February 28, 2013

Global Market Comments February 28, 2013 Fiat Lux Featured Trade: (SUNDAY WITH PRESIDENT JIMMY CARTER) … [Read more...]

Sunday With President Jimmy Carter

Jimmy Carter - headshot

When I heard that our 39th president, former governor of Georgia, and Nobel Peace Prize winner, Jimmy Carter was coming to town, I moved heaven and earth to meet him. I served in the White House Press Corps as the The Economist correspondent during the latter part of his term, and was dying to get answers to issues that were then classified, or unknowable. It was tense and … [Read more...]

February 28, 2013 – Quote of the Day

Jimmy Carter - fullshot

“When former president, Jimmy Carter, once addressed a graduating class in Japan, they suddenly broke out into wild laughter. He later insisted that the interpreter tell him what he said. After much prodding, he confessed “I said the president has just told a joke, and you must laugh.” … [Read more...]

February 27, 2013

Global Market Comments February 27, 2013 Fiat Lux Featured Trade: (WHY THE MARKETS COULD CARE LESS ABOUT SEQUESTRATION), (BE CAREFUL WHO YOU SNITCH ON) … [Read more...]

Why the Markets Could Care Less About Sequestration

Aircraft Carrier

They say a picture is worth 1,000 words. The map below is worth a PhD thesis, and perhaps a weighty tome. Prepared by my friends from government data at the online financial site run by Henry Blodget, Business Insider, it ranks the states most impacted by the sequestration of federal spending that starts on Friday, March 1. Then, some $85 billion in annual outlays grind to a … [Read more...]

Be Careful Who You Snitch On

Sherron Watkins

Buried in the recently passed Dodd-Frank financial reform bill are massive financial rewards for turning in your crooked boss. The SEC is hoping that multimillion-dollar rewards amounting to 10%-30% of sanction amounts will drive a stampede of whistleblowers to their doors with evidence of malfeasance and fraud by their employers. If such rules were in place at the time of … [Read more...]

February 27, 2013 – Quote of the Day

Chalkboard

'Total credit market debt in the world has gone from $80 trillion to $200 trillion in the last ten years, an 11% annual rate, while GDP has grown by 4%. This can't continue. It's a simple matter of arithmetic,' said Kyle Bass, of hedge fund Hayman Partners. … [Read more...]

February 26, 2013

Global Market Comments February 26, 2013 Fiat Lux Featured Trade: (SUDDENLY THOSE ITALIAN LESSONS ARE PAYING OFF), (FXE), (EUO), (EWI), (VIX), (UUP), (NEW BOJ GOVERNOR CRATERS YEN), (FXY), (YCS), (UUP), (PETER F. DRUCKER ON MANAGEMENT) CurrencyShares Euro Trust (FXE) ProShares UltraShort Euro (EUO) iShares MSCI Italy Capped Index (EWI) VOLATILITYS&P500 … [Read more...]

Suddenly Those Italian Lessons Are Paying Off

Black Swan

Welcome to the first black swan of 2013! You couldn’t mistake the meaning of the cries of topless female protesters as they flung themselves at police guarding Italian polling stations on Monday. Basta! Basta! Enough! Enough! The purpose of their demonstration was visibly scrawled in large letters across their nubile bodies in black ink for all to see. Mille grazie … [Read more...]

New BOJ Governor Craters Yen

Gun

At long last, Japanese Prime Minister, Shinzo Abe, has appointed a new governor to the Bank of Japan, Haruhiko Kuroda. The foreign currency markets responded immediately, taking the Japanese yen down to ¥94.60, a new three year low. It also broke new ground in a range of currency crosses, including Euro/Yen, Ausie/Yen, and Kiwi/Yen. It even weakened against that other … [Read more...]

Peter F. Drucker on Management

The Essential Drucker

If you have been living in a cave for the last 72 years and missed the work of management guru, Peter F. Drucker, here is your chance to catch up. I just finished reading The Essential Drucker, a weighty tome of 368 pages which summarized the high points and pearls of wisdom of the author's 38 books published since 1939. A self-described 'social ecologist', Drucker was a … [Read more...]

February 26, 2013 – Quote of the Day

scale

“You can reduce discretionary spending down to zero and it won’t have much impact on our fiscal problems because it’s such a small proportion of the total,” said Ben Bernanke, chairman of the Federal Reserve. … [Read more...]

