Why The Market Is Likely To Rally On The Greek Elections [View article]
I followed everything until you got to the US growing at 2-2.5% and GE and Citigroup reported strong earnings. US growth appears to be decelerating and those two stocks are anything but strong. There may be other reasons that stocks go up (e.g. inflationary monetary policy), but not sure I buy "US growth" and those two stocks as reasons to buy.
When Something Goes Wrong: The Case Of JPMorgan Chase [View article]
So now we have MF Global going down betting big w/ client money and JPM announcing a large loss on something that has been publicly disclosed as a "hedge". These are warning signs flashing that the checks and balances are still not adequate to address the risk that's being taken in these large financial institutions that have unlimited access to "free money." The management teams know that the downside risk will have to be absorbed by the public under the current system.
Is JPM a good investment right now? Who knows?? It's pretty clear that all of these larger institutions are taking big risks that the top management doesn't understand or chooses to accept.
When Something Goes Wrong: The Case Of JPMorgan Chase [View article]
the real issue isn't the specific trade, but the fact that JPM is supposedly "hedging" their portfolio with "free" taxpayer money (thanks to FED). A hedge by definition shouldn't be producing any gains/losses --- this would be "hedge ineffectiveness" in accounting terms. The point is, these aren't "hedges", they are TRADES, or bets, with taxpayer money. This IS the issue! This is a problem in an election year IMO. The loss will be more than $2B too -- wait and see...
Have Central Bank Gold Purchases Swamped The Market? [View article]
I completely agree with your reasoning Avi; but the level of coordination among central banks has changed the way I look at investing and personal finance. Eventually, you will be right. But when ALL of the major central banks are working together, they can delay the inevitable for much longer than I thought they could. The power and money is in too few hands and we're still not close to making the necessary structural changes. I have decided to take advantage of the low financing cost NOW and have significantly increased my leverage. I'd rather make money than be right!!!! If I'm wrong, I know future policies will support me. Bernanke has changed my risk appetite (and I never thought that would have happened back in 2008).
A Timely Case Study In Financial Planning [View article]
Why The Market Is Likely To Rally On The Greek Elections [View article]
When Something Goes Wrong: The Case Of JPMorgan Chase [View article]
Is JPM a good investment right now? Who knows?? It's pretty clear that all of these larger institutions are taking big risks that the top management doesn't understand or chooses to accept.
When Something Goes Wrong: The Case Of JPMorgan Chase [View article]
Have Central Bank Gold Purchases Swamped The Market? [View article]