Archive for the ‘Emerging Markets’ Category

Notes From Underground: For What It’s Worth

February 4, 2014

“There’s something happening here

But what it is ain’t exactly clear

There’s a man with a gun over there

Telling me I got to beware

I think it’s time we stop

Children,what’s that sound?
Everybody look ,what’s going down? [Buffalo Springfield]
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Notes From Underground: Taper Impact on Emerging Markets (Santelli Exchange)

January 30, 2014

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Click on the image to watch Rick Santelli and I discuss the selloff in emerging markets, as well as the U.S. government’s myRA plan.

Notes From Underground: This Market Is a Tribute to Rudyard Kipling’s “IF”

June 25, 2013
“If you can keep your head when all about you
    Are losing theirs and blaming it on you”
The opening stanza of Kipling’s poem about British stoutness is not to say others are blaming but rather an admonition from Notes From Underground about keeping your wits about you and trying to make quality decisions in trying times. In a financial world that is steeped in excess leverage, nanoseconds and algorithmic trading programs ,being a fundamental/technical trader seeking relative value becomes a daunting task. I am not one who favors catching “falling pianos” and have been more content to let trades come to make rather than force the action. As the markets unwind leveraged trades that causes massive selling across all asset classes.
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Notes From Underground: Awaiting the FOMC

September 20, 2011

The media has made the idea of a TWIST by the FED a sure thing. Okay, can’t argue with consensus, but of course that is why this blog exists: To question the thought process of the purveyors of conventional wisdom and to try to profit in a real-time world from challenging the status quo. If the FED TWISTS will the markets turn? BUT TURN TO WHAT? What will a lowering of the rate on the 10-year note do to a stalling economy with zero interest rates? Bernanke himself alluded to the BALANCE SHEET REPAIR taking place in the private sector, which was holding back consumer demand. Even though corporate balance sheets are healthy, capital investment lags as the corporations fear lackluster demand so there is no rush to create new supply.

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Notes From Underground: Hello? Central Casting, we need experts in market and political hieroglyphics–STAT

January 30, 2011

All eyes have turned to Egypt as the political situation has caught the world’s financial markets off guard. The turmoil in Tunisia was merely a blip on the radar screen but the significance of Egypt is an entirely different matter. So much capital has been thrust at maintaining the status quo in Egypt that many financial analysts have been lulled into a pre-Minsky complacency: Stability breeds a false sense of comfort. The emerging markets have been the repository of the Bernanke QE2 program as low rates have led to the search for higher yields and let potential risk be damned or rather rationalized away by dusting off the models of Long Term Capital Management.

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