The Lost Decade: Lessons From Japan's Real Estate Crisis

By Investopedia
23 July 2008

Free markets economies are subject to cycles. Economic cycles consist of fluctuating periods of economic expansion and contraction as measured by a nation's gross domestic product (GDP). The length of economic cycles (periods of expansion vs. contraction) can vary greatly. The traditional measure of an economic recession is two or more consecutive quarters of falling gross domestic product. There are also economic depressions, which are extended periods of economic contraction such as the Great Depression of the 1930s.

From 1991 through 2001, Japan experienced a period of economic stagnation and price deflation known as "Japan's Lost Decade." While the Japanese economy outgrew this period, it did so at a pace that was much slower than other industrialized nations. During this period, the Japanese economy suffered from both a credit crunch and a liquidity trap. In this article we'll define and discuss the meanings of these terms, and draw upon "Japan's Lost Decade" for examples.

Find Fortune In Commercial Real Estate

By Investopedia
29 Aug 2007

Real estate investment, like any other type of investing, comes in a variety of flavors. When people consider becoming a landlord, they are usually thinking of renting out a single family home or another type of residential property (condo, townhouse, etc.). Although rentals of this nature make up the vast majority of investment properties owned by independent investors, the flashiest real estate investors in the world (think Donald Trump) cash in on commercial properties. Read on for a look at the pros and cons of investing in commercial properties. 
What are commercial properties?Loosely speaking, commercial properties are properties that are leased out to provide a workspace rather than a living space. Commercial real estate includes office buildings, strip malls, restaurants and shops (both in the shopping and industrial sense).

In most cases, properties are sold by the building - one office building, one restaurant, one factory, etc. However, if a developer wants more capital to expand a project or wishes to see the returns more quickly, the project will be broken down into smaller units rather than sold as a whole. 

Advantages to Commercial Real EstateOne of the biggest advantages of commercial real estate is the attractive leasing rates. In areas where the amount of new construction is either limited by land or law, commercial real estate can have impressive returns and considerable monthly cash flow.

Economic Moats: A Successful Company's Best Defense

By Investopedia
4 Oct 2009

Cash flow generation, debt-free balance sheets and a significant and sustainable competitive advantage in the marketplace are some of the reasons great companies stand out from the pack.

What is it that separates companies that thrive for decades from the ones that flounder for years?

The answer may lie in what is referred to as a company's economic moat, a phrase popularized by investing legend Warren Buffett. In this article, we'll introduce you to the concept and explain why it is so important to consider as a long-term investor.

What If Social Security Disability Runs Out Of Money?

By Investopedia

18 June 2012

How well do you understand Social Security? If you're a baby boomer close to retirement age, you might have more knowledge than most. If you're not, the only thing you may know about Social Security is all of the talk that the fund may be bankrupt before Generation Y retires. Whether that's true or not is a topic of debate, but there's more to social security than the retirement program. A bigger issue is only four years away and it's an issue that you've likely heard little about, but may have a big impact on more than 11 million Americans.

Why Are We Still Talking About Greece?

By Investopidia

18 June 2012

The expression "sell in May and go away" has been around for a lot longer than the economic crisis in southern Europe, but as the U.S. markets once again had a tough May it looks like the bad penny that is the Greek/Spanish crisis has turned up once again. While this is admittedly a complicated situation, it's entirely fair for investors in North America to ask why we are all still forced to talk about this mess and why it continues to impact our markets and economy.

Fastest Growing Small Business Sectors

By Investopidia

19 June 2012

Despite the economy's dismal bounce back from the recession, there are some small business sectors that have thrived during this time and are expected to do well over the next few years. A recent report from IBISWorld, which publishes reports on market industry research, said that some of these industries below are "expected to continue their meteoric rise and far outpace the rest of the economy."

So what are they? Some of the of fastest growing sectors involve sustainable building, personal health, social network game development and the solar panel industry. Let's take a look at how they're doing and where they're going over the next five years:

7 Ways To Save Money By Spending More

By Investopidia
5 June 2012

You hear it all of the time: In order to live a prosperous life you probably have to spend less money. There's wisdom in that advice since most consumers have little or no savings and many spend more than they make. However, spending less isn't always the best strategy. There are some areas of our life where trying to find the cheap way out may actually hurt more than help. Here are some examples of when spending more money is a smarter financial choice. 

Your Time Is Valuable
Why hire a cleaning service when you're able to do it yourself? Maybe you're turning in your leased car and it needs detailed. Why hire somebody when you can do the job just as well? The reason it could make financial sense to hire somebody is because your time has a value. If you're trying to build your career or grow your small business, cleaning and detailing take valuable time that can be spent doing more profitable activities. That doesn't mean you should go in to debt to hire a cleaner, but if you have the funds to do it, it may be more profitable to outsource.

5 Economic Reports You Should Watch

By Investopedia
29 June 2012

If you watch financial television or if you read financial publications like The Wall Street Journal, Investor's Business Daily or the many financial blogs out there, you notice that there is a seemingly endless amount of economic reports being released.

The truth is that many of these reports have little value to the individual investor. Judging by the market reaction when the reports are released, even the most sophisticated investors don't see most of the data as something that would change their investing or trading actions in the near future.

However, there are some reports that are market movers. Good traders know which reports to watch and when the reports are released to the public. Here are five economic reports you should watch.