January 31, 2013

Global Market Comments January 31, 2013 Fiat Lux Featured Trade: (WHERE’S THE CRASH?) (TAKING FORD OUT FOR A SPIN), (F), (CHENIERE ENERGY GETS THE GREEN LIGHT), (LNG), (UNG), (THE TECHNOLOGY NIGHTMARE COMING TO YOUR CITY) … [Read more...]

Where’s the Crash?

Headline

That was the questions traders were scratching their heads and asking this morning in the wake of this morning’s shocking Q4, 2012 GDP figure. While most analysis were expecting the government to report a more robust 1%-2% number we got negative -0.1%, the worst since 2009. With growth flipping from a positive 3.1% figure in Q3 many thought that a Dow down 500 points was in … [Read more...]

Taking Ford Out for a Spin

Mustang

I have been trying to buy this stock for a month. Not because I like their pedestrian cars (except the new, muscular, retro Mustang), but because it is one of the great turnaround stories in business history. Today’s earnings announcement gives us that window. It delivered over $3 billion in profits during Q4, 2012. But the market decided to focus instead on the expectation … [Read more...]

Cheniere Energy (LNG) Gets the Green Light

Gas Fire

I have been pounding the table on the attractions of Cheniere Energy (LNG) since last spring. Yesterday, the stock hit a new all time high of $21.50. There is never any guarantee that a government agency will not do something idiotic. Last year it didn’t, thankfully. The Federal Energy Regulatory Commission (FERC) granted the final license needed by Cheniere Energy (LNG) to … [Read more...]

The Technology Nightmare Coming to Your City

Tight Parking

I tell people at my strategy luncheons that living in the San Francisco Bay area is like living in the future. There is an explosion of high tech innovation going on here, and we locals often find ourselves the guinea pigs for the latest hot products. However, sometimes the future is not such a great place to be. I learned this the other day when I received a parking ticket … [Read more...]

January 31, 2013 – Quote of the Day

Ping Pong

I don’t know that the retail investor matters anymore. They didn’t come back to the market after the 2000 crash. The idea that the individual investor believes in the stock market now is challenged. We have a market that is increasingly institutional investors trading back and forth with each other”, said Dan Greenhouse, chief global strategist at BTIG. … [Read more...]

January 30, 2013

Global Market Comments January 30, 2013 Fiat Lux SPECIAL HIGH YIELD FOREIGN STOCK ISSUE Featured Trade: (TRADE ALERT SERVICE POSTS FIVE CONSECUTIVE ALL TIME HIGHS). (SPY), (IWM), (FCX), (AIG), (TLT), (FXY), (YCS), (REACH FOR YIELD WITH HIGH DIVIDEND FOREIGN STOCKS), (FTE), (SAN), (BCE), (ECH), (VE), (AWC) … [Read more...]

Trade Alert Service Posts Five Consecutive All Time Highs

TA Service Inception 1-29-13

The Trade Alert Service of the Mad Hedge Fund Trader posted a new all time high today, pushing its two-year return up to 72.67%. The Dow average booked a miniscule 13% gain during the same time period. The industry beating record was achieved on the back of a spectacular January, which so far had earned readers a mind blowing 17.62% profit. Right after the January 2 opening, … [Read more...]

Reach for Yield with High Dividend Foreign Stocks

High Yield Dividends

With the increase of globalization, investing in foreign stocks can be a smart move. Many Americans have low exposure to foreign equities in their portfolio believing that US stocks are safer and more reliable. However, investing in foreign stocks can help to decrease risk, diversify your portfolio, give you access to emerging markets, and deliver dividend yields that you can … [Read more...]

January 30, 2013 – Quote of the Day

Quiz

“China has been doing everything right for the last ten years. Our government is made up of 'C' students that were political science majors, whereas, the Chinese government is made up of PhD's that were educated at Cambridge and Harvard,' said one Washington observer. … [Read more...]

Trade Alert – (F) January 29, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 29, 2013

Global Market Comments January 29, 2013 Fiat Lux Featured Trade: (BONDS ARE BREAK DOWN ALL OVER), (TLT), (TBT), (MUB), (LQD), (HCN), (JNK), (AMJ), (REPORT FROM THE INAUGURATION) … [Read more...]

