There are multiple versions of each test, which vary from 20 to 150 questions long, with questions that are similar or often identical to the real DMV test. The practice tests offer hints, detailed explanations and immediate feedback, along with questions about fines, limits, regulations, road signs and citations.

No library card number or personal information is needed. This resource also is great for anyone looking to brush up on his or her knowledge of Pennsylvanias traffic laws. A helpful FAQ section addresses questions residents might have about visiting their local DMV, such as how to renew your PA license, those who are new to PA, and documents need to apply for a PA license.

This free service supports the statewide information literacy initiative of PA Forward, which helps citizens know how to use online resources and current technology to improve their education and fully participate in a digital society.

The James V. Brown Library is open from 9 a.m. to 8 p.m. Monday through Friday; noon to 5 p.m. Saturday and Sunday; and 24/7 at http://www.jvbrown.edu.

The rest is here:
Library offers free online PA driving practice tests - NorthcentralPa.com

Aug 23, 2017 at 5:00 am

Organic farming is growing in Iowa almost as fast as the bane of chemical-free farmers weeds.

While pigweed and lambsquarter can double in size in a few sunny days, the number of organic producers and processors in Iowa has increased 31 percent in the past five years.

We are not even close to meeting market demand, and we dont have to spend much time marketing, said Andrew Dunham, who with his wife Melissa operates Grinnell Heritage Farm, one of the states largest producers of organic vegetables and fruit.

When Francis Thicke of rural Fairfield converted to organic in 1975, he said he did so out of principle, in the belief that it was the right and responsible thing to do. We didnt even have a market. Now our products sell themselves, said Thicke, who with his wife Susan operates the 730-acre Radiance Dairy Farm.

Iowa ranks sixth among the 50 states in the number of organic producers and processors with 939 this year, up from 717 in 2012, said Kate Mendenhall, executive director of the Iowa Organic Association. (Scroll to the bottom of this story for a map of certified organic farms in Iowa from the Iowa Organic Association.)

Much of the growth, she said, has been in organic grain, fueled by rapid increases in the production of organic dairy, eggs and poultry. And Amish farmers, finding a profitable niche in labor-intensive organic production, have been leading the way.

The price premium for organic food, while varying from one commodity to another, typically ranges from two to three times higher than prices for their conventionally produced counterparts, Mendenhall said.

Substantially lower chemical residues make organic food more healthful than food raised with commercial fertilizer, herbicides and pesticides, she said.

Consumer recognition of health benefits for them, their families and the environment drives the growth of organic products, she said.

Organic sales in the United States totaled $47 billion in 2016, which accounts for more than 5 percent of U.S. food sales, according to the Organic Trade Association. With sales up 8.4 percent from the previous year, it is the fastest-growing sector of the U.S. food industry, the trade group said.

But its more than health benefits contributing to organic products popularity. Consumers also believe that organic agriculture, which eschews chemical fertilizer, herbicide and pesticide and is generally conducted on a smaller, more personal scale, is friendlier to the environment, Thicke said.

Though Thicke makes no claims about the flavor of the milk, cheese and yogurt produced by his 80 Jersey cows, he acknowledges that some of his customers do.

The Dunhams, with the equivalent of 10 full-time employees during the growing season, raise 60 different kinds of organic vegetables and fruit on their 25 acres of raised beds.

Andrew Dunham said they truck more than half their produce to grocery stores. New Pioneer, with stores in Iowa City, Coralville and Cedar Rapids, is their biggest customer.

They also provide weekly boxes of produce to more than 300 families under the Community Supported Agriculture program, and farmers markets the smallest outlet for their products accounts for about 12 percent of sales, he said.

Dunham said the tilth and fertility of their soil have improved dramatically in the 11 years since they converted to organic practices. Composted manure from their grass-fed cattle, extensive cover crop plantings a crop planted to manage soil erosion, fertility and quality as well as weeds and pests and multiyear crop rotations get much of the credit, he said.

Weed control their biggest challenge is accomplished primarily with mulch, tillage and the long crop rotations, he said.

Dunham said extensive mulching controls blight in their 1,500 tomato plants. Noting that blight spreads through soil contact, Dunham said the only part of the plant that ever touches soil is the roots.

Perry Helmuth, the first Amish farmer in the Hazleton community to convert to organic agriculture, said he noticed increased demand for organic grain in the early 1990s.

At that time I wasnt spraying (chemicals) for weeds anyway. I figured Im close. Id just as well try it, so I switched over and got my certification in 1995, he said.

Most other Amish farmers have since followed, according to Helmuth, who estimates that 95 percent of the farmers in the Hazleton Amish community have converted to organic.

It was a life saver for us out here, he said. We couldnt compete with the big conventional farmers anymore. Land prices were too high. Returns were too low. Many young Amish men were working off the farm to make ends meet.

Amish farmers, typically with small land holdings and large families, found a niche in organic farming, which relies more on labor and management than on capital. Higher prices for organic crops enabled many of them to return to their agricultural roots, Helmuth said.

They still want to come back home and farm. The farm is the best place to raise a family, he said.

His own experience with the popular herbicide atrazine influenced his conversion. I got sick every time I used it, he said.

Helmuth said it took him two years to get a handle on the organic farmers two biggest challenges maintaining soil fertility and controlling weeds.

Livestock manure, coupled with incorporation of clover and alfalfa cover crops, keeps his soil fertile, he said, while multiple passes with horse-drawn tillage equipment curbs weeds.

Whereas conventional Iowa farmers typically start planting corn in mid-April, organic farmers wait another month so they can mechanically kill the first flush of spring weeds before planting, he said. Once their crops have emerged, organic farmers strive to cultivate them at least three times.

Unlike conventional farmers, most of whom annually alternate corn and soybeans in their fields, Helmuth employs a four-year rotation that includes corn, soybeans, oats and a combination of hay and pasture.

A good crop rotation helps keep your soil in balance and your weeds in check, he said.

