Who Says Hedge Funds Aren’t Adding Value?

Topiary

According to my old friend, Rick Sopher, chairman of LCH Investments in London, the top ten hedge funds have earned $153 billion for their investors since inception. Rick, who runs his business from an elegant flat on posh Eaton Square, compiled the list after a comprehensive survey of the still operating 7,000 hedge funds worldwide. It is dominated by marquee names like Bruce … [Read more...]

Peter F. Drucker on Management

The Essential Drucker

If you have been living in a cave for the last 74 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...]

December 23, 2014 – 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...]

The One Bright Spot in Real Estate

US Population 2010-2050

I feel obliged to reveal one corner of this bubbling market that might actually make sense. By 2050 the population of California will soar from 37 million to 50 million, and the US from 300 million to 400 million, according to data released by the US Census Bureau and the CIA fact Book (check out the population pyramid below). That means enormous demand for the low end of the … [Read more...]

A 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 … [Read more...]

The ‘Population Bomb’ Echoes

Fruit Market

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 in 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...]

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 in terms of actual taxes paid, which has been falling for the last ten years. Listening to TV pundits, you would think we had the world's … [Read more...]

A Thank You from The Mad Hedge Fund Trader

John Thomas with Santa

You are in safe hands now, with your trading portfolios up 34% on the year, if you had followed every one of my Trade Alerts to the letter. So I am calling it quits for the year. By the time you read this, I will be winging my way to Chicago to deliver the last global strategy lunch of the year (click here to buy). After that, I will be making a beeline for my beachfront … [Read more...]

December 19, 2014 – Quote of the Day

Woman-Christmas

“If the Fed brings a lump of coal in the form of a taper, then they better brings some candy canes for the kids as well. It looks like they did,” said Bill Gross, CEO of bond giant, PIMCO. … [Read more...]

Volatility Here is Peaking

Man-Pogo Stick

I am one of those cheapskates who buys Christmas ornaments by the bucket load from Costco in January for ten cents on the dollar, because my eleven month theoretical return on capital comes close to 1,000%. I also like buying flood insurance in the middle of the summer when the forecast here in California is for endless days of sunshine. That is what we are facing now with … [Read more...]

Hedge Funds: The New Dumb Money

Carrey & Daniels - Dumb & Dumber

Much of the recent buying of stocks has been generated by hedge funds panicking to cover shorts. Convinced of the imminent collapse of Europe, the impotence of governments to do anything about it, and slow economic growth at home, many managers were running a maximum short for the umpteenth time, and were forced to cover at a loss. Meet the new dumb money: hedge funds. When I … [Read more...]

Testimonial

John Thomas

Thanks so much, John and Jim, for coming up with The Mad Day Trader! I especially appreciate that you'll be using ETFs (they are so convenient...and I can trade without triggering short-term taxes, in my IRA). I Also like that you're including a focus on metals, as I'm already trading (GLD), (SLV) and their inverses (DGZ), (GLL), (ZSL), and (DUST) on my own (and making … [Read more...]

December, 18 2014 – Quote of the Day

Monopoly guy smoking cigar

“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone,” said the legendary economist, John Maynard Keynes, founder of the modern monetary system. … [Read more...]

The Reception That the Stars Fell Upon

George Shultz

My friend was having a hard time finding someone to attend a reception who was knowledgeable about financial markets, White House intrigue, international politics, and nuclear weapons. I asked who was coming. She said Reagan’s Treasury Secretary George Shultz, Clinton’s Defense Secretary William Perry, and Senate Armed Services Chairman Sam Nunn. I said I’d be there wearing my … [Read more...]

December 17, 2014 – Quote of the Day

Student

“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,” said Marc Chandler, the global head of currency strategy at Brown Brothers Harriman. … [Read more...]

End of the Commodity Super Cycle

Gold Coins

When the Trade Alerts quit working. I stop sending them out. That’s my trading strategy right now. It’s as simple as that. So when I received a dozen emails this morning asking if it is time to double up on Linn Energy (LINE), I shot back “Not yet!” There is no point until oil puts in a convincing bottom, and that may be 2015 business. Traders have been watching in complete … [Read more...]

December 16, 2014 – Quote of the Day

Mouse Cuffs

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary,” said Nassim Nicholas Taleb, author of Antifragile: Things That Gain from Disorder.” … [Read more...]

