An investment club is the place where people with limited amount of investment gather around to learn about investing and sharing their experiences. You don’t have to learn everything by yourself anymore.

The major goal of the investment club is teaching their members about how they could make money using various investment tools, and some could goes with Finances Factoring option in supporting further investment needs. They also will learn how to minimize the risk and increase the profits.

Your success in the investing world is not guaranteed by your investment club. It’s just a place where you’ll learn something new about investment. The investment club could not guarantee you to become a successful person because the most important step to become success and rich in the investing world is your own responsibility. The most important step is take action.

You could join the investment club for years, but if you never take action in the investing world, you’ll get nothing. Fortunately, you could use investing club to motivate you to take action.

To get the most out of your investment club, you need to participate actively in it. For example, when you want to buy some stocks, you need to discuss it first with friends from your investment club. They could show you or give you advice about the best way to get in and get out in the stock market. By doing this, you could minimize your risks and increase you profits.

The successful investment club will have a lot of active members. Use their knowledge to learn more about investing world yourself. You could also gain access to online resources or organization computers if you need to find more about the investment tool that you like.

There are several types of investor group that you could find in the investment clubs. Some of them prefer to get profits as fast as possible, and others prefer a long-term investment and slowly build their investment portfolio. Here are 3 types of investment group that you might want to know:

1. Momentum Investors – These investors prefer technical analysis than fundamental to tracking down the price in the stocks market. Their purchase usually following a direct order from the system that they use and they trust.

2. Growth Investors – These investors prefer fundamental analysis before they do the investment. They check carefully the profit margins, growing sales and earnings, and also the prospect of the company that they want to invest to.

3. Value Investors – Value investors using the same fundamental analysis with the Growth Investors, but they have different measurements. They are looking for the company that has a very low stock price but showing a high growth for the next couple years.
Most investors that you’ll find in the investment club often use the fundamental analysis. You could learn from them how to pinpoint a good stock and avoiding the bad ones.

However, until now there is nothing to please them with. At the beginning of the week the World Bank (WB) published another negative forecast that the world economy will decline to 2.9 per cent this year. This projection finally frustrated investors and caused a sharp decline in world stock and commodity markets.

Meanwhile, just a few weeks ago, the investors and market participants were almost full of happiness. The American market had grown by about 40 per cent for the past few months, as investors had believed in the ending of the crisis and the imminent recovery of the global economy. However, the forecast WB deprived the investors of their dreams for happiness, and earlier this week the U.S. stock market closed with the biggest loss over the past two months, and the index S & P 500 dropped below the levels at which it concluded the last year.

The U.S. dollar managed to win back its losses slightly against the backdrop of heightened optimism; and the U.S. currency quotes grow each time the world market shares fall. “At the moment, all allegations of an early restoration of the world economy seem to be at least debatable. The market feels uncomfortable and this discomfort is reflected in the value of the shares”, – said Citigroup analyst Shiyam Devani.

In her turn, Tullett Prebon economist Lena Komileva believes that the recent rally in commodity and stock markets was due not just because of the positive economic statistics. According to her, after the gradual stabilization of the global economy, investors finally freely sighed and began to buy up shares of companies and commodity assets this spring . “But we should not forget that the stabilization and recovery are not synonymous. Until the financial markets get out of the crisis, it is not worth waiting for the restoration of the world economy ,” – adds the expert.

This assertion is difficult to be disagreed with. All the actions taken by the world’s Central Bank to exit the crisis has not yet yielded virtually any results. Moreover, as the head of Johnson-Illington Advisors, Hugh Johnson pointed correctly, consumers sell all that they can and reduce their spendings instead of increasing it. “It is hard to imagine the economic recovery in such circumstances”, – added the analyst. He estimated that the growth in the American economy could only begin by this year’s end, and that it would be extremely weak. “I think the world’s equity markets will adjust even at least by 5-15 per cent”,- he said.