Helmuth said his corn yields dipped during his first two years of organic farming but quickly rebounded. If we dont get 150 bushels per acre we are disappointed, he said.

We think organic food is healthier, and more and more people are thinking that way, said Freeman Detweiler, an Amish organic farmer in the Hazleton community.

Detweiler said organic farming requires a lot of labor, a lot of manure and good timing, but you will get more out of your land.

The market is there, but the big missing piece is the land, said Suzan Erem, president and co-founder of the Sustainable Iowa Land Trust, launched in 2015 to permanently protect land to grow healthy food.

Around the cities that constitute the largest market for organic food, no one is reserving land for food production, she said.

Under development pressure, land around cities can sell for as much as $30,000 per acre well beyond the reach of start-up organic farmers, Erem said.

Through donations and easements, the trust is acquiring land that can be made available at lower costs to beginning farmers, she said.

Federal assistance is available to certified organic producers and to those transitioning to organic production through the Environmental Quality Incentives Programs Organic Initiative.

Since its introduction in the 2008 farm bill, the program has paid out more than $8 million to Iowa organic farmers, said Jason Johnson, a spokesman for the U.S. Department of Agricultures Natural Resources Conservation Service, which administers the program.

Johnson said organic producers receive a higher payment rate than their conventional counterparts for implementing conservation practices such as cover crops, crop rotations and nutrient and pest management.

The USDAs Organic Certification Cost Share Program also reimburses eligible organic producers and handlers up to 75 percent of certification costs each year, to a $750 maximum.

Other than helping to administer the federal assistance, the Iowa Department of Agriculture and Land Stewardship provides no incentives for the adoption of organic practices, department spokesman Dustin Vande Hoff said.

The Iowa Organic Associations Mendenhall said Iowa should do more to encourage the transition from conventional to organic production.

Given that organic practices reduce nutrient loss to surface water by 50 percent, she said doing so would make sense in a state with severe nutrient pollution problems.

Continue reading here:

Organic farmers sprouting up across Iowa - The Gazette: Eastern Iowa Breaking News and Headlines

Walking down the dusty road along the produce field near Myrtle Creek, one of the first things I noticed were all the different sized footprints. They range from tiny, preschool-sized ones up to teenage, and then adult. This tells the story of the Valadez family; they work hard to make a living on their organic farm, and they do it as a family.

With Juan doing the tractor work, and Lucy selling at two area farmers markets, their five children are fully involved in everything in between. The youngest, twins Mayte and Jozef, and Katalina help plant, weed and harvest and do a lot of giggling and occasional tossing of well-aimed produce while picking.

Teenagers Buddy and Mariyah alternate weeks helping their mom at the farmers markets and will be helping at the roadside stand that will open soon. Lucy beams with pride as her two oldest take care of business, answering questions from customers, making change and offering advice on which melon is the best choice, what variety of corn theyre offering or explaining the difference in peppers.

As the only certified organic vendor at the Umpqua Valley Farmers Market, Lucy says she does her best to explain the whole organic idea because people need to know why organic costs a little more. Seeds have to be certified organic, which tends to limit varieties in some things.

Records must be kept accurately as to where the seed came from, when it was planted, when it was harvested, what fertilizer was used and when and how it was applied. Well water and irrigation water drawn from the South Umpqua River must be tested. Inspections are costly, with yearly recertification costing from $500 to $1,000.

Compost has to be held for two years before use, no manure is used and any farm animals have to be kept a certain distance from the growing area. Strawberries have to be in the ground for two years before the berries can be sold as organic. The greenhouses, where Valadez Organic Produce start all of their own seedlings, require separate certification. Obviously, growing certified organic is only feasible if youre in it for the long haul, which Lucy and her family are.

Currently, summer crops are being harvested, and fall crops are being planted. While the Valadez family grows the usual variety of summer produce, melonsspecifically, watermelonsare their crown jewel. Buddy, known to the family and customers as The Watermelon Whisperer, can tell you more than you probably want to know about his melons, but mainly, how to pick a good one! After all, what else do you really need to know?

There are five varieties available, plus several kinds of cantaloupes and crenshaws. People who only get grocery store melons dont even know what theyre missing! Buddy says proudly. And you have to have a seeded melon for the best flavor. Seedless melons cant compare.

Tuesdays and Thursdays are harvest days, so while Lucy makes estimates of how much to pick for each farmers market, the kids start picking and loading into boxes and totes, which spend the night in the walk-in cooler, ready to be loaded in the morning.

Right now, green beans, corn, squash, beets, eggplant, tomatoes and those wonderful melons fill the tables at the markets with red cabbage, winter squash, pumpkins, Napa cabbage, chard, cauliflower, broccoli and kale coming along for later in the fall.

It was interesting to see some odd-looking plants in one of the hoop houses: lemon trees, lime trees and papayas! Juan, according to his wife, wants to grow everything! A patch of asparagus is dormant in a corner of the yard, and a small grove of cactus threatens if you get too close. Nopalitos, the fleshy cactus pads, can be harvested and cooked for traditional Mexican food or pickled.

Naturally, the conversation got around to cooking and eating. Youll find several recipes that grace the Valadez table regularly, all with the approval of the kids. Lucy says her idea about kids eating vegetables is simple: We grow it, and we eat it! We eat it out in the field when were picking, and we eat it at the table. The kids have seen the seeds pop out of the ground, weve all worked at weeding and harvesting and we all enjoy what we grew.

As to the future of Valadez Organic Produce, Juan says, simply, More! They would like to farm more land and have a good-sized produce stand that would be open earlier and later in the season, and they would like to find another farmers market, possibly along the coast.

You can load up on Valadez Organic Produce on Saturdays at the Umpqua Valley Farmers Market at the Methodist Church on Harvard. You might even find some rolls for those Eggplant Sliders!

