Hurricane Katrina (at the time of publishing) has not even passed the half-way mark on its attack on New Orleans, LA. After roughly 45 minutes of an open market we can already see the effects which it is having on the economy.

Already the prices for crude oil have gone up over $3.00 per barrel and have broken the $70.00 mark. This is due to the number of off-shore oil platforms in the Gulf of Mexico which drain hundreds of thousands of barrels of oil from deep under the soft sandy bottom of the gulf. At this point damage to these off-shore oil platforms is unknown. We can only hope it is minimal as to void another spike in oil prices.

Additionally the reported on-shore damage to the Louisiana and Alabama area is expected to be astounding. The area’s leading insurance companies, State Farm Insurance and St. Joseph’s should be very active stocks in the coming days. Estimates are in and experts are predicting nearly $25 billion in insurance expenses for Hurricane Katrina.

Other active stocks to watch should be for home improvement centers as people will eventually return to their homes and start the clean up, repair and rebuild process after the disaster. Favorites to watch are Home Depot (HD) and Lowe’s Home Improvement (LOW).

For more information on the effect of Hurricane Katrina on Insurance companies, and damage estimates, check out the following:
http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=OBR&Date=20050829&ID=5068935

In short, a Hedge Fund is a term referring to the practice of sell short some stocks while buying others. By doing this you reduce, or “hedge,” the market risk. In recent times hedge funds more often than not avoid trading stocks, rather “hedge fund” has developed into a relatively unregulated investment fund. Usually this unregulated investment fund is in the form of a partnership characterized by unconventional strategies.

For a more in-depth definition of the term “hedge fund” please chck out the following link: http://www.magnum.com/hedgefunds/abouthedgefunds.asp

Find a penny, pick it up. All day long, have good luck. It’s a common phrase we’ve all heard and have probably taken for granted. I know I did, until last year. In the summer of 2004 I decided to start something new in life. I decided I would start picking up EVERY piece of change I ever saw, put it in my pocket and take it home with me where it would be put in a collection jar.

I never realized how lucrative picking up spare change could be. Every other month (6 times per year) I take my change jar to the bank and turn it in, each turn-in a net anywhere from $60-$75…that’s an extra $420 (on average) per year, in my pocket. Why more people don’t take part in this, I have no clue. Maybe some feel it’s too much work, or they’re too bothered by it to take the time to bend over to pickup that dime. That’s fine, all the more money for me to find.

Picking up and keeping your spare change is an excellent way to help funnel a few more dollars into your monthly budget and add to your bank account. Look at it this way…If the average teenager spent 4 years of high school and 4 years of college collecting all the spare change they find they could net approx. $3500. Putting that money into a 5 year Online Bank CD could yield them up to $4500 by the time they are 27. Granted there are other more lucrative options, but this presents a 0% risk for their money.

In short, next time you see that penny on the ground, bend over and pick it up – it may pay for your next date, night on the town or help you out in a tight jam down the road.

Locking yourself info a long term (for example: 5 years) CD account is usually a great, secure way to put some money away on the side and earn some good interest from it. The problem is the current interest rates on CDs aren’t paying very high. What should you do is the question.

BankRate.com offers a trend index which is updated on a weekly basis. They give a full analysis on current interest rates and the future trends; this is a great place to start. The problem with investing in a CD is to earn a higher interest rate; you need to lock into a long term. That longer term means 2 things: 1. you have no access to your money for a longer period of time, and 2. you are susceptible to being “long and wrong”.

The solution: well there are a few ways to manage your risk when deciding to invest in a long term CD, 2 of which I will list and explain.

I. Invest in a bump-up CD.
A bump-up CD is the same as any regular CD investment except for one thing: These CDs allow you to take advantage of higher interest rates by having the bank “bump-up” your interest rate if rates increase. Most banks only allow 1 “bump-up” per CD and usually the depositor is given only a short amount of time after the initial investment to take advantage of this.

II. Build a ladder CD portfolio.
A CD ladder “allows you to take advantage of interest rates spread over several maturities without sacrificing liquidity.” For in in-depth look and analysis on CD ladders, check this site: http://www.bankrate.com/brm/news/sav/20010521b.asp

Because of the internet boom of the late 90’s and the huge role the internet plays in our everyday lives millions of investors have started moving to online brokers. Thanks to today’s technology, these online brokers are able to offer low commission trades (many less than $10 per trade) for the average Joe which can be completed in less than a minute.

There are over 100 well known discount online brokerage firms which offer online trading to anyone with internet access and funding. Included in the dozens of online firms are major brokerages such as Charles Schwab and Waterhouse who have launched separate branches dedicated to online trading. Additionally, new companies have pooped up whose sole purpose and functionality is online trading, among these are: Ameritrade and eTrade.

One common misconception when looking to start online trading is the idea that all online brokers are the same aside from their commission fees. This is quite the opposite. There are dozens of differences in online brokerages, and taking a look at these differences is crucial to running a successful and comfortable online portfolio. Some brokerages offer better research and analysis of investments than others do, while those others may have a better chance of getting you in on the ground level of that hot new IPO. The following are some important points which you should consider when choosing an online broker:

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