ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
For many of us, investing over the last 10 years has been much more difficult and a lot less fun than it was in the 90s. In the 90s, it was easy to accept the religion of “buy and hold”, keep the faith that assets are pre-ordained to increase in value, and drown oneself in … Read more
With tongue reaching for the cheek last week, I declared the market both extremely undervalued and very overvalued, guessing that “as earnings season grinds on, I suspect the near-predictable pattern of post-earnings fades will finally wear thin, giving way to more bullish behavior.” I did not expect the turn to happen so clearly and dramatically … Read more
Day-to-day, Mr. Market’s mood seems to swing dramatically up and down with little consistent rhyme or reason. The neat rationalizations of the bulls one day give way to the equally neat rationalizations of the bears the next day. For example, the market is very undervalued because of record low Treasury bill rates, highly stimulative monetary … Read more
A friend of mine, who is clearly an avid reader of all things financial, has recently showered me with commentary stemming from the SEC’s January request for comment on equity market structure. Starting on page 45 of this 74-page release, the SEC describes various issues surrounding High-Frequency Trading (HFT) and poses a comprehensive set of … Read more
On Friday, CNBC’s Fast Money asked the question “Has Goldman Bottomed Out?” The answer to these kinds of questions is always a “maybe” or a more resolute “perhaps/perhaps not” but I was a bit amused at the reasoning provided for guessing that Goldman Sachs (GS) has reached a bottom: It acted well on Wednesday by … Read more