February 26, 2014 – Quote of the Day

Businessman Crossing the Finish Line

“Bull markets go everywhere from 1-2 years to five years after the Fed begins tightening. We’ve got a long way to go before we have to worry about bonds competing against stocks,” said Professor Jeremy Siegel of the Wharton School of Business … [Read more...]

February 25, 2013

Global Market Comments February 25, 2013 Fiat Lux Featured Trade: (ANOTHER DAY IN THE LIFE OF THE MAD HEDGE FUND TRADER), (SPY), (SPX), (QQQ), (AAPL), (HPQ), (YHOO), (CSCO), (TLT), (TBT), (FXF), (UUP), (FXE), (GLD), (GDX), (TSLA), (USO) SPDR S&P 500 (SPY) SPX Corporation (SPW) PowerShares QQQ (QQQ) Apple Inc. (AAPL) Hewlett-Packard Company (HPQ) Yahoo! Inc. … [Read more...]

A Day in the Life of the Mad Hedge Fund Trader

Ben Affleck

Diary Entry for Friday, February 22, 2013 Dear Diary, 4:30 PM Thursday- Thought I’d check my Bloomberg to see how the Asian markets were opening. Wow! Shanghai is really taking it in the shorts, down 5%. Looks like when Ben Bernanke catches a cold, the Chinese markets catch pneumonia. They must be more dependent on our quantitative easing then we are. 5:00 PM- Call … [Read more...]

February 25, 2013 – Quote of the Day

zimbabwe-1

“Over the long term, all of the fiat currencies of the world are involved in a competitive devaluation. The structural stresses in most of the western economies are such that centrals banks will attempt to continue to substitute liquidity for solvency.” said Rick Rule, chairman of Sprott US Holdings, a precious metals specialist. … [Read more...]

February 22, 2013

Global Market Comments February 22, 2013 Fiat Lux Featured Trade: (FOLLOW UP ON TESLA), (TSLA), (DON’T MISS THIS REAL ESTATE BUBBLE), (A VERY SHORT HISTORY OF HEDGE FUNDS), (POPULATION BOMB ECHOES), (POT), (MOS), (AGU), (RJA), (CORN), (WEAT), (SOYB) Tesla Motors, Inc. (TSLA) Potash Corp. of Saskatchewan, Inc. (POT) The Mosaic Company (MOS) Agrium Inc. … [Read more...]

Follow Up on Tesla

Tesla

Damn! I should have cut a commission deal with Tesla (TSLA) before I published my story on their amazing electric vehicle a few days ago (click here for “My Take on the Tesla Tiff”). I have since received a dozen emails from readers telling me they have jumped on the waiting list with a $5,000 deposit, which I understand has been shortened to five months. In the meantime, … [Read more...]

Don’t Miss This Real Estate Bubble

For Rent Sign

There is a new real estate bubble forming in the US, but it is not inflating where you think. Apartment rents have been rapidly rising, and are about to go ballistic. In fact the appreciation has been so strong that the cost of ownership is now less than renting in many parts of the country, provided you can get one of those hard to get, ultra low interest rate bank … [Read more...]

A Very Short History of Hedge Funds

Money, Arms Full

Legendary Fortune Magazine editor, Winslow Jones, created the first hedge fund out of a shabby office on Broadway in New York City in 1948, and generated monster returns over the next 20 years. He got the idea of a 20% performance bonus, now an industry standard, from ancient Phoenician sea captains who kept a fifth of the profits from successful voyages. Jones must have had an … [Read more...]

The “Population Bomb” Echoes

Paul Erlich

Pack your portfolios with agricultural plays like Potash (POT), Mosaic (MOS), and Agrium (AGU) if Dr. Paul Ehrlich is just partially right about the impending collapse of the world's food supply. You might even throw in long positions in wheat (WEAT), corn (CORN), soybeans (SOYB), and rice. The never dull, and often controversial Stanford biology professor told me he expects … [Read more...]

February 22, 2013 – Quote of the Day

India's Masses

“Changes in consumption stemming from per capita income rises from $1,000 a year to $5,000, as you are seeing in India, or $5,000 to $10,000, as you are seeing in China, is a very different kind of consumption. It is much more commodities heavy, it is food heavy, it draws a lot more on water supplies,” said Ian Bremmer, president of the Eurasia Group, an New York Based think … [Read more...]

