Why do you feel that way? Wouldnt it be natural for the bigger investment banks to carry that kind of leverage?
Boiler Room: The Official Stock Market Discussion
Why do you feel that way? Wouldnt it be natural for the bigger investment banks to carry that kind of leverage?
Domingo Halliburton
Handmade in USA
I see what you're saying and they do.....
I'm saying if you want to fix this financial system then moodys should be more highly regarded than Goldman Sachs.
and they'll never be
Futuristic Eskimo
All Star
They can if their business model changes. there's a conflict of interest in the way they do their ratings which makes them virtually useless. Not saying ratings by other institutions are any more reliable, but it is what it is
MACK is announcing something important friday, and insiders have been buying the stock all week...hmmmmm
im in 1500 shares at 4.05
im in 1500 shares at 4.05
GoogleMe
$ ¥ € £ $
I agree with you in that Moodys/S&P ratings have lost credibility (subprimes). August 2011 sell-off was due to emotional investors not knowing how to interpret the news of our credit downgrade. When it comes to stocks, track-record takes precedence.
GoogleMe
$ ¥ € £ $
ACHN broke trendline two days ago
KFX
MACK
lets do it
MACK
lets do it
GoogleMe
$ ¥ € £ $
Re: MACK. Make sure you know what you are doing when speculating on these bio-tech events.
5-6 insiders have bought in some serious shares in the past week, and the the poster doesnt look half bad either
phase 1 was successful
i got a picture of it
wanna see?
Domingo Halliburton
Handmade in USA
i got a picture of it
wanna see?
yeah
GoogleMe
$ ¥ € £ $
@Shugg Ross I scalped MACK on the 3rd. 300,400 shares purchased by Directors and 207,000 purchased by Chairman Gary Crocker (http://www.crockerventures.com/about/gary-l-crocker/) since 11/27. I have no position in it ATM, but insider buys look to be telling.
GoogleMe
$ ¥ € £ $
Holding bio-techs prior to events is not my specialty though. Good luck breh.
any potential ideas about what could happen friday? good and bad scenarios?
The writer really didn't answer the question. I'm gonna squirrel away some more bucks in fossil fuels, and I'm looking at a couple of solar companies. Reason being, that major ice storm we had this week and record cold temperatures recorded in Antarctica. Plus China is going rooftop panels like Germany did a while back. Long story short, don't let the tapering catch you off-guard with your real money/asset mix.
Where The Heck Do You Put Your Money When Tapering Starts?
December 11th, 2013
Wolf Richter www.testosteronepit.com
http://investmentwatchblog.com/wher...ney-when-tapering-starts/#Vbr3OJoFKt6MmZUg.99
Exuberant wealth managers expect another phenomenally good year for stocks in 2014, followed by more great years. They see bonds and bond funds as a juicy investment that belongs in every diversified portfolio, damn the torpedoes. They’re the vast majority of wealth managers.
But there are some fretters scattered around, still, and they’re having a hard time, and they’re losing clients, and they’re pushed to the margins. No one wants to listen to them.
“I cannot imagine how we’ll explain a third crash in 15 years to our clients,” one of these fretters told me. He is no perma-bear. But he looks at corporate revenues and earnings, at risks piling up in the junk bond market, at IPO valuations, at a million things. And he is gently passing some of his thoughts on to his clients – which doesn’t go over very well.
The tricky undertaking of what to tell clients during these crazy times made it into the Wall Street Journal. Richard Saperstein, chief investment officer of Treasury Partners and an occasional guest on CNBC, sorts through the various aspects of the only thing that really matters these days: when the Fed might actually taper its $85-billion-a-month money-printing binge, rather than just talk about it.
“In 2013, the Fed purchased 70% of all new Treasuries that were issued,” he wrote nervously. This couldn’t go on forever. So the Fed would “likely” begin to taper in 2014, in compliance with prevailing if not mandatory market consensus. He didn’t say March. That would have fit nicely. But the fretters worry about December.
“Last summer, the Fed simply talked about tapering, causing the bond market to have one of the most dramatic declines in prices in 30 years,” he wrote. But the stock market continued to ratchet higher. This time, if the Fed actually tapers, rather than just talk about it, “there will logically be some disruption in the stock market.”
