ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Originally posted on “Inflation Watch“… Nightly Business Report produced a short video segment describing China’s inflation woes (transcript included) called “China’s Inflation Battle.” The commentator identifies China’s RMB¥ 4 trillion stimulus program (around $585B USD at the time) as the original source of the inflation and takes us to Pengshui, 1000 miles from Beijing, to … Read more
Dangerous Views of Volatility: Pay attention to the VIX, but don't just follow the crowd – Barrons.com The market remains schizophrenic. One day, stock prices tumble because Standard & Poor's questions the credit rating of the United States, and investors panic and sell and fret, and the front pages of many newspapers are apocalyptic. The … Read more
It seems the Federal Reserve may maintain some excuse to keep printing money. Hundreds of billions printed in the name of economic recovery and inflation can be seen almost everywhere except the housing market, one of two of the Fed’s main targets – the other being employment. (See “Inflation Watch” for running highlights of stories … Read more
Several months ago, I had the opportunity to “talk shop” with a truck driver who specializes household moves. I will call him “Bob.” When Bob discovered that I write a blog dealing with trading and investing in financial markets, he asked me for my forecast for the economy. I did not have anything good to … Read more
The risk of holding TBT, the Pro Shares UltraShort 20+ Year Treasury, rose significantly last week. The sudden surge in oil prices in response to the rebellion in Libya has put the double-dip recession back into play and once again lodged it into the frontal lobes of market players. Recession fears bring fresh affinity for … Read more