Monday, December 24, 2012

Every Day in Every Way...things are getting Cheaper; Tales From Normal, Mn.: FICTION

How does one truly hedge for a classic case of deflation???? this was the problem of the thirties, this was the problem that Bernanke did not want to face after the crisis of 2008, and after all this stimulus...this is still the problem that we may face...and it is unclear that we are any better able to solve it than Greece or Japan...and you? any ideas?

The Calm Before the Storm: 2012

It is a little weird, that in December 2012, after the failure of the political parties to resolve the fiscal cliff issue, there has been no plunge of the stock market that would reflect the dire situation that we are in as a nation....it is a little funny and weird...the vix which should reflect the volatility should be higher....everything should be more volatile..yet it is not..this is a little strange...make a note of it....

Be Wary...that is the Traders Edge

When one is young, and sharp, and a learner...the notion is that someday one will be supremely knowledgeable, be able to be the font of wisdom..ya..kinda the "Carnack the Magnificant" of Johnny Carson fame....the problem is that in the markets it does not work that way...the key is always to be on edge..to be wary...to never assume...to always be wondering...and that is the essence of the stress...and the success of the successful trader...as soon as one thinks one has the formula...knows everything...or is just a little complacent....all hell breaks out..and devastation comes shortly thereafter...make a note of it.