Bonds are Breaking Down All Over

TNX 1-25-13

It looks like the Great Bond Reallocation of 2013 is real. The Treasury bond market is getting absolutely hammered this morning, the ten-year yield breaching 2.00%. That smashes the 1.40%-1.90% band, which has imprisoned the bond market for the past year. The immediate trigger was the release of absolute blowout December durable goods figures this morning. They came in at a … [Read more...]

Report From the Inauguration

Obama

I am writing this report from the steps of the Capital Building in Washington DC, scratching my notes on the back of a commemorative program with a golf pencil, absolutely freezing my buns off. I am wearing all the warm clothes I own, including my Marine Corps olive winter weight double knit wool officer’s trousers. These were the pants that successfully executed the retreat … [Read more...]

Trade Alert – (FXY) January 28, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (IWM) January 28, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (SPY) January 28, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (FXY) January 28, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (SPY) January 28, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 28, 2013

Global Market Comments January 28, 2013 Fiat Lux Featured Trade: (THE RACE TO THE BOTTOM FOR CURRENCIES MEANS A RACE TO THE TOP FOR STOCKS), (SPX), (SPY), (EWG), (DWJ), (FXY), (YCS), (FXE), (RUBBING SHOULDERS WITH “THE 1%” AT INCLINE VILLAGE) … [Read more...]

The Race to the Bottom for Currencies Means a Race to the Top for Stocks

Clint Eastwood

Even the Old Hands, like myself, are somewhat amazed by the strength of the global equity markets this month. The S&P 500 has risen 11 out of the last 12 trading days, and is up almost every day this month. It has been the best January in 18 years. The first week saw the biggest inflows to equity mutual funds in 10 years. Yet, the market went up so fast, most of the … [Read more...]

Rubbing Shoulders With “The 1%” at Incline Village

incline2x

If you really want to get a read on how “the 1%” are faring these days, take a ski vacation to the tony hamlet of Incline Village on the pristine shores of Nevada’s Lake Tahoe. Each morning, I trekked to Starbucks, one of the few local sources for the Wall Street Journal and the New York Times. There, trophy wives line up to buy their chai tea lattes, all tall, thin, and … [Read more...]

January 28, 2013 – Quote of the Day

Head Examined

“Anyone buying long term fixed income assets right here needs to have their head examined. You’ve got the 30-year yielding 3%, the 10-year yielding 1.8%, and triple “A” five-year corporates yielding less than 1%. When yields start to go up your capital is going to get obliterated,” said Steve Massocca of Wedbush Securities. … [Read more...]

Trade Alert – (FXY) January 25, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (FXY) January 25, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (IWM) January 24, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (SPY) January 24, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (IWM) January 24, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

Trade Alert – (SPY) January 24, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 24, 2013

Global Market Comments January 24, 2013 Fiat Lux Featured Trade: (SPX 1,600, HERE WE COME!), (SPX), (SPY), ($INDU), (TLT), (VIX), (USO) (WHY THE YEN WILL NEVER RECOVER), (FXY), (YCS) … [Read more...]

SPX 1,600, Here We Come!

TESLA

Take a look at the chart below for the S&P 500, and it is clear that we are gunning for an all time high between 1,550 and 1,600. With the debt ceiling crisis now cancelled, you really have to look hard to find any near term reasons to sell stocks, so we could hit those lofty numbers as early as March. A perusal of the short-term charts certainly demands one to conclude … [Read more...]

Why the Yen Will Never Recover

Shinzo Abe

If anyone is expecting the Japanese yen to take back the losses it has suffered over the last two months, you can forget about it happening anytime soon, eventually, or in your lifetime. Naysayers have been pointing to this week’s policy meeting at the Bank of Japan as proof that the yen has stumbled in the international race to the bottom, and that it is running up the … [Read more...]

Trade Alert – (SPY) January 23, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 23, 2013

Global Market Comments January 23, 2013 Fiat Lux Featured Trade: (TRADE ALERT SERVICE BLASTS TO NEW ALL TIME HIGH), (SPY), (IWM), (FCX), (AIG), (FXY), (YCS), (TLT) (CATCHING UP WITH DOWNTON ABBEY) … [Read more...]

