March 19, 2012 – Quote of the Day

“I think we’re headed towards VAT taxes. It’s only a question of how long it takes for them to wake up and figure it out. You can’t tax the wealthy enough to close the budget deficit we have,” said Leon Cooperman of hedge fund Omega Advisors.

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Follow Up (TBT) – March 19, 2012

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.

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Trade Alert – (TBT) – March 19, 2012

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.

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Is an Apple Short the Trade of the Year?

When Apple (AAPL) made its three day, $50 move up last week, it created $55 billion in new market capitalization. That 72 hour addition alone would rank it as the 100th largest company in the world besides Boeing (BA), Union Pacific Railroad (UNP), and Nike (NKE). Trading volume in Apple calls is has smashed all […]

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Are Junk Bonds Peaking?

There is no happier corner of the fixed income universe, which has been soaring like a bat out of hell for the past three years. Average yields for the bond class most sensitive to the economy have collapsed from 18% to near an all-time low of 7.3%, a scant 500 basis points over ten year […]

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Watch Out for the Millennial Voter

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 19-30 (I have three of them) are suspicious of government, have a strong anti-business bias, are […]

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March 19, 2012 – Quote of the Day

“I don’t like the bond market at all. A jackass in a Tuxedo is still a jackass,” said Bill Spiropoulis at Corestates Capital Advisors

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The New Carry Trade

Long the domain of hedge funds and large banks, the carry trade has gone mainstream. Individual investors are increasingly resorting to the techniques employed by the masters of the universe to boost trading and investment returns. But they lack the risk control infrastructure and discipline employed by the big boys. As with other innovations of […]

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Conspiracy Theory of the Day

A confidential report from the Pentagon just made public says that the 2008 financial crisis was the result of targeted attacks by terrorists groups. A ramp up of oil prices that began in 2007 led to the bear raids against Bear Stearns and Lehman Brothers in 2008. The final phase may be in place now, […]

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Why Warren Buffet Hates Gold

The ‘Oracle of Omaha’ expounded at length today on 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, […]

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A Touchdown for USC

One of my many alma maters, the University of Southern California announced that they had received their largest private donation in history. As a third generation alumni of this fanatical football factory (I went to school with Mark Harmon, Lynn Swan, and, oops, OJ Simpson), I still receive their alumni newsletter, where I learned the […]

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March 16, 2012 – Quote of the Day

“What the wise man does in the beginning the fool does in the end,” said oracle of Omaha, Warren Buffett.

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Is the Fat Lady Singing for the Treasury Bond Market?

With global quantitative easing now getting long in the tooth, I think the party is about to end for the Treasury bond market. For the last four months, this market has been stuck in a tedious, narrow range, with ten year paper stuck between a 1.90% – 2.10% yield. Trading bonds has been as exciting […]

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The Structural Bear Case for Treasury Bonds

If you want to delve into the case against the long term future of US Treasury bonds in all their darkness, take a look at Foreign Affairs, the establishment bimonthly journal read by academics, intelligence agencies, and politicians alike, which I am sure you all have sitting on your nightstands. In a well-researched and thought […]

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March 15, 2012 – Quote of the Day

“At these prices, bonds should have warning labels on them,” said Doug Kass of Seabreeze Partners.

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