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IMF: Dollar Carry-Trade Creating Bubbles Around The World

imf-global data

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Read a PDF of the IMF’s recent report here.

The International Monetary Fund (IMF) highlighted the fact that low interest rates in the U.S., plus an apparent “one-way” bet against the dollar has created a global dollar carry-trade that is driving capital flows into emerging markets.

If not handled properly, this will lead to emerging market asset bubbles, which arguably have already begun to inflate.

We’ve highlighted before how places like Hong Kong are seeing property prices go through the roof due to low U.S. interest rates. (more…)

10 Things You Can Learn About the Market from Greek and Roman Times and Myths

1. There is a critical point in the market, a critical decision that the market gods weigh on a scale like Zeus with his balance scale deciding whether Achilles or Hector will win, that determines the market fate, and it is key and should be the focus of all news stories and market considerations but never is.

2. Never trust anyone but your family and best friend because everyone is disloyal in a pinch. Peleus was left for dead by his father in law after killing his brother in law to become ruler and this led to the Trojan war. Caesar trusted his best friends but they turned on him when an opportunity for power, money, and romance reared its ugly head.

3. Deception is key. The most successful Greek was the Deceiver Odysseus, and he tricked everyone he dealt with as the market tries to trick you with Odyssean power.

4. The goal is always to come home. Odysseus went home, as does the market. The only loyal ones were the wife and son and the best servant. The market retraces and comes home to break even an inordinate number of times.

5. Never mix romance with business or the market. The Trojan was was started by Paris intervening in romance and being swept off his feet by Aphrodite, and Achilles killed tens of thousands and prolonged the war by 10 years when Menelaus stole his mistress.

6. Don’t try to walk with the Gods. Peleus married a half God and married her the last time the Gods and mortals mingled at a celebration and it caused him to be the most distressful of men. Trying to emulate Soros or the other greats is the seed of destruction. (more…)

Famous Investment Quotations

“Before you invest, investigate.” William Arthur Ward (1921-1994) author, educator.

“With an evening coat and a white tie, anybody, even a stock broker, can gain a reputation for being civilized.” Oscar Wilde (1854-1900) Poet & playwright

“Never invest in anything that eats or needs repainting.” Billy Rose (1899-1966) Composer and entrepreneur

Emotions are your worst enemy in the stock market.” Don Hays, stock market commentator

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” Warren Buffett (1930- ) businessman and investor

“Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.” Peter Lynch (1944- ) money manager

“Gentlemen prefer bonds.” Andrew Mellon, Businessman & financier (1855-1937)

“Anyone who thinks there’s safety in numbers hasn’t looked at the stock market pages” Irene Peter

“The stock market has forecast nine of the last five recessions” Paul A. Samuelson

“The arts are an even better barometer of what is happening in our world than the stock market or the debates in congress.” Hendrik Willem Van Loon

“If stock market experts were so expert, they would be buying stock, not selling advice.” Norman R. Augustine

“Now is always the most difficult time to invest.” Anonymous

“I can’t figure the stock market out. I think it’s wacky. I have done well with a long-term strategy and will continue being a long-term investor.” Scott McNealy

“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” William Feather

It’s easy to grin when your ships come in and you’ve got the stock market beat, but the man worth while is the man who can smile when his pants are too tight in the seat” Anonymous

“My job is to make people money. If I don’t include every factor that moves a stock, market psychology included, then I’m not doing my job.” Thomas Kurlak

The most valuable things in life are not measured in monetary terms. The really important things are not houses and lands, stocks and bonds, automobiles and real state, but friendships, trust, confidence, empathy, mercy, love and faith.” Bertrand Russell, Philosopher (1872-1970)

“Stock prices have reached what looks like a permanently high plateau” Irving Fisher, Economist, (1867-1947)

“A stockbroker urged me to buy a stock that would triple its value every year. I told him, ‘At my age, I don’t even buy green bananas.'” Claude Pepper

“If you hear that everybody is buying a certain stock, ask who is selling.” James Dines, Investment newsletter writer (1935- )

Reliance to decide trend of market


RELIANCE : Below 997 level.Stock will crash to kiss 960-948 level.

-In panic around these levels ,U can Buy small qty.

-If Judgement is in favour of Reliance then stock will not break 948 level.And sharp rally not ruled out.

RNRL : 61-59 are support.Laxman Rekha at 76 level.

 Break below 59 with volumes will take  to 56-51 level.

Above 76,Nonstop rally upto 83-85+ level.

I will update more during trading hrs ,Free advice :Don’t trade till Judgement is out ,Iam telling …you all will save Tons of money.

Updated at 12:59/07th May/BARODA/INDIA

Jim Rogers' Keys to Success

JimRogerJim Rogers’ Keys to Success (taken from the titles and sub headings of each chapter of the new book, “A Gift to My Children: A Father’s Lessons for Life and Investing“)
1. Do not let others do your thinking for you
2. Focus on what you like
3. Good habits for life & investing
4. Common sense? not so common
5. Attention to details is what separates success from failure
6. Let the world be a part of your perspective
7. Learn philosophy & learn to think
8. Learn history
9. Learn languages (make sure Mandarin is one of them) (more…)

The Confident Trader

Confidence overcomes fear. Confidence also overcomes greed because a component of greed is an underlying sense of scarcity. To be confident doesn’t mean that every trade or trading day will be profitable. What it does mean is that when you look to where you want to go, you know that you can figure out a strategy that will get you there. And you know you can execute that strategy in a consistent manner. A successful strategy doesn’t mean anything if you don’t or can’t or won’t employ it.

Theoretically we should be as successful at trading and investing as our trading and investing strategies. Unfortunately the vast majority of traders and investors fall far short of the results of their strategies. They trip over themselves again and again on the way to employing their methods. My work as a trading coach is to enable traders around the world to become as good as their methods.

Confidence need not waver when you have dips and troughs and plateaus in your trading. Confidence is developed when you realize you can correct mistakes and learn from failures. You don’t persist in failing. You learn and move on. You don’t fear repeating the failure either, you simply anticipate correcting it.

Self esteem is basically the sum total of all the thoughts we have about ourselves. This is quite important because we do tend to become what we think about ourselves. The noted philosopher and psychologist, William James, said, “People, in general, become what they think of themselves.” Not only did he say this but he added that this was the essence of all we had learned in psychology in the prior 100 years. (more…)

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