See the original post:

Farm to Fork: Valadez Organic Produce keeps it all in the family - NRToday.com

Attention, Walmart shoppers: A very different kind of store just hit the big box chain. If you've ever walked into a Walmart, you've probably noticed one of a few tried-and-true chain fast food joints in the front corner. Often it's McDonald's; sometimes it's Checkers or Subway.

The Wally World off of Narcoosee Road in Orlando, FL, is bucking that trend, putting a unique and unexpected restaurant featured front and center.

Advertisement - Continue Reading Below

It's called grown, an organic restaurant founded by former NBA player Ray Allen and his wife, Shannon. The company, which focuses on selling "slow food for fast people" (think smoothies, juices, and grain bowls), may seem like an odd fit for the chain, but reps insist it's a more organic collaboration than you'd expect.

Grown/Walmart

It turns out Walmart sells more organic groceries than any other retailer in the U.S., and the brand's made it their goal to expand its options for shoppers. "Operating grown inside of Walmart makes the store accessible to every family, regardless of their mean income, making the move a game-changer for consumers," a representative for the brand wrote via email.

Most of the meals are as customizable as a Chipotle burrito bowl: You choose the protein, vegetables, grains, and a sauce to top it. Craving grilled shrimp with Mexican corn, black beans, and Chimichurri? You can do it. Grilled salmon, roasted garlic Brussels Sprouts, mashed sweet potatoes and BBQ sauce? Done and done.

There's also a portion of the menu devoted to salads, sandwiches, and wraps, which start with a base flavor combination say, Parisienne (butter lettuce, greens, red onion, hardboiled eggs, tomatoes and Dijon) or Capri (pesto, kale, romaine, tomato, mozzarella, red onions, and balsamic glaze) and you choose what protein you add to it.

It's unclear whether the pricing mirrors the Miami store, but if so, it may be a surprise to some Walmart shoppers. At $14-$18 per grain bowl, it's pricier than the typical fast food fare.

Follow Delish on Instagram.

Download the Delish app.

Read more from the original source:

Walmart Just Opened An Organic Fast Food Joint In Florida - Delish.com

By Mark P. Vincent, Daily News Correspondent

In evaluating my topic options for this months column, I considered one Ive intended to cover for a long time: organic wine. Frankly, Ive been remiss in not covering them prior to now. That said, lets proceed.

Organic wine is vino produced by viticulturists and winemakers who eschew the use of artificial and synthetic chemicals, such as fertilizers, pesticides, fungicides, and herbicides in their vineyards. They are also highly selective about what they add to wine during the fermentation and winemaking process, using only a limited number of natural substances.

Theres growing evidence that many, if not all, synthetic chemicals are hazardous to the welfare and longevity of human beings and have become dangerously pervasive in our food chain and environment, as well as in our bodies.

This issue is making organic food the fastest growing market category currently. Reflecting this trend, the number of organic vineyards globally almost tripled from 2004 to 2011, according to ProWein magazine. While the trend is growing globally, roughly 89 percent of organic vineyards currently are in Europe, and Austria can boast almost 10 percent of its vineyards are organic.

My sympathy has always been with farmers and vineyard owners who risk significant financial loss due to the destruction of their crops by pests, viruses, bacteria and molds. Its a rare business that can afford to take the position, We just wont produce any income this year without being deeply concerned for their survival.

Consequently, man has long sought to control nature and increase the yield and quality of crops, while limiting the downside of loss. Widespread use of chemicals helped farmers protect their crops and boost yields. However, in doing so, farmers, including grape growers, became more dependent on chemical agriculture rather than on healthy soil. Simultaneously, they increased their exposure, and their customers', to potentially unhealthy chemicals, and conventionally grown grapes leave trace chemical residues in wines.

There is growing awareness of the hazards of many chemicals and the evidence is building that the chickens are now coming home to roost in our declining health and high costs of health care.

Why organic wine? To begin with, there are many who believe organic and biodynamic wines simply taste better. Advocates claim the wines are purer, cleaner, more complex and more delicious. I agree, but Ill leave that up to individual wine consumers to decide for themselves.

The other major reason for drinking organic wine is health related. Its no secret that many of the illnesses that plague mankind are increasingly being linked to our exposure to chemicals. Limiting ones exposure to potentially harmful chemicals just makes good sense, doesnt it? If that is true of food, why not of wine, too?

Now, mind you, we need to understand that grape growers who adopt organic practices do so more often out of self interest rather than looking out for their customers' safety. If we are getting exposed to chemical residues in their wine, isnt their exposure and their workers' exposure in applying these chemicals magnitudes higher than a wine consumers? Nevertheless, in protecting themselves and their employees by adopting organic standards and principles, they inevitably end up protecting consumers too.

As noted above, more growers and vintners are adopting organic and biodynamic practices in their businesses. It's important to also recognize that some wineries, while not advertising or claiming to be organic, always adopted organic principles and committed to producing natural wines as a matter of general operating procedures. They just dont brag that theyve always used a common-sense approach to agriculture.

What recently brought these issues to my attention? I purchased a bottle of Alexander Valley Vineyards Organic Cabernet Sauvignon ($32), made from grapes grown in an organic vineyard created in 2008. Ive always loved their wines and recommend their traditional cab as a terrific, value wine. The new organic offering, while a little pricier, completely blew me away. Its awesome.

Fetzer Vineyards and Bonterra Vineyards in the U.S. have long practiced sustainable, organic farming and I commend both of them for their longstanding commitment and foresight. Whenever Ive had the opportunity to consume their wines, I thoroughly enjoyed them.

My goal is to think and drink organic in the future. Why not join me? Enjoy.

Mark P. Vincent is a Worcester resident who has a passion for wine. Contact him at winewisdom@yahoo.com.

