RBI ups growth projections, warns of uncertain global recovery

Upbeat over a normal monsoon and the robust industry and services sectors, the RBI today raised its projections for economic growth to 8.5 per cent this fiscal from the earlier estimate of 8 per cent, but warned that a global slowdown may cast a shadow on the economy.

"Taking into account the progress of monsoon so far... the baseline projection of real GDP growth for 2010-11 is revised to 8.5 per cent, up from 8.0 per cent. This upward revision is primarily based on better industrial production and its favourable impact on the services sector," the RBI said in its quarterly monetary review unveiled here.

The RBI's projection is in line with the government and the Prime Minister's economic growth think-tank PMEAC's forecast for the fiscal. However, it is less than the optimistic forecast of 9.5 per cent made by the IMF for this calendar year.

The central bank said the growth prospects of the Indian economy have improved since April, 2010.

"Although cumulative rainfall so far has been 14 per cent below the long period average (LPA), the monsoon has been better than last year. Should overall monsoon performance turn out to be as projected (102 per cent of LPA), there will be a pick-up in rural demand," it said.

Rising demand in the rural economy will further give momentum to the performance of the industrial sector, which has been growing firmly since October, 2009, the RBI said.

However, uncertainty about the global recovery may cast its shadow on India, the central bank warned.

"Prospects of a sustained global recovery appear to be increasingly uncertain, with possible adverse consequences for emerging market economies (EMEs), including India," it said.

The central bank said the main challenge to India's growth story comes from the global scenario, which recently witnessed a sovereign debt crisis in Greece, a slowdown in the eurozone and tight credit and high unemployment in the USA.

It said there is expectation of a slowdown of the global economy in the second half of 2010, which will affect India's manufacturing and services sectors, besides significantly reducing the flow of foreign capital into the country.

"The main risk emanates from the global scenario and has two key dimensions... A widespread slowdown in global trade will have an impact on important manufacturing and services sectors...," the RBI said, adding that a bigger risk could be a slowdown in capital inflows.

Such a situation could also constrain domestic investment, the RBI said.

Market ends choppy trading session lower

The key benchmark indices slipped into the red in late trade as most Asian stocks fell. The BSE 30-share Sensex was provisionally down 26.36 points or 0.15%, up close to 75 points from the day's low and off about equal points from the day's high. The Sensex fell below the psychological 18,000 mark after crossing that mark in mid-morning trade. Realty, FMCG, healthcare and consumer durables stocks fell. But, capital goods stocks rose. Index heavyweight Reliance Industries (RIL) edged lower. Private sector banking major HDFC Bank rose after reporting strong Q1 result.

The market moved between positive and negative zone throughout the day.The market recovered from an early slide as Chinese stocks and US index futures rose. The intraday recovery gathered strength in morning trade - the market moved into positive zone. The market slipped into the red again in early afternoon trade. Weakness continued in afternoon trade after European stocks opened lower. The market moved in a range in mid-afternoon trade.

India's June exports rose an annual 30% to $17.75 billion, Trade Secretary Rahul Khullar said on Monday. Imports for the month rose 23% to $28.3 billion, he said.

Meanwhile, a committee set up by the Indian stock market regulator Securities & Exchange Board of India (Sebi) has recommended major changes in the existing law governing substantial acquisition of shares and takeovers. The committee headed by C. Achuthan has recommended an increase in the acquisition threshold for the initial trigger of an open offer from the current level of 15% to 25% of the voting capital of a listed company. While no change has been recommended in the annual creeping acquisition limit of 5%, the committee has recommended that creeping acquisition be permitted only to acquirers who already hold more than 25% of the voting capital, subject to the aggregate post-acquisition shareholding not exceeding the maximum permissible non-public shareholding.

The committee has recommended that an open offer should be made for all the shares of the target company to ensure equality of opportunity and fair treatment of all shareholders, big and small. The exception to this rule is the size of an open offer where the same is voluntary in nature. The current regulations mandate a minimum offer size of only 20%.

European shares turned positive on Monday as energy shares cut early losses and miners advanced, tracking stronger metals prices. The key benchmark indices in France, UK and Germany were up by 0.21% to 0.38%.

Negotiators for the International Monetary Fund and European Union walked away from talks with Hungary over the weekend over differences on government budget cuts.