A Day with Tom Friedman of the New York Times

John Thomas with Tom Freidman

I took a day off to attend the New York Times Global Forum at San Francisco’s Sony Metreon Center. The goal was to put together 400 of the most forward thinking and influential minds in the Bay Area, stand back, and see what happened. It was organized by my old friend, fellow traveler, and veteran journalist, Tom Friedman. Tom and I date back to the old days in Beirut, during … [Read more...]

The Best Financial Book Ever

The Ascent of Money

I have just finished reading the best financial book ever and I have read most of them. It is The Ascent of Money: a Financial History of the World by Harvard professor Niall Ferguson. It gives you a great explanation of how the broad sweep of history delivered us to the doorstep of today’s crisis. Ferguson starts with an ancient accounting system written on clay tablets in … [Read more...]

An Evening with Congressman Barney Frank

John Thomas and Barney Frank

One of the highlights of last year’s SkyBridge Alternatives Conference was the blowout party on Wednesday night (click the following for the blow by blow description at http://madhedgefundradio.com/report-on-the-skybridge-alternatives-conference/). Seeking refuge from a band that was blasting my ears out, and fleeing the nubile young bodies that kept bumping up against me and … [Read more...]

The Mystery of the Missing $100 billion

Gold Bars

Now you see it, now you don’t. That was the question observers of international monetary flows were asking after last week’s data release from the Federal Reserve. These showed that some $104.5 billion in Treasury securities held in custody accounts were withdrawn. It doesn’t mean that these bonds were sold. You certainly would have noticed this in the Treasury market, where … [Read more...]

My Favorite Secret Economic Indicator

Graduation

It was with an enormous sense of pride and relief that I watched the last of my kids graduate from the University of California at Berkeley. Clutching his hard fought degree in political economics in hand, Robert posed for photos among friends, with thousands of beaming parents looking on. His mother died ten years ago, and raising three kids alone, getting them through top … [Read more...]

Take a Ride in the New Short Junk ETF

Car-Junk

When you look at the profusion of new ETF’s being launched today, you find that they almost always correspond with market tops. The higher the market, the greater the demand for the underlying, and the more leverage traders pay for it. The resulting returns for investors are disastrous. But occasionally a blind squirrel finds an acorn, and if you fire buckshot long enough, you … [Read more...]

Testimonial

BusinessJohnThomasProfileMap2-1

I would like to express how much I enjoy reading your newsletter and the global views that I gain from it.  It has been the best, by far, and the most financially worthwhile letter I have ever bought.  I find most newsletters spin and promote their returns during the good times, and never factor in or disclose their bad times. I have had some bad trades with you, but the … [Read more...]

The Real Estate Market in 2030

Home for Sale

Long time readers of this letter already know that, seeing the real estate crash coming a mile off, I dumped all my properties in 2005, some $20 million worth. Four a year, people told me I was too short sighted, that real estate never went down, or that I was an idiot. I patiently explained at local dinner parties the deteriorating demographic and financial fundamentals that … [Read more...]

December 8, 2014 – Quote of the Day

Mike Myers Dr. Evil

“It’s basically evil, and I don’t think it should ever be allowed to reach the size that it did. Why should everyone pay a small group of people to basically engage in legalized front running of our orders,” said Berkshire Hathaway Vice Chairman, Charlie Munger, about high frequency trading.   … [Read more...]

Running the San Francisco Bay to Breakers

Revolutionary Soldiers

I suffer earthquakes, forest fires, floods, dubious neighbors, high taxes, corrupt politicians, and a bankrupt state government to live in California. It is all worth it just to run the Bay to Breakers every year, a five mile run from the San Francisco Bay to the Pacific Ocean, which has evolved into the world’s most bizarre sporting event. The word from race organizers this … [Read more...]

December 4, 2014 – Quote of the Day

wile_e_coyote_gravity

“Interest rates are the physical gravity of financial assets. The lower they are, the higher assets will levitate,” said Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, a leading hedge fund of funds. … [Read more...]

10 Reasons Why I’m Wrong on Bonds

John Thomas

I have never been one to run with the pack. I'm the guy who eternally marches to a different drummer, not in the next town, but the other hemisphere. I would never want to join a club that would lower its standards so far that it would invite me as a member. On those rare times that I do join the lemmings, I am punished severely. This is one of the times. Like everyone and … [Read more...]

