There is a certain market doctrine that in order to rise stocks are meant to climb a “wall of worry”. Along with other immutable laws of free market economics this market has completely ignored this age old adage. Forget climbing any walls of worry. That is for wimps. This market just smashes through them! Now…
By Dominic Picarda. The FTSE remains the ugly duckling among the index swans right now. The UK index has come off noticeably harder in the last couple of sessions than either the DAX or the S&P, both of which were in much stronger uptrends beforehand. My gut feeling is that the FTSE will play catch-up…
A running theme here at Spreadbet Magazine has been this market’s refusal to revert to the mean. Mean reversion is the quintessential characteristic of price movements but thanks to the hugely distortive effects of quantitative easing, today’s investors/traders/speculators seem largely to have forgotten this. At some point they will be reminded of it, but the…
By Zak Mir. At the risk of sounding like the anti-Christ, perhaps some good can come out of government “entrepreneur in residence” Lawrence Tomlinson’s revelations about the latest shocking practices to afflict our banking sector. In case you’ve missed it, Royal Bank of Scotland (RBS) has been accused of sending otherwise profitable businesses to the…
Buy the U.S. dollar, because it’s going to gain strength going forward, or so say the mainstream. The reasoning behind this investment strategy is very simple: the central banks of major economic hubs are working to devalue their currencies. As a result, there will be a rush to buy the U.S. dollar—it’s proven to be…
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Silver remains a tiny market with all above ground refined silver in the world at roughly 1 billion ounces for a total valuation of less than $20 billion at today’s prices. Therefore, all the silver in the world is worth less than the total market capitalisation of one tech darling, Twitter. It is worth less…
Most people – certainly most governments and economists – define inflation as a general rise in prices. But this is wrong. Inflation is an increase in the money supply, of which a rising general price level is just one possible result – and not the most common one. More often, excessive money creation shows up…
By Filipe R. Costa. Is it really any surprise that mutual funds are luring private investors back into the market at a greater rate than at any point in the last 12 years? After all, this is approaching the top of the market. Of course retail investors are piling back in! People never learn. Unlike…
The squid has come out with the first of its top 2 trades for 2014. We can’t argue with the short AUD play, although we were 15% ahead of the game here as it was the New Year pick against sterling 11 months ago (must try harder Squid!) but the buy S&P 500 to 2250…
