Though Warren Buffett certainly earns respect for his impressive returns at the helm of Berkshare Hathaway, the double speak on the topic of bailouts and speculative investing shows the kind of guy he really is. Read more…
Just as I had written a few days ago, it wasn’t until the Fed began locking up or calling back its inflationary programs that it would have any affect on monetary policy. However, just a few days later, the Fed has done just that, securing $200 billion worth of reserves in Treasuries in an effort to calm investors worried about inflation. Read more…
Long term bond prices are on the brink of collapse. With record high borrowing ahead in 2010 as well as indication from the Fed that it wants higher rates whilst promoting inflation, bond yields are set to soar while prices crumble. Read more…
Pundits are already lining up to call the recent action by the Federal Reserve its big exit strategy. However, facts are damning things. A Federal Reserve exit from the markets won’t be in the form of interest rate policy, it’ll come when the Fed starts to dump its MBS and Treasury holdings. Read more…
In an effort to curb a growing deficit, members of the House of representatives are lining up to create a new tax on stocks and exchange-traded funds. Politicians contest the new taxes will price out high frequency trading and remove speculative investments. Myself…I think this is all wrong at all the wrong times. Read more…
Its no secret that China is pulling all stops in an attempt to slow or thwart an oncoming asset bubble in real estate as well as the stock market. Most recently, China moved swiftly to raise the reserve ratio at lending banks in an effort to lower the money supply ceiling. Read more…
In one week we watched the stock market tumble more than 6% on news that Greece was having fiscal problems stemming from its oversized debt. Though the country is a member of the EU, and bankruptcy is never good for the global economy, I can’t find any reason for the markets to react in such a way. Read more…
If there is anything I’ve learned after years of trading the markets for myself its that you buy a company when its down. Toyota seems like the perfect name, having a strong history of quality cars despite recent problems with its accelerators and now brake problems with the Prius line. However, all this will soon pass and investors will be richer for it. Read more…
The big money is good, really good, at predicting when the markets are soon to move. For the past year I’ve been watching the option volume of the big boys and many of them have proven to be extremely profitable. Recently, $1.2 billion of stock was protected to the downside with put options. Needless to say, the markets tumbled soon after. Read more…
I’ve been throwing an idea around in my head. At what point do the odds cease to matter and the chance of big money becomes the main motivator? Read more…
