xsellside

Buffett's Big Rail Buy: What It Means for Berkshire Shareholders

This would (could) have been a $22 billion deal if Mr. Buffett had done it in March.

Capitalism, Socialism and 10-Year Returns of Country ETFs

For the 39 years ended 12/31/2008, the top five country index returns are: Hong Kong +14.68%, Sweden +12.84%, Denmark +12.57%, Netherlands +12.16%, and Switzerland +11.47%. The bottom five are: Canada +9.43%, **USA +9.12%**, Austria +8.69%, Australia +8.45%, and Italy +5.99%. It is interesting that the top 5 are considered very “socialist” countries yet have had the highest returns. Source: DFA Funds

Videos of the Week: Abby Joseph Cohen, Larry Summers, Bernanke and More

Does anyone still care what Abby Cohen says?

Leveraged ETF Ban Spreading Like the Flu

The ETF investing community is getting very vocal about criticizing leveraged ETFs. I think this might be a market opportunity for an ETF provider to create a vehicle that will provide 2x returns over 1 year periods (if this is even possible). Any ideas?

Microsoft's Windows Revenue Skids, Netbooks a Factor

Couldn't agree more. Competing on price is often a losing proposition. They have to create VALUE for consumers.

On Jul 24 01:58 AM Moon Kil Woong wrote:

> So much for all those silly ads talking about how overpriced Apple's
> products are. Microsoft should spend more money making their product
> better and actually rolling out new OS upgrades on time.

Will ETF Investors Put Their Money on Volatility?

I am skeptical of any ETF based on futures (see USO vs. UGA vs. USL, et. al.). Many investors are piling into these "alternative" asset classes without really understanding how they work and thus not achieving the expected returns. These new ETFs warrant examination, and some have merit, but these are not your grandpa’s SPY ETF where you bought it and forgot about it.

S&P 500 Up Big; VIX Down

Interesting information. The average return as you point out is 0.71%, but the return was also negative 10 times. It is a decent “batting average" for the next week’s return, but I don't think it's very tradeable. The momentum seems to favor the market going higher, though.

VIX / Futures: A Rare Situation

It appears that we are fast approaching the historical “normal” levels in the ~20 range. Of course, the VIX has behaved in the last 18 months just like we would expect – up fast, down slow (remember, volatility tends to persist). I think the market will eventually settle into a trend, albeit at a higher level than the ’04 to ’06 time frame.

Unwise to Tax the Rich to Pay for Health Care

Expounding on Erik B’s comment, wouldn’t higher taxes incentivize business investment since expenditures on the business are pre-tax?

The End of Asset Allocation

50+ years of empirical evidence wiped out by a single year? I’m not buying it. This is nothing new; we know correlations go to 1.0 in crashes. Look at the recent performance (YTD) differentials between growth and value, stocks and bonds, AAA vs. BB, sectors (tech up, telecom flat), developed vs. emerging, etc. and tell me diversification and asset allocation don’t matter anymore. What’s next? Investors capitulating on asset allocation at precisely the wrong time...

ps. If AA doesn't work in crashes, then consider long-dated deep out of the money put options as portfolio insurance.

Toward a New Concept of Asset Allocation

On Jul 10 08:50 AM Robert Martorana wrote:
> Banks, brokers, and financial advisors do not earn a fee on cash
> assets under management, and this contributes to its neglect as an > asset class.

This is not always true, but you made some other great points. Many RIAs DO charge on total asset base including cash. The justification is if the advisor is making a tactical cash bet then it is a "managed" asset.

According to The Psy-Fi Blog, quants bear much of the brunt for the collapse: "Despite the sophistication and elegance of the mathematics, they too make simplifications because they have to, and these matter to us all because they’ve brought the world to the point of financial meltdown thrice within a few years."

I say we BAN MATH!

Balancing California's Budget: The Home Game

When Government workers are furloughed, will anyone even notice?

No Bailout for the Governator: California's 'Fiscal Emergency'

When Government workers are furloughed, will anyone even notice?

Madoff: "I cannot offer you an excuse for my behavior. How do you excuse deceiving an industry you helped to build?" "How can you excuse deceiving a wife of 50 years?"

Yah, but he'll only serve 140 based on good behavior.