February 21, 2013

Global Market Comments February 21, 2013 Fiat Lux Featured Trade: (IS THE PARTY OVER?), (SPY), (INDU), (IWM), (FXY), (YCS), (TLT), (GLD), (SLV), (FXE), (RUMBLINGS IN TOKYO), (FXY), (YCS), (TESTIMONIAL) SPDR S&P 500 (SPY) Dow Jones Industrial Average (INDU) iShares Russell 2000 Index (IWM) CurrencyShares Japanese Yen Trust (FXY) ProShares UltraShort Yen … [Read more...]

Is the Party Over?

Party Girl

The simple answer is no, not yet. But the neighbors have complained about the noise and called the cops. Today’s 108-point drop in the Dow, and 19-point decline in the S&P 500 does mean that the straight line, parabolic phase of the bull market is over. One of the most overbought markets in history is finally taking a pause. We traders are now going to have to work a … [Read more...]

Rumblings in Tokyo

Scrabble

I spent ten years of my life tramping in and out of Japan’s Ministry of Finance headquarters in Tokyo’s Kasumigaseki district. It was a dreadful reinforced steel and concrete affair with a dull grey tile siding that was so solidly built that it was one of the few structures in the city to survive WWII. But the building offered spacious prewar dimensions, with lovely high … [Read more...]

Testimonial

BusinessJohnThomasProfileMap2

More than a few of your fellow hedge fund managers must have hooted and snorted when you began advising investors how to manage portfolios of as little as $100,000. "Don't sweat the small stuff," I can hear them saying. By now, no doubt, they are marveling as we Tiny Tim’s rack up fabulous percentage gains thanks to your advice. For a while, I mainly read your … [Read more...]

February 20, 2013

Global Market Comments February 20, 2013 Fiat Lux Special Tesla Issue Featured Trade: (MY TAKE ON THE TESLA TIFF), (TSLA) Tesla Motors, Inc. (TSLA) … [Read more...]

My Take on the Tesla Tiff

Tesla Plant

By now, you are all probably well aware of the firestorm that has erupted between Tesla’s (TSLA) Elon Musk and the New York Times. It started when the groundbreaking California car maker loaned out a high performance Model S for testing of its East Coast supercharger network to the Times’ auto correspondent, John Broder, for a drive from Washington DC to Boston. Broder … [Read more...]

February 19, 2013

Global Market Comments February 19, 2013 Fiat Lux Featured Trade: (WHAT’S A POOR BOND MANAGER TO DO?) (TLT), (TBT), (NLY), (CVRR), (CWB), (THE POPULATION BOOM) (WHO EXPENSIVE OIL HURTS THE MOST), (USO) iShares Barclays 20+ Year Treas Bond (TLT) ProShares UltraShort 20+ Year Treasury (TBT) Annaly Capital Management, Inc. (NLY) CVR Refining, LP (CVRR) SPDR Barclays … [Read more...]

What’s a Poor Bond Manager To Do?

Man-Chestpain

With the consensus wisdom now pervasive that the 60 year bull market in bonds is over, what is a poor bond fund manager to do? Has he now become the defacto manager of the New York Mets, condemned to reliably losing every season? Pity the hapless financial advisor who has to drag clients, kicking and screaming, out of what has worked so well for the last several … [Read more...]

The Population Boom

Traffic

In their century long coverage of exotic places, cultures, and practices, National Geographic Magazine inadvertently sheds light on broad global trends that deeply affect the rest of us. Plus, the pictures are great. A recent issue celebrated the approach of the world's population to 7 billion, and the implications therein. Long time readers of this letter know that … [Read more...]

Who Expensive Oil Hurts the Most

Before-After

Every time the price of oil spikes, we learn vast amounts of information about the global reach of this indispensable commodity. It's like taking a non-core elective in geology at college. So I was fascinated when I found the chart of relative sector winners and losers below. No surprise that energy does best from sky high crude prices. It is followed by telecommunications … [Read more...]

February 15, 2013

Global Market Comments February 15, 2013 Fiat Lux Featured Trade: (FEBRUARY 20 GLOBAL STRATEGY WEBINAR), (THE BOND CRASH HAS ONLY JUST STARTED), (TLT), (TBT), (WATCH SAVINGS RATES FOR INTERNATIONAL MARKET CUES) iShares Barclays 20+ Year Treas Bond (TLT) ProShares UltraShort 20+ Year Treasury (TBT) … [Read more...]