A Special Note on Exercised Bank of America Options

John Thomas

This morning, Bank of America paid out a five cent quarterly dividend, which works out to an annualized yield of 1.18% and the shares will open this morning trading ex. For those of you who have wisely followed my Trade Alert to buy the Bank of America (BAC) December, 2014 $15-$16 vertical bull call spread, good for you. As of last night, you were showing a profit of 0.88% on … [Read more...]

The Most Functional Word in the English Language

Girl-I don't know!

Passed on by a friend with my apologies in advance: Well, it's shit... That's right, shit! Shit may just be the most functional word in the English language. You can smoke shit, buy shit, sell shit, lose shit, find shit, forget shit, and tell others to eat shit. Some people know their shit, while others can't tell the difference between shit and Shinola. There are lucky … [Read more...]

Surviving Thanksgiving

Norman Rockwell Thanksgiving

The Mad Hedge Fund Trader is taking a much-needed break for the next few days to take Turkey with the vast extended family in Incline Village, Nevada. The weather is crystal clear, in the sixties during the day and down to the thirties at night. During my night hikes on the Tahoe Rim Trail, I am over awed by a pale waning moon setting into the lake. The Trade Alerts went out … [Read more...]

European Style Homeland Security

CleeseJohn2

The English are feeling the pinch in relation to recent geopolitical events, and have therefore raised their security level from "Miffed" to "Peeved." Soon, though, security levels may be raised yet again to "Irritated" or even "A Bit Cross." The English have not been "A Bit Cross" since the blitz in 1940, when tea supplies nearly ran out. Terrorists have been re-categorized … [Read more...]

Testimonial

John Thomas

Signing up for your service was the easiest decision that I have ever made knowing the value that I am getting in return. Thanks for making the world of capital markets profitable for non-Wall Street guys that are busy working in other professions. Until now, I have been forced to deal with money managers or 'Company Men' that only push the products their higher ups want to … [Read more...]

November 25, 2014 – Quote of the Day

Hot Air Balloon

“Bonds are priced artificially because you’ve got some guy buying tens of billions of dollars worth a month. That will change at some point, and when it does, people are going to lose a lot of money,” said oracle of Omaha, Warren Buffett. … [Read more...]

Report from Australia

John Thomas - Croc Dundee

The noise was as depressing as it was unmistakable. The front tire on my rental car blew out, leaving me stranded on the side of the road. The problem was that I was in the middle of nowhere in New South Wales, Australia, and it was pouring cats and dogs. Nothing but eucalyptus trees unfolded across the vast rolling hills. I looked in the trunk. Kookaburras laughed in the … [Read more...]

November 21, 2014 – Quote of the Day

Boxers-Fight

“The private economy is OK here. It is absorbing these body blows from Washington. Housing and energy could offset the shenanigans coming out of there,” said Stephen Wood, CIO with Russell Investments Group. … [Read more...]

Lucky Find Sparks New California Gold Rush

Gold Coins

California is called the “Golden State” for a good reason. Countless fortunes have been made in mining, farming, real estate, tourism, movie making, aircraft manufacturing, aerospace, and more recently, in technology and pot growing. The Google (GOOG) and Facebook (FB) IPO’s each minted 1,000 millionaires, and Twitter’s (TWTR) deal is said to have produced 1,600 more. … [Read more...]

The Difference Between Mad Hedge Fund Trader and Mad Day Trader

John & Jim

Thanks to our ballistic, market beating performance, up 40% year to date, we have recently enjoyed a large influx of new subscribers, especially from Australia and New Zealand. So I want to take to take this opportunity to clarify exactly what you bought. While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader … [Read more...]

The New California Gold Rush

Panning for Gold

On my way back from Lake Tahoe last weekend I saw that every bend of the American river was dotted with hopeful miners, looking to make a windfall fortune. Weekend hobbyists were there panning away from the banks, while the hardcore pros stood in hip waders balancing portable pumps on truck inner tubes, pouring sand into sluice boxes. Welcome to the new California gold rush. … [Read more...]

Why Water Will Soon Become More Valuable Than Oil

Waterfall

If you think that an energy shortage is 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 the water planet, only … [Read more...]

