end of the month. And both times, the 35 percent decline marked the perfect time to buy. Now the stock has lost 35 percent once more, and this decline “is exactly the same, by our work, as the other two times,” Worth said on Friday’s episode of ” Options Action .” “Take advantage of this weakness,” Worth advises. To burnish his point, Worth provided a chart of the stock compared with its 150-day moving average.
Source: http://www.cnbc.com/id/101539661

Best Stocks to Buy Now: “Buy on the Cannons, Sell on the Trumpets”

best stocks to buy

The company is another Buy-rated stock at Jefferies, and its price target is $48. The consensus target is a huge $50.50. Dicerna closed Wednesday at $25.21. Celldex Therapeutics Inc. ( CLDX ) has several pipeline immunotherapies, including rindopepimut, a Phase 3 immunotherapy that stimulates responses against specific types of brain tumor cells.
Source: http://finance.yahoo.com/news/jefferies-biotech-stocks-buy-breakthrough-123018336.html

Tapping into Home Equity to Buy Stocks is a Very Risky Proposition

For example, Jonathan Yates, a Benzinga staff writer, penned a recent article entitled 3 Reasons to Tap into Home Equity to Buy Stocks. Yates posits that buying stocks with the proceeds of a home equity loan diversifies the portfolio of the investor. Yates suggests that there are many stocks that have dividend yields higher than mortgage rates and that as a result, investors can practice a form of interest arbitrage. He also argues that stocks are much more liquid than real estate and that it is a wise financial move to convert illiquid assets into ones that can be sold when needed. Unfortunately, Yates, and many financial advisors, dont discuss the tremendous risks investors are taking when they engage in tapping home equity for stock purchases. This is an ultra-high risk strategy that has destroyed the most valuable asset of many Mom and Pop investors: their homes. In the recent past, investors have watched years of home equity wiped out after weeks of a rapidly declining stock market.
Source: http://wallstreetpit.com/103309-tapping-into-home-equity-to-buy-stocks-is-a-very-risky-proposition/

3 Stocks to Buy Now That Spring is In the Air

Louis Navellier

Here’s where they found the latest, biggest profit opportunities. Money Morning’s Best Stocks to Buy NowDJ Industrial Ave Theoretical (m) N/A: DJIA Apr 01 10:31 AM loading chart… Price: 16,550.56 | Ch: 92.90(0.6%) There’s an old French proverb that says: Achetez aux canons, vendez aux clarions. That’s “buy on the cannons, sell on the trumpets.” Contrarian investing takes advantage of market overreactions, and the showdown in Ukraine has sparked just that – investors are just about trampling one another to get out of Russian stocks. But Russian stocks – especially Russian tech stocks – offer some of the biggest profit opportunities today.
Source: http://markets.financialcontent.com/stocks/news/read/26836558/Best_Stocks_to_Buy_Now

While the tech companies get all the attention in Silicon Valley the banks who serve the region are seeing amazing growth as well. Bridge Capital Holdings ( BBNK ) is a bank with two branch offices in the Silicon Valley region, as well as five loan production offices in San Francisco and Pleasanton, California, Dallas, Texas, Reston, Virginia, and Boston, Massachusetts. The bank recently posted a 43% earnings increase on record quarterly revenues. The bank has focused on broad range of financial solutions, enabling us to meet our clients varied needs across all stages, from inception to IPO and beyond and its working. Portfolio Grader just upgraded the stock to A two weeks and the shares are a strong buy.
Source: http://investorplace.com/2014/04/stocks-to-buy-uihc-bbnk-fnhc/

Jefferies Biotech Stocks to Buy With Breakthrough Drug Innovations

Further, he said GM will be plagued for years by expenses related to the recalls and the subsequent investigations. Such costsinclude settlements with victims families and possible fines by the government. Toyota (TM) just agreed to pay $1.2 billion to settle a criminal probe into its conduct during its massive faulty accelerator recall from four years ago. Still, Stover believes the bad GM headlines won’t keep consumers away from GM dealerships.
Source: http://buzz.money.cnn.com/2014/04/01/gm-stock-oversold/


