Monthly Archives: June 2014
Wanted to draw your attention to a couple of insightful radio interviews with StockTwits stars and on the program.
You may know Joe from his tweets on the StockTwits stream or from watching hisprogram on StockTwits TV. He is one of my favorite stock traders to watch and learn from on the stream, so I was pleased to hear this on his stock trading methods and the insights he shares with all investors and traders.
Check out Joe’s thoughts on diversification and portfolio concentration, and his ideas on risk management and the importance of cutting your losses. No matter what your timeframe and trading/investing style, you’re bound to learn something of value here.
If you’re a fan of Phil Pearlman’s, check out this recent discussion on .
I’m listening to this one out now and finding some familiar themes from Phil’s “Shrinkology” shows, spiced up with some new ideas on how investors and traders deal with failure and success. Dealing with confirmation bias, the psychology of markets, assessing your performance, and the importance of discipline and sticking to a plan are all up for discussion here.
You may want to save this link and come back to the interviews after market hours or when you have some time to really listen and soak up the insights shared here. Enjoy the talks, and be sure to check out Joe and Phil’s blogs and tv shows if you haven’t already. Great stuff.
Barron’s is ranking the , while highlighting funds that were especially adept at navigating the stormy financial seas of 2008 (hmm, I think all those episodes of that I recently watched are having their effect on me).
Jay at Marketfolly has provided a ; rather than compete with him, let just highlight some of Marketfolly’s post here. Here’s an excerpt from Jay’s post on Barron’s ranking methodology and the stars of this year’s Barron’s 100:
“…Barron’s breaks down their top 100 hedge fund list by 3 year annualized returns. They rank by individual investment partnerships, so a couple of firms actually have multiple hedge funds on the list (like Paulson & Co, Galleon Group, etc). Barron’s list does have a few criteria though, as they require a minimum AUM of $300 million and have excluded funds that invest in a single “sector, country, or region.”
Overall though, the list is definitely a “who’s who” of the hedge fund elite. John Paulson’s occupies the #1 and #4 slots, with a 62.67% and 46.81% 3 year annualized returns respectively. Of other hedge funds we cover on the blog, has a fund listed at #11. Fellow Tiger Cub has one of his funds in the #16 spot”.
Head on over to and to see the rest, and check out our related posts for more info on some of the hedge fund industry’s leading lights.
Related articles and posts:
1. – Finance Trends.
2. – Finance Trends.
One of the best things I read over the Memorial Day weekend was Niall Ferguson’s review in the Financial Times of Ben Wilson’s new book, . I’d like to share some of it with you.
Here’s an excerpt from :
““The privileges of thinking, saying, and doing what we please, and of growing as rich as we can, without any other restrictions, that by all this we hurt not the public, not one another, are the glorious privileges of liberty.”
These are the words of “Cato” (the nom de plume of John Trenchard and Thomas Gordon), writing in the early 1720s. For the better part of two centuries, that view was widely held in England, and Englishmen were not wrong to believe that it set them apart from continental Europeans and “Orientals”.
Also integral to the English conception of liberty was John Locke’s linkage of freedom and private property. In the landmark Entick v Carrington case (1765), Lord Camden ruled against the government for raiding the home of the radical journalist John Entick. “The great end for which men entered into society was to secure their property,” declared Camden. “By the laws of England, every invasion of private property, be it ever so minute, is a trespass.”
Almost as important was the principle of minding your own business. “The taste for making others submit to a way of life which one thinks more useful for them than they do themselves,” John Stuart Mill explained to the French liberal Alexis de Tocqueville, “is not a common taste in England.”
Do what you like as long as you do no harm. An Englishman’s home is his castle. And mind your own bloody business. When did these three great principles of liberty cease to be sacrosanct in England? Wilson has little doubt that it was the two world wars that began the process…”.
Do check out the , especially if you’re interested to know how an English writer’s discussion of liberty pertains to those of us living in the good ole’ USA.
As Ferguson notes in his review, you can also download Wilson’s book, , for any price you wish.
Related articles and posts:
1. – What Price Liberty? Blog.
2. – Finance Trends.
Been spending a lot of time on Twitter () and catching up with some important reading lately. Here are some links that have piqued my interest in recent days:
1. – Bloomberg.