See original here:

WINE WISDOM: Is it finally time for organic wine? - Wicked Local Hamilton

Image Source: Sarah Cottrell

I spend a lot of time thinking about food. Not because Im a foodie or because I eat too much (although I do love carbs), but because Im one of the 49 percent of Americans who live paycheck-to-paycheck. This means that I regularly have to take my income and divide it up between the mortgage, the car insurance, the utilities, the groceries, and the many other surprise expenses that crop up when youre raising tiny humans. But at the end of the month, theres little else left over.

In a recent attempt to get financially fit and finally start saving some money again, I decided to take a cold hard look at our spending, and wasnt too surprised to see that our food bill was the biggest chunk of that by far. After all, I have a growing family of five to feed, and we buy organic. But I was surprised to findthat with some careful and deliberate planning, I could cut my monthly food bill in half. Yep HALF.

Before, I was spending close to $300 a week on groceries, easy. But now, with some necessary changes, Ive been keeping us at $150 or less a week. And no, I dont spend half my week coupon clipping (its pretty rare that you can find them for organic foods, anyway). Heres how I do it.

This years tax refund didnt go to a fancy vacation or a new car it went right to food storage. Since I live in a rural area, it wasnt hard to find a few local farmers who I could buy meat in bulk from. For $1,200 I bought half a cow and a whole pig, which filled my 20 ft.-wide stand-up freezer with enough meat to feed us for the year, maybe longer.

But there are plenty of nationwide bulk suppliers you can stock up on food from, too, whether thats for meat, frozen veggies, or other prepared meals. We use companies like Frontiers Co-op where we buy dried goods like flour, sugar, and spices. Associated Buyers is also great for almost anything in bulk, including frozen foods.

Theres also the option to pay for something called a Community Supported Agriculture or CSA subscription. For around $300 a season (or 12 to 18 weeks, depending on the agreement) we can get a box filled with fruit, vegetables, and sometimes eggs and dairy all grown and produced by a local farmer. That works out to be around $25 a week.

If you live in a city you can join a co-op that will allow you to order items in bulk once or twice a month. Talk to your local health food store to find out if they have a program you can sign up for. If not, dont worry, because you can easily set up your own through companies like Om Bulk Foods, which has options for families and friends to create a FBC or Food Buying Club.

My husband and I got some chickens and started collecting our own eggs, which virtually pays for itself. A dozen eggs cost me $4.99 at the grocery store, but I get twice that in a week from home. A 50-pound bag of chicken feed costs me $16 and lasts for a few weeks. There have been many nights at our house when those eggs were the only protein we had. Needless to say, I can make a mean frittata.

My husband has been an avid gardener since Ive known him, so we use his skills to grow and store as much food as we can. This means freezing corn and peas, canning tomatoes, picking berries, and storing potatoes and squash.

We also hit up the local farmers markets, which are shockingly cheap if you only buy vegetables and stay away from the $300 hand-woven baskets and fancy jams that stuff is for the rich housewives, not broke ones like me. You dont have to live in the country or even the suburbs to find a good farmers market, though. Even big cities have awesome farmers markets if you know where to look. (Check out this handy locator to find one near you.)

If you arent signed up for a CSA, then you can still reap big savings by spending your hard earned money on root vegetables like carrots, potatoes, and squash. These wont rot right away quickly and you can buy those for dirt cheap literally. A 5 lbs. bag of organic carrots costs me $3 and I can store those for most of the winter. Its also worth buying up the broccoli and peas when theyre in season and then bring them home and freeze them. Salad greens arent as cost effective to buy per pound, so instead we grow our own. The seeds are so cheap and the plants so easy to grow (even in containers in a window) that we keep a variety of lettuces growing throughout the year.

Heres another trick I like to keep up my sleeve: Anytime I am at the grocery store, Ill grab a couple of sale items from the canned foods section and store those in my pantry at home. I like to stick to items that I can use 1,001 different ways, like canned tomatoes, stocks, beans, and corn, which are all cheap and easy to store. I also have a few quart-sized Masson jars on hand in my pantry, to store the food we grow ourselves once canning season rolls around.

Every Friday night, after eating leftovers from the week or breakfast for dinner, I sit down and make menus for the following week. I never include breakfast or lunches, because we all basically eat the same thing; oatmeal for breakfast (I buy that in bulk), and sandwiches with veggie sticks and apples for lunch. The list I come up with is what we eat by for the next seven days, no matter what. We rarely deviate from the plan, and if we want to eat fun food like cookies and brownies or granola bars and Fig Newtons, then I do my best to make it from scratch because the ingredients go way further and are more cost-effective that way. (Plus, the kids get to try their hand at baking, so its kind of win-win.)

When I choose meals, I always have an eye for whats healthy and what my kids will actually eat. The menus are built around what we have on hand and not so much what I saw on Pinterest or what we feel like eating. Were poor. We dont get to say, Meh, lets just order tonight. When we get take-out its because were celebrating something, like when my oldest son ended his year of school with perfect grades, we went out for Chinese. My kids like typical kid fare, but since we make everything ourselves I get to sneak in healthy options from the garden. So instead of French fries, I make roasted vegetables. Instead of store bought Pop Tarts, I make homemade turnovers with whatever fruit we have on hand.

After just a few months in, this budgeting plan is really starting to work, and we have a teeny tiny nest egg started in our savings account, which for us is a huge deal. Weve never had a nest egg before. And while right now that egg looks like more like a jelly bean and less like a future retirement fund, my hope is that by being consistent with our frugality we can grow those savings into something that will provide an eventual safety net for my family.

Our food budget and meal planning is something that we include the kids in, too. They each get a weekly allowance and are tasked with dividing up their money into categories like savings, donations, and spending. We have frank conversations about the value of things and the importance of planning. Being frugal in our house is not so much a virtue as it is a way to survive, but it is turning us into financially savvy people, and that alone is a great gift that Im proud to give my kids.

Article Posted 14 hours Ago

Read more from the original source:

How I Feed My Family of 5 Organic on Less Than $150 a Week - Babble (blog)

Whisky might not be the most conventional buying opportunity but for this investor, it's a commodity worth investing in.

