Mr Badger’s Trading Mantras – very prescient words today!
On Markets:
1. “The Market has but one objective: to inflict the maximum amount of pain on the maximum
amount of participants.”
2. “Market participants always over react.”
3. “The Market has no memory – and neither do buyers.”
4. “The magical moment to buy/sell an investment is some point before you first think about it…“
5. “Walking out first is better than crawling out last…”
6. “A bid is a bid is a bid. (And, hit it harder and faster than the proverbial red-headed stepchild!)”
7. You can’t argue with gravity or mean reversion.
8. “Markets are about emotion – never be emotional in the way you play them.”
9. “Investment rules should be strictly adhered to as they are always right – until they aren’t.”
10.“It’s better to miss the last 10% of a rally than to catch the first 10% of a crash..”
11.“The first cut is the cheapest..”
On Europe:
12.“When Draghi speaks… sell bunds.. When he shuts up.. buy them back…”
13.“Draghi will sustain European markets – right up till someone points out he is bollox-naked”
14.“The impossible thing about Europe is lots of people sincerely believe in it.”
On Regulation:
15.“Investment rules and capital regulations lead to lazy investment allocation and unwise asset
optimisation..”
16.“The Camel is a superbly designed horse when compared to regulators belief CoCos represent a wise form of compromise capital”
On Banks:
17.”The only thing worse than too little capital is too much..”
18.“The worst time to raise new capital is when you need it”
19.“Mis-management is never a one off event – serial bank offenders remain offenders.”
20.“A bond might repay at 100, but that does not mean its mark-to-market won’t fall below 100.00.”
21.“CoCos are an inspired investment choice if your objective is own all the downside, no upside and less return than equity with much greater risk.”
On Sovereign Debt:
22. “Buy countries with positive politics and reform agendas… sell countries where the president’s
teeth are too white and they are wearing new shoes…”
23.“Invest in countries that are fundamentally sound.”
24.“If a country looks bust… it probably is.”
General Lessons:
25.“You’ve naebody to blame buy yerself..!”
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