2. Geithner says there is (despite that already occurring); Bernanke should if he’s concerned about deficits – Clusterstock.
3. Profile of , plus a look at (short US Treasuries) – Market Folly.
Note: we also mentioned Robertson’s “curve steepener” trade earlier this year in, .
4. Hedge fund industry climbs its – FT.com
5. What you can learn from – Financial Philosopher.
6. Rock n’ rollers: Ardent Music is & releasing a . You can also listen to songs from at the ; heard it there for the first time yesterday and I am blown away.
Enjoy the links & join us tomorrow as we take a historical look (w/ help from a noted tour guide) at the state of the global economy.
Hedge fund manager, Ray Dalio as the key to his success.
Says the Bridgewater Associates founder, “Meditation has given me centeredness and creativity. It’s also given me peace and health… and it’s given me open-mindedness.”
“Meditation, more than anything in my life, was the biggest ingredient of whatever success I’ve had”.
I was very interested to hear Dalio’s take on the benefits of meditation, since he’s obviously a very successful individual who assigns a great deal of value to this practice. It’s also a subject I’ve been wanting to learn more about.
While I am not a yoga practitioner and have never tried transcendental meditation, I’ve come to learn that my long walks through the forests may share some benefits associated with . For me, it’s about taking time to exercise, relax, and just focus on the natural (or built) world around us.
As Dalio notes, the key for beginners is to challenge themselves to stick with meditation for the first six months. Those who try it must realize that the 20 minutes spent meditating in mornings and evenings is an investment that pays off in numerous ways, enhancing one’s enjoyment of life.
Ray Dalio was also the subject of our most recent post, . If you’d like to know more about Dalio and his ideas on trading and learning from mistakes, check it out.
Related articles and posts:
2. (Mayo Clinic).
Jim Rogers is in New York, making the rounds on business television. Here’s a great interview with , talking with Maria Bartiromo about the Fed, Geithner, and the state of the US’ finances.
He also shared his investment (and trading) outlook on the US dollar, foreign currencies, and commodities. Rogers agrees that gold has rallied strongly and is ready for a move down, but notes that he is keeping his gold for the long term, and he’s still quite bullish on relatively undervalued silver.
Jim also sat down toand made some very interesting comments on the bogus economic recovery and the future of America.
Rogers feels that most of the phantom recovery has been based on more money printing, debt, and wealth transfers from taxpayers to failed banks and their creditors. He also makes some very serious comments about our stepped up involvementand the long-term consequences for .
More Tech Ticker segments with Rogers:, &, .
Enjoy the interviews (hat tip toon Twitter), and let’s hope that some of this serves as a wake up call to those still in thrall with our “leaders”.
Related articles and posts:
1.– Finance Trends.
There’s always grounds to not invest immediately within the stock and bond marketplaces everybody has one. All minute rates are lacking the cost is simply too high, Israelmay bombIran terrorist attacks can happen My portfolio continues to be reduced within the last ten years. I don’t think so. When the herd and also have no confidence appears to become fashionable now, but nonetheless having to pay themselves to begin every month inside your 401k, SEP / IRA, Roth IRA, mutual fund accounts, savings yet others, and disregard the media appears still out forward during the time of retirement. Individuals who allocate assets to attain a mixture of risk / reward suits you are also prone to succeed ultimately.
Not remarkably, the biggest number of professional forecasters are individuals most carefully associated with earning money: investment consultant. “Based on the Association of Investments Industry (SIA), a loss of revenue of 500, 000 licensed through the NASD to advise clients to purchase investments. They are available all avenues of life, contributing to 200,000 of these active as a living that advice regarding how to invest the cash, “based on William A. Sherden.
According to research Sherden, The SIA believed 200,000 investment consultant, up to 50 % are stockbroker who labored within the investments company. Actually, many employed in industry than $ 71000000000 values involved with projecting future opportunities. The utilizes a lot of “strategy” that projects in which the market generally and ‘analysts who predicted the populace to purchase and sell targets.
Investments and Exchange Commission (SEC) has about 10,000 licensed firms that manage money. This team makes $ 50000000000 industry which includes from large banking institutions for example Prudential and Citicorp 1000’s of small boutique investment. Based on the Worker Benefit Research Institutes and Investment Company, hundreds of 1000’s of those money managers advise forecasts purchase of controlling $ 7500000000000 pensions, fundamentals and mutual funds.