Testimonial

John Thomas

I have always had a passion for the markets and the Mad Hedge Fund Trader gave me the courage to make my first trade. At the time I was unemployed and put in everything I could scrape together - about ten thousand dollars. For me this was a free education, as the profits would pay for all the books and the fees. My father gave me some money as a gift, while telling me ‘I was … [Read more...]

Report from New Zealand

John Thomas New Zeland Maori

35 degrees South latitude, 174 degrees East longitude. I am writing this report from the Duke of Marlborough Hotel and Pub in remote Russell, off the east coast of New Zealand’s North Island. Once known as “The Hell Hole of the Pacific” in 1835, no less an authority than Charles Darwin, claimed this 19th century whaling port was populated with “the refuse of humanity.” It has … [Read more...]

November 19, 2014 – Quote of the Day

girl with money

If you can get a dividend higher than the yield on ten-year debt, it’s an opportunity we haven’t seen in our lifetime. On a five-year horizon, investing in large multinationals with high dividends will have a large payday,” said Lawrence Fink, CEO of BlackRock. … [Read more...]

Is USA Inc. a “SELL”?

USA Inc.

What would happen if I recommended a stock that had no profits, was cash flow negative, and had a net worth of negative $44 trillion? Chances are, you would cancel your subscription to the Mad Hedge Fund Trader, demand a refund, de-friend me from you Facebook account, and delete my email address from your contact list. Yet, that is precisely what my former colleague at … [Read more...]

November 18, 2014 – Quote of the Day

monks

“At some point in 2014, knuckles are going to be turning white, and we'll see whatever rabbits Janet Yellen is going to have to pull out of her hat,” said David Rosenberg of Gluskin, Sheff & Associates. … [Read more...]

Please Use My Free Data Base Search

Computer with Magnifying Glass

The original purpose of this letter was to build a database of ideas to draw on in the management of my hedge fund. When a certain trade comes into play, I merely type in the symbol, name, currency, or commodity into the search box, and the entire fundamental argument in favor of that position pops up. You can do the same. Just type anything into the search box with the little … [Read more...]

Get Ready for Your Next Big Tax Hit

IRS Emblem plus

No matter what anyone promises you today, this week, or this year, your taxes are going up. I don’t care if you are still licking your wounds from the last payroll tax rise, or the federal tax hike for millionaires, which in my case took my rate up from 35% to 39.5%. At least the capital gains tax is still a steal at 20%. At $600 billion, the budget deficit is so enormous that … [Read more...]

November 14, 2014 – Quote of the Day

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...]

Testimonial

John Thomas

I have been following your trades for a while to the tune of several hundreds of thousands in profits. Kindly sign me up to the "A" team. Even after investing for over 30 years, some as a Wall St. pro, I need help with this market. Keep up the good work. BF West Chester, Pennsylvania … [Read more...]

The Tax Rate Fallacy

irs

When anyone starts lecturing you that the US has the highest tax rate in the industrialized world, just turn around, walk away and pretend you never heard of them. This person is either ignorant about this country's taxation system or is deliberately trying to deceive you. According to a report released by the Internal Revenue Service, America's tax collection agency, the top … [Read more...]

A Tribute to a True Veteran

Medal of Honor

Today is Veterans Day, and I’ll be putting on my faded Marine Corp fatigues and railroad track bars and leading the home town’s Veteran’s Day parade. So I thought it would be a good day to tell you the story of my Uncle Mitch. Since job prospects for high school graduates in rural Pennsylvania in 1936 were poor, Mitch walked 200 miles to the nearest Marine Corp recruiting … [Read more...]

November 11, 2014 – Quote of the Day

Couple Reading Newspaper

“20 years ago I could read the Wall Street Journal every morning and feel that I knew enough to at least start my day. That is no longer true,” said technology guru and venture capital investor, Roger McNamee … [Read more...]

Tribute to a Giant of Journalism, Roy Essoyan

Roy Essoyan

I had been filled with great sadness when I had learned of the passing of an old friend and mentor, Roy Essoyan, the former Tokyo bureau chief for the Associated Press. When I was a young, wet behind the ears financial journalist in Japan during the early seventies, Roy had the charity to take me under his wing and teach me a few tricks of the trade. We often met for lunch at … [Read more...]

