Even in a Down Market, Growth Outperforms Value [View article]
there is a simple explanation for al this, it is the financials that looked like they were good value a year ago, the financials were the sector with lowest price-to-book, and financials were the stocks to take the largest beatings. You need to look no further than Bill Millers troubles for a proof.
Aberration in Clear Thinking by JP Morgan [View article]
JP Morgan analyst makes a valid point that the surge is due to the schooyear ending in May, with all those high-school graduates technically becoming "unemployed". What do you say? The second point he makes is that the rises in unemployment come at the end of the cycle, which is absolutely true... last time sky came crashing down in 1990, the unemployment peaked long after economy was already growing. Well, this time we dont know if it has peaked, really, maybe it will continue rising to 8% in the next year or so, but personally i dont believe it possibly could.
Aberration in Clear Thinking by JP Morgan [View article]
JP Morgan analyst makes a valid point that the surge is due to the schooyear ending in May, with all those high-school graduates technically becoming "unemployed". What do you say? The second point he makes is that the rises in unemployment come at the end of the cycle, which is absolutely true... last time sky came crashing down in 1990, the unemployment peaked long after economy was already growing. Well, this time we dont know if it has peaked, really, maybe it will continue rising to 8% in the next year or so, but personally i dont believe it possibly could.
WuXi Pharmatech Reports Another Healthy Quarter [View article]
demographics? the china demographics is no good, no matter how you look at it. China too, has its postwar "boom" generation which is powering all of the economic growth, but down the line, we are looking at labor shortage due to the one-child only policy... and all the same problems as in europe and japan of having two retired persons for every working taxpayer.
Citadel Infuses E*Trade with Strong, Experienced Management [View article]
typically, you can expect that citadel was the first one to short the stock, and the deal they struck is so that they can cover their short. so instead of buying on the open market and getting killed in a short sqeese they can buy the stock from the co itself, at a discount. sweet.
Is it Better to Remain a Renter or Buy a House? [View article]
your australian couple seem to be alot more sharp financially than yourself. after making the unquestionably true statement that renting is cheaper than buying, and that renting has allowed them to concentrate a substantial portfolio of appreciating assets, they are asking if they should also invest into real estate at the portfolio level. the answer is yes, one should invest,through carefully chosen REIT funds which by the way invest typically into office, retail and undustrial real estate and not into "houses". so all that bs about house prices is totally irrelevant.
I think whats needed is to subject the investment banks, well...hmm... - to good old fashioned banking regulations, starting with reserve requirements. Just because they dont have the word "bank" in their names, doesnt mean we call them that for a reason.
Ten Things Everyone Should Know About the VIX [View article]
The statement about not being possible to trade spot VIX is incorrect - if it were not possible to "trade" the spot VIX, the futures would never been launched. Having said that, you need to be able to buy/sell a specific package of Calls and Puts on the S&P500 index in order to achieve that. A retail investor would likely not be able to come up with the margin requirement for all those options.
all this brouhaha proves that as an investor, you must find promising managers before the fact, meaning by the time the guy is on the cover of Barrons for beating the market for 15 years in a row it is way too late! and there is no reason to get into why that may be so...
Investing's Holy Grail: More Return, Less Risk [View article]
I cant believe they are defining growth stock as the one with the higher P/E or P/FCF !? That the definition of the most overvalued. You should be comparing the low P/E stocks with the highest growth stocks. And anyway, in practice one should look for cheap stock with high growth, and no that is not an oxymoron logically, you just have to look harder.
The On-the-Run Premium on Treasury Securities [View article]
if you dont make a buck, at least you'll know whats wrong with these academic arguments.
I can offer a few: 1) the bid/ask spread on the off-the-run is much greater than 1/32 2) people will arbitrage away the most obvious/easy irregularities first. Perhaps... this is not the most easy one in the treasury market.
Long stock + sell call = sell put (by put/call conversion parity) so in essence, you are selling 200 puts . No wonder your breakeven point is 10 - 2.80 = 7.20 It is indeed a limited risk/limited reward situation, and will likely turn out profitable. After all the probability of Corcs going bankrupt is significanly less than 28% IMHO.
Even in a Down Market, Growth Outperforms Value [View article]
Aberration in Clear Thinking by JP Morgan [View article]
Aberration in Clear Thinking by JP Morgan [View article]
WuXi Pharmatech Reports Another Healthy Quarter [View article]
Citadel Infuses E*Trade with Strong, Experienced Management [View article]
Is it Better to Remain a Renter or Buy a House? [View article]
Saut: Are We Entering a New Kind of Investment Environment? [View article]
The Liquidity Tsunami [View article]
Ten Things Everyone Should Know About the VIX [View article]
Is Bill Miller Losing His Touch? [View article]
Distinction Between Hard and Soft Assets [View article]
Investing's Holy Grail: More Return, Less Risk [View article]
The On-the-Run Premium on Treasury Securities [View article]
I can offer a few:
1) the bid/ask spread on the off-the-run is much greater than 1/32
2) people will arbitrage away the most obvious/easy irregularities first. Perhaps... this is not the most easy one in the treasury market.
The On-the-Run Premium on Treasury Securities [View article]
A Crocs Play for Chickens [View article]
(by put/call conversion parity)
so in essence, you are selling 200 puts . No wonder your breakeven point is 10 - 2.80 = 7.20
It is indeed a limited risk/limited reward situation, and will likely turn out profitable. After all the probability of Corcs going bankrupt is significanly less than 28% IMHO.