Moody's Investors Service on Monday cut Ireland's sovereign debt rating by one notch to Aa2 from Aa1, citing the government's "gradual but significant loss of financial strength." However, the agency also lifted the outlook on Irish government debt to stable from negative, saying the risks are now evenly balanced

Asian stock markets fell on Monday after US consumer confidence weakened and corporate results fell short of expectations. The key benchmark indices in Hong Kong, Taiwan, Indonesia and South Korea were down by 0.19% to 0.79%. But, China's Shanghai Composite rose 2.11%, as banking, property and consumer stocks rose on hopes that Beijing may not introduce more restrictive policies after several indicators showed last week the economy was cooling. Japanese markets were shut for Marine Day.

Trading in US index futures indicated that the Dow could gain 28 points at the opening bell on Monday, 19 July 2010.

Dismal economic data and lower than expected revenues from GE and two big banks slammed US stocks on Friday, 16 July 2010, driving down major indexes more than 2%. General Electric Co, Bank of America Corp and Citigroup Inc joined the list of major companies that beat Wall Street's expectations, but investors unloaded some shares of all three after the companies reported a drop in quarterly revenues. The Dow Jones Industrial Average dropped 261.41 points, or 2.52% to 10,097.90. The Standard & Poor's 500 Index slid 31.60 points, or 2.88% to 1,064.88. The Nasdaq Composite Index lost 70.03 points, or 3.11% to 2,179.05.

The Thomson Reuters/University of Michigan survey of consumers showed US consumer sentiment fell far more than expected to 66.5 in a preliminary July reading, down sharply from 76, June's final number. Earlier, the US Labor Department reported the US Consumer Price Index dipped 0.1% in June, which was weaker than the forecast for no change.

With the market anxious to know whether the world's biggest economy is stalling, semiannual testimony by U.S. central bank chief Ben Bernanke on Wednesday will be closely watched by investors.

Back home, a sharp cut in corporate tax rate proposed in the direct taxes code is reportedly likely to be done in stages to ensure that tax collections do no plummet, derailing the government's attempts to bring the fiscal situation under control. The direct taxes code, or DTC, has proposed a cut in corporate tax rate to 25% from the current 30%, but will withdraw most tax exemptions available to companies. The government is likely to lower the tax rate to 27.5%, or a reduction of 2.5 percentage points, when the code comes into effect, likely from April 2011, reports suggest.

The stock market regulator Securities & Exchange Board of India (Sebi) on Thursday, 15 July 2010, allowed physical settlement of both stock options and stock futures. At present only cash settlement of derivatives is allowed. Sebi said stock exchanges will also have flexibility to offer a combination of cash settlement for stock options and physical settlement for stock or physical settlement for stock options and cash settlement for stock futures.

A stock exchange may introduce physical settlement in a phased manner, it said in a circular. On introduction, however, physical settlement for all stock options and/or all stock futures, as the case may be, must be completed within six months, Sebi said. The settlement mechanism shall be decided by the stock exchanges in consultation with the depositories,the Indian stock market regulator said.

Meanwhile, the lower exposure margin requirement for stock derivatives has become effective from late last week.

On the macro front, the latest data showed that the fuel price index rose 14.27% in the year to 3 July 2010 and the food price index climbed 12.81%. Fuel price inflation eased from the previous week's annual rise of 18.02% while the pace of food price inflation edged up marginally from last week's 12.63%. Food inflation edged up because of higher rice and wheat prices. The primary articles index was up 16.25% compared with the previous week's reading of 16.08%.

The headline inflation rose lower-than-expected 10.55% in June 2010. The rate of increase was higher than May's rise of 10.16%. Inflation for April 2010 was revised upwards to 11.23% from 9.59%.

Weak monsoon rains in the past week will not significantly hurt crop output in the country and the weather outlook is encouraging, Farm Minister Sharad Pawar said on Friday, 16 July 2010. Monsoon rains were 24% below normal in the week ended 14 July 2010. Out of 36 meteorological sub-divisions, rainfall was excess in 8, normal in 4, deficient in 19 and scanty in 5 sub-divisions during the week. Bihar, east Madhya Pradesh, Chhattisgarh, Vidarbha, Andhra Pradesh, Tamil Nadu and Sub- Himalayan West Bengal & Sikkim received good rainfall during the week.