Trade Alert Service Blasts to New All Time High

Trade Alert Service

The Trade Alert Service of the Mad Hedge Fund Trader posted a new all time high today, pushing its two-year return up to 66%. The Dow average booked a miniscule 12% gain during the same time period. The industry beating record was achieved on the back of a spectacular January, which so far had earned readers a mind blowing 10.92% profit. Right after the January 2 opening, I … [Read more...]

Catching Up With Downton Abbey

John Thomas

I decided to flee the madness in London for a day and visit some old friends in the countryside, the 8th Earl and Countess of Carnarvon. The late 7th Earl was an early investor in my first hedge fund and I have kept in touch with the family ever since. His grandfather, the 5th Earl gained fame and fortune from his co-discovery of King Tut’s tomb in Egypt’s Valley of the … [Read more...]

January 22, 2013

Global Market Comments January 22, 2013 Fiat Lux Featured Trades: (THE DEBT CEILING CRISIS IS CANCELLED), (SPY), (IWM), (FCX), (AIG), (FXY), (YCS),(AAPL), (VIX) (JANUARY 23 GLOBAL STRATEGY WEBINAR) … [Read more...]

The Debt Ceiling Crisis is Cancelled

Tahoe Dock

I am sitting here in front of a crackling hot fire at my lakeshore estate in Nevada’s Incline Village. It is a brilliantly clear day, with mallard ducks skimming the surface of Lake Tahoe, and the Canadian geese flying in formation overhead. Snow covered Mount Tallac, some 30 miles to the South, looks so close I feel I can almost grab it and take out a bite. I am on my way … [Read more...]

Don’t Miss the January 23 Global Strategy Webinar

webinar-2

My next global strategy webinar will be held on Wednesday, December 12 at 12:00 noon EST. I’ll be giving you my updated outlook on stocks, bonds, commodities, currencies, precious metal, and real estate. The goal is to find the cheapest assets in the world to buy, the most expensive to sell short, and the appropriate securities with which to take positions. I will also be … [Read more...]

Attending My Last Electric Nissan Leaf Rally

Nil Gas

It was a typical fall day in San Francisco, the fog wafting in and out through the Golden Gate Bridge. I took the opportunity to attend a company sponsored rally of Nissan Leaf drivers on the Marina Green. These were the fanatics, the diehards, the truly devoted. These were people who were willing to bet big bucks on an untested, unproven new technology. These were the … [Read more...]

Spoiled for Choice

Surfing

Boy, am I spoiled for choice on what to do this weekend. On the one hand, I have been invited to join the president on the reviewing stand for Monday’s inauguration in Washington DC. On the other, the Maverick’s World Surf competition near California’s Half Moon Bay is on the same day, which has not been held for three years. I have to admit that it is temping to don my … [Read more...]

Trade Alert – (TLT) January 17, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 17, 2013

Global Market Comments January 17, 2013 Fiat Lux Featured Trades: (APRIL 19 CHICAGO STRATEGY LUNCHEON) (MLP’S ARE ON FIRE), (CVRR), (SXCP), (AMJ), (EEP), (KMP), (TLP) (ALL I WANT TO DO IS RETIRE) … [Read more...]

MLP’s Are On Fire

Pipeline

Master Limited Partnerships have been on fire since the beginning of the year. Once the deal on the “Fiscal Cliff” was done, and these instruments’ special tax treatment protected, it was off to the races. These unique and versatile instruments combine the tax benefits of a limited partnership with the liquidity of publicly traded securities. The explosion in demand has … [Read more...]

All I Want to do is Retire

Dollar in Vice

I have always believed that if you don’t have a sense of humor, then you better get the hell out of this business. Below is a link to a YouTube video entitled “All I Want to do is Retire” which covers the decline of the brokerage industry over the last 20 years. The video is currently going viral and sent to me by a subscriber. Watch this during your next coffee break. The run … [Read more...]

My 2012 Report Card

2012 Daily Perf.

I’ll give myself a “B” on this one. Sure, with the Trade Alert Service generating a 14.87% net profit for the year, I was able to bring in double the Dow average, and triple what most hedge funds delivered, including some of the biggest ones. But for once, I did not achieve true greatness. I feel that, given the amount of work I did, I should have done much better. I issued … [Read more...]

