Published February 28th, 2007
in Investing - General and Absolute Must Reads.
Now I know what it feels like to get hit by a BRIC: Brazil (EWZ) -8.81%, Russia (TRF) -8.2%, India (IFN) -7.5% and China (FXI) -10.7%. It may take a few days or weeks before our bells stop ringing, but it will. Unless Goldman Sachs grossly miscalculated the economic potential of these countries, February 27, 2007 will simply be a blip in a long term profitable cycle. However, hard hats will be standard issue going forward.
I believe this action lends credence to my quest of developing indirect methods for investing in the BRIC economic cycle. Continue reading ‘How to Survive Getting Hit by a BRIC’
Published February 26th, 2007
in Financial Freedom and Absolute Must Reads.
We all know many people who “talk the talk” and a few that “walk the walk,” but what is it that the separates these two groups of people. I have been thinking about this a lot lately. When I left my job almost a year ago to pursue my dreams as an entrepreneur, trader, financial freedom seeker many of my friends simply didn’t get it. The ones that had a good idea how much money I was walking away from were the most shocked.
What would possess someone to walk away from a high paying job? What about the status? What about the security? What about? What about? What about? How do the “walkers” suppress the “what abouts” and pursue the trail of “what ifs?” What if I land this deal? What if this trade takes off?
Continue reading ‘Forest Whitaker Reminded Me of a Key to Success: A Burning Desire’
Published February 25th, 2007
in Portfolio - Updates (all).
Technology is back! The semiconductor index was up 3.3% for the week. This is good for the overall market since the semis historically lead the market. The talking heads will have something to crow about as many have been pumping technology lately. As I said last week, this provides great cover for the commodity related stocks to run.
Gold captured the headlines in commodity patch with its $20 gain on Wednesday. Seems like there have been some $20 down days, but I can’t recall a $20 up day since I have been trading Gold. A few days like this can work miracles for your return. Gold might have captured the headlines, but once again Copper was the star up 7.3% for the week. This move lit a fire under Southern Cooper (PCU) up 13.2% for the week.
Let’s take a look at what happened in the portfolios this week.
Continue reading ‘Week in Review 2/23 - Semiconductor Stocks Up Big’
This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.
The Real Money Portfolio significantly outperformed the S&P 500 this week 3.3% vs. -0.3%. Hopefully, all of the work over the past few months - getting positioned before the move is behind us. Now our job is to sit back and enjoy the fruits of our labor. That’s the theory anyway. Let’s see what happens.
Remember our old friend Creusd. I sold it on January 22 at $17.70. It went on a tear gaining 15.5% this week. Continue reading ‘Real Money Portfolio - Update 2/24′
Published February 24th, 2007
in Entrepreneurship.
Here is a great list that I stumbled upon. I agree with most of them.
Source : Startup Spark
- You’re passionate. Passion counts for a whole lot when it comes to being an entrepreneur. Without it, you’re dead before you even start.
- You’re always looking for opportunities. Entrepreneurs are opportunity-seekers. Everything is an opportunity. Failures are even an opportunity.
- You always think to yourself, “I can do that better.” You might know nothing about the retail business, but every time you walk into a big box store you have a thousand ideas on how to make it a better experience. Combined with your eye for opportunity, you can’t help but believe there’s a better way of doing things.
- You want to live your work. Work isn’t a means to an end. It isn’t a way of collecting a paycheck and going home. You’re dreaming of something more than that, where you can live and breathe work. Not because you want to work more, you want to work smarter. You want your work to mean something. You want to experience something more than shuffling to the office at 8am, leaving at 5pm and forgetting what happened for that day.
- You’re dreaming miles ahead while focused on what you’re doing right now. You’re a dreamer, but not a daydreamer. You’re dreaming a plan ahead while working constantly at achieving success on the details today. You’re a big-thinker but you don’t lack the ability to focus on details. Accomplish the little tasks is moving the ball forward for you…towards the big dream.
Continue reading ‘Top 10 Ways You Know You’re An Entrepreneur’
Published February 23rd, 2007
in Women and Money.
Source: Naples News . com
A few of us were having a conversation in one of the restaurants at Waterside Shops, when the topic of shoes stepped forward.
Lisa is a tall, smart, pulchritudinous blonde who’s in the high-end retail clothing business. Clothes and accessories are integral to her life. In an introspective mood, having just turned 30, Lisa concluded that in three decades, she had accomplished little except having a good shoe collection.
“I’m good at investing in shoes” she said.
Being a supportive person, I complimented her on her achievement and asked if she would start on handbags next.
“That market is way out of my league. Prices are too high.”
Hmmm, like Google stock?
More …
Published February 23rd, 2007
in Investing - General and Real Estate.
One of the problems with Financial TV is that they have 24 hours to fill with programming. How can you fill that much time without including some “not so bright” people? Every morning I wake up around 5 am or so and turn on Bloomberg. I lay in bed and catch up on what has happened in the stock markets around the world until around 6:30am. On yesterday, they had a ”not so bright” on who said that it may be time to buy certain subprime lenders. All I could do is shake my head and turn off the TV.
Apparently there are two kinds of subprime lenders. Ones who hold on to the loans and the other that sells their loans. I don’t remember which one he said that it was time to buy, but it doesn’t matter. Obviously this guy was an analyst for the subprime lenders and his job is to push those stocks. Whenever you watch these shows you must determine what is the person trying to sell and then determine if you want to believe anything that comes out of their mouth.
Continue reading ‘Time to Buy Subprime Lenders - You Gotta be Kidding!’
Published February 23rd, 2007
in Economics.
Ron Paul is one of the few in Congress that really “gets it.” He has filed to run for the Presidency in 2008, but has been really quiet since filing. I wish that he would pick up the pace, because he is one who could make a difference.
Source: Texas Straight Talk
February 19, 2007
Federal Reserve Chairman Ben Bernanke testifies twice every year before the congressional Financial Services committee, and I look forward to these opportunities to raise questions about monetary policy. I believe monetary policy is critically important yet overlooked in Washington. Money is the lifeblood of any economy, and control over a nation’s currency means control over its economic well being. Fed bankers quite literally determine the value of our money, by controlling the supply of dollars and establishing interest rates. Their actions can make you richer or poorer overnight, in terms of the value of your savings and the buying power of your paycheck. So I urge all Americans to educate themselves about monetary policy, and better understand how a small group of unelected individuals at the Federal Reserve and Treasury department wield tremendous power over our lives.
The following are some excerpted comments from my opening remarks at the hearing with Mr. Bernanke:
More …
Published February 21st, 2007
in Investing - General and Absolute Must Reads.
In a 2003 research paper Goldman Sachs argued that the combination of countries Brazil, Russia, India and China (BRIC) has the economic potential to be larger than the G6 in US dollar terms by 2050. The countries are forecast to encompass over 40% of the world’s population and hold a combined GDP of nearly $15 trillion dollars. Goldman predicts China and India will be dominant global suppliers of manufactured goods and services and that Brazil and Russia will be dominant suppliers of raw materials. Brazil and Russia would form logical commodity suppliers to China and India; cooperation amongst the four countries would create a powerful economic block.
Although the relationships are logical, it is not a no-brainer that the potential will be realized. Take a look at these headlines. Continue reading ‘Building a Better BRIC-Trap’
Published February 21st, 2007
in Investing - General and Trading School.
Individual investors no longer have to wait on Wall Street’s products to address specific areas of interest. Low cost brokers and basket trading (the ability to trade, manage and track a group of stocks as one entity) have made it financially feasible and practical to create your own “pseudo-ETF.”
What are the advantages of basket trading? Continue reading ‘Basket Trading’
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