So the big question: “The challenge is how to advise clients during this pending change. It’s like you’re at a party and the keg is beginning to float. When do you leave the party? Where do you go?”
Central banks have created a unique, let’s say, situation. The Fed has printed over $3 trillion in five years – amounting to about 20% of GDP – and plowed it into Treasuries and Mortgage Backed Securities. This enormous artificial demand drove up prices and repressed yields. It spread from there. Other central banks have engaged in similar infinitely wise strategies. Consequence: the largest credit bubble in history. Junk bonds yielded at their peak less than an FDIC insured 5-year CD did before the financial crisis. Risk, any risk, and its costs, have been wrung out of the system.
Other asset classes ballooned in parallel: stocks, farmland, housing, art. Oh my, a 1969 Francis Bacon triptych changed hands at $142 million in November, the highest price ever paid at an art auction. Then there’s Bitcoin…. Wait, that’s not an asset class. We haven’t decided yet what it is, but whatever it is, it’s ballooning – and deflating – to the tune of 20% to 50%, sometimes on a daily basis.
The Fed has created an investment environment that no longer has much in common with investments per se, but has turned into a vast, high-stakes gambling den with only one bet: what is the Fed going to do next?
There are complications. The Fed might not do anything. It might just get lost in its own cacophony and confuse the gamblers and itself, as it had done over the summer. Whatever it’s going to do, at whatever pace – and even if it does nothing – the markets will react.Betting on the Fed, that’s what we’ve been reduced to over the past five years.
So, what does a wealth manager or a financial advisor tell clients? That a well-diversified portfolio full of inflated bonds, even more inflated stocks, bubbly real estate, outrageously expensive farmland, a Van Gough, and perhaps an early Francis Bacon will get them through the taper, and its aftermath, without hearing the hot air hissing out of these assets?
But it’s hard to find a place to hide. Are you going to sell one inflated asset, pay taxes on the gains, take the remaining proceeds and plow them into another inflated asset, hoping to escape the tornado forming on the horizon? Like rotate out of bond funds now that they’ve become unpalatable and dump that money into stocks, which are at all-time highs, just when corporate earnings growth is minuscule, and when revenue growth has trouble keeping up with inflation?
Or leave the proceeds in cash and gnash your teeth as the bank takes your money for free and lends it out at 5% or 8% or gambles with it and takes risks that, if they blow up, would force you later to bail out that very bank? In return, the bank pays you next to nothing for your money?
Cash in the bank is a despicable investment. The Fed has done everything so that you hate it. The Fed is giving banks all the cash they need for free. It is competing directly with you to make your life miserable if you want to hold cash. So suffer through this after you sell your bond funds? Or switch your money from one inflated asset into another – and remain exposed to the turbulence you see coming your way when the big taper hits the markets. That’s the choice the Fed has left us.
A “positive spiral effect?” Lenders are closing their eyes, auto sales are soaring, auto loan balances have jumped 15% in 12 months to an all-time high, and repossessions in the subprime segment have more than doubled. Read…. How Crazy Is The Auto Financing Frenzy?
_____________________________________________________________________________
Antarctica Hit Record Cold Temperature So Ridiculously Low It Hurts Just Hearing About It
China tells grids to purchase all solar power in boost to PV industry
America Beats Germany in Solar Power for First Time in 15 Years
US rooftop solar power shatters third quarter records
Where The Heck Do You Put Your Money When Tapering Starts?
December 11th, 2013
Wolf Richter www.testosteronepit.com
http://investmentwatchblog.com/wher...ney-when-tapering-starts/#Vbr3OJoFKt6MmZUg.99
Exuberant wealth managers expect another phenomenally good year for stocks in 2014, followed by more great years. They see bonds and bond funds as a juicy investment that belongs in every diversified portfolio, damn the torpedoes. They’re the vast majority of wealth managers.
But there are some fretters scattered around, still, and they’re having a hard time, and they’re losing clients, and they’re pushed to the margins. No one wants to listen to them.
“I cannot imagine how we’ll explain a third crash in 15 years to our clients,” one of these fretters told me. He is no perma-bear. But he looks at corporate revenues and earnings, at risks piling up in the junk bond market, at IPO valuations, at a million things. And he is gently passing some of his thoughts on to his clients – which doesn’t go over very well.