Trade Alert – (AAPL) January 15, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

On Executing Trade Alerts

From time to time I receive an email from a subscriber telling me that they are unable to get executions on trade alerts that are as good as the ones I get. There are several possible reasons for this: 1) Markets move, sometimes quite dramatically so. 2) Your Trade Alert email was hung up on your local provider’s server, getting it to you late. This is a function of your … [Read more...]

The Final Word on the Electric Nissan Leaf

Electric Car

After driving my all-electric Nissan Leaf four-door hatchback for two years, my final conclusion is that it is absolutely the perfect second car for most American families. Some 90% of all US driving is less than 40 miles a day, and this car is targeted at that market. If a spouse has a reliable daily round trip commute of less than the car’s 80-mile range, this is your … [Read more...]

The Last Crisis to Go

QUAIL

Generally, the world does not end. That is my sage observation after spending 45 years in the investment industry. Given the recent market action, it appears that money managers are finally coming around to my point of view. Remember the great Debt Ceiling Crisis in July of 2011? Congress held out until the last second of the last minute of the last hour before coming to … [Read more...]

Testimonial

Testimonial

Hey John and the MAD Team, here's a late Happy New Years! You really nailed and keep nailing great reversals and trends that are just beginning to deserve a watchful eye. I nailed it today, so far, just buying the JPY pairs, and shorting the big bond, this past couple weeks? I'm still a bit stuck on futures, but I realize the safety in your spreads is a lot smarter...Thx for … [Read more...]

Trade Alert – (FXY) January 11, 2013

Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

The Bull Case for AIG

AIG 1-10-13

I was in a huge hurry last week when I sent out a Trade Alert to buy insurance giant American International Group (AIG), operating from a Chicago hotel suite with a stock market that was flying. Now that I am home, and have single handedly brought Oakland’s crime wave to a juddering halt, I have an opportunity to go into depth on this troubled company. I know it well, as it … [Read more...]

California Ski Cabins are Heating Up

house winter scene

I though you would be interested in this note I received from my real estate broker in Squaw Valley, California, where I sold my ski cabin in 2005 for $3 million. This is the high beta end of the housing market in the Golden State. "Here are some stats (from the multiple listing system and other sources) and developing trends: 2012 Summary of Sales info • 24 … [Read more...]

Testimonial

Testimonial

Are you able to give a lot of advanced notice of the next date you will be hosting a lunch in London? I reserved a place last time you were here but business intervened and I missed it. I would love to meet you in person. I admire your character, independent spirit and good heart. Oh, and your investing nous too! Keep up the great work. And enjoy life to the full. … [Read more...]

Trade Alert – (FXY) January 10, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 10, 2013

Global Market Comments January 10, 2013 Fiat Lux Featured Trades: (BECOME MY FACEBOOK FRIEND), (ECONOMIST DAVID HALE SAYS THE ACTION WILL BE IN SOUTHEAST ASIA), (EPHE), (IDX), (IWM, (THD), (THE LOST DECADE FOR BONDS IS BEGINNING!), (TLT), (TBT), (TESTIMONIAL) … [Read more...]

Become My Facebook Friend

If you would like to get a free headline service from The Diary of the Mad Hedge Fund Trader, then please join my 1,375 friends. Every day we are posting headlines along with summaries of the stories on our Facebook page. As soon as you open your own Facebook page, you will receive our latest headlines as newsfeeds. To “friend me”, please go to my home page at … [Read more...]

Economist David Hale Says the Action will be in Southeast Asia

David Hale

I have been relying on David Hale as my de facto global macro economist for decades, and I never miss an opportunity to get his updated views. The challenge is in writing down David’s eye popping, out of consensus ideas fast enough, because he spits them out in such a rapid-fire succession. Since David is an independent economic advisor to many of the world's government’s, … [Read more...]

The Lost Decade for Bonds is Beginning!

Sliding Dollar

If you have been negative on bonds as I have, these charts should enable you to sleep much better. Virtually every fixed income product is peaking now. Let me draw a simple picture for you laymen out there. That means you should sell every major bond market rally for the next ten years. It’s looking like the 1.38% yield we reached in the Treasury bond market will be the … [Read more...]