Rupert Patrick, CEO of whisky trading website WhiskyInvestDirect, said that investing in Scotch whisky is a long-term investment comparable to buying gold.

Patrick's business is part of the BullionVault group, which enables investors to trade gold, platinum and silver online.

"BullionVault's software translates very easily to scotch whisky," he told CNBC's "Street Signs".

"If you think about a gold bar sitting in a vault, and then switch that image for piles and piles of Scotch whisky sitting in barrels for 10-15 years sometimes you've got an asset which is investable to retail investors through very clever technology."

Rare, sought-after whisky brands have climbed 34.6 percent in the last 12 months, according to the Rare Whiskey Icon 100 Index.

Patrick's firm buys the spirit as a commodity directly from distillers, to then make a return on the investment at a later point.

"We buy new, so it's come off distilled into the cask beautifully, (and) it stays in their warehouse," Patrick said.

See the original post here:
Whisky could be just as sound an investment opportunity as gold - CNBC

To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future, for example, investment on durable good such as real estate for service industry and factory for manufacturing product development, which are two common types for micro-economic output in modern economy. Investment on Research and Development occurs mainly on the innovation of consumer products.

In financial market, the benefit from investment is called a return. The return may consist of capital gain or investment income, including dividends, interest, rental income etc., or a combination of the two. The projected economic return is the appropriately discounted value of the future returns. The historic return comprises the actual capital gain (or loss) or income (or both) over a period of time.

Investment generally results in acquiring an asset, also called an investment. If the asset is available at a price worth investing, it is normally expected either to generate income, or to appreciate in value, so that it can be sold at a higher price (or both).

Investors generally expect higher returns from riskier investments. Financial assets range from low-risk, low-return investments, such as high-grade government bonds, to those with higher risk and higher expected commensurate reward, such as emerging markets stock investments.

Investors, particularly novices, are often advised to adopt an investment strategy and diversify their portfolio. Diversification has the statistical effect of reducing overall risk.

Investment differs from arbitrage, in which profit is generated without investing capital or bearing risk.

An investor may bear a risk of loss of some or all of their capital invested, whereas in saving (such as in a bank deposit) the risk of loss in nominal value is normally remote. (Note that if the currency of a savings account differs from the account holder's home currency, then there is the risk that the exchange rate between the two currencies will move unfavorably, so that the value in the account holder's home currency of the savings account decreases.)

Speculation involves a level of risk which is greater than most investors would generally consider justified by the expected return. An alternative characterization of speculation is its short-term, opportunistic nature.

Investors famous for their success include Warren Buffett. In March 2013 Forbes magazine, Warren Buffett ranked number 2 in their Forbes 400 list.[1] Buffett has advised in numerous articles and interviews that a good investment strategy is long term and choosing the right assets to invest in requires due diligence.

Edward O. Thorp was a highly successful hedge fund manager in the 1970s and 1980s who spoke of a similar approach.[2]

The investment principles of both of these investors have points in common with the Kelly criterion for money management.[3] Numerous interactive calculators which use the Kelly criterion can be found online.[4]

Investments are often made indirectly through intermediary financial institutions. These intermediaries include pension funds, banks, and insurance companies. They may pool money received from a number of individual end investors into funds such as investment trusts, unit trusts, SICAVs, etc. to make large scale investments. Each individual investor holds an indirect or direct claim on the assets purchased, subject to charges levied by the intermediary, which may be large and varied.

Approaches to investment sometimes referred to in marketing of collective investments include dollar cost averaging and market timing.

The Code of Hammurabi (around 1700 BC) provided a legal framework for investment, establishing a means for the pledge of collateral by codifying debtor and creditor rights in regard to pledged land. Punishments for breaking financial obligations were not as severe as those for crimes involving injury or death.[5]

In the early 1900s purchasers of stocks, bonds, and other securities were described in media, academia, and commerce as speculators. By the 1950s, the term investment had come to denote the more conservative end of the securities spectrum, while speculation was applied by financial brokers and their advertising agencies to higher risk securities much in vogue at that time. Since the last half of the 20th century, the terms speculation and speculator have specifically referred to higher risk ventures.

A value investor buys assets that they believe to be undervalued (and sells overvalued ones). To identify undervalued securities, a value investor uses analysis of the financial reports of the issuer to evaluate the security. Value investors employ accounting ratios, such as earnings per share and sales growth, to identify securities trading at prices below their worth.

Warren Buffett and Benjamin Graham are notable examples of value investors. Graham and Dodd's seminal work Security Analysis was written in the wake of the Wall Street Crash of 1929. [6]

The price to earnings ratio (P/E), or earnings multiple, is a particularly significant and recognized fundamental ratio, with a function of dividing the share price of stock, by its earnings per share. This will provide the value representing the sum investors are prepared to expend for each dollar of company earnings. This ratio is an important aspect, due to its capacity as measurement for the comparison of valuations of various companies. A stock with a lower P/E ratio will cost less per share, than one with a higher P/E, taking into account the same level of financial performance; therefore, it essentially means a low P/E is the preferred option.[7]

An instance, in which the price to earnings ratio has a lesser significance, is when companies in different industries are compared. An example; although, it is reasonable for a telecommunications stock to show a P/E in the low teens; in the case of hi-tech stock, a P/E in the 40s range, is not unusual. When making comparisons the P/E ratio can give you a refined view of a particular stock valuation.

For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets. In the process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account. It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation, of intangibles. Accordingly, the P/B could be considered a comparatively, conservative metric.

Free cash flow measures the cash a company generates which is available to its debt and equity investors, after allowing for reinvestment in working capital and capital expenditure. High and rising free cash flow therefore tend to make a company more attractive to investors.