4 Etf Ideas That Meet Market Needs

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery settled at $1,280.00 an ounce, down $3.80 or 0.3% from Monday’s close to a 7-week low. Gold was also hurt by fresh outflows from exchange traded funds backed by physical gold. Net redemptions equaled 6.4 tonnes on Monday, the biggest daily reduction since December 23. Last week was the second week in a row of outflows from all gold ETFs taking total bullion allocated to investors by funds down to 1,759.4 tonnes. Gold bullion holdings in global ETFs hit a record 2,632 tonnes or 93 million ounces in December 2012, but last year saw net redemptions of 800 tonnes.
Source: http://www.mining.com/etf-investors-selling-gold-like-its-2013-all-over-again-60777/

Vanguard Beats BlackRock Winning Most ETF Money In First Quarter

The chart below shows the one year price performance of EWG, versus its 200 day moving average: Looking at the chart above, EWG’s low point in its 52 week range is $23.66 per share, with $31.93 as the 52 week high point – that compares with a last trade of $31.57. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique — learn more about the 200 day moving average . Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Source: http://www.nasdaq.com/article/noteworthy-etf-outflows-ewg-cm340628

Federal Reserve, listens to a question during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on March 19, 2014. Higgins said his firm favors speculative-grade corporate bonds and has been selling Treasuries. Bond Exodus The redemptions in March have all but erased the net inflows U.S. government bond ETFs garnered in the first two months of the year, when an economic slowdown in China , crises from Thailand to Ukraine and questions over the strength of the U.S. economy caused investors to seek out the safest assets .
Source: http://www.bloomberg.com/news/2014-03-30/biggest-etf-exodus-from-treasuries-since-10-signals-higher-rate.html

Lead by the Vanguard FTSE Europe ETF (NYSEArca: VGK ), six Vanguard ETFs rank among the top-10 asset gatherers http://www.etftradingsignals.com this year. With VGK in the first spot, the top-four ETFs in terms of 2014 inflows are all Vanguard products. Last year, Vanguard pulled in nearly a third of every dollar investors allocated to U.S. ETFs.
Source: http://www.etftrends.com/2014/04/vanguard-again-dominates-inflows/

Bond Market ETF ( AGG ). I found that for being a “total” bond market fund, AGG has no exposure to high-yield corporate bonds, high-yield municipal bonds, and only a miniscule allocation to investment grade municipal bonds, therefore I included them in my proposed holdings below. Proposed Holdings: Investment Grade Corporate Bonds: 30% Mortgage Backed Bonds: 20% High Yield Corporate Bonds: 20% Investment Grade Municipal Bonds: 15% High Yield Municipal Bonds: 10% Misc Bonds i.e. I choose SVXY as the underlying holding because, as the graph below shows, the VIX is in contango (black line above zero on the graph) the majority of the time. This means the front month VIX futures contracts are more expensive than the current month, that increases costs and eats away at returns. If you look at a long-term chart of the iPath S&P 500 VIX Short-Term Futures ETN ( VXX ), you can clearly see the erosion in returns created by the roll cost.
Source: http://seekingalpha.com/article/2118633-4-etf-ideas-that-meet-market-needs

Vanguards Philosophy Founded by Bogle in 1975, Vanguard became the first firm to make index funds available to retail investors. By spreading money across the entire stock market at low cost, Bogle argued that investors could beat the vast majority of stock-picking fund managers. Vanguards philosophy has helped it attract assets and catapult it into the largest mutual-fund manager, running five of the 10 biggest U.S. mutual funds. Vanguard started pushing into ETFs more than a decade ago as it sought to bring that same idea to the fastest-growing area of the asset management industry.
Source: http://www.fa-mag.com/news/vanguard-beats-blackrock-winning-most-etf-money-in-first-quarter-17474.html