|The Daily Reckoning
The Hedonistic Nature of Hedge Funds
By Bill Bonner. “We are pleased to see the mainstream media catching on. Hedge funds are a great way for hedge fund managers to make money; they’re a terrible way for an investor to try to make money.”
By Chris Gaffney. “Interest rate differentials have returned to be the top story in the currency markets. I guess you can’t blame investors for moving toward currencies whose economies are so good the central banks have to raise rates to cool them off.”
By Bill Bonner. “Soon, the whole world has money galore – green money with dead presidents, blue money with pictures of cathedral windows, purple money with a portrait of Adam Smith on it. Our own wallet is a veritable art gallery of currencies!”
“The Bank of England raised its main interest rate to a six-year high as the fastest economic growth since the start of the decade is fueling inflation.”
By Bill Bonner. “Anyone who would lend money to something called the High-Grade Structured Credit Strategies Enhanced Leverage Fund deserves the indigestion he gets.”
By Bill Bonner. “When money and credit are free and easy, people become free and easy with them. They begin spending more than they should…and investing recklessly. Eventually, there is a shock… a tipping point…a moment of desperate reality…”
Elliott Wave International NewsWire
Nostalgia is a cultural hallmark of the fifth and final wave in the 5-wave Elliott pattern. Most often, nostalgia manifests in various positive ways, such as it did prior to the US market peak in 2000. A few examples: “Oldie” music made money again and got its own radio stations. Music icons of the previous third wave showed up on TV and hit the road again on tour, and fashions reverted to the styles of earlier decades. Japan is feeling especially nostalgiac today, about the kamikazes… Read on…
Anyone who owns a mortgage or is thinking about owning a mortgage can probably answer the question “Why should you care about the bond market?” Many people overlook bonds because it’s not on the six oclock news, that’s one of the things that makes it interesting. It’s a multi-trillion dollar marketplace with plenty of liquidity and big moves in both directions; so it’s ideal for applying the tenets of the Wave Principle. It can be quite exciting and rewarding. Read on…
The main engine of Spain’s economic growth has been real estate. In the 12 months ending March 2007, home prices rose by a national average of 7.2%. But there is an integral stage of every mania in which warnings from the professionals go unheeded by the public. Is that time at hand in Spain? Read on…
What many traders find helpful in dealing with hope and fear — two primal emotions deeply seated in human nature — are technical market indicators. It’s much easier to stay with a winner or close a loser if the indicators you trust are telling you so. Elliott Wave International’s Tom Denham takes a close look at one such tool, the 50-percent retracement indicator, in the Special Report of his just-published, July issue of the monthly European Financial Forecast. Read on…
According to some monthly data providers, median prices in Los Angeles County are still chugging upward, despite the steep drop in sales volume evident for over a year. So will prices stay levitated? If not, what will the market participants say and do as the slump progresses? The last time Los Angeles and much of Southern California experienced a housing downturn that came anywhere near being described as “ugly” started about 1988, and for the most part was a memory by late 1997. A review of local newspaper archives can tell us much, but only if the content is examined with socionomic eyes….
A phone rings and a friend who trades the same market as you asks: “Are you long or short?” That’s probably the most common question traders ask each other. Yet there is one other type of trading position that can be equally profitable: being neutral. Watch this FREE VIDEO from last Friday’s (July 6) Daily Futures Junctures Video Weekly Wrap-Up, where Elliott Wave International’s Jeffrey Kennedy explains the importance of being neutral using Leans Hogs as an example.
InvestorsInsight: Financial Intelligence for Informed Investors
IN THIS ISSUE
U.S.-China Trade: A Secret Standoff?
This week in Outside the Box we look at a Congressional Budget Office publication that dives us the details on how the consumer price index for all urban consumers (CPI-U) is created. This is, as the CBO posits, the best-known official measure of inflation…
This week we continue to look at an alphabet soup of problems: RMBSs, CDOs, Alt-A, BBB and – a new acronym to put on your radar screen – the very useful CDS. When does an AAA rating not mean an offering is ready for prime time?
This week, we revisit an article I have published on two occasions in the past regarding the Johnson O'Connor Research Foundation. Johnson O'Connor is a nationwide, non-profit organization that has been testing human aptitudes for 85 years…
RightSide Advisors News Feed
The latest in technical analysis on the Qs
Chairman of Eagle Materials buys $14 million in shares
DAlonzo buys over $167 million of Precision Castparts
The latest in technical analysis on the Q’s.
CEO of TMA buys $2.2 million in shares.