So in an exceedingly crowded area with just as much information everywhere … How are you aware if you have found a great investment consultant? Here are a few recommendations that will help you:
1) They work based on cost. Collect no costs for items or services offered for you. This can help have them in your corner on the table. It can make them independent and never from the research technique of the organization or investment banking. You will find several major research companies available, although not everybody could be good occasions. A smart investment manager mix check some investigation and purchased examined their opinion.
2) connected with and custodian of their assets in large companies, referred to as Fidelity, Schwab, Vanguard or TD Ameritrade.
3) They pay attention to their demands and assess their choose to be aware of risk and sufficient allocation for your family.
4) are held occasions and writing news letters to teach your family in investment and also the current economic strategy. The attorney must have the excitement of purchasing and selling opportunities.
After choosing advisors, the best way to produce a portfolio that surpasses inflation and steer clear of outliving a person’s wealth? This is actually the recipe: Try US Domestic Large Cap Stocks, Small Cap Stocks domestic US, the worldwide marketplaces both in developed and developing nations. Many other materials, short-term fixed earnings prepares for rate increases, keep your money in the portfolio. We have to find the correct balance between growth and cost of the organization, firms that pay returns in comparison with individuals who didn’t.
A few weeks ago on Twitter, we shared this , who speaks to UC Berkeley about the future of the hedge fund industry for their “Conversations with History” series.
For those who may not know, Mallaby is the author of a recent book on hedge funds and the financial crisis called,
One point that really caught my interest early on in the interview is an anecdote Mallaby shares regarding and the factors he attributed to his own success as a trader and hedge fund manager.
As Mallaby tells it, PTJ’s explanation for his success is not at all the real reason why he is successful, but it is part of a common theme of professionals misattributing causes to explain their colleagues’ and their own successes.
Enjoy the discussion; it should prove especially interesting to those who are in the business or watching the hedge fund space closely.
Related articles and posts:
1.– Finance Trends.
2.– Martin Kronicle.
Thanks to and for highlighting this Forbes interview with highly-visible entrepreneur and billionaire, .
Here are a few lessons on “building and keeping a self-made fortune” from,:
“…You have $100,000–where do you put it?
First I pay off all my credit card debt and evaluate paying off any other debt I have. What I have left I put in the bank.
Then I try to create as much transactional value as possible from that cash. I look at my annual budgets for everything and anything, and I look to see where I can save the most money on those items. Saving 30% to 50% buying in bulk–replenishable items from toothpaste to soup, or whatever I use a lot of–is the best guaranteed return on investment you can get anywhere.
Then whatever I have left I keep in the bank and let it earn nothing. Why? Because then its available for when I get a good opportunity.
Every five years or so there is a bubble bursting or amazing deals available because of a change in the economy. Anyone who just kept their cash in the bank rather than in stocks over the past five to 10 years could be buying the home of their dreams for half price in most of the country…”
Pay close attention to Mark’s thoughts on essential reading for entrepreneurs and the difficulties associated with starting a business in the US right now. Some key insights packed into a quick interview.
Photo credit: Mark Cuban .
Sugar has been creeping higher lately, as seen on the daily futures chart.
Here’s the weekly view which shows the longer swings going back to 2006.
Note the larger uptrends and ensuing deep retracements that have happened from the 2007 base, near 10 cents, on.
Of course, the latest move is more of a slow edge higher off the recent price shelf of 23-24 cents. Sugar will have to clear the 30 cent level and the recent highs near 32 cents before any major move is evident on the weekly charts.
Here’s the daily chart of SGG, the sugar ETN. I’ll be watching for a pullback on lighter volume in the days ahead. Since I’m not active in the futures market, I’ll consider a long position in SGG.
Cautionary note: volume is very light in many of these single commodity ETNs. That may lead me to consider other, more liquid, trade opportunities instead.
For those who’d like to read more about sugar from a futures trader’s point of view, please see . He is an experienced trader and knows far more about the , as well as building a trade via back month futures contracts.
Disclosure: no position in SB_F or SGG at the time of writing, may initiate long or short positions any time after. Educational post, not a recommendation for readers to buy/sell any security.