The debt-to-equity ratio is an indicator of capital structure. A high proportion of debt, reflected in a high debt-to-equity ratio, tends to make a company's earnings, free cash flow, and ultimately the returns to its investors, more risky or volatile. Investors compare a company's debt-to-equity ratio with those of other companies in the same industry, and examine trends in debt-to-equity ratios and free cash flow.

A popular valuation metric is Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), with application for example to valuing unlisted companies and mergers and acquisitions.[8]

For an attractive investment, for example a company competing in a high growth industry, an investor might expect a significant acquisition premium above book value or current market value, which values the company at several times the most recent EBITDA. A private equity fund for example may buy a target company for a multiple of its historical or forecasted EBITDA, perhaps as much as 6 or 8 times.

In certain cases, an EBITDA may be sacrificed by a company, in order for the pursuance of future growth; a strategy frequently used by corporate giants, such as, Amazon, Google and Microsoft, among others. This is a business decision that can impact negatively on buyout offers, founded on EBITDA and can be the cause of many negotiations, failing. It may be recognized as a valuation breach, with many investors maintaining that sellers are too demanding, while buyers are regarded as failing to realize the long-term potential of, expenditure or acquisitions.

The amount to pay in taxes for long term investments, investments that span over a year long term, and short term investments such as those that are below a year are different. The long term investments range from Zero to twenty percent for capital gains and they are regulated by what tax bracket you are in for income taxes. For the zero to fifteen percent income tax bracket you could qualify for the zero percent long-term capital gains rate. The next bracket is the fifteen to twenty percent income tax bracket where you are set at fifteen percent capital gains tax for long term investments. The next bracket is between twenty and 39.6 percent and that leads to a twenty percent capital gains tax however with these numbers you should add 3.8 percent for the health care surtax. The short term capital gains tax is also related to your total taxable income and is taxed at the same rate as your income and ranges from ten to 39.6 percent.[9]

Types of financial investments include:

Read more here:
Investment - Wikipedia

I'm sure I'm not alone here: The older I get, the less of a risk taker I become. I look back at things I did 10 or 20 years ago and am in awe of my younger self! I was brave and bold - and in some cases downright reckless - in ways I cannot fathom today.

Part of it is that as we age and gain more experience, we become more aware of danger and consequence. I see this happening already in my sons. At age 2, my eldest just barely made the height requirement to ride the kiddie roller coaster at a local amusement park, yet he boarded it without fear, as if he'd ridden it 100 times before. I was white-knuckled the whole ride, while beside me he just laughed. A year later, though, at the wise old age of 3, he took one look at that roller coaster and gave it a hard pass. Way too scary, now that he had a slightly better sense of what was at stake.

Part of it, too, is the burden of responsibility. I'm a wife, a mother, and a breadwinner. These roles define me in ways the younger me could only dream of. When I take risks now, I in turn put my family at risk, financially or otherwise.

So I'll admit I don't take a lot of risks these days, investments included. Not long ago, my husband and I bit our nails over the purchase of a bitcoin. A single bitcoin. We didn't want to risk missing out on the ride, but I imagine 20 years ago we would have just jumped right on that roller coaster with our hands in the air.

Certainly, there's plenty for investors to be nervous about right now. As Regraded Solutions wrote recently:

Nobody knows if the recent turbulence will last. Thus far, over the past 7-8 years, the markets have bounced back and gone even higher. If that happens once again, great, no harm no foul. The point is to be prepared for the WORST and hope for the best. Do your homework, and know why you are invested, as well as your tolerance for risk.

My tolerance for risk might be particularly low right now due to the fact that I have young children and am in the process of buying a new house (both risks in their own right, really). But I suspect I'm not alone in terms of my overall tolerance for risk decreasing as I age - not to mention as an eight-year stretch of market gains can feel like a correction is due at any time.

With this in mind, I asked several of our authors to respond to the following question for this week's Digest:

What, if any, investment risks are you taking right now?

Here's what they had to say:

The markets have been a little volatile recently. While that is nothing unusual, investors have become a bit complacent due to lack of volatility in the last year or so. On the other hand, in spite of the fact that the economy has been chugging along, there has been a constant fear that the bull market is long in the teeth and valuations have become pricey, so we might see some level of correction in the near future. The next bear market may happen next month or may not occur for the next two years; we do not know.

That said, I believe in a few key principles, the primary one being "strategic diversification" in the form of a pyramid. The base is formed of long-term DGI (dividend growth investing) holdings. The middle piece is a risk-adjusted income-focused portfolio, and the top could be formed from alternative assets or growth/speculative investments depending on ones risk profile. We wrote an article last week that fits into the top piece of the pyramid for income-seeking investors.

The second key principle is "systematic investing." Once a system has been put in place after carefully examining the goals and risk-tolerance, we need not worry about day-to-day gyrations and follow the system diligently without fear and emotions. In the long run, the majority of profits go to people who set their paths and walk on them. Nobody gets to the destination by standing still. As the old Wall Street saying Bulls make money, bears make money, pigs get slaughtered goes, the systematic investing approach helps overcome the excessive greed or impatience.

To be more specific, in our DGI allocation, we are not initiating new positions right now because of high valuations for almost everything. But instead, we are selling put options for the stocks that we want to have and at strike-prices that are 10-15% below the current levels. However, one needs to be careful that these are the companies that you want to own long-term, and their share price may have come down temporarily. Some recent such examples are Verizon (VZ), AT&T (T) , Realty Income (O), Altria (MO), Exxon Mobil (XOM) and Omega Healthcare (OHI). Either way, we wont lose. If the stock falls in the next 4-6 months, we will own it for the attractive dividend, which will be 10-15% higher than todays yield. If not, we will at least earn income in the range of 5-7% on our idle cash. We described this strategy in one of our recent articles.

For any investor with an equity-income dominated portfolio, simply holding richly valued, low-yield dividend-growth-slowing stocks in todays market appears less favorable from a historical risk/rewards perspective. While this does not mean that a harsh wholesale selloff is necessarily in the offing, it does mean that forward total return and dividend growth expectations should be severely tempered. Portfolio performance weve seen over the past 8 years will not sustain itself the next 8 years.