Testimonial

Testimonial

Thank you again for coming to Frankfurt this year – it was a pleasure having met you in person and I am looking forward to it again in 2013.Thank you also for your research and your ideas – it is so valuable to get your insights away from the consensus pieces going around in our industry so often. I wanted to wish you and your loved ones a Merry Christmas and Happy New Year … [Read more...]

January 10, 2013 – Quote of the Day

Homework

Quote of the Day “The rule of thumb is to do your homework, do your analysis, don’t give up prudent risk management for the sake of certain fads. Look for real valuations, and stay true to your time frames,” saidMarc Chandler, the global head of currency strategy at Brown Brothers Harriman. … [Read more...]

Running a Few Local Errands

Superman shorts

Returning from my transcontinental rail trip, I had a ton of local errands to run. Pick up the mail, the dry cleaning, and my newly resoled hiking boots, which suffered 1,500 miles of backpacking last year, all of it uphill. The Toyota Highlander was still a disaster from the Lake Tahoe trip, the Christmas tree had to come down, and the Lionel electric train set put away in … [Read more...]

Trade Alert – (SPY) January 8, 2013

slider-05-trader-alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. … [Read more...]

January 7, 2013

Global Market Comments January 7, 2013 Fiat Lux 2013 Annual Asset Class Review FOR PAID SUBSCRIBERS ONLY Featured Trades: (SPX), (QQQQ), (AAPL), (XLF), (BAC), (EEM),(EWZ), (RSX), (PIN), (FXI), (TUR), (EWY), (EWT), (IDX) (TLT), (TBT), (JNK), (PHB), (HYG), (PCY), (MUB), (HCP) (FXE), (EUO), (FXC), (FXA), (YCS), (FXY), (CYB) (FCX), (VALE), (MOO), (DBA), (MOS), (MON), … [Read more...]

2013 Annual Asset Class Review

Train

I am writing this report from a first class sleeping cabin on Amtrak's California Zephyr. We are now pulling away from Chicago's Union Station, leaving its hurried commuters, buskers, panhandlers, and majestic great halls behind. I am headed for Emeryville, California, just across the bay from San Francisco. That gives me only 56 hours to complete this report. I tip my porter, … [Read more...]

Lunch With the Treasury Secretary

Geithner-Clinton-1

When I wake up at 4:30 am each morning to check the overnight markets and review the opening salvo of incoming emails, I often have trouble focusing in my groggy state. So I had to blink twice when the first message in my inbox politely inquired if I had time to meet the Secretary of the Treasury in Palo Alto for lunch that day, apologizing for the short notice. Tim Geithner … [Read more...]

January 3, 2013

Global Market Comments January 3, 2013 SPECIAL FOREIGN CURRENCY ISSUE Featured Trades: (LONG TERM DOLLAR TREND), (FXA), (FXC), (BNZ), (CYB), (FXE) (THE COMING COLLAPSE OF THE YEN), (THE BIG MAC INDEX), (MCD CurrencyShares Australian Dollar Trust CurrencyShares Canadian Dollar Trust WisdomTree Dreyfus New Zealand Dollar WisdomTree Dreyfus Chinese … [Read more...]

Enjoy the Dollar Rally While it Lasts

TenDollarBill

Any trader will tell you the trend is your friend and the overwhelming direction for the US dollar for the last 220 years has been down. Our first Treasury Secretary, Alexander Hamilton, found himself constantly embroiled in sex scandals. Take a ten-dollar bill out of your wallet and you’re looking at a world class horndog, a swordsman of the first order. When he wasn’t … [Read more...]

The Collapse of the Yen: The Party Has Started

Japanese Lady-Sad

“Oh, how I despise the yen, let me count the ways.” I’m sure Shakespeare would have come up with a line of iambic pentameter similar to this if he were a foreign exchange trader. I firmly believe that a short position in the yen should be at the core of any hedged portfolio for the next decade. To remind you why you hate the Japanese currency, I’ll refresh your memory with this … [Read more...]

Where The Economist “Big Mac” Index Finds Currency Value.

mcdonaldsJapan

My former employer, The Economist, once the ever tolerant editor of my flabby, disjointed, and juvenile prose (Thanks Peter and Marjorie), has released its “Big Mac” index of international currency valuations (click here for the link). Although initially launched as a joke three decades ago, I have followed it religiously and found it an amazingly accurate predictor of … [Read more...]