Notice to Military Subscribers

Soldier

To the dozens of subscribers in Afghanistan and the surrounding ships at sea, thank you for your service! I think it is very wise to use your free time to read my letter and learn about financial markets in preparation for an entry into the financial services when you muster out. Nobody is going to call you a baby killer and shun you, as they did when I returned from … [Read more...]

The Worst Trade of All Time

Steve Martin

One of the great asset management blunders of all time has to be the European Community’s decision to sell its gold reserves in the wake of the launch of the Euro in 1998. The decision led to the fairly rapid sale of 3,800 metric tonnes of the yellow metal at an average price of $280/ounce, reaping about $56 billion, according to the Financial Times. Today with gold at … [Read more...]

November 6, 2014 – Quote of the Day

Hillary Clinton

“Asking if Hillary Clinton is going to run for president in 2016 is like asking if John Dillinger is going to rob a bank,” said conservative commentator, Mike Murphy. … [Read more...]

Decoding the Greenback

US Dollar

If you want to impress your friends with your vast knowledge of financial matters, then here are the Latin translations of the script on the backside of a US dollar bill. “ANNUIT COEPTIS” means “God has favored our undertaking.” “NOVUS ORDO SECLORUM” translates into “A new order has begun.” The Roman numerals at the base of the pyramid are “1776.” The better known “E PLURIBUS … [Read more...]

The Fusion in Your Future

Planetarium

Expect to hear a lot about ignition in the next year. No, I don’t mean the rebuilt ignition for the beat up ’68 Cadillac El Dorado up on blocks in your front yard. I’m referring to the inauguration of the National Ignition Facility next door to me at Lawrence Livermore National Labs in Livermore, California. Mention California to most people, and images of love beads, tie died … [Read more...]

What About Asset Allocation?

Regis Philbin

Asset allocation is the one question that I get every day, which I absolutely cannot answer. The reason is simple: no two investors are alike. The answer varies whether you are young or old, have $1,000 in the bank or $1 billion, are a sophisticated investor or an average Joe, in the top or the bottom tax bracket, and so on. This is something you should ask your financial … [Read more...]

November 5, 2014 – Quote of the Day

Sign - True False

“When you look at the size of the US work force over the next 30 years, it is going to increase by 30%. That compares to Japan, where it is going to be shrinking, Europe, where it is contracting, and even China, where it turns down. The idea that the baby boomers are going to overwhelm this huge growth in the work force is a myth,” said Scott Minerd, Managing Partner of … [Read more...]

Watch Out for the Millennial Voter

College Kids

I have been banging the table for years now about the importance of demographic trends for the economy, the financial markets, and the housing market. Well, politics is no different. According to recent surveys, Millennials, who are now aged 23-34 (I have three of them) are suspicious of government, have a strong anti-business bias, are opposed to new regulation, are highly … [Read more...]

Testimonial

BusinessJohnThomasProfileMap2-1

I watched John Thomas for a year before jumping in, and I should have done it earlier when he phenomenally traded that awful year, 2011, that whipsawed so many investors including myself. He again outperformed the market in 2012, and in 2013 so far he has shown amazing skill once more in navigating treacherous markets with deep-in-the-money call and put spreads. You can not … [Read more...]

November 3, 2014 – Quote of the Day

Foot on banana peel

“Risk control is the best route to loss avoidance. Risk avoidance, on the other hand, is likely to lead to return avoidance as well, said Howard Marks, founder of distressed debt giant, Oaktree Capital Management. … [Read more...]

An Evening With James Baker III

James Baker

“We have 3,500 nuclear weapons left over from the cold war we don’t need, they take 20 seconds to re-aim, we’re not afraid to use them. And by the way, they’re already aimed at you.” That is the approach James Baker III thinks America should take with Iran, Ronald Reagan’s Chief of Staff and Secretary of the Treasury and George H.W. Bush’s Secretary of State. At the same time … [Read more...]

Connecting Up America

Tres Amigas

Until now, the country’s power grid has been divided into three unconnected, noncompetitive kingdoms (in the spirit of Game of Thrones), making transnational transmission impossible, leading to huge regional mispricing. While California and New York suffered from periodic brown outs and sky-high prices, electricity was given away virtually for free in Texas. A group of power … [Read more...]

October 30, 2014 – Quote of the Day

Recovery Sign

“We underestimated the negative impact of the slowdown in the housing market, and we may be underestimating the tail wind in its recovery,” said Uwe Mark Ruttke of Merrill Lynch, the top financial advisor in Colorado. … [Read more...]