My somewhat muted returns prediction also assumes the macroeconomic backdrop remains tame, which, at this juncture, may be an optimistic view. Investors may be underestimating the domestic impact that unfunded public pension liabilities and health care dispensary issues may have on John Q. Public and collectively, Main Street America.

Indeed, the stagnation and squeezing of the middle class continues, which arguably led to the election of Donald Trump, which currently is leading to rising social discontent. Socio-political/philosophical division, while something our nation has always contended with, appears more threatening than any time in recent memory. Geopolitical risk, primarily from North Korea, is a factor investors should consider.

Further, despite the fact markets are trading at all-time highs, dividend investors continue to witness rolling corrections in the equity/economic realm. Over the past five years income-producing fossil fuel and retail stocks have been rocked by commodity price and e-commerce threat, respectively. Given the rapidity of technological advance and increasing competition in the marketplace, further disruptively-inspired corrections both of individual-equity- and market-sector-ilk should be anticipated.

On a personal level, while I havent been allocating meaningful new capital to stocks as of late, I continue to approach income portfolio construction with the belief that interest rates will remain low and somewhat non-volatile. That is certainly a big risk, assuming neither of those things occur. To leverage that belief I continue to hold and trade some of the UBS 2X ETN products, including MORL (Mortgage Reits) and CEFL (Closed-end funds), which yield in the neighborhood of 20 percent. Caveat emptor.

Im also overweighting equity REITs, but not to the extent I was last year. As I noted in a recent article, I see the foundation cracking a bit there. Largest positions are STORE Capital (STOR), which is extremely rate sensitive and Mid-America Apartment Communities (MAA) an apartment landlord primarily in the Sunbelt region.

Elsewhere, I have made oversized commitment to green energy over the past few years, with large positions in Pattern Energy (PEGI) and NRG Yield (NYLD), currently yielding 6.8% and 6.1%, respectively.

Finally, I would note heavy allocation to technology. While the majority of that is held in large caps like Apple and Microsoft, which arent generally considered risky, Im also taking some chances on some smaller dividend payers like Silicon Motion (SIMO) and Cypress (CY), which are.

One beaten-up and underperforming area of the market where we are starting to see attractive risk-versus-reward opportunities is real estate investment trusts (REITs). For example, as the Death of Retail narrative grows to a louder chorus, we think there will be clear winners and losers within both the retail REIT space (e.g. we like some of the higher-quality shopping mall owners), and the industrial REIT space (e.g. we like some of the industrial REITs serving both traditional customers and e-fulfillment businesses). Further still, we also like some of the data center REITs on pullbacks.

Regarding shopping mall REITs, we like quality. That doesnt necessarily mean only the tier 1 properties with the highest rents, but also some of the tier 2 properties that have sold off but are still not overextended in terms of their debt loads relative to their funds from operations. As members of our marketplace service (The Value & Income Forum) know, weve had some recent success generating attractive income by selling put options on Simon Property Group (SPG), which is one of the higher quality ample-cash-flow retail REITs that we wouldnt mind owning at an even lower price if the shares were to get put to us. Also, we have an interesting view on another retail REIT, Washington Prime Group (WPG) (members-only article: Washington Prime: 12% Yield and The Death of Retail).

Regarding industrial REITs, the space remains strong according to the SIOR Commercial Real Estate Index, but several of the names in this space have underperformed, offer attractive valuations, and have compelling dividend yields. For example, we believe Gramercy Property Trust (GPT) is worth considering, and we recently explained why in this members-only article: Gramercy Yields 5.0%: Buy This Dip or Abandon Ship? Also interesting, some of the industrial REITs will continue to benefit by providing facilities for online retailers, an area of the market that continues to grow, as shown in the following chart.

Regarding data center REITs, this is an area that continues to experience tremendous growth as companies continue to move data to the cloud. Data center REIT dividend yields tend not to be quite as high as many of the retail and industrial REITs, and they are also more volatile. However, the higher volatility makes for more attractive income-generating premium on put option sales. For example, weve recently generated attractive income selling put options on Digital Realty Trust (DLR), an impressive growth company, that will eventually mature into a higher dividend payer, and that we wouldnt mind owning on a pullback if the shares were to get put to us.

Overall, they say the biggest risk is not taking any risk at all. There is a lot of truth to that, but investors should still work to cater their risk exposures to meet their own individual needs. They should also work to take advantage of the current opportunities that the market is providing, rather than trying to force something that is better suited for a different market environment.

In a previous article, I discuss uncompensated risk and its implications for the dividend investor. I went into some depth about why we shouldn't necessarily shy away from risk, as that very act of taking risk can result in outperformance. In addition, I also went over how simply going long the S&P 500 with your entire portfolio exposes you to "uncompensated risk" - being overweight U.S. equities is an active investment stance compared to the only truly passive investment of long MSCI Global or some equivalent worldwide index. However, what I didn't discuss was my own portfolio. At the moment, I'm heavily overweight Europe and Canada relative to the U.S., and this is because of my belief in continued Chinese economic performance. Convoluted, yes, but I will explain.

Recent European outperformance has created a strong tailwind for companies with lots of business locally, and while the euro has been strengthening lately, the world economy is still growing fast enough to support companies with some exports. As such, one of my largest positions is in BMW (traded on the German exchange, not the U.S. OTC ones). The continuing strength of the Chinese economy (one of BMW's largest markets), for the next 2 or 3 years, will support German automobile growth in the mid-term. Again, local European growth will also help tremendously.

I'm also long Canada generally (through REITs, banks, telecoms, and insurance companies). As mentioned, I expect Chinese growth to continue, and this growth will prop up commodity prices - not as much as it has in the past, but enough to drive up Canadian economic growth past what most experts are predicting.