The India Meteorological Department (IMD) said the cumulative seasonal rainfall for the country as a whole during this year's monsoon upto 15 July has so far been 14% below the long period average (LPA). Out of 36 meteorological subdivisions, the rainfall has been excess over 6, normal over 16 and deficient in 14 sub-divisions.

The southwest monsoon was vigorous over Sub-Himalayan West Bengal & Sikkim and active over Saurashtra & Kutch and Arunachal Prades during past 24 hours, the IMD said in its daily update on Sunday, 18 July 2010. The IMD expects widespread rainfall over Uttar Pradesh, Uttrakhand, Bihar, Sub-Himalayan West Bengal & Sikkim, Konkan & Goa, Coastal Karnataka, Kerala, Lakshadweep and northeastern States, in the near term. It said fairly widespread rainfall would occur over Himachal Pradesh, Punjab, Haryana, Chandigarh & Delhi, East Rajasthan, Gangetic West Bengal, Vidarbha, Madhya Pradesh, Chhattisgarh, Jharkhand and Andaman & Nicobar Islands.

The IMD expects scattered rainfall over Madhya Maharashtra, Marathwada, Interior Karnataka, north Andhra Pradesh and Orissa during next 48 hours and increase thereafter. It expects isolated to scattered rainfall over rest of the country in the near term. For the current week, the IMD expects widespread rainfall over west coast, along foothills of Himalaya and northeastern states. It also expects fairly widespread rainfall over central and east India this week.

The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The weather office expects this year's monsoon rains to be at 102% of the long-period average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.

As per provisional figures, the BSE 30-share Sensex was down 26.36 points or 0.15% to 17929.46. The Sensex rose 49.25 points at the day's high of 18,005.07 in mid-morning trade. The index lost 99.42 points at the day's low 17,856.40 in early trade.

The S&P CNX Nifty was down 7.55 points or 0.14% to 5386.35 as per provisional figures.

The BSE Mid-Cap index rose 0.16%. The BSE Small-Cap index rose 0.14%. Both these indices outperformed the Sensex.

The market breadth, indicating the strength of the broader market, was positive. On BSE, 1,504 shares advance while 1,401 shares declined. A total of 116 shares remained unchanged. The breadth was much stronger earlier in the day.

From the 30 share Sensex pack, 19 stocks fell and the rest rose.

BSE clocked turnover of Rs 3705 crore, lower than Rs 4307.85 crore on Friday, 16 July 2010.

India's largest thermal power producer by sales NTPC rose 2.4% and was the top gainer from the Sensex pack. NTPC said during the weekend that it will start commercial operations of its second coal-based 490 MW power plant at Dadri in Uttar Pradesh to provide electricity for the Commonwealth Games. The new plant, along with another unit of similar capacity which came on stream early this year, will provide 90% of its power output for the Games in October this year, the company said in a statement. The remaining 10% will be given to Uttar Pradesh.

Index heavyweight Reliance Industries (RIL) was down 0.68% at Rs 1055.70. The stock hit a low of Rs 1054 and a high of Rs 1065.75. RIL may reportedly be able to establish more commercially-viable oil and gas finds in the country's largest gas field KG-D6 with the Cabinet allowing the company extra time for drilling wells.

The extension will help RIL complete evaluation works in at least three wells in the KG-D6 block where drilling was not authorised by the concerned regulator Directorate General of Hydrocarbon (DGH) after the company missed the deadline, reports suggest.

RIL and Reliance Natural Resources (RNRL) on 25 June 2010, entered into a new gas supply agreement, as directed by the Supreme Court. The Supreme Court had ordered the two companies to renegotiate the Gas Supply Master Agreement, which was signed between the Ambani brothers as part of the business demerger in 2005. RIL also recently announced its seventh oil discovery in Cambay basin in Gujarat.

Private sector banking major HDFC Bank rose 1.07% after the bank announced during market hours today that its net profit rose 33.92% to Rs 811.72 crore in Q1 June 2010 over Q1 June 2009.

FMCG stocks fell on profit taking. ITC, Dabur India, Nestle India and Hindustan Unilever fell by between 0.96% to 2.33%.