Why Warren Buffet Hates Gold

Gold Coin

The 'Oracle of Omaha' Warren Buffet often goes to great lengths to explain why he despises the barbarous relic. The sage doesn't really care about the yellow metal, whatever the price. He sees it primarily as a bet on fear. If investors are more afraid in a year than they are today, then you make money. If they aren't, then you lose money. If you took all the gold in the … [Read more...]

Dinner With Eliot Spitzer

Eliot Spitzer

I couldn’t for the life of me figure out why New York’s former governor and federal prosecutor, Eliot Spitzer, wanted to invite me to dinner. He wasn’t flogging a book or promoting a movie, and he certainly wasn’t running for office again. But I went anyway, thinking perhaps the notorious “Client No.9” might let me peek at his famous black book. Eliot, who showed up wearing a … [Read more...]

Grapes of Wrath Redux

Farmers Market

It’s another sign of the times when the weekend fruit picker population has doubled by people hard hit by the economy, looking to save money on food costs. After driving through miles of undulating brown hills studded with oak trees, passing mile upon mile of horse ranches, rusted out cars, and abandoned mobile homes, you come to Brentwood, the fruit capital of Northern … [Read more...]

Testimonial

BusinessJohnThomasProfileMap2-1

Thanks John...rough ride out of the gates here...but I wouldn't want to be riding with anyone but you...you are my life raft in this treacherous world of investing, and thank you for being who you are and for all that you do. Take care, Greg B. Agoura, California … [Read more...]

China’s View of China

China - Parade

I ran into Minxin Pei, a scholar at the Carnegie Endowment for International Peace, who imparted to me some iconoclastic, out of consensus views on China’s position in the world today. He thinks that power is not shifting from West to East; Asia is just lifting itself off the mat, with per capita GDP at $5,800, compared to $48,000 in the US. We are simply moving from a … [Read more...]

Trade Alert – (SPY) October 27, 2014

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...]

October 27, 2014

Global Market Comments October 27, 2014 Fiat Lux Featured Trade: (THE TRUTH ABOUT EBOLA), (SPY), (AMERICA’S DEMOGRAPHIC TIME BOMB), (TESTIMONIAL) SPDR S&P 500 ETF (SPY) … [Read more...]

The Truth about Ebola

Ebola Virus

Now we learn that the Ebola virus has been riding New York’s “A” train subway line since October 21! That is what we have learned from the physician from Doctors Without Borders, now locked up in the Ebola Ward at Manhattan’s Bellevue Hospital, just returned from treating victims in the West African country of Guinea. His girlfriend and some close friends have been rounded up … [Read more...]

America’s Demographic Time Bomb

Senior Citizens playing cards

You can never underestimate the importance of demographics in shaping long term investment trends, so I thought I’d pass on these two highly instructive maps. The first shows a map of the world drawn in terms of the population of children, while the second illustrates the globe in terms of its 100 year olds. Notice that China and India dominate the children’s map. Kids turn … [Read more...]

Testimonial

BusinessJohnThomasProfileMap2-1

Holy smokes! You really did it with the UNG trade. Up 25% in two hours? How did you do that? It was the best trade you’ve ever done. It’s the best trade I’ve ever done. It was the right thing to do at the right time. And you had the balls to put it on after the (UNG) opened down a dollar. The follow up report was one of your best ever written as well. I will never again doubt … [Read more...]

October 24, 2014 – MDT – Yen Order Update

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. … [Read more...]

October 24, 2014 – MDT – Aussie Position Update

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. … [Read more...]

October 24, 2014 – MDT Pro Tips A.M.

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. … [Read more...]

October 24, 2014

Global Market CommentsOctober 24, 2014Fiat Lux Featured Trade:(IT’S ALL OVER FOR THE JAPANESE YEN),(FXY), (YCS), (DXJ) CurrencyShares Japanese Yen ETF (FXY)ProShares UltraShort Yen (YCS)WisdomTree Japan Hedged Equity ETF (DXJ) … [Read more...]

October 24, 2014 – Quote of the Day

bear

“If you are going to be bearish and against this market, you are betting against the three richest men on the earth, Bernanke, Draghi, and Kuroda,” said market strategist, Ed Yardeni. … [Read more...]