Don’t Miss the February 20 Global Strategy Webinar

Robin Williams

My next global strategy webinar will be held on Wednesday, February 20 at 12:00 noon EST. This one will be open to the public, so login in early to get a space. 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 … [Read more...]

The Bond Crash Has Only Just Started

Grandpa Thomas

When I was a little kid in the early 1950’s, my grandfather used to endlessly rail against Franklin Delano Roosevelt. The WWI veteran, who was mustard gassed in the trenches of France and was a lifetime, died in the wool Republican, said the former president was a dictator and a traitor to his class, who trampled the constitution with complete disregard. Hoover, Landon, and … [Read more...]

Watch International Savings Rates for Market Cues

Fist of Dollars

Often while searching for a piece of data through Google, I stumble across something else, which is far more interesting. That is how I found the table below of international savings rates. Why should you care? Because countries with high savings rates tend to have strong economies and great stock markets, since there is plenty of excess cash available to pour into … [Read more...]

February 15, 2013 – Quote of the Day

You're fired

“You can’t keep on firing people. We’ve gotten so mean and so lean that you naturally get to the point where there are fewer people to let go,” said Steve Ricchiuto, chief economist at Mizuho Securities. … [Read more...]

February 14, 2013

Global Market Comments February 14, 2013 Fiat Lux SPECIAL ASIAN HIGH YIELD STOCK ISSUE Featured Trade: (REACHING FOR DIVIDENDS IN ASIA), (SSW), (CHT), (MLYBY), (EWSS) (AN EVENING WITH GENERAL DOUGLAS FRASER) (EWZ), (ECH), (GXG), (CU), (CORN), (SOYB), (WEAT) Seaspan Corporation (SSW) Chunghwa Telecom Co., Ltd. (CHT) Malayan Banking Bhd (MLYBY) iShares MSCI Singapore … [Read more...]

Reaching for Dividends in Asia

High Yield Dividends

You would think buying the highest yielding stocks in the world’s fastest growing countries would be a no brainer. Yet, you hardly ever find decent recommendations in this area. So after spending a few dozen hours scouring the investment universe, I came up with the short list below. Some of these have already had good moves in this yield starved world. But it is still a … [Read more...]

An Evening With General Douglas Fraser

Douglas Fraser- Gen.

I never cease to be amazed by the intelligence provided me by the US Defense Department, which after the CIA, has the world’s most impressive and insightful economic research team. There are few places a global strategist like me can go to get intelligent, thoughtful forty-year views, and this is one. Wall Street, eat your heart out. Of course, they are planning how to … [Read more...]

February 14, 2013 – Quote of the Day

Charlie Chaplin

“I looked all over the basement when I was at the White House, and there is no big lever you can throw to make things good again,” said Austin Goolsby, former chairman of the Council of Economic Advisors. … [Read more...]

February 13, 2013

Global Market Comments February 13, 2013 Fiat Lux Featured Trade: (THE MUNI BOND MYTH), (MUB), (TLT), (JNK), (ACTHX), (BEWARE THE COMING EQUITY CAPITAL FAMINE) iShares S&P National AMT-Free Muni Bd (MUB) iShares Barclays 20+ Year Treas Bond (TLT) SPDR Barclays High Yield Bond (JNK) Invesco High Yield Muni A (ACTHX) … [Read more...]

The Muni Bond Myth

Sculpture

Have I seen this movie before? Four years ago, analysts were predicting default rates as high as 17% for Junk bonds in the wake of the financial meltdown, taking yields on individual issues up to 25%. Liquidity in the market vaporized, and huge volumes of unsold paper overhung the market. To me, this was an engraved invitation to come in and buy the junk bond ETF (JNK) at … [Read more...]

Beware the Coming Equity Capital Famine

Brokers

The world is about to suffer an acute shortage of equity capital over the next eight years, which could total $12.3 trillion. That is the conclusion of the McKinsey Global Institute, an affiliate of McKinsey &Co., a great well of long-term economic thinking which I have been drawing from for the last 40 years. The cause of the coming debacle is quite simple. Investable … [Read more...]

February 12, 2013

Global Market Comments February 12, 2013 Fiat Lux Featured Trade: (TRADE ALERT SERVICE POSTS NEW ALL TIME HIGH), (SPY), (IWM), (FCX), (AIG), (FXY), (YCS), (DON’T GET CAUGHT IN THE NEXT REAL ESTATE BUBBLE), (PHM), (LEN), (KBH) (WHY WATER WILL SOON BECOME MORE VALUABLE THAN OIL), (CGW), (PHO), (FIW), (VE), (TTEK), (PNR), (TESTIMONIAL) SPDR S&P 500 (SPY) iShares … [Read more...]