Sun Pharmaceutical Industries fell 0.9%. The company has announced that the US District Court for the District of New Jersey denied its motion for judgment as a matter of law, seeking to reverse the earlier jury verdict in the patent litigation over generic Protonix.

The detailed opinion of the Court supporting this order has not yet been issued. Sun Pharma continues to believe that the patent is invalid and unenforceable and will pursue all available legal remedies including appeals. Other claims of Sun Pharma, including patent misuse and unclean hands, that also concern the validity and enforceability of the patents remain pending, the company said.

Among other healthcare stocks, Cipla, Lupin, Pfizer and Dr Reddy's Laboratories fell by between 0.17% to 0.83%.

Some consumer durables stocks fell on profit taking. Gitanjali Gems, Blue Star, Rajesh Exports and Titan Industries fell by between 0.88% to 4.73%.

Interest rate sensitive realty stocks fell on rate hike worries. Omaxe, DLF, Phoenix Mills, Unitech, Indiabulls Real Estate, HDIL, Ansal Properties, Sobha Developers fell by between 0.16% to 1.45%.

India's largest engineering and construction firm by sales Larsen & Toubro rose 1.45% after company said during market hours today L&T General Insurance Company, the general insurance arm of the firm would commence its operations soon. The company has received the necessary license from the regulatory authority for commencing the business operations.

Among other capital goods stocks, Siemens, SKF India, Praj Industries and BEML rose by between 0.05% to 1.38%.

But, India's largest power equipment maker by sales Bharat Heavy Electricals fell 1.14%. The company has got an order worth Rs 2665 crore from Dainik Bhaskar Power for setting up a 1,200 megawatts thermal power plant in Chhattisgarh. The company will announce its Q1 result on Friday, 23 July 2010.

ABB fell 2.13% after its Swiss parent said it will not raise a Rs 900 a share offer for increasing stake in the company.

Reliance Communications (RCom) rose 2% on reports Emirates Telecommunications is close to buying a 26% stake in the firm. It was the top gainer form the Sensex pack. The deal is estimated to be worth $3 billion, and the two groups are considering merging RCom with Swan Telecom, the Indian company in which Etisalat holds a 45%, reports suggest.

Trichet rejects concerns about budget cuts hitting economic growth

European Central Bank chief Jean-Claude Trichet rejected Friday concerns that the tough round of fiscal cutbacks planned by European governments could undercut the fragile recovery from recession.

'Fiscal consolidation and growth are not mutually exclusive,' Trichet told an ECB watchers conference in Frankfurt.

'We disagree with the view that reducing public expenditures will hinder economic growth,' he told the conference. 'On the contrary, prudent fiscal management provides the basis for balanced and sustainable growth.'

While US President Barack Obama has expressed worries that moves to wind back public spending could jeopardise the current economic upswing, leading European states such as Germany have unveiled plans for cutting back deficit and debt levels run up during the recession.

In his comments Friday, the ECB chief also sought to underline the key role to be played by the so-called stress tests for European banks in underpinning investor confidence in the region's financial sector.

'Fiscal consolidation is being put in place at the same time as we strengthen the resilience of the European banking sector,' Trichet said.

'Publication of the detailed results of a harmonised pan-European stress test is an important step in the right direction,'he said.

'These tests will increase transparency and enhance investors' confidence in Europe's banking sector,' he argued.

The stress tests, which are aimed at measuring the banks' chances of surviving another financial crisis, are been coordinated by the London-based Committee of European Banking Supervisors.

The committee said Wednesday that its findings would cover 91 institutions.

Trichet's speech on Friday came just one day after the ECB's governing council announced that it was leaving interest rates on hold at an historic low of 1 per cent.

The ECB has left borrowing costs unchanged for 14 consecutive months as it attempts to shore up economic confidence in the 16-member eurozone.

The Frankfurt-based bank is expecting the eurozone economy
to post moderate economic growth in the coming months as it recovers from recession.

A temperate economic expansion rate combined with subdued inflationary pressures means that most analysts are expecting the ECB to wait until late next year before hiking interest rates.

'But,' warned Trichet Friday, 'events over the past few months have made clear that it is still too early to declare the crisis over.'

Indeed, overhanging the European economy is the threat of the re-emergence of the debt crisis, which earlier this year sent financial markets into a tailspin and threatened to derail the global recovery.