It seems that this point of view is shared by the leading specialist for Harris Private Bank Investment Jack Ablin. According to him, the recent stock market rally was just another correction, and now “everything has returned to its own place.” Indeed, the investors are not too pleased with the statistics: unemployment in the United States is at the level of 26-year peak, while European banks, according to ECB estimates, will write off at least 283 billion U.S. dollars this year.

Strategists the French bank BNP Paribas believe that in order to return the confidence of the investors of the FED, which carries out the functions of the Central Bank of the United States, it should be understood that discount rates will remain unchanged in the nearest future. However, it should be noted that the lower refinancing rate will not have the best impact on the U.S. currency and may even eventually trigger a sharp rise in inflation. “In any case, the U.S. legislators will have to decide what is more important – economic growth or astable dollar,” – concluded the leading market analyst of FX Solutions Jozeph Trevizani.

Even before the opening of the trading session, the U.S. Department of Commerce (US Department of Commerce) reported a sudden increase in construction of new homes. According to the data, this index increased by 17.2% – up to 532 thousand units in May compared with that of the previous month. This is significantly better than the expectations of analysts, which forecasted a growth of up to 500 thousand units, and it allowed bidders to forget about the recession for some time. Simultaneously, the Ministry of Labor of the States (US Department of Labor) reported that industrial prices (index PPI) of the United States increased by 0.2% in May 2009 compared to the previous month, while analysts had expected growth rate by 0.7%.

Positive news from the housing market was somewhat balanced by a greater-than-expected decline in industrial production in the United States in May. The indicator has decreased by 1.1% in monthly terms, while experts predicted a decline of 0.9-1%.

At the end of the trading day Dow Jones index fell by 107.46 points (-1.25 per cent) – up to 8504.67 point, NASDAQ – by 20.20 points (-1.11 per cent) – up to 1796.18 point, S & P – by 11.45 points (-1.27 per cent) – up to 911.97 points.

Statistics of the euro zone, published on Monday, showed growth of investors’ optimism. According to the German research group Sentix, optimistic sentiment of European investors reached the maximum in June of this year. Instead of the expected growth to minus 31.0 points, the rate soared from minus 34.3 points to minus 27.0 points in May.

According to experts Sentix, the main factor in the growth of optimism in business circles in Europe has been the improvement of macroeconomic statistics, released recently in the countries of the euro zone. Against the backdrop of slowing economic downturn, confidence in the region is growing that the worst times of recession are behind us and the beginning of the restoration of economic growth is not far off.

An additional factor that stimulated the optimistic tone of market participants became macroeconomic data, released in Germany. The Federal Statistics Office in Wiesbaden reported that the volume of Factory Orders in April of this year had not changed in comparison with that of the previous month. In annual terms it fell by 37.1%, while the predicted decline was 33.0%. In the statement the Ministry of Economy of Germany said that the medium-term prospects for the development of the German economy looked much better.

Thus, expectations that the European economy is ready for the start of reconstruction are stepping up the sale of debt obligations of European governments. At the same time, the players prefer to make predictions for short-term outlook, where apparent improvement in the economic situation is not expected. Therefore, by the end of the trading session the short-term debt securities of most European governments showed increase in price as opposed to long-term securities, which fell on the basis of quotes of the day. The leading benchmark of European government bonds showed the following results half an hour before the closing of trading session: yield of 2-year German Bunds rose by 5, 10-year-olds dropped by 4. Spread between 2-year-old and 10-year German Bunds has shrunk from 204 to 195.

According to analysts, the rally in global equity markets may continue until the end of June, as the month is the final one for the second quarter. Consequently, the desire to complete the quarter with the high rates will be determinative for many investment funds. In addition, the yield of long-awaited positive macroeconomic indicators, giving reason to believe that the “bottom” of economic decline of the European region is reached and the beginning of the process of economic recovery is not far off, no doubt, will further catalyze the growth of prices in world stock markets.