We are in a bit of a different position than most. My wife is 9 months from graduation from Law School and we're currently looking to purchase a new home, so we've been looking to conserve cash, work through the next year and then re-evaluate.

We are still making our investments into our retirement accounts on a regular basis. My 401K has a 55/45 split between bonds and equities. The idea behind the portfolio is to work towards market performance but without the risks associated with being in an all equity portfolio.

In our taxable investment account we did sell Avista on news of the future all cash merger. The funds from that sale were moved to Dominion Resources (D) and Starbucks (SBUX). The total income increased by just over 19% and the overall quality of the portfolio increased with this move. Any funds added in the next year will have a focus on quality versus trading off quality for increased current income.

Our family does have one small position left in Avista (AVA) that we will be selling at some point in the next few months. Right now our thought is to let the market settle a bit. My best guess there is that we'll do with it what we did with the other stakes and add a bit of income while increasing the quality of the portfolio as a whole.

Our broader stance is that risk is actually not a bad thing, as long as it is diversified. With greater risk come the greater potential for rewards, and those rewards can help to keep you solvent when markets become unpredictable. There are some differences that should be considered as far as age demographics are concerned. Older investors with a larger nest egg might not see the need to enhance risk exposure because there is less incentive to generate substantial returns when you have already done the work to accumulate savings over time.

That said, we believe that the market as a whole is vulnerable to growing risk levels. Stock markets that continue to hold at all-time highs could be vulnerable to rising market volatility if global interest rate levels start changing as widespread growth begins to stall. Currently, we are looking at positions that should benefit from rising oil prices. The main contention here is the shift toward alternative fuels but, in our view, many of these forecasts are overly optimistic. These are transitions that will take more time than many in the market realize, and we have started to position with that view in mind.

Since these are contrarian positions (with oil prices remaining depressed for a substantial period of time), there is definitely risk involved. But we feel as though our entry points have been favorable enough (taken after most of the damage was already done) that the inherent risks here should ultimately prove to be profitable given the way they are structured. There are many opportunities for dividend investors to capitalize on these type of stances but it should be understood that the find factor is a vital component when structuring these positions and in adding them to a portfolio. These are not necessarily positions that should be held for thirty years, and that can deter some investors with a highly conservative mindset.

Added risk does mean added reward, however, and we do look for opportunities that have been shunned by most of the market. We will continue to look at the weakening energy space as a source for new investment ideas. But at the same time we will structure those positions in ways that factor time as an important element in order to shield against potential losses. We also make sure to keep these positions active within a well-diversified portfolio in order to gain added protection and to give us greater flexibility to move in and out of positions as market trends change.

What about you? Are you taking any risks right now? Please chime in in the comments below!

If you enjoy the D&I Digest and would like to be alerted to future editions, don't forget to "follow" me! And, please let me know if there's a topic you'd like to see covered in a future D&I Digest, either by commenting below or sending me a private message. I'd love to hear from you.

Finally, here's some recent Dividends & Income content you might want to check out (if you haven't already):

Nervous? Go For Quality, Diversify, Don't Reach For Yield - And Survive Investing Adversity by Mike Nadel

Why Berkshire Is Destined To Become The Ultimate Dividend Growth Stock by Dividend Sensei

The Preferred Investor by Norman Roberts

Prospect Capital: Expected Dividend Cut Of 20% To 30% by BDC Buzz

My Take On Tanger by Brad Thomas

REITs: The Foundation Has Become Increasingly Shaky by Adam Aloisi

Tracking The Treasury Rate For A 9% Yield On This Healthcare REIT by George Schneider

The One Thing Every Self-Directed Investor Must Do by Bob Wells

Retirement Crisis: It's As Simple As Not Saving Enough by Alpha Gen Capital

My 5 Favorite Dividend Investments Of 2017 by Colorado Wealth Management Fund

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Read the original post:
Dividends & Income Digest: What Investment Risks Are You Taking? - Seeking Alpha

What is encouraged, however, are investments that fall along the lines of China's "One Belt, One Road" framework. That giant foreign policy plan seeks to invest billions abroad and shore up influence by strengthening China's infrastructure and trade links with the rest of the world.

Beijing is also supporting investments in energy resources exploration, agriculture, along with ones that advance China's technical abilities and research and development.

"There are profound changes taking place within China and internationally, that offer Chinese companies a good opportunity to invest overseas, but there are also many risks and challenges," the State Council said.

After Beijing relaxed rules on foreign investment a few years ago, Chinese companies went on a massive overseas shopping spree, spending a record $200 billion last year, according to Dealogic. But government worries grew as money flew out of the country and downward pressure on the yuan increased, especially as acquisitions started to span areas deemed more frivolous, from luxury resorts to soccer clubs.

The government stepped up restrictions on capital outflows in response, and the latest rules codify what has long been known: Beijing wants to shepherd investments into sectors that align with national economic and strategic goals.

"This probably is not really a new regulation, as such overseas investment like property, hotel and gambling have never been openly encouraged by the Chinese government," wrote Credit Suisse analyst Vincent Chan in a note. "This new regulation is more like a re-statement of policies that have already been implemented for some time, and not likely to create a major shock to the economy."

The impact of the recent crackdown on outflows has been dramatic outbound deals from China dropped 40 percent to $74 billion in the first half this year, based on Dealogic data.

Beyond the currency considerations, Beijing is clearly worried about the financial risk involved with these deals, experts said. The government has ordered banks to be more judicious about lending to China's more acquisitive companies. Regulators, meanwhile, are reviewing the purchases made and may even ask companies to sell off assets.

"I suspect that some of these companies have got themselves a little bit too far, they've overreached themselves," said Richard Harris, CEO of Port Shelter Investment Management. "I think Beijing is worried ... that some of these companies may go under as we've seen with other countries, with some of their champions in investing heavily."

Follow this link:
No sex, no gambling: China tightens rules on foreign investment - CNBC