2010 Income Tax Return Filing - What Are the Various Options For Filing 2010 Tax Returns?

For 2010 Income tax return filing, there are various ways available. Which way may be good for you will depend on various factors. Let us look first at what are the various returns filing methods available in 2010.

1. Tax filing Software - One prominent way is to use income tax preparation software such as Turbo Tax. These software have become sophisticated with each year. These tax softwares are up to date regarding all the deductions and tax associated guidelines and are very user interactive.

2. Free E-filing - This is a free method and is also encouraged by IRS. That's because this reduces the paper work for them and it allows them to process the returns quickly. So if a tax filer expects a refund, the refund will also send to them quickly if this method is used in 2010 income tax return filing. However, free e-filing method doesn't guarantee that all the deductions will be incorporated.

3. Through Tax Consultants - Another popular method. Companies like Jackson Hewitt, HR block have specialist tax preparers who will prepare the returns for you and shall help you in identifying areas where you can claim deductions so that your tax liability is low.

Of course, all the three of the above methods are very popular and have their own set of advantage. So the next obvious question that comes is which method will suit you more. The answer is dependent on various factors such as how complicated is your income tax returns. If your returns filing requires a lot of deductions, then you should opt for either the a software or should go to a consultant for 2010 income tax return filing.

However if the returns are going to be straight forward, then go ahead with Free E-filing option.

Economic Growth and Stock Returns - What Investors Need to Know

Although their forecasts are notoriously inaccurate, economists spend a great deal of time thinking about and forecasting future economic growth. Investors often consider these forecasts when deciding where to invest their money. The conventional view is that countries and regions with strong long-term economic growth prospects are more likely to deliver higher stock returns than those with slower growth expectations.

One popular theory is that corporate earnings in the aggregate should constitute roughly a constant percentage of GDP over the long run and, therefore, dividends will rise along with economic growth thus producing higher stock returns in faster growing economies (note: historical data does not appear to support this idea).

Following this logic, asset allocation would be a straightforward process of favoring high growth regions and countries of the world at the expense of the slow growth areas. For example, economists generally agree that the long-run growth potential of Asia is higher than either the United States or Europe. Is getting higher returns on our portfolios as easy as overweight Asian countries since the expected economic growth rate of the region is so much higher than both U.S. and Europe?

Of course, there is no free lunch in finance and market participants know which countries and regions of the world are expected to have higher economic growth in the future. These expectations are incorporated into current market prices, thereby making this knowledge of little value in making investment decisions.

Most important, several academic studies have failed to find a positive correlation between a country's economic growth and its stock market's return. British economists Dimson, Marsh, and Stanton find no evidence that economic growth is a predictor of future stock performance or that high growth economies outperform low growth ones. Similarly, Jay Ritter of the University of says that future economic growth is largely irrelevant for predicting future equity returns.

Simply put, while short-run changes in GDP growth can affect stock prices, there is no necessary long-term connection. Growth of an economy is determined by growth in the supply of labor and increases in productivity. Stock returns, on the other hand, are determined by the cost of capital, which is the rate of return required by investors to bear the risk of owning stocks.

In other words, it is primarily risk that determines long-term stock returns, or the returns on any investment asset (not the growth rate of the economy). Some investment advisors recommend investing in fast-growing economies with the expectation of superior returns, but historically that strategy has not generally succeeded.

This is not to say there is no connection between GDP growth and the stock market. The prosperity of companies and shareholders depends on the health of the economy at any point in time, but instead of GDP growth predicting stock returns, it is the stock market that predicts future GDP growth.

Just as global stock markets rose in 2009 in expectation of economic growth in 2010, economic researchers have found a statistically significant between a country's economic growth and its prior-year's stock market return. In short, a positive return on stocks in year t portends positive economic growth in year t+1.

The fact that the stock market discounts anticipated economic conditions and is a good predictor of future economic growth, suggests that free and competitive markets are efficient processors of information. This is good because the idea that free markets work is a central idea of capitalism and necessary for the proper functioning of capital markets.

In summary, buying into growth markets does not generate market-beating returns because markets anticipate the growth and factor this expectation into current prices. This underscores the importance of having a globally diversified portfolio with exposure to many different countries, regions and asset classes.