Trade Alert Service Posts New All Time High

TA Performance - Inception

The Trade Alert Service of the Mad Hedge Fund Trader has posted a 23.76% profit year to date, taking it to another new all time high. The 26-month total return has punched through to an awesome 78.81%, compared to a miserable 14% return for the Dow average during the same period. That raises the average annualized return for the service to 36.4%, elevating it to the pinnacle of … [Read more...]

Don’t Get Caught in the Next Real Estate Bubble

House in Bubble

Before you place a down payment on that next home, consider that you are voluntarily becoming dependent on government welfare, reliant on massive subsidies, and may become the next ward of the state. Don’t kid yourself that the housing market has become anything but another bubble driven by artificially low interest rates and lax lending standards. Without the wholesale … [Read more...]

Why Water Will Soon Become More Valuable Than Oil

Water Fall

If you think that the upcoming energy shortage is going to be bad, it will pale in comparison to the next water crisis. So investment in fresh water infrastructure is going to be a great recurring long-term investment theme. One theory about the endless wars in the Middle East since 1918 is that they have really been over water rights. Although Earth is often referred to as … [Read more...]

Testimonial

Testimonial

First and foremost, thank you for what you do. The small cost of this newsletter pays for itself a thousand times over. My returns mimic those of your portfolio for the year and for that I am grateful. The only suggestion I would offer is to keep doing what you are doing. It is people like you that will help return the once storied name to Wall … [Read more...]

February 11, 2013

Global Market Comments February 11, 2013 Fiat Lux Featured Trade: (IS IT TIME TO BUY TECHNOLOGY STOCKS), (AAPL), (MSFT), (GOOG), (QQQ), (BAC), (JPM), (XOM), (CAT), (PG), (NFLX), (AN AFTERNOON WITH CALIFORNIA GOVERNOR JERRY BROWN) Apple Inc. (AAPL) Microsoft Corporation (MSFT) Google Inc. (GOOG) PowerShares QQQ (QQQ) Bank of America Corporation (BAC) JPMorgan Chase … [Read more...]

Is It Time to Buy Technology Stocks?

Apple

Call it the shot heard round the world. David Einhorn’s lawsuit against tech goliath Apple (AAPL) has focused a giant spotlight on what has been one of the worst performing stock market sectors of 2013-- large old technology stocks. Could this be the set up for the biggest sector rotation of the year? Most of the price action in this year can be divided into kinds: big cap … [Read more...]

An Afternoon With California Governor Jerry Brown

Jerry Brown 2

On my last trip to my lakefront estate at Lake Tahoe, I stopped off at the state capital, Sacramento, to look in on my old friend, Governor Jerry Brown. It is crucial that readers across the country, and indeed, around the world, know what Jerry is thinking. California has always been a “pathfinder” state, and what starts here is often adopted across the country. This little … [Read more...]

February 11, 2013 – Quote of the Day

Computer

“Apple will never be a consumer products company,” said John Sculley, the Apple CEO who fired Steve Jobs in 1985. Today Apple is the world’s largest and most profitable consumer products company. … [Read more...]

February 8, 2013

Global Market Comments February 8, 2013 Fiat Lux Featured Trade: (HOW THIS MARKET WILL DIE), (SPY), (SPX), (DOW AVERAGE), (AAPL), (QQQ), (APRIL 12 SAN FRANCISCO STRATEGY LUNCHEON), (THE CRUEL TRUTH ABOUT GOVERNMENT STATISTICS), (TESTIMONIAL) SPDR S&P 500 S&P Large Cap Index Apple Power Shares QQQ … [Read more...]

How This Bull Market Will Die

Bull

The universal question in the market today was “Why is it down” when all the news was good? The weekly jobless claims dropped 5,000 to 366,000, near a five-year low, confirming that the jobs recovery is still on track. Activist shareholder, David Einkorn’s, lawsuit against Apple (AAPL) to unfreeze its cash mountain should have boosted the market’s major buzz kill. Sure, ECB … [Read more...]

April 12 San Francisco Strategy Luncheon

San Francisco

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in San Francisco on Friday, April 12, 2013. An excellent meal will be followed by a wide-ranging discussion and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals, and real estate. And … [Read more...]