The tricky undertaking of what to tell clients during these crazy times made it into the Wall Street Journal. Richard Saperstein, chief investment officer of Treasury Partners and an occasional guest on CNBC, sorts through the various aspects of the only thing that really matters these days: when the Fed might actually taper its $85-billion-a-month money-printing binge, rather than just talk about it.
“In 2013, the Fed purchased 70% of all new Treasuries that were issued,” he wrote nervously. This couldn’t go on forever. So the Fed would “likely” begin to taper in 2014, in compliance with prevailing if not mandatory market consensus. He didn’t say March. That would have fit nicely. But the fretters worry about December.
“Last summer, the Fed simply talked about tapering, causing the bond market to have one of the most dramatic declines in prices in 30 years,” he wrote. But the stock market continued to ratchet higher. This time, if the Fed actually tapers, rather than just talk about it, “there will logically be some disruption in the stock market.”
So the big question: “The challenge is how to advise clients during this pending change. It’s like you’re at a party and the keg is beginning to float. When do you leave the party? Where do you go?”
Central banks have created a unique, let’s say, situation. The Fed has printed over $3 trillion in five years – amounting to about 20% of GDP – and plowed it into Treasuries and Mortgage Backed Securities. This enormous artificial demand drove up prices and repressed yields. It spread from there. Other central banks have engaged in similar infinitely wise strategies. Consequence: the largest credit bubble in history. Junk bonds yielded at their peak less than an FDIC insured 5-year CD did before the financial crisis. Risk, any risk, and its costs, have been wrung out of the system.
Other asset classes ballooned in parallel: stocks, farmland, housing, art. Oh my, a 1969 Francis Bacon triptych changed hands at $142 million in November, the highest price ever paid at an art auction. Then there’s Bitcoin…. Wait, that’s not an asset class. We haven’t decided yet what it is, but whatever it is, it’s ballooning – and deflating – to the tune of 20% to 50%, sometimes on a daily basis.
The Fed has created an investment environment that no longer has much in common with investments per se, but has turned into a vast, high-stakes gambling den with only one bet: what is the Fed going to do next?
There are complications. The Fed might not do anything. It might just get lost in its own cacophony and confuse the gamblers and itself, as it had done over the summer. Whatever it’s going to do, at whatever pace – and even if it does nothing – the markets will react.Betting on the Fed, that’s what we’ve been reduced to over the past five years.
So, what does a wealth manager or a financial advisor tell clients? That a well-diversified portfolio full of inflated bonds, even more inflated stocks, bubbly real estate, outrageously expensive farmland, a Van Gough, and perhaps an early Francis Bacon will get them through the taper, and its aftermath, without hearing the hot air hissing out of these assets?
But it’s hard to find a place to hide. Are you going to sell one inflated asset, pay taxes on the gains, take the remaining proceeds and plow them into another inflated asset, hoping to escape the tornado forming on the horizon? Like rotate out of bond funds now that they’ve become unpalatable and dump that money into stocks, which are at all-time highs, just when corporate earnings growth is minuscule, and when revenue growth has trouble keeping up with inflation?
Or leave the proceeds in cash and gnash your teeth as the bank takes your money for free and lends it out at 5% or 8% or gambles with it and takes risks that, if they blow up, would force you later to bail out that very bank? In return, the bank pays you next to nothing for your money?
Cash in the bank is a despicable investment. The Fed has done everything so that you hate it. The Fed is giving banks all the cash they need for free. It is competing directly with you to make your life miserable if you want to hold cash. So suffer through this after you sell your bond funds? Or switch your money from one inflated asset into another – and remain exposed to the turbulence you see coming your way when the big taper hits the markets. That’s the choice the Fed has left us.
A “positive spiral effect?” Lenders are closing their eyes, auto sales are soaring, auto loan balances have jumped 15% in 12 months to an all-time high, and repossessions in the subprime segment have more than doubled. Read…. How Crazy Is The Auto Financing Frenzy?
_____________________________________________________________________________
Antarctica Hit Record Cold Temperature So Ridiculously Low It Hurts Just Hearing About It
China tells grids to purchase all solar power in boost to PV industry
America Beats Germany in Solar Power for First Time in 15 Years
US rooftop solar power shatters third quarter records
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