How to Find 100% Financing of Investment Property in a Bad Economy

For several years it was easy to find 100% financing of investment property. Just go to a bank and get an 80/20 no doc loan. You didn't need great credit, you didn't need cash and the investment didn't have to make sense.

But the credit crisis of 2008 forced the banks to pull back from their loose lending practices. Now most require 25% down payments when you are trying to buy rental property - if you can get a loan at all. Many would be investors seem locked out of the market at a time when foreclosures are creating many buying opportunities.

So what should you do? Well, some obvious points are:

* save money for a down payment
* improve your credit score

In bad economic times cash is king. Those with the cash are going to get the best deals. Period. But you can still buy investment rental property even if you don't have a lot of cash. (Though to be fair - you need cash once you own the property to handle vacancies, repairs, etc.)

One of the best actions you can take is to develop a good relationship with a small local bank. It was the big banks that were the most out of control (CountryWide, Bank of America, etc.). Many small local banks kept their heads on during the buildup of the real estate bubble and are in a good shape to loan money.

There are several alternatives to banks when it comes to getting 100% financing for investment property. The most obvious is seller financing. Now this won't work if the owner is a bank, but is a great way to find a win-win solution to the problems that sellers are having unloading their houses. And generally, a seller is not going to look too closely at where you are getting a down payment from.

If you have a good relationship with a local bank that knows local real estate values you also might be able to use the seller to carry the down payment as a second mortgage. The big banks are more likely to want you to have some "skin in the game".

If you are buying a property that needs a lot of rehab, the best option might be a hard money loan. Although hard money lenders now run credit checks, if you have some experience in real estate you can find this type of lender. If you are going to flip real estate and can get a deal that will sell quickly after making repairs, the higher fees and interest rates won't be a big impediment to using a hard money lender. A hard money lender will lend you money for the purchase and renovations.

You might have heard the term "private money lender" in your search for 100% financing of investment property. These are people that have either lots of cash or a self-directed IRA. With a self-directed IRA an investor can be a bank for you. He or she might be willing to lend you the money and give you a share in the property in exchange for a portion of the ownership.

For two of the best ideas of how to finance investment property with little or no money down see 100% Financing of Investment Property.

Is Real Estate the Best Investment in Today's Economy?

A good investment means security and stability in the future. People should know where to put their hard-earned money to be able to secure financial stability despite trying times. Investment, by definition is taking current resources and putting it somewhere else that may be beneficial in the near future. Everyone should be aware of the risks they need to take when investing their money. Some choose to invest in more tangible assets, such as jewellery, designer bags, cars, and the like.

Real estate investment is not something that everyone understands. There are a lot of seemingly complicated details when it comes to investing in real estate. However, there are glaring benefits why real estate can be considered a good investment. For one, investing in real estate is almost guaranteed appreciation. When you buy a house, for instance, your invested money is almost guaranteed to become bigger through time. It is also a great weapon against inflation. Real estate does not suffer the highs and lows of economic trends as much. Being a long term investment, it is a good source of stability. Another reason why it is a good investment is that real estate is a basic necessity. Just like food and water, everyone needs a place to live in. Buying a house is always the better choice than renting. Renting may seem more economical, but in the long run, owning a piece of property is still the best choice. Investing in more than one property will give you the competitive edge to dictate the prices on which you want to sell or lease your property in the near future. There are also tax advantages when buying condominium units, apartments, and houses. Long term appreciation is another convincing reason to think of investing in real estate. Buying a property in a good location will certainly prove to be beneficial. Renting out your properties to commercial establishments will earn you the money you invested eventually.

There is such a thing as pre-selling. This means that property developers sell the property significantly lower than its value as compared to when the project is finished. Buying during pre-selling almost guarantees bigger long term returns. Since the buyer is buying at a lower price, in time, his money will become bigger. However, one has to be wary of the reputation of the developer. It is important to do background research on the developers' portfolio. Before being hooked on the low price, make sure that the project will be finished as promised. Location is also very crucial in real estate investment. Research on the location of your target property. Developers usually know what kind of "environment" their properties lie on in the coming years. Do extensive research on the plans for the area in the next years. Remember, a good location means a more guaranteed high long term appreciation. When a property lies in a place that has a high commercial potential, buyers and businessmen will be more interested in your property.

Real estate is considered by many as a high-risk investment. However, long term returns prove to be worth it when properties are handled properly.