People look at Microsoft stock and think, "hey this is cheap." Yet it turns into a value trap. Want to know why? I think I can sum it with one blog entry.
There’s been a lot of lively discussion since I confirmed yesterday that the official name for the next version of the Window client operating system will be "Windows 7" about how we got to the number "7."
My brother who lives in Russia, and travels all over the former Soviet countries gave me a call on Skype. He timidly asked, "how is your portfolio?" I replied some good some bad. Not complaining.
When asked, "Do you consider yourself a free market supporter?" "Yes, and that’s why I feel uncomfortable, even though I think this action [Bank bailout] is great" I have a love hate relationship with Donald Trump. But for someone to say, "hey you know I am not crazy about this, but it had to be (more…)
It looks like many of the countries throughout the world are adopting the British plan of guaranteeing inter-bank lending and recapitalizing the banks. This might actually work! I know I am crossing my fingers… I have to admit King is a pretty good central banker! Kudos…
Jim Rogers recommends:
"The way to solve this problem is to let people go bankrupt," Rogers said.
"Then you will hit bottom and then you start over. The people who are sound will take over the assets from the people who aren’t sound and we will start over. This is the way the world has worked for a few thousand years."
Is this man insane? Here is why Jim Rogers in my opinion is talking garbage.
Nobody wants to do a G7 or G20 deal. Here is why I think it will not happen… Fear! The same reason why banks are not lending with each other is the same reason why the Euro zone, or world cannot come to a single deal. They don’t trust each other. And if they don’t (more…)
The mathematics of shorting is not fair. And this is a serious issue.
Let’s say with all things being equal you decide to go long and short a 100 USD stock for a period of one year, and your starting capital is 100 USD. In each case we will calculate the gains or losses of each position with a movement of 10 USD. For calculation purposes the interest rate would be libor which will be 4%. If you are borrowing money it would cost you 4.5%, and if you want interest you will get 3.5%.
Wait Wait I need a rate cut… No Wait Wait I need more liquidity… No Wait Wait I need a common European approach… No Wait Wait I need capitulation…
Get the idea! When I hear these traders I just gag! I am not kidding here.
Whenever I tell people that I work in a bunker they think, "oh Christian you are working in a concrete basement and speaking metaphorically" No folks, I am speaking very seriously, I have a bunker! My buddy who visited also did not believe me, but when I showed him the doors and window doors he (more…)
Many people were complaining about how the central banks and Fed kept pumping in money. You know trying to keep things afloat. The reason has to do with confidence (which you already heard) and keeping credit moving (which you also already heard). Though when I hear these politicians sometimes I wonder. Let me explain the lending model a bit and you will understand why we have an increasing Libor rate
