Archive
Nov 11, 2008
Investors Should Fear This Payday
By Guy Bennett, Q1 Publishing
A pure free market economy is great on paper. Goods and services are exchanged under conditions mutually agreed upon by the seller and the buyer. The efficiency of the system is enforced by the natural laws of supply and demand, leading to lower pricing and increased quality of service.
Under this theory, government regulation is an evil which distorts the market and dilutes the purity of the relationship between the consumer and producer.
As we’ve been reminded recently, a free market economy also has its downside.
In hindsight, lending money to low-income home owners with “teaser rates” that triple 18 months into the contract maybe wasn’t the greatest idea.
A pure free market economy is great on paper. Goods and services are exchanged under conditions mutually agreed upon by the seller and the buyer. The efficiency of the system is enforced by the natural laws of supply and demand, leading to lower pricing and increased quality of service.
Under this theory, government regulation is an evil which distorts the market and dilutes the purity of the relationship between the consumer and producer.
As we’ve been reminded recently, a free market economy also has its downside.
In hindsight, lending money to low-income home owners with “teaser rates” that triple 18 months into the contract maybe wasn’t the greatest idea.
Nov 07, 2008
Renegade Trader Makes $1.7 Billion in Bear Market
By Guy Bennett, Q1 Publishing
Last month as the Dow dropped 20% and portfolios got battered, one investor was prepared. Nassim Nicholas Taleb, who founded the risk management firm Universa Investments, watched his portfolio soar 65% and 115%.
If Taleb’s name sounds familiar that’s because his book The Black Swan: The Impact of the Highly Improbable, spent 17 weeks on the New York Times Bestseller list.
Universa was launched in December 2007 with $300 million in assets. It is now estimated to be worth close to $2 billion. Technically Taleb is an “external advisor” to Universa, which is managed and owned by former professional trader Mark Spitznagel.
How did Universa Investments gain 115% in the vortex of the worst bear market in two decades?
Last month as the Dow dropped 20% and portfolios got battered, one investor was prepared. Nassim Nicholas Taleb, who founded the risk management firm Universa Investments, watched his portfolio soar 65% and 115%.
If Taleb’s name sounds familiar that’s because his book The Black Swan: The Impact of the Highly Improbable, spent 17 weeks on the New York Times Bestseller list.
Universa was launched in December 2007 with $300 million in assets. It is now estimated to be worth close to $2 billion. Technically Taleb is an “external advisor” to Universa, which is managed and owned by former professional trader Mark Spitznagel.
How did Universa Investments gain 115% in the vortex of the worst bear market in two decades?
Nov 06, 2008
The Real Story Behind China's Manufacturing Crisis
By Guy Bennett, Q1 Publishing
We’re pretty much dead now. We cannot pay our workers’ salaries. We are about to be bankrupt.
- Mao Youming, Factory Owner, Shaoxing, China Oct 30, 2008
The Chinese government claims that their annualized GDP grew by 9% between July and September.
Mainstream media outlets like are parroting the cheery party line despite an avalanche of data from the manufacturing sector that suggests the Chinese economy is faltering and on the brink of collapse.
We’re pretty much dead now. We cannot pay our workers’ salaries. We are about to be bankrupt.
- Mao Youming, Factory Owner, Shaoxing, China Oct 30, 2008
The Chinese government claims that their annualized GDP grew by 9% between July and September.
Mainstream media outlets like are parroting the cheery party line despite an avalanche of data from the manufacturing sector that suggests the Chinese economy is faltering and on the brink of collapse.
Nov 04, 2008
Another Man's $52 Billion Treasure
By Guy Bennett, Q1 Publishing
We’re rich. We have less than 4,000 people living here and we have millions of dollars in the bank.
- Town Administrator, Fox Township Pennsylvania
It’s tough to imagine in this economic climate, but some small towns are getting rich.
That may be a surprise. After all, dozens of state and local governments are broke and on the verge of being downgraded to junk status. State pension funds have been decimated. A few pundits have even predicted state and local governments’ debt loads may trigger another phase in the credit crisis.
But some have more cash than ever by...
We’re rich. We have less than 4,000 people living here and we have millions of dollars in the bank.
- Town Administrator, Fox Township Pennsylvania
It’s tough to imagine in this economic climate, but some small towns are getting rich.
That may be a surprise. After all, dozens of state and local governments are broke and on the verge of being downgraded to junk status. State pension funds have been decimated. A few pundits have even predicted state and local governments’ debt loads may trigger another phase in the credit crisis.
But some have more cash than ever by...
Oct 31, 2008
Petro Dollar Shopping Spree Starts Now
By Guy Bennett, Q1 Publishing
As we twist in the wind, watching the markets rise on vapors and plummet on gossip, the financial pundits are trying to figure out whether the current mini-rally is here to stay.
History indicates that there will be plenty of rallies as we bounce across the bottom. After all, the stock market is a self correcting system. When prices get low enough, people will start buying. And when they start buying, prices will move up.
However, there’s a new wrinkle this time around...
As we twist in the wind, watching the markets rise on vapors and plummet on gossip, the financial pundits are trying to figure out whether the current mini-rally is here to stay.
History indicates that there will be plenty of rallies as we bounce across the bottom. After all, the stock market is a self correcting system. When prices get low enough, people will start buying. And when they start buying, prices will move up.
However, there’s a new wrinkle this time around...