The Cruel Truth About Government Statistics

Abbott & Costello

There have been complaints about the quality of government data as long as there have been stock markets. The US is not much better than emerging markets, like China, where numbers are subject to huge, after the fact revisions. A broker friend of mine emailed the conversation below, which has been circulating around the street. Enjoy. Costello: I want to talk about the … [Read more...]

Testimonial

Testimonial

Greetings from the great white north. I am a BIG fan of yours and have rejoined your Trade Alert Service for another year. You have friends around the world you have yet to meet. Enclosed is a token of my appreciation. Thanks a 100 trillion! Bob Vancouver, Canada … [Read more...]

Trade Alert – (SPY) February 7, 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. … [Read more...]

SOLD OUT – April 12, 2013 San Francisco Strategy Luncheon

San Francisco

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in San Francisco on Friday, April 12, 2013. An excellent meal will be followed by a wide ranging discussion and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals, and real estate. And … [Read more...]

Trade Alert – (IWM) February 7, 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) February 7, 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...]

February 7, 2013

Global Market Comments February 7, 2013 Fiat Lux Featured Trade: (HOW MUCH TO GO WITH PALLADIUM), (PALL), (HANGING OUT WITH WOZ), (AAPL), (THANK GOODNESS I DON’T LIVE IN SWEDEN), (EWD) ETFS Physical Palladium Shares (PALL) Apple Inc. (APPL) iShares MSCI Sweden Index (EWD)   … [Read more...]

How Much to Go With Palladium?

Canadian Coin

Palladium has caught absolutely on fire in recent months. The ETF (PALL) for the hedge fund darling has soared by 34% since the September low, and shows no sign of slowing. The CFTC announced that speculative positions in palladium futures leapt 12% last week to an all time high. Also known as the ‘poor man’s platinum,’ demand for palladium for jewelry in China has been … [Read more...]

Thank Goodness I Don’t Live in Sweden!

Model

I recently found the chart below showing world tax rates as a percentage of GDP for the past 40 years. Sweden suffers the world's heaviest tax burden at 51%, compared to only 27% in the US. The US has among the world's lowest tax burdens, which has been falling for the last ten years. Listening to TV pundits, you would think we had the world's highest tax rates, which are … [Read more...]

February 6, 2013

Global Market Comments February 6, 2013 Fiat Lux Featured Trade: (WHY YOU SHOULD CARE ABOUT THE IRANIAN RIAL COLLAPSE), (WHEN YOUR OPTIONS ARE EXERCISED) … [Read more...]

Why You Should Care About the Iran Rial Collapse

Rial

The Iranian Rial (IRR) has just suffered one of the most cataclysmic crashes in the history of the foreign exchange markets. It is off a mind numbing 75% since the beginning of 2011. One dollar now buys 12,200 Rials. Watch out Zimbabwe! When communications between intelligence agencies suddenly spike, as has recently been the case, I sit up and take note. Hey, do you think I … [Read more...]

When Your Options Are Exercised

I received a few emails from readers whose option holdings have been exercised against them, and have asked me for advice on how best to proceed. So, here we go. The options traded on US exchanges are American style, meaning that they can be exercised at any time by the owner. This is opposed to European style options, which can only be exercised on the expiration … [Read more...]

February 6, 2013 – Quote of the Day

Dominoes

You’ve already seen Greek bonds fall by 90%. The dominoes in Europe will fall. There’s no way around it. Imagine a group of countries that have been fighting for 200 years suddenly ceding their sovereignty to Germany, or to some other higher authority,” said Kyle Bass of hedge fund Hayman Capital Management. … [Read more...]

February 5, 2013

Global Market Comments February 5, 2013 Fiat Lux Featured Trade: (FEBRUARY IS THE CRUELEST MONTH), (SPX), (SPY), (WHY GOLD IS DEAD), (GLD), (GDX), (TESTIMONIAL), (OXY), (BYDDF) … [Read more...]

February is the Cruelest Month

Lady Liberty

Actually, it is the second cruelest month. September is the worst, as indicated by the table below, put together by my friends at Stockcarts.com. I think you have to get some sort of pullback between now and March 15, like of the 2%-4% range. It’s not that we are without fundamental reasons to do so. Don’t forget, we have a sequestration deadline looming on March 1, when the … [Read more...]

Why Gold is Dead

Golden Girl 2

It certainly has been a year of gnashing teeth and tearing hair for inveterate gold bugs (GLD). They got everything they wanted on the fundamental side. Runaway printing presses from the Federal Reserve, profligate spending from the US government, and a series of unending crises threatening our oil supplies in the Middle East. Yet, the barbarous relic has barely budged. It … [Read more...]

Testimonial

BYDDF 2-4-13

I have to acknowledge that I purchased (OXY) on your recommendation and I am up ten points or 14% in one month. I am also up 27% in (BYDDF) in a little over one year. Thank you Mike Hermosa Beach, California … [Read more...]

February 5, 2013 – Quote of the Day

Drinking Shots

“I look at the Fed and think we’re partying like its New Year’s Eve, 1999. We’re drinking booze, and taking tequila shots. They have the pedal pressed so far down, I know it’s going to end badly. When rates go higher, they are going to go so much higher than people anticipate that there will be significant collateral damage,” said Joe Lavorgna, Deutsche Bank Chief Economic. … [Read more...]

Trade Alert – (SPY) February 4, 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...]

February 4, 2013

Global Market Comments February 4, 2013 Fiat Lux Featured Trade: (GOLDILOCKS DELIVERS A NONFARM PAYROLL), (SPY), (SPX), (DOW), (FEBRUARY 6 GLOBAL STRATEGY WEBINAR), (LOOK AT THAT YEN!), (FXY), (YCS) … [Read more...]

Goldilocks Delivers a Nonfarm Payroll

EMSPAY 2-1-13

Does it get any better than this? First, the hometown San Francisco Giants win the World Series in a four game sweep. Then the San Francisco 49er’s play in the Super Bowl. Finally, I win the World Series/Super Bowl of investing by capturing an absolutely pyrotechnic 21% year to date performance, boosting me once again the top ranks of the hedge fund industry. Hey, two out of … [Read more...]

Don’t Miss the February 6 Global Strategy Webinar

Robin Williams

My next global strategy webinar will be held on Wednesday, February 6 at 12:00 noon EST. This one will be open to the public, so login in early to get a space. 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 … [Read more...]

Look at That Yen!

Harakiri - Femail

All of those years spent living in rabbit hutch sized apartments, getting hand packed by white gloved railway men into rush hour train cars, and learning an impossible language, are finally paying off. I have to tell you, I really have to think hard to recall a plunge in a major currency that has been as dramatic as the yen’s over the past two months. Since the Mid-November … [Read more...]

Trade Alert – (FCX) February 1, 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 – (AIG) February 1, 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...]

February 1, 2013

Global Market Comments February 1, 2013 Fiat Lux Featured Trade: (TRADE ALERT SERVICE POSTS BLAZING 16.75% JANUARY GAIN), (LUNCH WITH SUPREME COURT JUSTICE SONIA SOTOMAYOR), (TESTIMONIAL) … [Read more...]

Trade Alert Service Post Blazing 16.75% January Gain

Trade alert Service YTD

The Trade Alert Service of the Mad Hedge Fund Trader posted a 16.75% profit in January, an all time monthly high. The 26-month total return has punched through to 71.80%, compared to a miserable 10% return for the Dow average. That raises the averaged annualized return to 33.13%, elevating to the top of the hedge fund ranks. Global Trading Dispatch, my highly innovative and … [Read more...]

Lunch With Supreme Court Justice Sonia Sotomayor

Sonia Sotomayor

 I have to admit that it was with some trepidation that I joined Supreme Court Justice, Sonia Sotomayor, for lunch this week in San Francisco. I have friends in the New York federal prosecutors office who warned me that she was tough as nails and a complete bitch, first as a prosecutor herself, and later as a judge. I confided this observation to her, and she agreed … [Read more...]

Testimonial

I wouldn't say that I've made a great deal of money from using your recommendations. Your views on the market are invaluable, and you've helped a lot in learning how to manage an investment account and hedge. However, your latest bulletin about the Occupy Campers, and also the biofuels were very welcome - I couldn't agree more. It's a cynical old World out there, and it is … [Read more...]

February 1, 2013 – Quote of the Day

Dinasaur

“People are investing with a rear view mirror. Last year, you had people legitimately scared out of the market. Unfortunately, you are losing a generation of investors at a time when they ought to be thinking about buying high quality stocks,” said Hersh Cohen of Clearbridge Advisors. … [Read more...]